Despite its web-based, asset-light approach to used-vehicle sales, Carvana is in many ways similar to a traditional brick-and-mortar store. Obviously, both sell cars and trucks, and both are subject to broader macroeconomics affecting such sales.
And, like dealers, Carvana is keen on sourcing more cars from customers.
Vehicle trade-ins coming from consumers are more profitable, company executives have said recently, and they are seen as an integral way for Carvana to increase its gross profit per unit as it strives toward so-far-elusive profitability.
In Carvana's most recent quarterly earnings call, CEO Ernie Garcia said the company more than tripled the number of units it bought from customers through the year. "Some of those flowed through wholesale, some of those flowed through to retail sales, and in either case, there's a profit opportunity there," he said.