How Carvana Is Gaining Ground in the Used Car Market
Carvana (NYSE: CVNA) is a rapidly growing online retailer of used cars. After launching in Atlanta in 2013, the company is now live in 146 markets with about 67% of the U.S. population in its coverage area. The company has grown revenue at a rate of over 100% in each quarter since its founding, and is now the third-largest retailer of used cars nationwide. The company's completely different approach seems to be enabling a better customer experience. Whether this model is the future of used car retailing depends on whether these perks are enough to make enough consumers comfortable buying used cars sight unseen.
Rather than build out a large number of local dealerships around the country like Carmax has, Carvana sells used cars completely online. Shoppers browse a selection that is now at more than 23,000 vehicles and can place an order online without ever stepping foot into a dealership or talking to a salesperson. They can even get approved for financing with a few clicks.
The vehicle is then delivered to the buyer's home and the customer has seven days to decide if they want to keep or return the car. Alternatively, customers in some markets can pick up their car from one of Carvana's patented vehicle vending machines for a unique experience.
Source Fool.com
