Carvana Acquires Carlypso

Tori Zinger

Dave Martinson reported this week on DrivingSales News that Carvana has acquired Carlypso. I've been discussing the Carvana business structure with some others in the industry this week, and I'm curious to know:

What is your take on this model? Will it stick? I'd also be interested to know your age range when you give your opinion; it seems (unsurprisingly) that those in the younger age rages seem to be more on board with this than those in the upper age ranges, as far as whether they would be willing to purchase a car using this format. 

 

Dealer Guy

eBay actually started this type of sale online and is still the king of used car e-commerce. Used cars are especially unique and all drive different. I cannot imagine buying a used car sight unseen, never tested by myself to see what squeaks, if the wheel shimmies, if there are scratches I didn't know about, and so many other unknowns. The price point will have to be very convincing, but I also have seen where 3rd party sites are charging customers outrageous costs for extras like GAP,  Extended Warranties, Paint & Fabric Protection, etc.

The consumer might save on the cost, but they will end up paying more on the rate, and ancillaries. As a consumer, that does not equate to a great deal. And although I work at a car dealership, I am also a consumer - first.

Tori Zinger

That's a great point, Dealer Guy -- it's important for people thinking about using a place like this to consider ALL the costs, not just the price of the vehicle. And as for used cars, there's no way I'd buy it without driving it first!

Jamil The Carman

With their 7 days return policy they are building trust with customers.Looking at their reviews and customer service model I gotta give them credit for doing a great job.Their slogan is simply "Skip the dealer" and with the dealers' reputation in general people love the approach. I am not dealing with a dealer I am dealing with an online store :) so for some people it's the ideal way to buy a car.

We haven't had this model for years to collect enough data to determine the percentage but I am sure we will soon figure it out .

Tori Zinger

Agree, Jamil. It will be interesting to see how things go and the effect this has on the industry as a whole.

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