Here are 1-3 brief analogies for Carvana:

• Amazon for used cars
• Zillow for used cars

• Online Used Vehicle Retail: Carvana enables customers to search, select, purchase, and arrange delivery or pickup of pre-owned vehicles entirely through its digital platform.
• Vehicle Financing: The company provides various financing solutions and auto loans to assist customers with their vehicle purchases directly through the Carvana platform.
• Vehicle Acquisition (Trade-in/Purchase): Carvana buys used vehicles directly from consumers, either as part of a trade-in deal or a standalone sale, to maintain its inventory.

Carvana (CVNA) primarily sells directly to **individual consumers**, not other businesses. The company's business model is centered on providing a seamless online platform for purchasing used vehicles. As such, its major customers fall into the following categories:

1. Individual Car Buyers Seeking Convenience and a Digital Experience

   This category encompasses consumers who prioritize the ease and efficiency of purchasing a used vehicle entirely online. They appreciate the ability to browse extensive inventory, secure financing, and complete the transaction from the comfort of their home, avoiding the traditional dealership experience.

2. Price-Conscious Consumers Valuing Transparency

   Customers in this group are drawn to Carvana's "no-haggle" pricing model, which offers a transparent, fixed price upfront. They value knowing the exact cost without the negotiation often associated with buying a car, seeking a straightforward and predictable purchasing process.

3. Consumers Prioritizing Selection and Flexible Delivery Options

   This category includes individuals who benefit from Carvana's vast nationwide inventory, which often provides a wider selection of vehicles than local dealerships. They also value the company's flexible delivery options, including home delivery or pick-up from Carvana's distinctive Car Vending Machines, offering a personalized acquisition experience.

• KAR Auction Services (KAR)
• Amazon Web Services (AMZN)

Ernest Garcia III, President, Chief Executive Officer and Chairman

Ernest Garcia III co-founded Carvana in 2012 and has served as its President, Chief Executive Officer, and Chairman since its inception. Before founding Carvana, he held various roles at DriveTime Automotive Group, Inc. from 2007 to 2013, including financial strategist, managing director of corporate finance, and Vice President, Treasurer and Director of Quantitative Analytics. At DriveTime, he was responsible for developing consumer credit scoring models. Prior to DriveTime, Mr. Garcia was an associate in the Principal Transactions Group at RBS Greenwich Capital from 2005 to 2006, focusing on consumer credit-based investments. Carvana was spun out from DriveTime and became a public company in 2017. Ernest Garcia II, his father and the founder of DriveTime, remains a significant shareholder and, along with Ernest Garcia III, controls over 85% of Carvana's voting shares through a dual-class stock structure. Both Ernest Garcia III and his father participated in a private equity sale of Carvana stock in March 2020. Ernest Garcia III has also sold shares of Carvana stock.

Mark Jenkins, Chief Financial Officer

Mark Jenkins has served as Carvana's Chief Financial Officer since July 2014. Before joining Carvana, he was a professor in the finance department at The Wharton School of the University of Pennsylvania from 2009 to 2014, where his research and teaching focused on consumer and corporate credit markets. While at Wharton, he taught courses on corporate restructuring, corporate credit, and leveraged finance. From 2001 to 2004, prior to his time at Wharton, Mr. Jenkins worked at The Brattle Group, an economic consulting firm, specializing in corporate valuation and demand forecasting in technology markets. He has engaged in sales of Carvana stock.

Benjamin Huston, Chief Operating Officer

Benjamin Huston co-founded Carvana and has served as its Chief Operating Officer since the company's inception in 2012. Prior to Carvana, he co-founded Looterang, a card-linking platform, in 2011 and served as its Chief Executive Officer from 2011 to 2012. From 2008 to 2011, Mr. Huston was an associate at Latham and Watkins, a global law firm, where he focused on regulatory affairs.

Ryan Keeton, Co-Founder and Chief Brand Officer

Ryan Keeton co-founded Carvana and has been its Chief Brand Officer since the company's inception in 2012. Before co-founding Carvana, he worked as a principal at the Montero Group, a strategic consultancy firm, from 2010 to 2012, where he advised both global public and private companies on strategic and business initiatives. From 2008 to 2010, Mr. Keeton served as Director of Strategic Marketing for George P. Johnson, a global marketing agency.

Daniel Gill, Chief Product Officer

Daniel Gill has served as Carvana's Chief Product Officer since March 2015, overseeing all technology functions and strategic partnerships for the business. Prior to joining Carvana, Mr. Gill served as Head of Strategy and Business Development for Inflection from May 2014 to March 2015. He also co-founded and was the CEO of Huddler from 2007 until its acquisition by Wikia in May 2014.

The key risks to Carvana's business include the cyclical nature of the used car market and its reliance on subprime lending, alongside the challenges of executing its growth strategy at scale.

1. Cyclicality of the Used Car Market and Macroeconomic Conditions: Carvana's business is highly sensitive to broader economic trends, including credit conditions, employment stability, and consumer confidence. A downturn in these macroeconomic factors can significantly dampen auto demand. Used vehicle prices have also seen declines, and rising interest rates or economic volatility could further impact consumer spending on vehicles, affecting Carvana's sales volume and profitability. The company previously faced challenges during the used car market crash in 2022 and 2023, which resulted in a rapid decline in preowned pricing.
2. Reliance on Subprime Lending and Associated Credit Risk: A substantial portion of Carvana's customers are subprime borrowers. There are ongoing concerns about rising subprime auto loan delinquencies, which could impair Carvana's ability to sell its originated loans to financing partners and necessitate higher provisions for potential losses. While Carvana aims to mitigate this by securitizing loans and selling them to investors, the practice carries risks, including potential conflicts from related-party transactions and vulnerability to market freezes if defaults increase significantly.
3. Execution and Scaling Challenges: Expanding operations to significantly increase annual vehicle sales, for example, from 600,000 to 3 million cars, presents considerable execution challenges. These include ensuring sufficient reconditioning capacity, optimizing logistics throughput, adequate staffing, automation, and strategic site expansion. Maintaining consistent quality and efficiency across these expanding operations remains a critical challenge for the company.

