This title, why does Carvana need to jumpstart ANYTHING? Used cars are red hot.
To me , it looks like they want a piece of Manheim’s business.
Adesa is pretty big. They might have some kind of power to manipulate the market. Or get hands on the car first
Totally agree. Skim what they want before it even hits the auction floor. But it also adds massive capacity for taking in and reconditioning to turn around inventory they get from private sellers. The Adesa nearest to me is in an old GM plant and it’s massive.
As much as Carvana seems overvalued as a business (really you can’t be profitable in this market?) this is a smart strategic move that gives them market power to keep pricing up and source what they need for inventory around the country.
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