Carvana (NYSE: CVNA) turned many investors’ heads when it began scooping up brick-and-mortar dealerships recently.
The strategic move seemed to go against the entire company’s vision of online used-car sales (we’ll get into that in a second)
A smaller detail many overlooked was that Carvana opted to buy Stellantis (NYSE: STLA) dealerships primarily, a strange decision given the automaker’s long list of recent struggles and receding market share. That said, this strange pairing might just be a match made in heaven for Carvana, and here’s why. What’s going on?
At first glance, Carvana scooping up physical dealerships goes against its historic strategy, but in reality, it’s attempting to disrupt the age-old dealership model as we know it. As it attempts this strategic pivot, there’s also reason to believe the synergy created could reward investors. Carvana’s physical dealerships still won’t sell you a vehicle in person; instead, they’re for test drives, showing car capabilities, and helping consumers buy from a larger selection online.