Carvana expanding auction and delivery capacity in Colorado
An omnichannel platform for buying and selling used cars has selected the site for its auction and reconditioning "megasite."
Carvana Co. is bringing inspection and reconditioning center (IRC) capabilities to its existing ADESA wholesale auction location in Colorado Springs, Colo. The company will maintain digital and in-lane auction operations on site.
Carvana has previously announced plans to develop its first megasite in Kansas City, second hub in Houston, third facility in Las Vegas, fourth in the Boston area, fifth in Atlanta, sixth in Indianapolis, seventh in New Jersey and eighth in Phoenix (where its corporate headquarters are located).
The company intends for the integrated facility to expand its overall production capacity and enhance its offerings for both retail and wholesale customers in the area.
Located in Fountain, Colo., the site has served local wholesale auto auction customers for more than 40 years and spans approximately 50 acres and more than 4,000 parking spaces with existing infrastructure to support both Carvana IRC operations and ongoing ADESA wholesale auction services.
Carvana has already begun hiring new local employees and expects the integration to create approximately 100 new entry level and skilled jobs over time.
"After many years serving retail and wholesale customers in the Colorado Springs area, we are thrilled to expand our local team and capabilities," said Brian Boyd, Senior Vice President of Inventory at Carvana. "This integration will bring a wider selection of vehicles with quick shipping times to local retail customers, provide a more robust offering for local wholesale customers, and also create new job opportunities for entry level and skilled professionals in the local community.”
The site will also adopt Carvana’s proprietary CARLI software, which is designed to enable efficiency, scalability and consistency across its IRC network.
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.
