Non-Dealers & dealers moving potential buyers to online & to their Web sites.
Online companies selling vehicles to people mostly sight unseen.
Traditional dealerships shifting to selling off their websites.
Online offering more capabilities and investing in delivery personnel & services.
Demand for preowned vehicles driving Carvana & other competitor sales.
COVID 19 fall out changing the way people buy car & trucks.
Shift to Internet Retailing from going to showrooms & those dealer visits.
Carvana leads the “caravan” to online sales & management of people’s vehicles.
Carvana had 25% increase in sales in second quarter; Revenue grew 13%.
Company still losing money & don’t expect profit in next 3 years.
Recent surge in online vehicle sales are wake up call for dealers.
Meantime, Carvana’s stock quadrupled since March & lockdowns.
CarMax, Vroom, Shift, & The Ricarts are seeking to compete
Less people & overhead required for an Online Vehicle Sales model.
No longer a need for big store fronts or even going to the dealership.
Means a dramatic change in traditional dealer offering of vehicle sales & service.
COVID 19 causing dealers to really compete in Pre-owned vehicle Market.
Investors going to online providers as traditional dealer’s market stalls.
Carvana in 260 markets; Expects to sell 265,00 cars in 2020;
Wants to sell 2M a year in the future.
“What we needed was an event that would generate the willingness to try something new.”—Ernie Garcia, CEO
Growth in Online Shopping and Used Cars Lifts Carvana, Attracts Competition – https://www.wsj.com/articles/growth-in-online-shopping-and-used-cars-lifts-carvana-attracts-competition-11597060148