Founded in 2012, Carvana has become America's largest online-only used car retailer. The company launched its first market in Atlanta, Georgia in 2013, and has expanded to 300+ markets across the United States.
Carvana makes money primarily by selling used cars to retail customers through its online platform (approximately 77% of its $12.8 billion revenue in 2021). When a retail customer purchases a car through Carvana, the company earns a profit on the sale, along with income from financing and insurance products. Carvana typically buys used cars from wholesalers, auctions, private sellers and trade-ins, and then reconditions them before listing them for sale on its retail website.
When you submit your car's information to Carvana for an instant cash offer, the company uses a proprietary algorithm to determine its wholesale value. The algorithm takes into account a variety of data points, such as market trends, the car's location, and historical sales data. Typically, Carvana's cash offers are hundreds of dollars below the average auction wholesale value to ensure (hedge their bet) they generate a profit regardless of whether they resell your car at auction (wholesale) or on their platform (retail). Few people are aware that Carvana made approximately $1.9 billion (17% of total revenue) in 2021 from wholesale (auction) sales to other dealers. It is important to keep in mind when you sell your car, the average difference between wholesale and retail value is approximately $3,500 - $4,500. This is potentially the amount of "money you leave on the table" if you accept Carvana's instant cash offer.
Use Retail My Ride to find a Consignment Pro (dealership) near you specializing in selling your type of vehicle at or near its true retail value, then contact the Consignment Pro to discuss their specific program details and requirements. Again, the average difference between a vehicle's true wholesale and retail value is approximately $3,500 - $4,500. You can search Retail My Ride's national network of automotive retail consignment dealers by Zip code, City, County, State, and filter your search by vehicle type, including Autos (late-model), Classics, Exotics, Antiques, Vintage, Custom, RVs, Motorcycles, Wheelchair accessible, Commerical, or Trailers.
You can also request a free no-obligation consignment valuation quote (retail value) for your vehicle through Retail My Ride, and one of our participating consignment dealerships will contact you directly to discuss how they regularly beat Carvana's cash offer.
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Browse our collection of Articles, Common questions, and Testimonials. Find out Which Vehicles Are Best Suited for Consignment and What Your Vehicle is Worth Using Consignment. Search our national directory of 1,087 consignment dealerships in 48 states by zip code, city, county, or state to easily find and connect with Consignment Pros near you that specialize in selling your type of vehicle.