08/20/2026
Why car buyers are paying thousands more for new vehicles from Carvana???
Thousands of car buyers are paying a premium to purchase a new vehicle from Carvana Co. instead of traditional dealerships based on advertised prices and the company’s no-haggle policy, choosing convenience over a lower price.
Carvana priced eight models well above local competitors from May 7 to Aug. 5, according to a Catalyst IQ analysis of Carvana’s seven new-vehicle stores versus local competitors, requested by Automotive News. Carvana advertised certain models more than $4,000, or 6 percent, above area dealers.
Consumers are willing to pay extra for the no-haggle, digital-first Carvana experience. Carvana’s Casa Grande, Ariz., store was the No. 1 Stellantis dealership nationally in May, selling 706 new vehicles that month, according to data made available to dealers and seen by Automotive News.
The auto retailer offers a no-haggle customer experience that it has refined over 13 years selling used vehicles mostly online and through its car vending machines. Carvana’s nontraditional approach to new-car sales gives dealers new competition as car buyers face affordability challenges and increasingly want to complete their vehicle purchase online.
Technology-savvy car buyers want a streamlined process, making Carvana stand out, said Brian Maas, president of the California New Car Dealers Association, which counts Carvana among the nearly 1,300 franchised new car and truck dealers it represents.
“Do you want the car? Here’s the price,” Maas said. “That seems to be a model that’s attracting a certain kind of customer.”
Read the full article: https://autohubshow.fun/yv7tyf5r
