SAN FRANCISCO — In its mere six years of existence, Carvana has grown at a fantastic clip. But the online used-vehicle upstart aims to be exponentially bigger.
"We believe that we can sell 2 million cars per year," CEO Ernie Garcia said Jan. 24 at the Automotive News Retail Forum: NADA here.
To put that in perspective, the company expects the number of vehicles sold in 2018 to be just under 100,000. It is yet to be determined when the 2 million mark could be reached. The key to getting there for Carvana — or any retailer who wants a larger piece of the fragmented used-vehicle pie — may be wooing people to want to switch vehicles more often. That can be done by reducing prices and generally making the buying experience less cumbersome, Garcia said.
"If it wasn't such a pain [to buy a vehicle], they'd do it faster, and the industry would grow," Garcia said.
Consumers currently purchase about 40 million used vehicles annually with an average of 6.75 years between transactions. Garcia says that annual sales number could jump to 90 million transactions a year if shoppers updated their used vehicles every three years on average. Even a slightly speedier turn than today's — every six years — would translate to 45 million in sales, a 12.5 percent jump.