Dodge Chrysler Jeep: What's the Deal with Carvana Getting Involved?

Carvana's Buying CDJR Dealerships? Oh, This is Gonna End Well...

Carvana buying another Chrysler-Dodge-Jeep-Ram dealership? Seriously? This is like watching a train wreck in slow motion, except the train is made of used car debt and bad business decisions.

First, let's be real: Carvana's whole "online car vending machine" thing was always a gimmick. A shiny distraction from, you know, actually running a competent business. Remember when they couldn't even handle the paperwork? Losing their dealer license in Michigan? Classic.

And now they're dipping their toes into new car sales? With Stellantis, no less? A company whose brands are about as consistent as my uncle after Thanksgiving dinner.

The Plot Thickens (and Stinks)

So, Carvana bought a CDJR dealership in Arizona earlier this year, and now they've snagged another one in Texas. According to some company spokesperson, it’s just a "small test." Right. And I'm sure that's all it is. Give me a break.

What's the real reason? Are they trying to legitimize their whole operation? Trying to get a physical footprint to fall back on when the online thing inevitably collapses further? Maybe.

It's interesting that Carvana is diving into the new-car market while CarMax is running screaming in the opposite direction. CarMax actually got out of the new-vehicle franchise game entirely. You'd think someone over at Carvana would've noticed that. But hey, maybe they know something CarMax doesn't. Or maybe they're just too stubborn to admit they screwed up.

Nino Sita: A Ray of Hope? Or Just a Distraction?

Okay, let's shift gears for a second. There's this guy, Nino Sita, a general manager at Lindsay Dodge Chrysler Jeep Ram, who's apparently turned his dealership into a CPO powerhouse. Number one in the region, number seven nationally. And new car sales are up 196% year-over-year. Seems like someone there knows what they're doing.

He credits it to a "one-team philosophy" and prioritizing used car sales. Weekly cross-departmental meetings, complete transparency, video walkthroughs of the cars... Sounds almost too good to be true, doesn't it?

He even incentivizes salespeople to acquire vehicles themselves: $200 for the first car they buy, up to $600 for the fifth. He personally acquired 72 cars last month. Details of Nino Sita's success can be found in How GM Nino Sita turned Lindsay Dodge Chrysler Jeep Ram into a CPO powerhouse.

But here's the thing: even if Nino Sita is some kind of dealership whisperer, can he save Carvana from itself? Can one successful dealership model overcome a mountain of debt and questionable business practices? I seriously doubt it.

And what about Stellantis? Sita says he overcomes market challenges with a "highly localized approach to sales." Okay, fine. But does Carvana even understand the concept of "localized"? They're an online company, for crying out loud.

Maybe Carvana thinks buying these dealerships will magically solve their problems. Maybe they think they can just sprinkle some "one-team philosophy" dust on their toxic corporate culture and everything will be fine.

Then again, maybe I'm the crazy one here. Maybe Carvana is actually onto something. Maybe they'll revolutionize the new-car market just like they "revolutionized" the used-car market.

Nah.

This Smells Like a Fire Sale in the Making