Carvana CEO says price declines and interest rate cuts should make used vehicles more affordable
Since it started selling cars in 2013, Carvana has disrupted the U.S. used vehicle market with no-haggle pricing and an online buying process that cuts out the often-dreaded salesman
DETROIT (AP) — Since it started selling cars in 2013, Carvana has disrupted the U.S. used vehicle market with no-haggle pricing and an online buying process that cuts out the often-dreaded salesman.
The Tempe, Arizona, company took advantage of many buyers’ fear of negotiating with a dealer, letting them purchase vehicles via computer and have them delivered to their homes.
CEO and co-founder Ernie Garcia says the company has lower costs than conventional dealerships because it doesn’t have expensive real estate across the nation. It does have 17 centers nationwide where used vehicles are reconditioned before sale.
So far the company has sold about 2 million vehicles, with sales now running at a rate of 400,000 per year. That’s still only a small part of the U.S. used vehicle market of about 36 million sales annually.
