What could be more convenient than comparison shopping online for your dream car? Carvana thinks being able to pick it up from a vending machine might be. A US-based used auto dealer, Carvana allows consumers to pick their car up from a showroom much like you would get a treat from a vending machine. After purchasing the car online, all you have to do is show up to pick it up and drive it home without ever having to sit down with a used-car salesman.
Carvana is hoping that the idea will catch on and is offering investors a piece of the pie by putting their IPO up for grabs. Although they were a simple start-up just a few short years ago, Carvana believes that there is room in the Canadian Kia dealers BC market, for their technology and car buying process. More and more consumers are becoming comfortable with making their car purchases solely online and are okay with not doing the used car negotiation dance or waiting for hours to sign paperwork.
The popularity of TrueCar, Inc. is proof that consumers are alright with getting rid of the brick and mortar car-buying experience. In just the last twelve months, their company has experienced a 150% rise in stock prices. Carvana is hoping to do the same. They have hired Wells Fargo Financial and Bank of America as the heavy-hitters to lead their attempt at the IPO option.
A start-up company based in Arizona, Carvana has high hopes that it will go public in the first half of this year. And there are already rumors that the firm’s worth is somewhere over two billion dollars, although both the financial backing institutions and Carvana itself refuse to put a price tag on the operation just yet.
Demand for SUVs, pickup trucks and cars in general has increased over the past year and is up from last year. Although there was a slowdown in February, forecasts are that there is no stopping the roll that the car industry is on. Currently, Carvana sells vehicles and operates its website through automated towers in cities like Nashville, Tennessee, and Austin and Dallas, Texas. Comparable to vending machines, the cars are stored for pickup after being purchased online.
When using Carvana, the consumer has the option to either have the vehicle delivered to them or to pick it up from one of the dispensing storage units using a special "coin". For those who live near the towers, it is a novel and chic experience. From start to finish, Carvana allows car buyers to shop, find, and finance their cars, all in one place. They also offer their own financing, which is a great convenience and only furthers the popularity of the service for many car buyers.
In 2015 alone, Carvana had a reported revenue of nearly $140 million, with projections to reach well over $350 million in 2016. With start-up costs, however, there are reports that the company itself has yet to turn a profit, which might be why the company and investors are keeping their financials silent until the company goes public. Founded in 2013, it is just one company who is trying to overhaul the way that car buyers traditionally shop and find their cars. Being completely online, they might still have to win over a good proportion of those in the market for a car.
Online shopping is undeniably more convenient, even for car buying. Just a couple of decades ago, it would take all day - or more - to find a car. Being limited to whatever was on the sales floor meant there weren’t many options. Also, you were beholden to a car dealership’s bottom line and negotiating always left many feeling taken advantage of.
Online car buying has changed a lot of those factors. For some, however, being able to test drive a car, the thrill of the hunt, and the complexities of financing are still something they would like to do with their local dealership. There are still some who are looking for a handshake and a promise.
If Carvana can bridge all the mental hurdles that come with online car shopping, it might just revolutionize the way that people shop, buy, and pick up their new car purchases. If the company takes off, there are likely many who invest that will win too.
Carvana is hoping that the idea will catch on and is offering investors a piece of the pie by putting their IPO up for grabs. Although they were a simple start-up just a few short years ago, Carvana believes that there is room in the Canadian Kia dealers BC market, for their technology and car buying process. More and more consumers are becoming comfortable with making their car purchases solely online and are okay with not doing the used car negotiation dance or waiting for hours to sign paperwork.
The popularity of TrueCar, Inc. is proof that consumers are alright with getting rid of the brick and mortar car-buying experience. In just the last twelve months, their company has experienced a 150% rise in stock prices. Carvana is hoping to do the same. They have hired Wells Fargo Financial and Bank of America as the heavy-hitters to lead their attempt at the IPO option.
A start-up company based in Arizona, Carvana has high hopes that it will go public in the first half of this year. And there are already rumors that the firm’s worth is somewhere over two billion dollars, although both the financial backing institutions and Carvana itself refuse to put a price tag on the operation just yet.
Demand for SUVs, pickup trucks and cars in general has increased over the past year and is up from last year. Although there was a slowdown in February, forecasts are that there is no stopping the roll that the car industry is on. Currently, Carvana sells vehicles and operates its website through automated towers in cities like Nashville, Tennessee, and Austin and Dallas, Texas. Comparable to vending machines, the cars are stored for pickup after being purchased online.
When using Carvana, the consumer has the option to either have the vehicle delivered to them or to pick it up from one of the dispensing storage units using a special "coin". For those who live near the towers, it is a novel and chic experience. From start to finish, Carvana allows car buyers to shop, find, and finance their cars, all in one place. They also offer their own financing, which is a great convenience and only furthers the popularity of the service for many car buyers.
In 2015 alone, Carvana had a reported revenue of nearly $140 million, with projections to reach well over $350 million in 2016. With start-up costs, however, there are reports that the company itself has yet to turn a profit, which might be why the company and investors are keeping their financials silent until the company goes public. Founded in 2013, it is just one company who is trying to overhaul the way that car buyers traditionally shop and find their cars. Being completely online, they might still have to win over a good proportion of those in the market for a car.
Online shopping is undeniably more convenient, even for car buying. Just a couple of decades ago, it would take all day - or more - to find a car. Being limited to whatever was on the sales floor meant there weren’t many options. Also, you were beholden to a car dealership’s bottom line and negotiating always left many feeling taken advantage of.
Online car buying has changed a lot of those factors. For some, however, being able to test drive a car, the thrill of the hunt, and the complexities of financing are still something they would like to do with their local dealership. There are still some who are looking for a handshake and a promise.
If Carvana can bridge all the mental hurdles that come with online car shopping, it might just revolutionize the way that people shop, buy, and pick up their new car purchases. If the company takes off, there are likely many who invest that will win too.
