Carvana has disrupted the traditional car-buying model by leveraging its extensive logistics network to sell vehicles well beyond the usual geographic limits of franchised dealerships. Unlike conventional dealers, which rely on local customers, the company’s ability to ship cars nationwide expands its market reach significantly. This approach challenges the long-standing industry practice of limiting sales to immediate dealership areas. The strategy raises questions about how it impacts competition and consumer choice 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.
