Carvana acquires Arizona dealership, shifts to new-car sales

Carvana has made a significant move into the new car market by acquiring a Chrysler-Dodge-Jeep-Ram dealership in Casa Grande, Arizona, marking its first foray into new vehicle sales since its establishment in 2013. The dealership, rebranded as Casa Grande Chrysler Dodge Jeep Ram, will continue to sell and service both new and used Stellantis vehicles, retaining all existing employees. This acquisition comes after a tumultuous period for Carvana, which nearly faced bankruptcy in 2022 but has since reported a 33% growth in sales in 2024, indicating a potential recovery. Carvana's spokesperson stated that this initiative is a small test to enhance customer experiences at a franchise dealership, though it is unclear if this will lead to further expansions in the new car segment. The move aligns with an industry trend where digital players are increasingly acquiring brick-and-mortar operations, suggesting an evolving automotive retail landscape. The performance of this dealership could influence Carvana's long-term strategy and its position in the competitive automotive market.