Despite seeing over all used car sales and revenues increase, many dealers are finding more and more competiton in the market.
The industry's most prominent new competitor in the used-vehicle market, online startup Carvana, debuts at No. 8 on Automotive News' list of the top 100 retailers based in the U.S. ranked by used-vehicle retail sales. Carvana retailed 94,108 vehicles in 2018, more than double what it sold the year before. The company was not on the 2017 list.
Since it went public nearly two years ago, Carvana has been moving headlong into new markets to sell about 15,000 vehicles for sale on its website. It offered as-soon-as-next-day delivery in 85 markets at the end of 2018. That number had risen to 115 markets by mid-April.
Carvana's rapid growth has the industry taking note. Carvana CEO Ernie Garcia calls it just the beginning.
Most consumers "still don't even know exactly what is meant when you say you 'buy a car online,'" Garcia said on the company's fourth-quarter earnings call.
As consumers gain awareness of Carvana and get "more comfortable with what we do," Garcia said, the company's sales could skyrocket. Garcia predicts the online retailer can reach 2 million units in sales, which would put it far ahead of any other retailer in Automotive News' top 100.
Read more here