Vending machine for cars coming to OKC (http://www.okctalk.com/content.php?r=523-Vending-machine-for-cars-coming-to-OKC)

Carvana is planning to construct a new facility in north Oklahoma City which will include a multi-story vending machine that will dispense cars to local buyers.


http://www.okctalk.com/images/pete/carvana4.jpg


The Tempe, Arizona based company sells, finances and buys used cars through its website.

Oklahoma City became Carvana's 30th U.S. market in 2017 when local residents became able to take home delivery of any of the company's 7,500+ vehicles.

The new facility at 1800 W. Memorial near Pennsylvania will consist of a 5,800 square building and vending tower. Two buildings on the 1-acre site will be demolished.


http://www.okctalk.com/images/pete/carvana10.jpg


The location was formerly home to BluePearl veterinary hospital. The company recently moved to a new, larger facility at 1401 W. Memorial.

In markets where Carvana has a facility, after shopping on-line then completing a purchase, customers can select the option to pick up their car from the vending machine location. A buyer first finds their transaction in a kiosk at the site or by inserting a special coin into a large receptacle. Delivery to a home or business, the only currently available option in the area, will remain as an alternative.

Carvana boasts a 150-point inspection on all its vehicles and customers have a 7-day free trial period.

A former subsidiary of Drivetime, the company was spun off in 2014 and went public in 2017. Since the infusion of funds they have been pursuing an aggressive expansion strategy, promoting themselves as the 'Amazon of car buying'.

Vending machine stores are currently operating in Nashville, Dallas, Austin, Houston, San Anotonio, Jacksonville, Orlando, Tampa, Charlotte, Raliegh, Tempe and Gaithersburg, Maryland.


http://www.okctalk.com/images/pete/carvana9.jpg

This intrigues me.

Only one I've seen is off the Sam Rayburn tollway, kind of by Nebraska Furniture Mart in Frisco. Honestly, it's really really cool looking. For that alone, I'm STOKED for OKC to get this.

Awesome but also hilarious that you can buy a car from a vending machine

It's a gimmick for sure but it draws attention to their cars and website and will no doubt look cool from the turnpike.

What will you do if the product gets stuck? I don't see shaking the building being an option.

What will you do if the product gets stuck? I don't see shaking the building being an option.

Haha... You'd also need a very long arm to reach up there and try and get one for free.

What will you do if the product gets stuck? I don't see shaking the building being an option.

Just wait for the next earthquake? :wink:

I also think it looks cool.

But you want to know something funny? About 10 minutes from my house here in St. Louis, one of these was recently proposed and the neighbors in the vicinity petitioned the city to disallow it because it is “tacky looking” and “contributes to visual blight.” Now Carvana is looking to build it elsewhere in the metro area.

I also think it looks cool.

But you want to know something funny? About 10 minutes from my house here in St. Louis, one of these was recently proposed and the neighbors in the vicinity petitioned the city to disallow it because it is “tacky looking” and “contributes to visual blight.” Now Carvana is looking to build it elsewhere in the metro area.

Thankfully, this one in OKC is far away from any residents (unless you count the new apartments next door, which I am not sure if they are open).

Thankfully, this one in OKC is far away from any residents (unless you count the new apartments next door, which I am not sure if they are open).

The apartments (Argon) are open but not really that close to this site.

They have these (or similar to them) in Houston. When I heard about the concept I was intrigued and curious if it would take off. I think that now their in growth mode this will take off.

So do you get pre-approval first and then go to the machine to collect your merchandise or how does it work? I love the design of it.

^ Yes, they offer their own financing, which I understand helps speed up the process, but if you chose to use your own financing, you have to do all the leg work between them and your financial provider, sometimes resulting in weeks before you are finally able to accept delivery your vehicle. Plus you are only getting to see the vehicle on line. No test drive, no walk around. …. You buy it, then try it.

By the way, Carvana is a subsidiary of Drive Time.

^ Yes, they offer their own financing, which I understand helps speed up the process, but if you chose to use your own financing, you have to do all the leg work between them and your financial provider, sometimes resulting in weeks before you are finally able to accept delivery your vehicle. Plus you are only getting to see the vehicle on line. No test drive, no walk around. …. You buy it, then try it.

By the way, Carvana is a subsidiary of Drive Time.

They have a 7-day return policy, which can be used for test drive, inspection, etc.

Also, please re-read the article which explains Carvana spun of from DriveTime and is has been an independent operation for a while.

