Are Car Vending Machines The Future?

Sales

Something like this was bound to be invented.

A while back we reported on a new venture called Carvana, a Phoenix, Arizona-based online retailer for used cars buyers. In addition to allowing buyers to shop, finance and buy used cars online, Carvana also built what’s literally massive car vending machines, the first one having opened in Nashville, Tennessee in 2015. These multi-level glass-and-steel building allows buyers to come and pick up their newly purchased car in quite a unique way. And now, according to Fortune, Carvana is planning to file an initial public offering later this week.

Carvana hopes to raise up to $100 million, and yet it hasn’t earned a profit since it got started back in 2012. Fortunate also says the company lost some $93.1 million in 2016 on $365.1 million in revenue. All told, Carvana has lost $152.6 million in its entire history, so that IPO does make sense for it, but not necessarily for investors.

You Might Also Like
8 Unusual Materials Used In Car Exteriors
8 Unusual Materials Used In Car Exteriors
Porsche Wanted To Build An SUV 45 Years Before The Cayenne Arrived
Porsche Wanted To Build An SUV 45 Years Before The Cayenne Arrived

Prior to the IPO, Carvana raised some $460 million in funding, but clearly the company is still in need of cash. As for those car vending machines, aside from the original one in Nashville, there’s also one in Houston and there are plans to open shop in two more cities, Austin and San Antonio, Texas, later this year. These things are, more than anything, smart marketing structures, whereas the bulk of the profit for Carvana, or any other online used car retailer, is through its website marketplace.

Jaguar XE 300 Sport And XE SV Project 8 Create Modern Art

Two vastly different sports sedans that share a common thread.

All-New Revolutionary Mazda3 Teased Ahead Of LA Reveal

Along with its game-changing sparkless ignition engine.

WatchThe Extraordinary Nissan GT-R50 Being Built By Hand

It’s all about bending sheet metal the old-fashioned way.

Here's How Aerodynamics Make The Lamborghini Aventador SVJ So Much Faster

Take a behind the scenes look at this amazing system.

Fake Lamborghini Murcielago SV Reverse-Engineered By Iran

The Chinese couldn’t have done it better.

Hennessey Trackhawk Is World's Quickest SUV

That's what a thousand horsepower will do for ya.

5 Things You Need To Know About The 2019 BMW X5

After driving the car for the first time, here are our key takeaways.

Watch The BMW M2 Competition Lap The Ring In 7:52

That was supercar territory not long ago.

Kim Jong-un Gets Classy With New Ride

So much for sanctions.

What's Hot