Carvana developing auto reconditioning center
An omnichannel platform for buying and selling used cars is expanding its capabilities to auction reconditioned vehicles.
Carvana is developing its first auction and reconditioning "megasite" in Kansas City. The planned facility will allow Carvana to establish inspection and reconditioning center (IRC) capabilities at its existing Kansas City wholesale auction site it maintains with its ADESA wholesale auction subsidiary.
The company intends to increase its total reconditioning capacity, which will improve product selection, as well as create a pool of retail inventory in the Kansas City metropolitan area. The Kansas City location will also implement Carvana’s proprietary CARLI software, a suite of systems and processes that supports the full reconditioning lifecycle.
"Integrating Carvana reconditioning with ADESA’s existing wholesale auction at the Kansas City 'megasite' will offer greater selection and faster delivery speeds for local retail customers, enhance our auction offering for local commercial customers, and expand our footprint as an employer in the region by creating new jobs and training opportunities," said Brian Boyd, Carvana senior VP of inventory.
Carvana has begun hiring new associates at the Kansas City facility and expects the megasite transition to create about 200 new entry-level and skilled manufacturing jobs in the area as the site expands in the coming years.
How Carvana’s e-commerce model works
All vehicles in Carvana’s national inventory come with a seven-day return policy as opposed to a traditional test drive. According to Carvana, this ensures customers have the right amount of time to determine if the vehicle fits their needs.
Customers can also sell their current vehicle to Carvana and receive an offer in as little as five minutes, without having to purchase a vehicle. To sell a vehicle, customers enter their vehicle identification number (VIN) or license plate number on Carvana.com, answer a few questions, and then Carvana can pick up the vehicle and pay them as soon as the next day.
The e-tailer offers same-and next-day delivery of vehicles. In addition, in select markets Carvana offers "car vending machines" which enable customers to select and purchase a vehicle from its site and schedule a time for pick up.
[READ MORE: Carvana expands ‘car vending machine’ format in California]
Upon their arrival at the tower, car buyers are greeted by a customer advocate and receive a commemorative, oversized Carvana coin to activate the automated vending process. Customers can watch their newly purchased vehicle descend through the brightly lit, glass vending structure.
Founded in 2012 and based in Phoenix, Carvana provides as-soon-as-next-day delivery to automotive shoppers in over 300 U.S. markets.