Thanks for the correction Pete … Was a subsidiary of Drive time.

In my minds eye, this is only a fad, but in reality they have been around for a while now and are growing. And, folks have been buying vehicles off the internet just off of viewing few photos for years now. It seems crazy but apparently it works.

I have a friend that bought a BMW about a year ago from the Dallas area location. The customer service was fantastic, NO high pressure selling. He is completely satisfied.

I have a friend that bought a BMW about a year ago from the Dallas area location. The customer service was fantastic, NO high pressure selling. He is completely satisfied.

Yep, just had friends in Santa Fe tell us the same thing. There was actually something wrong with the vehicle they brought (can't remember what, but it was minor). They came and picked it up and dropped off the corrected vehicle right at their house. They highly recommended it and loved getting to avoid the hassle of dealing with car salesmen.

Now as to whether a "vending machine" for the cars is necessary is a whole other question, lol...

It's a great marketing gimmick, otherwise we wouldn't even be talking about them. These tend to be located in high-traffic areas and serve as a billboard more than anything else. Plus, just the fun of the whole vending machine process. Just wait, once open there well be hundreds of social media videos of people putting that big coin in the slot and watching the car descend.

They actually entered the OKC market last year and few seemed to even notice.

Someone please tell me that Carvana has a super cheesy commercial with the lyrics to the Camila Cabello song, "Havana".....and if not, who do I speak to about making one!

The car industry literally involves trillions of dollars.

There is a lot to be said for finding an innovative way of trying to get just a small piece of that pie and still generate billions.

I would like to see a giant claw game with all the cars jumbled up in a box and you can try your luck to get one. Costs $1,000 to play though...

I would like to see a giant claw game with all the cars jumbled up in a box and you can try your luck to get one. Costs $1,000 to play though...

My used car would cost $100,000. lol

This is basically a car version of this:
14753

Pete, when this gets built you'll have to take your drone and go car shopping for us, and report back here.

Very interesting . . .

I saw the one near Austin earlier this week. Even in a driving rainstorm, it certainly caught your attention.

Just dropped their building permit application for $3.5 million, so this should start to move forward in the next couple of months.

They've started work:

http://www.okctalk.com/images/pete/carvana122218.jpg


http://www.okctalk.com/images/pete/carvana122318c.jpg


http://www.okctalk.com/images/pete/carvana122318b.jpg


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Has anybody used Carvana? My wife and I are starting to look at getting a newer vehicle for her and I was wondering about using Carvana. As in did you find that what was represented online was 100% accurate or 50% accurate or etc. with the product you received. Also, would you recommend Carvana over going to a dealership?

My mom used Carvana for her current car and she loved the experience.

My neighbor purchased a car for their daughter from them. I was in my office and saw it being delivered out my front window. It got delivered on a custom flatbed truck. It looked really cool. I had never heard of them before. They were happy with the experience. I don't think I could get past not test driving before purchasing though. I just need to make sure it drives right and doesn't smell like smoke or perfume/cologne. But for many not having to deal with a used car dealer is probably worth the risk.

My neighbor purchased a car for their daughter from them. I was in my office and saw it being delivered out my front window. It got delivered on a custom flatbed truck. It looked really cool. I had never heard of them before. They were happy with the experience. I don't think I could get past not test driving before purchasing though. I just need to make sure it drives right and doesn't smell like smoke or perfume/cologne. But for many not having to deal with a used car dealer is probably worth the risk.

Carvana does technically offer test drives, but they are done differently. Basically, you select the car you want and submit all of your paperwork beforehand, then schedule a delivery time. When the vehicle is delivered, you're given a 15-20 minute test drive to make sure the car meets your expectations; if it doesn't, you can return it then and there and the sale is cancelled. If you do take delivery, they begin processing your paperwork/loan info/etc, and you have up to 7 days to return the car, with no fees. if it ends up not working for you. This is detailed in their FAQ here: https://blog.carvana.com/2015/12/carvana-answers-your-faq

Carvana is really best for people who already know what vehicle they want, and are just shopping for the best price or most convenient purchase options.

Carvana is really best for people who already know what vehicle they want, and are just shopping for the best price or most convenient purchase options.

