Carvana is moving into the brand new automobile enterprise. The corporate has been promoting used automobiles on-line since its inception in 2012, but it surely has simply acquired its first new automobile dealership. The corporate purchased a Stellantis retailer in Arizona the place it’s primarily based, increasing into a brand new phase after practically going bankrupt a couple of years in the past.

The shop opened as we speak, rebranded as Casa Grande Chrysler Dodge Jeep Ram. It’s going to proceed to promote and repair new and used Stellantis automobiles whereas retaining its staff. Carvana advised Phoenix Enterprise Journal in a press release the corporate it’s “at all times experimenting” and that this buy “is a small check in a single market.”

A possible shift to new automobile gross sales would sign a considerable turnaround for the corporate. In late 2022 and early 2023, there have been rumors Carvana was on the verge of chapter. Its inventory worth had fallen 99 % from an all-time excessive as a consequence of shrinking gross sales, ballooning debt, and issues associated to titles.  The post-COVID surge in used automobile gross sales benefited the corporate early on, but it surely didn’t final because the market normalized.  

The corporate prevented chapter, expanded into automobile auctions, and ended 2024 with a rise in gross sales and income, making 2022-2023 seem like an outlier. The corporate mentioned in a letter to shareholders about its sturdy This fall 2024 monetary outcomes that it expects “vital progress” for retail gross sales this 12 months and that Carvana is beginning 2025 “robust.”