Traditional automotive dealerships and large dealership groups are increasingly investing in and implementing robust online sales platforms, home delivery options, and digital tools that mirror Carvana's convenience. This allows them to offer a similar online buying experience while leveraging their existing physical infrastructure for reconditioning, service, and local presence, potentially eroding Carvana's competitive differentiation.

Carvana's main product is the online retail sale of used vehicles. The primary addressable market for this service is the United States used car market. Carvana also offers ancillary services such as vehicle trade-ins, financing solutions, and vehicle service contracts (extended warranties).

The addressable market for Carvana's main product, used vehicle sales, in the U.S. is estimated to be approximately $1.05 trillion in 2025. This market is projected to grow to $1.20 trillion by 2030, at a compound annual growth rate (CAGR) of 2.71% during the forecast period of 2025-2030. In terms of units, the U.S. used car market size reached 38.6 million units in 2025 and is estimated to reach 51.4 million units by 2034, exhibiting a CAGR of 3.23% from 2026-2034.

Carvana (CVNA) is anticipated to drive future revenue growth over the next 2-3 years through a combination of expanding its customer base, enhancing its operational efficiency, leveraging its financial services, and optimizing its digital platform.

Here are the key expected drivers:

1. Expansion of Retail Unit Sales and Market Share: Carvana has consistently demonstrated strong year-over-year growth in retail units sold and aims to continue this trajectory. With approximately 1% market share in the vast U.S. automotive retail market, there is significant room for expansion and customer acquisition. The company reported a 34% increase in retail units sold in Q3 2024, and a 50% increase in Q4 2024, with expectations for continued growth in 2025. Analysts project continued strong unit growth for 2025 and 2026.
2. Enhancement of Customer Offering and Experience: Improving the customer experience, building awareness, understanding, and trust are fundamental growth drivers for Carvana. Initiatives such as the launch of same-day vehicle delivery services in major metropolitan areas are expected to boost the customer base and streamline the car-buying process.
3. Operational Efficiencies and Scalability of Infrastructure: Carvana's vertically integrated business model, including the integration of the ADESA network, is crucial for driving efficient growth, improving customer experiences, and reducing costs. The company is focused on increasing inventory selection, optimizing reconditioning and logistics capabilities, and leveraging its existing infrastructure capacity. These operational improvements contribute to higher Gross Profit per Unit (GPU) and overall profitability, which in turn fuels revenue growth.
4. Growth in Finance & Insurance (F&I) and Ancillary Services: Carvana expects to expand its integrated finance platform and grow F&I revenue, including extending into a higher-yield segment. This expansion of ancillary services and finance offerings contributes to increased revenue per unit.
5. Strategic Digital Marketing and Technology Investments: Carvana intends to aggressively reinvest in digital marketing initiatives to secure growth and maintain its competitive edge. Furthermore, a focus on technology innovation aims to bolster its platform, enhance the customer journey, and support its ambitious unit growth targets.

Share Repurchases

• Carvana has generally shown negative share buyback ratios, indicating net share issuance rather than repurchases in recent years. For instance, the 1-Year Share Buyback Ratio was -12.80% as of June 2025 and -11.65% as of November 2025.
• Quarterly stock buybacks were reported as -$17.00 million for June 30, 2025.

Share Issuance

• Carvana's basic shares outstanding have consistently increased, with a 21.77% increase in 2022, 8.43% in 2023, and 11.91% in 2024.
• In April 2022, Carvana completed a public offering of 15,625,000 shares of Class A common stock at $80.00 per share, totaling approximately $1.25 billion.
• In August 2023, Carvana raised $225 million through an at-the-market (ATM) offering and an additional $126 million from the Garcia Parties to meet equity capital requirements for a debt exchange.

Inbound Investments

• In August 2023, existing shareholders Ernest Garcia II and Ernest Garcia III (the Garcia Parties) made an equity capital investment of $126 million in Carvana, as part of a debt exchange agreement.
• During an April 2022 public offering, Carvana's CEO Ernest Garcia III and Ernest Garcia II, along with affiliated entities, purchased 5,400,000 shares.

Outbound Investments

• Carvana acquired ADESA U.S., a wholesale auto auction business, for $2.2 billion in cash in February 2022.
• The ADESA acquisition was aimed at expanding Carvana's real estate footprint and increasing its inspection and reconditioning center (IRC) production capacity by approximately 2 million units annually.

Capital Expenditures

• Carvana's capital expenditures averaged $285.8 million annually from fiscal years 2020 to 2024, peaking at $489.4 million in December 2021.
• Capital expenditures significantly decreased to a 5-year low of $78.805 million in December 2023, before increasing slightly to $87.842 million in 2024.
• A substantial portion of capital expenditures, approximately $1 billion over multiple years, is allocated to real estate improvements across ADESA's 56 sites to enhance reconditioning capacity.