Ever wondered why car-buying can’t be as easy as grabbing a candy bar or a soda?
For Washington, D.C., residents, it’s an idea that drew much closer to reality this week, when Carvana, the e-commerce platform for used vehicles, opened one of its signature car vending machines in Gaithersburg, Md.
There, buyers who purchase a car from the company’s website, can insert an oversized, commemorative Carvana token and retrieve their vehicle from an eight-story, all-glass tower.
The site is the 10th that the company has built in the last three years as executives take advantage of strong U.S. demand for used cars. An improving economy helped buoy sales of previously-owned vehicles 1.8 percent to 39.3 million in 2017, according to Cox Automotive’s 2018 Used Car Market Report and Outlook, even as sales of new cars dipped. As many as 39.5 million such autos may change hands this year, the firm predicted.
Carvana has provided next-day delivery of cars from its website, which boasts more than 10,000 vehicles as well as financing options, to Washington-area residents since 2016. For customers who want to pick up a vehicle at a vending machine but don’t live near one, the company also offers $200 toward a one-way flight to one of its facilities.
All vehicles sold on the platform have passed a 150-point inspection, have never been in an accident and have no frame damage. The company offers a seven-day return policy to appease customers wary of ordering a car online.
Carvana, which has also vending machine sites in Texas, Tennessee, North Carolina and Florida, was founded in 2012 and went public in April 2017, raising about $225 million. The Tempe, Ariz.-based firm’s shares have climbed 79 percent in trading this year to $34.29.
