# Carvana Moves Into New Vehicle Sales, Challenging Traditional Dealership Model
Carvana, the online used-car retailer, has acquired seven new vehicle franchises over the past year to sell Stellantis brands including Chrysler, Dodge, Jeep, and Ram. This marks a significant expansion beyond the company's core used-vehicle business and signals a direct challenge to traditional new-car dealerships.
The move gives Carvana the legal authority to sell new inventory directly to consumers, something its previous model did not allow. By partnering with Stellantis, one of the world's largest automakers, Carvana gains access to factory-fresh vehicles while leveraging its established digital sales platform and logistics infrastructure.
For car buyers, this could mean more convenience. Carvana's online model eliminates visits to physical lots and lengthy negotiations on dealership floors. The company's brand appeals to younger, tech-savvy consumers comfortable purchasing vehicles without test-driving in person. Customers could browse new Jeeps, Ram trucks, and Dodge vehicles from home and arrange delivery.
However, traditional new-car dealerships face pressure. Franchised dealers currently control roughly 97 percent of new vehicle sales in the United States. Carvana's expansion threatens that oligopoly by offering a lower-friction alternative. Dealers may respond by improving their own digital experiences or competing on pricing transparency.
Stellantis benefits from diversifying its sales channels. The automaker can reach customers who avoid traditional dealerships and potentially capture market share from competitors whose franchises haven't embraced online sales as aggressively.
Carvana itself gains revenue diversification. Used-vehicle sales have become more competitive and saturated. New vehicles carry higher profit margins and attract different customer segments. This expansion also positions Carvana for stability should used-vehicle market