Carvana’s new bet: No-buy showrooms for new cars

Online used-car retailer Carvana wants a piece of new-car sales and is venturing into it with a digital-first concept called “playgrounds,” where customers can test-drive cars and get deets, but not purchase.

The company sells only online, but the new-car dealership model shows that its customers don’t want to buy a vehicle just after seeing it on a screen.

Carvana’s playgrounds replace traditional paperwork and commission-based salespeople with smartphone-based shopping, no-haggle nationwide pricing, and interactive vehicle displays.

The strategy follows a buying spree that began in February 2025, through which it has amassed seven new-car dealerships from Jeep maker Stellantis.

While new car inventory remains small—accounting for about 2,200 of its 67,000 vehicles for sale as of a recent Tuesday—the new-car stores already rank among the top in the US for Stellantis NV brands.

New car sales also feed Carvana’s lucrative lending business, which generated about 95% of its $333 million net income from selling loans to investors during the fourth quarter.

After having a bankruptcy scare in 2022, Carvana restructured its debt, achieved profitability, and surged to a market cap of around $76 billion. Its shares are down 20% this year after reaching a record high in January.