Who is Carvana’s Competitor? A Short Expose to Rival Car Dealerships

Patrick Oziegbe
Updated On:

Carvana has revolutionized the used car market in the US through its innovative online platform.

This disruptive approach to car buying and selling has attracted a lot of attention, leading to the emergence of various competitors in the industry.

This article will explore Carvana’s major competitors and what sets them apart from Carvana.

As you delve into the used car market, you’ll find that several companies have risen to challenge Carvana’s dominance.

These competitors are establishing themselves as alternatives to Carvana and innovating within the market space to provide consumers with a unique car-buying experience.

Look at some key players challenging Carvana’s position in the used car market.

Key Takeaways

  • Carvana is facing competition from various companies in the online used car market.
  • Each competitor offers a unique approach to car buying and may appeal to different consumer preferences.
  • Carvana remains a significant player, but monitoring emerging competitors can provide valuable insights into the evolving industry.

Who is Carvana's Competitor

Understanding Carvana

Vending Machine Concept

Carvana has revolutionized the used car buying process with its unique vending machine concept. As a buyer, you can purchase a car online and pick it up from one of their car vending machines. It makes the entire experience convenient and exciting.

Tempe, Arizona Headquarters

Established in Tempe, Arizona, Carvana has quickly become one of North America’s fastest-growing online used car retailers.

Key Figures: Ernest Garcia III and Ryan Keeton

Founded by Ernest Garcia III and Ryan Keeton, Carvana has a strong leadership committed to offering the best customer experience in the used car market.

Insurance and Financing Services

In addition to a seamless buying experience, Carvana also provides insurance and financing services to make your car buying experience as smooth as possible.

RELATED: Is Carvana legit, or should I be worried? Is Carvana going out of business or bankrupt?

Major Competitors in the Used Car Market


Vroom is an online platform for buying and selling used cars. They offer a seamless shopping experience, providing detailed vehicle information and nationwide delivery. Vroom’s hassle-free process makes it a notable competitor to Carvana.


AutoTrader is another popular alternative in the used car market. They specialize in connecting car buyers and sellers through their online marketplace. With a vast inventory, AutoTrader allows you to compare various used cars and find the best deals.


As one of Carvana’s top competitors, CarGurus offers an extensive selection of used cars and provides users with valuable insights on car pricing, vehicle history, and dealer reputation. CarGurus makes car shopping easy and transparent for buyers.


Cars.com is another well-established platform in the used car market. With millions of vehicle listings, this platform helps you find your perfect match by providing reviews, research tools, and a user-friendly interface. Cars.com is a strong contender in the online used car sales industry.


Having a strong presence both online and through physical stores, CarMax distinguishes itself by offering a wide range of used vehicles and a no-haggle pricing policy.

CarMax’s customer-centric approach makes it another significant competitor to Carvana in the used car market.

What Is Carvana’s Biggest Competitor?

Carvana has several competitors in the online car marketplace, but its most significant competitor is CarGurus.

CarGurus operates with a strong presence in the Eastern part of the US, along with a few locations in the Southern and Southwestern regions. Much like Carvana, it provides an online platform for researching and purchasing used cars in your area.

So, when you’re looking for your next car, keep in mind that CarGurus offers a similar experience to Carvana, focusing on transparency and ease of use.

Carvana’s Online Marketplace

Research and Car Selection

Carvana’s online marketplace allows you to conveniently research and browse various vehicle options from the comfort of your home.

Utilizing the platform’s search filters, you can narrow down potential vehicles best suited for your needs.

Trade-In and Selling Options

Apart from purchasing vehicles, Carvana also provides trade-in and selling options for car owners. By inputting specific information regarding your car, the system generates an estimated value that makes trading or selling your vehicle easy.

The Online Shopping Experience

Carvana’s online shopping process simplifies car buying, making it a hassle-free experience.

From secure financing options to delivery straight to your door, Carvana streamlines the purchasing process, accommodating your busy schedule.

Emerging Competitors


Shift is an online platform where you can buy and sell used cars. They offer a user-friendly experience and a wide selection of vehicles, making it a solid alternative to Carvana.

Their transparent pricing and no-haggle policy appeal to customers seeking a hassle-free car-buying experience.


Tred operates as a peer-to-peer marketplace, allowing you to buy and sell cars directly with other users. This approach eliminates the need for dealerships and can lower prices for buyers and sellers. As a competitor to Carvana, Tred offers a more personal and flexible car shopping experience.

ACV Auctions

ACV Auctions is a platform targeting dealers, offering a fast and efficient way to buy and sell wholesale vehicles through online auctions.

As a Carvana competitor, ACV Auctions provides a comprehensive vehicle inventory and detailed condition reports, enabling dealers to make informed decisions and streamline operations.


Auto1 is a European-based online platform specializing in used car sales. They buy cars from individuals and sell them to dealers, simplifying the car-selling process for consumers.

Auto1’s large-scale operations and presence in multiple countries make it a noteworthy competitor in the online car marketplace.

Comparative Analysis of Carvana and Competitors

Revenue and Employee Comparison

Comparing Carvana to its top competitors like CarMax, CarGurus and Vroom, they all have various degrees of financial success.

It’s crucial to consider revenue and number of employees when evaluating these companies to understand their efficiency and scalability.

Online Platform

The online platforms of these entities differ in user experience and features. Carvana, for example, offers a 360-degree view of their vehicles, making it easy to inspect every angle.

On the other hand, competitors such as Cars.com and Auto Trader Group might have a more traditional listing approach.

Vehicle Selection and Pricing

When it comes to vehicle selection and pricing, each competitor offers a variety of choices. However, the best price may vary based on location, promotion, and inventory.

Exploring multiple platforms like Carvana, TrueCar, and Cazoo allows you to make an informed decision.

Customer Service

Finally, customer service standards vary among Carvana and its competitors. While some focus on providing seamless online experiences, others prioritize personal interactions.

The customer service experiences from different companies can influence your decision on where to purchase your next vehicle.

Frequently Asked Questions

Which companies are similar to Carvana?

Several companies are similar to Carvana, such as CarGurus, Vroom, CarMax, Auto1 Group, ACV Auctions, and Cars24. These companies all provide a platform for buying and selling cars online.

What are some alternatives to Carvana for purchasing cars?

If you’re looking for alternatives to Carvana for purchasing cars, consider CarGurus, Vroom, CarMax, TRED, Cazoo, Cars.com, Auto Trader Group, or TrueCar. All of these platforms offer a convenient way to purchase vehicles online.

How do Carvana and CarMax compare?

Both Carvana and CarMax are popular platforms for buying and selling cars. While Carvana is more focused on providing a fully online experience, CarMax has a hybrid model, operating both an online platform and physical stores.

The two companies also differ in their inventory and pricing, so it’s crucial to compare the pros and cons of each before making a decision.

Is Vroom a strong competitor to Carvana?

Vroom is considered a strong competitor to Carvana in the online car-buying space. It offers a variety of vehicles, competitive pricing, and a focus on customer satisfaction. Like Carvana, Vroom allows you to easily buy, sell, or trade a car online.

What is the difference between Carvana and other online car dealers?

Carvana distinguishes itself with its fully online platform, which allows customers to buy or sell cars without visiting a dealership. The company is also known for its “Car Vending Machine” concept, which adds a unique touch to the delivery experience.

Additionally, Carvana offers a 7-day return policy, giving customers peace of mind when purchasing. While other online car dealers share some similarities, each platform has unique features and services, so it’s essential to explore all options before deciding on the best fit for your needs.


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