Carvana selects site for third auto reconditioning facility
An omnichannel platform for the purchase and sale of used cars keeps expanding its capacity to auction reconditioned vehicles.
Carvana Co. is developing its third auction and reconditioning "megasite" in Las Vegas, following the recent announcements of plans for its first megasite in Kansas City and second hub in Houston.
Following this transition, Carvana will establish inspection and reconditioning center (IRC) capabilities at the existing Las Vegas site of its ADESA wholesale auction subsidiary while maintaining all digital and in-lane auction operations.
The site covers approximately 46 acres and over 5,000 parking spaces. Carvana has already begun hiring new IRC associates at this facility and expects the megasite transition to create approximately 200 new entry-level and skilled jobs in the area over time.
"We are excited to continue to build out our powerful, national footprint by bringing Carvana’s inspection and reconditioning center capabilities to ADESA Las Vegas," said Brian Boyd, Carvana senior VP of inventory. "The megasite transition not only expands Carvana’s production capacity and improves network efficiency for Carvana as a whole, but also drives faster delivery times for local retail customers and a more robust auction offering for local wholesale customers."
By adding IRC capabilities to its ADESA Las Vegas 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.