Somewhat agree, but also disagree on best price. Companies like Carvana and CarMax cater to the consumer who do not like, or are somewhat uncomfortable with the interaction/process of dealing and/or negotiating with a salesperson/dealer. They create a very welcoming, non invasive approach to selling a vehicle. (Obviously, Carvana has taken it a step further by eliminating the salesperson all together.) But typically, at these types of no haggle/no hassle venues, the overall markup/margin on the vehicles sold, are higher than what you could typically purchase them, from a traditional used auto dealer. Maybe the extra $1,200-$1,500 per vehicle is worth it to certain personality types, who are uncomfortable with engaging/negotiating with a real live human being. Carvana sources their inventory from the exact same pool of dealer auctions and off lease rental cars, that all of the local used car dealers use. The product is the same, however they market it, and package it as such specifically to individuals that.... 1. Don't know they aren't getting the best price or 2. Don't care that they aren't getting the best price....in leu of being able to avoid social interaction, and/or engage in intellectual conversation in regards to pricing when buying the car. (But this seems to be where the whole World is going these days...so, clearly it appears as though its going to be a great business model.)

engage in intellectual conversation

LOL, good one. With car salesmen?

I have a car coming from Carvana tomorrow afternoon, which will complete my purchase experience, unless I see some reason to cancel upon delivery. I really liked the ease and the experience. It was quick and easy, a couple of forms online, and then setting up delivery. I paid about $1500 less than local dealer/blue book values for the car I was looking for based on mileage and age, so I'm fairly happy with the price. There's a chance I could have saved a bit by visiting a car lot locally, but not enough to offset what my time is worth, and certainly not enough to deal with the "intellectuals" on the lot.

A car salesman will try everything and anything to convince you they are your friend. They will ask what your interests are, and of course, they have the same.

And then there's me. The last time I bought a new car, I had just been to an event where you could meet Weird Al, and some people got to ask him questions. Not quite a meet and greet, but more than just a concert. I was on cloud nine and raving like a lunatic about it.

The salesman very much had a deer in the headlights look and had to resort to the classic smile and nod. "Intellectual conversation" wasn't on the table.

Carvana story in the WSJ about 10 days ago: https://www.wsj.com/articles/auto-dealers-startups-try-amazon-style-ordering-for-cars-11546174802?mod=searchresults&page=1&pos=2
It mentions a liberal return policy:
Robert Rivers, who recently used Carvana to buy a car, said he was drawn to the simplicity of an online transaction and the company’s no-questions-asked return policy.

Mr. Rivers ordered a 2017 Kia Forte off the website this month, and three days later a large truck dropped the car off at his California home. But after living with it for a few days, he decided he wanted a more fully loaded model, so Carvana picked up the unwanted car up and replaced it with a newer Kia Forte.

“I didn’t have to deal with the sales guys,” said Mr. Rivers, 39 years old, who works for a beverage distributor. “I filled out everything online.”

We just bought a 2019 Honda CR-V AWD EX-Land while I probably would rather deal with something like Carvana there is a slight bit of satisfaction having a tough as nails wife that can talk a dealer down from $30,800 to $25,200 on a car worth over $30K and get them to throw in a few extras. Probably also helps going on a Tuesday at the beginning of the year before taxes get sent out and they're probably desperate for sales. At one point the guy straight up was like, I can't make these numbers work and she said, then have a great day, I'm not in any hurry to buy, she grabbed her purse and just started walking towards the exit leaving me to follow helplessly behind while giving the guy apologetic eyes. She had her keys in the ignition of her current car, I hopped in and the guys sales manager was knocking on our window as we were about to reverse out and he agreed on her price right there in the parking lot.

I wonder how liberal the return policy is? My understanding is that in Oklahoma the "72 hour free return policy" is required by law. All dealers have to do it. The example in post #37 appears to be an exchange, rather than a return. How easy is it to just "get my money back" after 72 hours is the real question, IMO.

One thing I have learned about new car dealers is that lease returns are offered to the dealer that took them back first, then to any dealer of the brand nationwide, and finally it is taken to the Dealers Auto Auction and sold to any highest bidding dealer. So a lease return car that winds up at CarMax or Carvana was rejected by two levels of the manufacturer's dealer network. Which indicates issues with accident history, mileage, condition, or option packaging.

Rental car companies (such as Enterprise or Hertz) only sell off their own lots the best cars that they rotate out of service. Cars that have accident or rough service histories are sold at auction to companies like CarMax or Carvana.

I'm not saying Carvana sells rebuilders or junk, but their available product pool suggests they aren't selling the premium used car that was "only driven by the little old lady on Sunday".

