MANKATO — Carvana, an online used car company that delivers vehicles to people’s doors, is now available in the Mankato area.
Carvana.com has a portfolio of 15,000 used cars, and shoppers browse the website or app to select and purchase a vehicle they want. All the vehicles are photographed in 360 degrees. It’s then delivered to their door within a day or two. The buyers can take a 20 minute test drive and either keep or send the vehicle back. If they keep it, buyers have seven days to return it or exchange it for another vehicle.
Carvana says every car comes with the seven-day money back guarantee and 100-day/4,189-mile limited warranty.
People can also trade in their old vehicle, which is picked up at the same time as the buyer’s vehicle is delivered.
Arizona-based Carvana started in 2012 and has grown dramatically, now in 149 markets across the country, with $2 billion in annual sales.
“As we grow our presence in Minnesota, Mankato plays an important role in bringing our easy, transparent car buying solution to more and more customers,” Ernie Garcia, founder and CEO of Carvana said in a statement.
“We are confident we can deliver on the diverse needs of Mankato area residents, and we look forward to offering as-soon-as-next-day vehicle delivery to area residents.”
The Star Tribune reports that Carvana’s online only model may test Minnesota regulations. State rules don’t allow online-only businesses, instead a physical location must be established. Carvana has a Minneapolis location, something akin to a fulfillment center, but it is not a customer-facing location, Amy O’Hara, a Carvana spokeswoman told the newspaper.
Scott Lambert, president of the Minnesota Automobile Dealers Association, which represents new car and truck dealers, told the Star Tribune its members don’t mind competition — as long as it’s fair.
“You can’t sell cars purely online in Minnesota,” Lambert said. “If you want to sell cars in Minnesota you have to abide by the licensing requirements. As long as they are complying with state licensing requirements — it’s just another used-car operation.”