Carvana selects Northeast city for fourth auto reconditioning facility
An omnichannel platform for buying and selling used cars is expanding its capacity to auction reconditioned vehicles in a new geographic area.
Carvana Co. is developing its fourth auction and reconditioning "megasite" in the Boston area, following announcements of plans for its first megasite in Kansas City, second hub in Houston and third facility in Las Vegas. This will bring Carvana’s reconditioning and auction activities to the Northeast U.S. as well as the Midwest and Southwest.
Following this transition, Carvana will establish inspection and reconditioning center (IRC) capabilities at the existing Framingham, Mass. (Greater Boston area) site of its ADESA wholesale auction subsidiary while maintaining all digital and in-lane auction operations.
The auction site, which has served wholesale customers for decades, covers more than 100 acres and includes over 13,000 parking spaces. Carvana has already begun hiring new associates at this facility and expects the megasite transition to create approximately 200 new jobs in the area over time.
"We’re excited to continue to strengthen our network by bringing Carvana Inspection and Reconditioning Center capabilities to ADESA Boston," said Brian Boyd, Carvana senior VP of inventory. "This integration will not only grow Carvana’s total reconditioning capacity, but also drive significant benefits for local retail and wholesale customers. With Carvana IRC capabilities on site at ADESA Boston, local retail customers will enjoy car buying options with faster delivery times and local wholesale customers will have access to a more comprehensive auction offering."
By adding IRC capabilities to its ADESA Boston site, Carvana intends to increase its total reconditioning capacity, which will improve product selection as well as create a pool of retail inventory in the surrounding metropolitan area.
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.
