Carvana has purchased seven physical dealerships from Stellantis, the parent of popular car brands like Jeep and Chrysler. The Tempe, Arizona-based online used car retailer launched its first 'Test Drive Center' in Dallas, aiming to enhance customer experience.
Tom Taira, Carvana’s president of special projects, highlighted that the physical presence extends the company's commitment to customer control and confidence. The Test Drive Center allows prospective buyers to test drive cars at their convenience without an appointment.
While Carvana sold 596,641 cars in 2025, competing with online retailers like CarGurus and CarMax, the new dealerships are intended to complement rather than replace its existing online platform. Customers can physically interact with vehicles before finalizing online purchases.
Analysts suggest that this strategy is essential as only a minority of car buyers prefer an entirely online purchasing process. Erin Keating from Cox Automotive remarked that customers appreciate having in-person options during the sales process.
Chris Wood of LocaliQ Automotive compared Carvana’s physical expansion to Amazon’s initial foray into bookstores, noting the potential for Carvana to act as a national inventory hub rather than a traditional local dealership.