Carvana is getting into the new car business. The company has been selling used cars online since its inception in 2012, but it has just acquired its first new car dealership. The company bought a Stellantis retailer in Arizona where it’s based, expanding into a new segment after nearly going bankrupt a few years ago.
The store opened today, rebranded as Casa Grande Chrysler Dodge Jeep Ram. It will continue to sell and service new and used Stellantis vehicles while retaining its employees. Carvana told Phoenix Business Journal in a statement the company it’s “always experimenting” and that this purchase “is a small test in a single market.”
A potential shift to new car sales would signal a substantial turnaround for the company. In late 2022 and early 2023, there were rumors Carvana was on the verge of bankruptcy. Its stock price had fallen 99 percent from an all-time high due to shrinking sales, ballooning debt, and problems related to titles. The post-COVID surge in used car sales benefited the company early on, but it didn’t last as the market normalized.
The company avoided bankruptcy, expanded into car auctions, and ended 2024 with an increase in sales and revenue, making 2022-2023 look like an outlier. The company said in a letter to shareholders about its robust Q4 2024 financial results that it expects “significant growth” for retail sales this year and that Carvana is starting 2025 “strong.”
Source: Phoenix Business Journal
