Carvana to open Chicago reconditioning center
An omnichannel platform for buying and selling used cars is expanding production capacity and inventory in the Chicago market.
Carvana plans to bring inspection and reconditioning center (IRC) capabilities to its existing ADESA Chicago wholesale auction site located in Hoffman Estates, Ill. The site measures approximately 75 acres, has nearly 6,000 parking spaces and has hosted wholesale auto auctions for 10 years.
The company has been announcing plans to expand the auction and reconditioning capabilities of existing ADESA centers around the country. Examples in the past several months include metro areas such as Syracuse and Long Island, N.Y., San Francisco and Dallas-Fort Worth.
The integration will establish a new pool of Carvana retail inventory, while wholesale buyers will obtain enhanced on-site inspection and reconditioning capabilities and ongoing access to ADESA’s in-lane and digital auction services.
Carvana’s proprietary CARLI software platform will support the site’s transition to an IRC-enabled facility, which the company expects to employ about 100 people. The announcement builds on Carvana's growing presence in the Chicago market, which also includes its “car vending machines” in Schaumburg and Oak Brook.
[READ MORE: Online retailer disrupts dealership category with ‘car vending’ machines]
"Bringing IRC capabilities to ADESA Chicago strengthens the speed and efficiency of our national network while deepening our presence in the Midwest," said Brian Boyd, senior VP of inventory at Carvana. "We’re proud to continue growing our local team while improving selection and delivery times for Chicago retail customers and expanding the capabilities we offer our wholesale partners across the region."
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 to its "car vending machines" in select markets.
Founded in 2012 and based in Phoenix, Carvana provides as-soon-as-next-day delivery to automotive shoppers in over 300 U.S. markets.
