A Carvana spokeswoman beforehand advised Automotive Information the corporate didn’t have further data to share on {the marketplace} program’s standing — whether or not it was canceled or just paused or whether or not the circulated memo was correct and real. The spokeswoman, in response to further questions after Garcia’s feedback, mentioned the corporate had no new updates to share past what Garcia mentioned.

However Garcia did not provide particulars about what’s totally different about this system.

“There’s not a change in underlying beliefs,” Garcia mentioned through the teleconference. “I believe there’s an elevated focus [on] issues that we imagine could make a distinction within the quick time period, relative to the medium time period. And so we have chosen to take focus away from that space for now.”

Carvana has supplied few public particulars about how this system operates, together with who it has partnered with and the way the economics work. Automobile rental firm Hertz did disclose final October that it will promote some autos by Carvana. In a November 2021 letter to shareholders, Carvana executives wrote that “autos bought by the [Hertz] partnership shall be listed on Carvana’s on-line market and shall be fulfilled by our operations.”

Analysts who cowl Carvana beforehand advised Automotive Information this system might enable Carvana to complement its stock in a time when used autos have been scarcer whereas on the identical time permitting sellers to broaden their on-line retailing attain with out main funding.

This system might make sense for smaller sellers making an attempt to succeed in new consumers, Rajat Gupta, fairness analysis analyst protecting U.S. auto retailers for J.P. Morgan, beforehand advised Automotive Information.

“Itemizing their automobile on Carvana’s web site offers them that publicity to the patron,” he mentioned.

Some analysts mentioned this system posed dangers for dealerships. One such danger can be if a dealership listed its stock on Carvana’s web site and ended up producing extra buyer site visitors to Carvana’s choices slightly than the dealership’s personal web site or bodily location.