How Carvana Is Disrupting the Used Car Industry
You've probably seen the commercials on TV of those massive vending machines that hold automobiles instead of snacks and beverages. These belong to Carvana (NYSE: CVNA), a new kind of used car retailer that wants to "change the way people buy cars." The entire process is extremely easy and stress-free. Customers can search for cars, do virtual, 360-degree tours of the inside and outside, obtain financing from Carvana or a third party financial institution, and complete the entire purchase on the company's website. Cars can then be delivered directly to a buyer's home or can be picked up at one of the 24 previously mentioned vending machines that are located in major metropolitan areas across the U.S.
It appears that Carvana has so far succeeded at improving one of the worst shopping encounters we experience in our lives. According to the company's May 2020 investor presentation, 81% of consumers do not enjoy the car buying process and 8% of consumers rated car salespeople highly trustworthy. This shouldn't come as a surprise. Since the company's beginning more than seven years ago, Carvana has done so well that 96% of its customers would recommend the service to a friend.
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Source Fool.com
