7 Carvana Type Companies You Should Know About
Carvana is a company that sells used cars online and delivers them to your door. It also offers financing, trade-ins, and warranties. Carvana is known for its innovative car vending machines, where customers can pick up their purchased vehicles.
But Carvana is not the only company that is disrupting the traditional car buying process. There are other carvana type companies that are offering similar or different services to customers who want to buy or sell cars online. Here are seven of them:
1. Vroom
Vroom is another online platform that sells used cars and delivers them nationwide. Vroom also provides financing, trade-ins, and warranties. Vroom claims to have lower prices than Carvana and other dealerships, and offers a 7-day return policy.
2. Shift
Shift is an online marketplace that connects buyers and sellers of used cars. Shift handles the inspection, listing, pricing, and delivery of the cars. Shift also offers financing, trade-ins, and warranties. Shift operates in California, Oregon, Washington, and Texas.
3. CarMax
CarMax is the largest retailer of used cars in the US. CarMax has both physical locations and an online platform. CarMax allows customers to browse, buy, sell, or trade-in cars online or in-store. CarMax also offers financing, warranties, and a 7-day return policy.
4. CarLotz
CarLotz is a consignment service that helps sellers get more money for their cars. CarLotz inspects, cleans, lists, and sells the cars on behalf of the sellers. CarLotz also offers financing, trade-ins, and warranties to buyers. CarLotz has physical locations in several states.
5. TRED
TRED is an online platform that connects private buyers and sellers of used cars. TRED verifies the identity and credit of both parties, and facilitates the payment, paperwork, and delivery of the cars. TRED also offers financing, trade-ins, and warranties.
6. Beepi
Beepi is an online platform that sells certified pre-owned cars and delivers them to your door. Beepi also offers financing, trade-ins, and warranties. Beepi has a 10-day return policy and a 3-month or 3,000-mile warranty.
7. Fair
Fair is an app that allows customers to lease used cars on a flexible basis. Fair provides a range of cars from different dealerships, and customers can choose their monthly payment, mileage limit, and duration of the lease. Fair also covers the maintenance, warranty, and roadside assistance of the cars.
These are some of the carvana type companies that are changing the way people buy and sell cars online. They offer convenience, transparency, and flexibility to customers who want to avoid the hassle of traditional dealerships.
The Rise of Online Car Retailers
Online car retailers, such as Carvana, Vroom, CarGurus, and others, have been disrupting the traditional car dealership industry by offering a convenient, hassle-free, and transparent way of buying and selling used cars. These companies allow customers to browse, finance, and purchase vehicles online, and deliver them to their doorsteps or nearby locations. They also offer features such as car vending machines, trade-in options, and money-back guarantees. In this blog post, we will look at some statistics that show the increase or decrease in global demand for this type of service.
Online Car Retailers vs. Traditional Dealerships
According to a report by Frost & Sullivan, the global online car retail market is expected to grow from 1.9 million units in 2020 to 3.1 million units in 2023, representing a compound annual growth rate (CAGR) of 18.4%. The report also predicts that online car retailers will account for 6% of the total used car sales by 2023, up from 4% in 2020.
One of the main drivers of this growth is the changing consumer behavior and preferences due to the COVID-19 pandemic. The pandemic has accelerated the adoption of digital platforms and e-commerce across various industries, including automotive. According to a survey by Capgemini, 46% of consumers said they would prefer to buy a car online rather than visiting a dealership in 2020, up from 37% in 2019. The survey also found that 64% of consumers said they would be willing to buy a car from an online-only retailer, such as Carvana or Vroom.
Another factor that contributes to the rise of online car retailers is the increasing availability and affordability of used cars. According to Edmunds, the average price of a used car in the US was $23,723 in the first quarter of 2021, down 1.7% from the fourth quarter of 2020. The lower prices are partly due to the influx of off-lease vehicles and rental cars that were returned during the pandemic. Edmunds also estimates that there were 10 million used cars available for sale in the US in March 2021, up from 8.6 million in February 2021.
Online Car Retailers vs. Each Other
While online car retailers have been gaining market share and popularity among consumers, they also face fierce competition from each other. According to SimilarWeb, Carvana was the most visited online car retailer website in the US in May 2021, with 29.8 million visits, followed by CarGurus with 28.5 million visits, AutoTrader with 25 million visits, and Vroom with 7.6 million visits.
However, website visits do not necessarily translate into sales or revenue. According to their latest financial reports, Carvana sold 244,111 vehicles and generated $5.59 billion in revenue in 2020, while Vroom sold 72,050 vehicles and generated $1.36 billion in revenue in the same period. CarGurus and AutoTrader do not sell vehicles directly but act as intermediaries between buyers and sellers. CarGurus reported $551.5 million in revenue in 2020, while AutoTrader reported £368.9 million (about $515 million) in revenue in its fiscal year ended March 31, 2020.
These numbers show that online car retailers have different business models and strategies to attract and retain customers. Some focus on offering low prices and high-quality vehicles, while others emphasize convenience and customer service. Some also leverage their physical presence and network of partners to provide more options and flexibility for delivery and pickup.
Online car retailers are changing the way people buy and sell used cars by offering a digital alternative to traditional dealerships. They have been growing rapidly in recent years due to the shift in consumer behavior and preferences amid the COVID-19 pandemic, as well as the abundance and affordability of used cars. However, they also face challenges from each other as they compete for market share and customer loyalty.
References:
https://finance.yahoo.com/news/carvana-launches-wichita-soon-next-110000199.html
https://www.prnewswire.com/news-releases/online-car-retail-market-to-grow-by-81-6-in-2020-reach-3-1-million-units-by-2023-frost–sullivan-301181005.html
https://www.capgemini.com/news/covid-19-accelerates-the-shift-to-online-car-sales/
https://www.edmunds.com/industry/press/used-car-market-report.html
https://www.similarweb.com/top-websites/category/vehicles/automotive-industry/
https://investors.carvana.com/news-releases/news-release-details/carvana-announces-fourth-quarter-and-fiscal-year-2020-results
https://s23.q4cdn.com/274128561/files/doc_financials/2020/q4/Vroom-4Q20-Earnings-Release.pdf
https://investors.cargurus.com/news-releases/news-release-details/cargurus-inc-reports-fourth-quarter-and-full-year-2020-financial
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