Carvana to place auto reconditioning facility in headquarters market
An omnichannel platform for buying and selling used cars is expanding its auction and delivery capacity in a familiar location.
Carvana Co. is developing its eighth auction and reconditioning "megasite," in the Phoenix market where its corporate headquarters are located.
The company 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 and seventh in New Jersey.
This will expand Carvana’s reconditioning and auction activities in the Southwest, along with its operations in these areas in the Midwest and Northeast.
This effort will bring Carvana’s inspection and reconditioning center (IRC) capabilities to its existing ADESA Chandler, Ariz. (Phoenix metro area) wholesale auction location while maintaining digital and in-lane auction operations on site.
Carvana intends for the integrated facility to expand its overall production capacity and enhance its offerings for both retail and wholesale customers in the area.
The site has served local wholesale auto auction customers for more than 20 years and spans approximately 100 acres and more than 5,000 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 200 new entry level and skilled jobs in Chandler over time.
"The Phoenix area is home to our headquarters and a significant anchor for Carvana and ADESA operations, so we couldn’t be more excited to expand our local capabilities and team here," said Brian Boyd, senior VP of inventory at Carvana. "Bringing Carvana Inspection and Reconditioning Center capabilities to ADESA Phoenix will drive additional speed and selection for our local retail customers and an even more robust offering for our local wholesale customers while also creating new entry level and skilled jobs in the Chandler 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.
