Carvana tests consumers' appetite for used-car 'vending machine' [w/videos]
Carvana inspects vehicles for damage, takes numerous pictures of them for a seamless 360-degree interactive image and then advertises the vehicles on its website. Vehicle features and any damage are listed and tagged on the 360-degree picture, so prospective buyers can spin the car around and inspect cars themselves from the comfort of their homes. An Experian AutoCheck report is included with every vehicle. The company says that it doesn't buy any cars with frame damage or that have been in accidents.
Vehicles are sold at a no-haggle price, but company president Ernie Garcia says that cars advertised on Carvana are about $1,500 cheaper on average than what traditional dealerships can offer, Fox News reports. That isn't surprising considering the savings the dealership realizes with no sales staff.
The only Carvana location at the moment is in Atlanta, but the company intends to expand. Local delivery within a 75-mile radius of the Atlanta dealership is free, according to Fox News, while buyers can expect to pay $199 for deliveries up to 250 miles and up to $1,000 for a shipment to the west coast. Vehicles come with a 100-day warranty, and if buyers aren't satisfied with the car within a week of the purchase date, they're guaranteed their money back.
We're not sure if this is the future of car buying, but if purchasing from Carvana is as slick as the design and function of its website, it makes a pretty strong case for itself. To get a better feel for the process, head below to check out some of Carvana's videos.
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