Online used-car dealer Carvana has entered the new-car market, albeit in just one location, with the recent purchase of a dealership franchise in its home state of Arizona, Automotive News has reported.
Carvana bought Jerry Seiner Chrysler-Dodge-Jeep-Ram in Casa Grande, Arizona, just south of Tempe, where the company is based. Carvana didn’t say how much it paid.
“We’re always experimenting and this is a small test in a single market,” a Carvana spokesperson told the news site. “We are excited to join the Stellantis network and our focus in this test will be learning how to provide great customer experiences at a franchise dealership — we don’t expect it to have any noticeable impact to our results for the foreseeable future.”
With the small-scale test, Carvana might be seeing what it can do to fend off Amazon, which in December began online sales of new Hyundais in 48 U.S. cities. Amazon said it would expand the program to other car brands and markets in 2025.
Carvana said its Arizona store would reopen today (March 3) under a new name: Casa Grande Chrysler-Dodge-Jeep-Ram. The company said it would retain all the business’s 41 employees.
Jerry Seiner Dealerships, of Salt Lake City, Utah, sold the dealership to Carvana.
The seller will continue to own and operate a Chevrolet car lot in Casa Grande, according to the Phoenix Business Journal, which first reported the acquisition.
Carvana, launched in 2012, is a used-car retailer operating in 316 markets serving more than 80% of the U.S. population. The company reported revenue in 2024 of $13.67 billion and net income of $404 million. By revenue, it ranks as the second biggest used-car retailer in the country after CarMax.
