Carvana expands into new vehicles, challenging the U.S. dealer model

Carvana is moving beyond used cars and into the new vehicle market, a shift that could affect how auto retailing works in the United States. The company has bought seven new vehicle franchises since last year, mostly selling Stellantis brands such as Chrysler, Dodge, Jeep and Ram. The move comes as Carvana looks to add another revenue stream and gain access to parts of the vehicle business it has not served before, including newcar sales and potentially more usedcar sourcing through dealeronly auctions. Industry analysts and dealers say the expansion could give Carvana an advantage because of its digital platform and existing logistics network. The company’s first newcar dealership in Casa Grande, Arizona, has grown quickly and recently became the topselling store nationally for Stellantis, according to figures shared with dealers. Even so, Carvana still faces a more regulated and complex market for new vehicles, where state laws, automaker rules, and postsale service expectations remain major hurdles.