Wow who would have imagined those two amazing companies work together.
I’m interested in seeing how this works out. I personally would really like to have a no-pressure showroom where I can play around w/ the car and take some on a test drive. I also imagine dealerships could save some amount of $ by not having to have a ton of cars in stock? I think ordering the car is how it’s often done in Europe?
This concept has never really been possible before since having a few dealerships does not allow you to sell cars online nationwide since not many people in NYC will want to order a car that has to be picked up in MA, never mind in California. But with Carvana’s existing transport infrastructure, they can relatively easily and cheaply move the cars around to the stores where they are needed - I am assuming you would pick up the car at your nearest Carvana center just like you do for their used cars. So the dealership in Massachusetts can now service all of New England and NY.
These dealership should then pretty easily be the biggest volume stores in the country. And there are certainly other economies of scale that could be achieved. The question to me is whether the federal government or manufactures don’t like this new way of selling cars and step in to make interstate sales illegal.
The Constitution allows for “interstate commerce” so whoever wants to stop it would have to come up with some angle out of left field, it won’t be straightforward to stop such sales.
Carvana bought bunch of Stellantis dealers.
Manufacturers or dealerships not liking this new model? Or both?
It doesn’t make much sense that manufacturers would care but I recall a thread about where @Jrouleau426 indicated Toyota might not like his nationwide sales (am I remembering wrong, if so please correct me).
As for dealerships, NADA is of course going to be against this for what it stands to do to the “mom and pop” dealerships.
I would like cvna to buy all of stallantis so I can finally exit my short position with a 100% gain 