Carvana said it ended 2025 with 16 integrated ADESA sites and built annual retail capacity of roughly 1.5 million units, with real estate that could support three million. Its SEC filing says inventory is sourced primarily from customers, auctions and wholesale suppliers.
Direct consumer sourcing can remove auction fees and widen the vehicle pool, while integrated sites can reduce transport distance and support multiple retail or wholesale exits.
The moat is operational
The visible website is only the front end. Inventory pooling, inspection, reconditioning, transport, title work, pricing and disposition determine whether a remotely acquired vehicle produces margin.
A local dealer can answer differently
A dealership group can use local service history, lost sales, market demand and retail expertise to build narrower buy lists. Pickup radius should expand only when route density, cycle time and contribution margin remain acceptable.
Capacity, integration and efficiency statements are company-reported and should not be treated as audited dealer benchmarks.
Cited references
- Carvana 2025 annual report — SEC filing
- Carvana 2025 results — Company earnings release