I wonder how liberal the return policy is? My understanding is that in Oklahoma the "72 hour free return policy" is required by law. All dealers have to do it. The example in post #37 appears to be an exchange, rather than a return. How easy is it to just "get my money back" after 72 hours is the real question, IMO.

One thing I have learned about new car dealers is that lease returns are offered to the dealer that took them back first, then to any dealer of the brand nationwide, and finally it is taken to the Dealers Auto Auction and sold to any highest bidding dealer. So a lease return car that winds up at CarMax or Carvana was rejected by two levels of the manufacturer's dealer network. Which indicates issues with accident history, mileage, condition, or option packaging.

Rental car companies (such as Enterprise or Hertz) only sell off their own lots the best cars that they rotate out of service. Cars that have accident or rough service histories are sold at auction to companies like CarMax or Carvana.

I'm not saying Carvana sells rebuilders or junk, but their available product pool suggests they aren't selling the premium used car that was "only driven by the little old lady on Sunday".

Carvana has a 7-day money back guarantee. If you want to exchange the vehicle for a new one, or just straight up return the vehicle and get your money back, you've got 7 days to decide. https://blog.carvana.com/2015/12/carvana-answers-your-faq/

Carvana doesnt sell cars that have been in accidents. The one I got this week was immaculate, and I had it checked out by a mechanic friend yesterday and everything checked out. I came in well under KBB so am happy. My one complaint/caution. They include in the tag, title, and tax. So if someone uses thier financing you're financing something additional at a sub optimal rate. I didnt use thier financing so it doesnt matter to me, but I have a feeling that like many they make much of thier money through financing.

Oh and Oklahoma has no 72 hour policy (not sure any states do). You sign a contract and pull out of the lot you own it. The 72 hour buyers remorse law is for at home sales such as door to door vacuum cleaners. So 7 days is especially generous. And they push it. I was told about it repeatedly and had it stressed to me again during delivery. Especially the any reason part. They seem to really want you happy with the car.

https://www.roadandtrack.com/car-culture/buying-maintenance/advice/a31066/three-day-return-period-car/

Looks like this started going vertical today.

I just purchased a car from Carvana and the process was essentially flawless. And the price I paid was at or below all of the pricing services I used for comparison.

The process was just as they advertise; pick a car, look at it with their 360-degree photos, and if you like it, put it in your shopping cart. When you "check out," you put in some basic identifying information, and that puts the car in "Purchase Pending" status.

You then can select Carvana financing, whereupon they will offer you a rate based on a soft-pull on your credit; their offer for me was very good, but still not as good as my local credit union. I then switched to private (third-party) financing. After a bit of call-me-call-you hiccups between Carvana and my credit union (which were really not Carvana's fault), the sale proceeded flawlessly up to and including their spot-on honor of their scheduled delivery time. I didn't get a flatbed delivery; their agent told me they had eleven deliveries in the area on that Saturday, and the flatbeds were routed to Tulsa. Minor disappointment.

The delivery courier reminded me of my no-questions-asked seven day return privilege, and also pointed out a 100-day, 4,189 mile secondary warranty provided by Carvana.

The car itself was absolutely perfect. Immaculately detailed and polished in and out. Every angle I looked at was spot-on; CV-boots clean and intact; no signs of rust or unusual frame wear; no signs of leaks or odd fluid levels. Engine was smooth as silk, and my OBD code reader showed no stored codes and indicated all was well. I even verified that new oil was in the crankcase, which is part of Carvana's pre-sale checkout. Try as I might, I couldn't find anything wrong with the car.

After the week trial passed, Carvana contacted me to let me know the registration process had started, and about three days later, I received my Oklahoma title and license plate via FedEx.

I love the car, believe I paid an excellent price, and wouldn't hesitate to buy from Carvana again. They did everything they said they'd do. I can hardly expect more.

This matches my experience as well (except for the flatbed). Two months after my purchase and I'm still very happy.

Always the best move to avoid buying new if it fits for your family. Still driving my 15 yr old truck I bought the year I retired that was showing 15K when I got it. Only 75K now after 13 more years.

Always the best move to avoid buying new if it fits for your family. Still driving my 15 yr old truck I bought the year I retired that was showing 15K when I got it. Only 75K now after 13 more years.

Concur 1,000%. I cannot fathom buying a truly new car again. There's just no point.

