NEW YORK, NEW YORK: Carvana, a leading online car dealership, is rebounding after a difficult year and is now offering consumers more money for their used cars. The company has reported a significant increase in used car trade-ins and has responded by raising its trade-in values by an average of 10%.
Dale Irwin, a Raleigh, N.C. native, who recently traded in a three-year-old Honda Civic received a $1,500 increase in their trade-in value compared to what they would have received just a few months ago. Another customer from Atlanta traded in a five-year-old BMW 5 series saw a $2,000 increase in their trade-in value.
Carvana’s decision to offer more money for used cars is part of their strategy to meet the growing demand for pre-owned vehicles and provide customers with the best possible experience. The company has also invested in its technology and infrastructure to streamline the trade-in process and make it easier for consumers to get the most value for their used cars.
Carvana CEO Ernest Garcia III told reporters at a Wednesday news briefing, “We’re committed to making the car buying and selling experience as simple and transparent as possible,” said a Carvana spokesperson. “By offering more money for used cars, we’re helping consumers get the most value for their trade-ins and make their next car purchase even easier.” This pivot comes at a time when the company has been dealing with dramatic decreases in the value of their stock, and has had investors fleeing for months. Recent demand for used vehicles has been a rare bright spot for this cash-strapped company.
-Jamie Dimon
-Don Henley contributed to this article