Carvana has disrupted the traditional car-buying model by leveraging its extensive logistics network to sell vehicles beyond the usual geographic limits of franchised dealerships. Unlike conventional dealers, which operate within localized markets, the company’s nationwide distribution system enables it to reach customers in areas where physical showrooms are scarce. This approach challenges the long-standing industry norm of relying on regional dealerships for car sales. The strategy raises questions about how it could reshape competition and consumer access in the automotive market.
Carvana is relatively new to the franchised dealership business, but its national logistics network allows it to sell cars far outside the typical dealership market area.
