Carvana Buys 7 Stellantis Franchises, Pushing Into $1.3 Trillion U.S. New-Car Market
Updated
Updated · CNBC · Jun 16
Carvana Buys 7 Stellantis Franchises, Pushing Into $1.3 Trillion U.S. New-Car Market
3 articles · Updated · CNBC · Jun 16
Summary
Seven Stellantis franchises bought since last year have moved Carvana beyond used cars into new-vehicle retail, with stores in Arizona, California, Texas, Georgia, Ohio and Massachusetts.
700-plus new vehicles sold last month at Carvana's Casa Grande, Arizona, store made it Stellantis' top-volume U.S. outlet, up from roughly 30 to 50 monthly sales before Carvana acquired it.
The expansion gives Carvana new revenue streams and access to franchised-dealer-only auctions, potentially strengthening its used-car sourcing while extending its reach across new sales, finance, parts and service.
16,990 U.S. franchised dealers generated more than $1.3 trillion in sales last year, and industry executives say Carvana's online-first model could disrupt that system if it spreads to more brands.
State franchise laws, automaker rules and the lack of traditional service departments remain key hurdles, though analysts say Carvana could use its ADESA network and 1.5 million-vehicle reconditioning capacity to close that gap.
Without service bays, can Carvana's new car venture survive against dealers who profit most from repairs?
Is Carvana's entry the crack that finally breaks the century-old laws protecting traditional car dealerships?
Carvana’s $2 Billion Bet: How Acquiring 5 Stellantis Dealerships Signals the Hybrid Future of Auto Retail (2025–2026)
Overview
Carvana made a major shift in late 2025 by acquiring physical Chrysler-Dodge-Jeep-Ram dealerships from Stellantis, moving beyond its online-only roots. This decision was driven by the higher margins found in parts and service revenue, which traditional dealerships have long valued. The automotive retail sector is highly fragmented, and Carvana saw an opportunity to expand its reach and service offerings by leveraging both digital convenience and the continued importance of physical locations—still preferred by many car buyers. As a result, Carvana is positioning itself to benefit from expected industry consolidation and changing consumer preferences.