Carvana develops second auto reconditioning center
An omnichannel platform for buying and selling used cars is further expanding its capabilities to auction reconditioned vehicles.
Carvana is developing its second auction and reconditioning "megasite" in Houston, following the recent announcement of its first megasite in Kansas City. Via this transition, Carvana will establish inspection and reconditioning center (IRC) capabilities at the existing 43-acre, 5,000-parking-space Houston wholesale auction site of its ADESA subsidiary, while maintaining all digital and in-lane auction operations.
By adding IRC capabilities to its ADESA Houston site, Carvana intends to increases its total reconditioning capacity, which will improve product selection as well as create a pool of retail inventory in the Houston 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.
"In bringing IRC capabilities to ADESA Houston, Carvana is leveraging the power of our existing infrastructure to enhance our services for both our retail and commercial customers,” said Brian Boyd, Carvana senior VP of inventory. “The megasite transition not only unlocks additional reconditioning capacity and network efficiency for Carvana as a whole, but also specifically benefits the Houston area with faster delivery times for local retail customers, a more robust auction offering for local commercial customers, and new jobs and training opportunities.”
Carvana has begun hiring new IRC associates at this facility and expects the transition to create approximately 200 new entry-level and skilled jobs in the area over time.
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.
