Wednesday, January 30, 2013
New Online Auto Buying Service Launches
A new service has launched in Atlanta that lets buyers of used vehicles shop, select and finance their purchases completely online.
The service, Carvana, is backed by DriveTime, which operates used-vehicle lots. Carvana bills itself as the first–of-its-kind service in the auto industry and says that it offers next-day delivery on purchases.
It plans to focus on mid-market and luxury vehicles and its current inventory features 150 vehicles from model year 2009 and newer.
“We have the ambition and fresh perspective of a start-up paired with the experience, infrastructure and knowledge gained from our prior work and partnership with DriveTime,” Carvana President Ernie Garcia said in a news release. “We are excited to introduce an entirely new concept into the car industry and breathe new life into the car buying experience.”
Carvana aims to serve the metro Atlanta market from its base in Winder, where it maintains its inventory and has a photo studio where it shoots detailed images of each of its vehicles. The company says it plans to expand rapidly across the United States.
Without a traditional "kick the tires" experience, the company does not offer a way for customers to try out the car before they buy.
But Carvana officials said that any customer can return any purchase within seven days if they are dissatisfied for any reason.
Carvana enters the market at a time of sales growth in the auto industry. After years of declining sales and two major bankruptcies among U.S. automakers, the industry has seen a strong rebound following a federal bailout and improved economic conditions.