I finally retired my 15-year-old, 150,000-plus mile daily driver I bought new in 2004 when the headliner started falling down and my wife told me, "You know, I think you've gotten your money's worth on this one. Maybe it's time for something a little newer." That car has moved on to a new owner and I think it still has some good years left in it for him if he takes good care of it.

The last truly new vehicle we bought was a minivan in 2008, and we still drive it (great vehicle - Toyota Sienna) but since then, it has been used cars all the way. Our family has saved literally tens of thousands of dollars buying outstanding quality used vehicles, and thankfully I've been able to handle all my own maintenance.



The extra bonus for my car is that I inherit the balance of the original manufacturer warranty and it doesn't cost me a penny. That's 10k base warranty plus 30k powertrain. Talk about win-win!

http://www.okctalk.com/images/pete/carvana030919a.jpg

I'm glad the vending machine is going up. I've been putting off buying a car until I could get it from there. I've been checking them out for about a year and their prices are great. I'm going to replace two cars with a Tesla and Toyota Tundra and it looks like Carvana has the best prices and I really like I can get both from the same dealer.

Bought a couple a months ago, and have been 100% delighted with the car. Process was flawless.

I've tried twice now to buy from Carvana and struck out both times - as their prices were too high and the deal would take too long to get delivery on a cash purchase. Most recently was last week.

I wanted (and got) a barely used one-owner lease return Nissan Murano Platinum. The cheapest I could get it on Carvana (after fees) was $26,900. I walked into a Edmond dealership and bought the exact same car (and mileage within 3,000 miles) for $22K out the door and had the car the same day.

*Dealer's original price was almost $25,000 out the door on a cash deal. So, still cheaper with zero negotiations.

Had the same experience before when buying an Infiniti.

This may work for some people, but I don't see the allure.

^I’d second this. They were not close on a car I looked at a few months ago. Got a much lower price at a dealer making the entire deal by email and text. I’m sure it is different from deal to deal but my experience was like BBates. Have always had this experience with Car Max but was hoping Carvana would be different. At least in my case it was not.

Caravana and Carmax and IKEA all have the same thing going for many people, including me:

It’s worth it for me to pay more just so I don’t have to deal with the hassle of dealing with people at the dealership or furniture store. You want a couple thousand extra just so I don’t have to have someone who lives or dies by their commission breathing down my neck, spend hours playing the “let me talk to my manager to see if we can make this deal” game, and avoid being haunted for up-sales? Here’s my money!

^I’d second this. They were not close on a car I looked at a few months ago. Got a much lower price at a dealer making the entire deal by email and text. I’m sure it is different from deal to deal but my experience was like BBates. Have always had this experience with Car Max but was hoping Carvana would be different. At least in my case it was not.

For me, for a used car that is probably out of warranty, that I can't walk around, sit in, or test driver until it's paid for and delivered, it had better be a couple grand cheaper than I can buy locally or there is no way I'm doing the deal. Especially if local dealers are not more than $500 over Carvana's price or cheaper.

Easier and less hassle is worth a lot to many. And I’m sure quite a few (as have posted here) actually get what they feel is a good deal on top of that as well. I am not knocking it, but had same experience in terms of price as BBates posted.

Would it be too far of a reach to have the same analogy of buying on CL vs eBay?

Would it be too far of a reach to have the same analogy of buying on CL vs eBay?

I'm not sure that comparison fits. At the end of the day you're still buying the car from a dealer. The interaction is just all virtual here. Obviously, deals and pricing evidently have a "your mileage may vary" aspect to them. I know I was looking for something specific (a late model, low mileage, 6 speed, mazda3), and I saved a bit over anything I could find in local dealerships. And I never had to site down with a sales person, have the "manager" brought over to make me a special offer, then sent to spend hours with the finance manager, and have an extended warranty shoved down my throat, and such. And the 7 days to drive it around, have it inspected, and such, before deciding if I want to keep it? Better than anything any local dealerships have offered me (don't know if anyone knows any dealerships that let you do that). If the car price was a wash or better, it's a no brainer for me for the experience difference. Even if I had paid a bit more, it might have been worth it, considering the cost on my time.

It's fascinating to me that someone will spend thousands of dollars more to not deal with someone on a asset that depreciates probably double that when you drive it off the lot.

Just to be clear, I wouldn't spend thousands more, and I'm not sure anyone else has expressed that willingness either.

But the sales people add nothing of value whatsover to the transaction.

Whatever the reasons, Carmax and Carvana seem to be in a market that supports them.