Carvana is expanding beyond its original focus on selling used cars online by acquiring and operating franchised new-car dealerships, especially those tied to Stellantis brands such as Jeep, Chrysler, Dodge and Ram, CNBC reports.
Rather than abandoning its digital-first approach, the company is extending it into physical retail locations, using its technology-driven systems to manage pricing, inventory and the customer purchase experience in traditional dealership settings. In early cases, these acquired dealerships have reportedly seen noticeable increases in sales compared to their prior performance under conventional dealership management, suggesting that Carvana’s operational model can significantly boost throughput.
The strategy is important because it strengthens multiple parts of Carvana’s overall business. By selling new cars, it gains access to a more consistent flow of customer trade-ins, which directly feeds its core used-car inventory pipeline.
It also opens up additional revenue streams that are typically more profitable for dealerships, particularly vehicle service, maintenance and parts departments, which often generate steadier margins than vehicle sales alone. This gives Carvana a more vertically integrated structure that spans sourcing, selling, financing, and servicing vehicles.
At the same time, the expansion is reshaping how Carvana interacts with the broader auto retail ecosystem.
Traditional franchise dealers view the move as a competitive threat, since it represents a large, tech-enabled operator consolidating ownership within a fragmented industry that has historically been locally owned. Automakers and dealer networks are also adjusting to the idea of a hybrid model where online-first retailers operate physical franchises while still pushing digital purchasing workflows.
