Updated for 2025 by Retail My Ride
If you’ve ever plugged your 17-digit VIN into Carvana’s website and gotten their instant cash offer, you’ve probably thought: “Why is this so much lower than I expected?” Here’s the inside look most sellers never get.
Wholesale-first model: Their buying formula is based on auction results, various pricing guides and proprietary wholesale data - not the higher retail market.
Reconditioning & transport costs baked in: They subtract what it will cost them to recondition, move, and prep your car for resale before you ever see a number.
Risk cushion: They hold back thousands to protect against market dips or unexpected mechanical issues - even if your car is in great shape.
Volume-based buying: Their model is designed to make a profit on every single unit, which means leaving no room for special cases.
These methods are great for speed and convenience - but they rarely put the maximum money in the seller’s pocket.
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Keep Carvana’s offer as your “floor” price - something you know you can always fall back on or use as a minimum baseline.
Consign with a vetted dealer who sells your car for you at market-supported retail pricing and only adjusts based on buyer demand and reasonable offers (with your approval).
Professional marketing: High-quality photos, videos, showroom display, and online listings across multiple platforms.
Financing options for buyers: Dealers work with banks, credit unions, and online lenders so qualified buyers can act fast.
Full-service handling: Negotiations, paperwork, and delivery are all done for you - all you do is approve the deal - hands off and anonymous.
See the full process: What a Reputable Car Consignment Dealer Does
Carvana Instant Offer: $18,200
Retail Market Vakue: $21,800
Our Dealer's Fees: $1,500–$2,000
Net Gain vs. Carvana: +$1,600 to +$2,100
(Results vary by vehicle, demand, and market timing.)
Carvana pays at-or-below wholesale minus costs. Consignment dealers sell at retail minus reasonable fees. That difference - often $1,500 to $3,500 - is why thousands of private sellers are switching to the consignment selling option.
Read more seller stories: Retail My Ride Testimonials
Use our Car Consignment Dealer Search Tool to see if we have a vetted dealer in your area. If so, click the Get Started button and we will match you.
Or call 833-795-CARS (2277) to speak with one of consignment expert today.
Learn more through our Articles, Common Questions, Testimonials, About Us, and Which Vehicles Are Best Suited for Consignment.