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Carvana’s new sales strategy raises an interesting question: what if the dealership of the future barely functions as a dealership at all?
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The online used-car giant has acquired seven Chrysler-Dodge-Jeep-Ram franchises for $171 million and is testing a new retail concept at one of its Stellantis locations in Dallas, Texas. While the site looks like a conventional dealership from the outside, the customer experience is anything but traditional. Instead of finance offices and commission-based staff, visitors are greeted by display vehicles, QR codes, and self-guided shopping tools.
The goal is simple: allow customers to explore and test-drive vehicles in person before completing the purchase online through Carvana’s platform. If successful, the strategy could offer a glimpse into the future of automotive retail.
A Dealership Without Salespeople
After existing for more than 100 years, Carvana’s Dallas location plans to reinvent how a dealership should function. Customers can browse vehicles, compare models, and take test drives, but they will not sit down with a salesperson to negotiate a deal. According to the company, every vehicle sold through the operation, whether new or used, is purchased online. The dealership has been redesigned around product discovery rather than sales. Different Stellantis brands are displayed in themed areas, creating what Carvana describes as a “playground” for shoppers. Jeep Wranglers sit in an off-road-inspired display, while Chrysler Pacificas sit on a soccer-field-themed floor, and so on. Instead of commission-based salespeople, hourly-paid associates are available to answer questions and assist customers when needed. The approach is similar to Tesla’s Galleries and BMW’s Genius program, where staff focus on product knowledge rather than closing deals. For buyers who dislike traditional dealership pressure, that could be a compelling alternative.
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More Than Just A Used Car Lot
While it may sound as if Carvana’s dealerships are just designed to house display vehicles, there is more to it. Firstly, they will introduce service departments, allowing owners to maintain and repair their vehicles in the same location. Secondly, the company has made it clear that it wants to grow its presence in the new-car market, and its dealership network could eventually support emerging brands. One potential example is Slate Automotive, whose upcoming bare-bones electric pickup could benefit from an established retail and service network if the companies choose to work together. Of course, this would add to Stellantis’s assortment of new vehicles, too.
The Future Of Dealerships?
On paper, separating the showroom from the point of sale makes a lot of sense. It reduces overhead and creates a more relaxed shopping environment, catering to consumers who are more comfortable making major purchases online. There are still challenges, though. Carvana’s limited “test drive” inventory means customers may not always be able to test-drive the exact vehicle they plan to buy; however, similar vehicles may be available.
Even so, the potential upside is enormous. Carvana is already America’s most valuable automotive retailer, and some analysts believe its market value could eventually exceed $100 billion, putting it ahead of automotive giants such as GM and Ford. Carvana appears to be evolving a dealership’s purpose. If the model proves successful, other retailers and manufacturers may begin exploring similar approaches. That could eventually reshape how consumers interact with dealerships, particularly as younger buyers become increasingly comfortable making large purchases online.
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