PPO Morning Market — Carvana’s Surge Is Reshaping the Used-Car Power Rankings

By Craig White • Profitable Pre-Owned

Carvana is no longer just the “online disruptor with messy financials.” They’ve quietly turned the corner and are now behaving like a scaled, disciplined used-car retail machine — one that’s starting to outpace CarMax in key areas that matter to today’s digital-first shopper.

In today’s PPO Morning Market update, we’ll break down what’s changing with Carvana, how it affects independent and franchise dealers, and where the real day-to-day opportunities still live in your market.

1. Carvana Is Surging — and They’re Coming for the #1 Spot

The biggest under-reported story in used retail right now is simple: Carvana is no longer a sideshow. They are quickly becoming a serious threat to traditional used-car volume leaders — including CarMax.

Several trends are driving that surge:

• Cleaner inventory mix: More late-model, low-mile, retail-ready units with fewer “problem children.”
• Faster recon throughput: Centralized hubs, tighter processes, and data-directed workflows mean units hit the site ready to retail faster.
• Growing acquisition volume: Carvana’s direct-to-consumer offers and marketplace buying are feeding a steadier, higher-quality pipeline.
• Shorter delivery windows: Logistics are tightening up, making the experience feel more like Amazon and less like a science project.
• Expanding physical footprint: Recent dealership acquisitions give them something they’ve never really had before — trade-in flow and service revenue.
• Stronger digital trust with younger buyers: For many shoppers, Carvana feels faster, simpler, and more transparent than the traditional lot.

None of this means CarMax is going away. But it does mean the used-car “power rankings” are shifting. Carvana is starting to look less like a tech experiment and more like the Amazon of used cars.

PPO Takeaway

Treat Carvana as a national-scale competitor, not a niche player. Watch how they merchandise, communicate value, and build trust digitally — then audit your own processes against that standard.

2. Wholesale Inventory Pressure Is Quietly Building Again

While retail demand is holding steady, what’s happening in the lanes tells a more nuanced story:

• Truck and SUV values are sliding 0.2–0.4% in several regions as supply and mileage stack up.
• Condition report discrepancies are ticking up, especially on older domestic trucks and SUVs.
• Fleet and rental groups are dumping mileage-heavy crossovers as we head into December, putting pressure on already-soft segments.

Your front-end profit is being decided at first look, not when the car hits the recon bay.

PPO Takeaway

Tighten your CR review today. If the numbers only work when everything goes perfectly in recon, you’re not buying — you’re gambling.

3. Mid-Price Crossovers Remain the Retail Workhorse

The strongest and most predictable retail zone continues to be the $17,000–$25,000 crossover space. Units like:

• Honda CR-V
• Toyota RAV4
• Nissan Rogue
• Chevy Equinox
• Hyundai Tucson

These vehicles continue to show:

• Above-average VDP activity
• Stable 30–45 day turns
• Fewer price changes are needed to stay competitive

They’re not always glamorous, but they’re reliable gross and volume delivery systems when you buy them right and merchandise them aggressively.

PPO Tip

If you’ve picked up clean CR, one-owner crossovers recently, push them to the top of your merchandising queue and make sure the photos and options are bulletproof.

4. “Click-to-Compare” Shoppers Are Outnumbering Walk-Ups 4:1

Across every major marketplace, the same pattern shows up:

• Shoppers view 3–5 similar vehicles before they ever click “contact dealer.”
• Feature accuracy and transparency often matter more than being the absolute lowest price.
• Listings with recon notes, tire/brake info, and value explanation win the first click — and usually the lead.

Small merchandising gaps — missing packages, weak photos, vague descriptions — are what cost you the first click, long before price ever enters the conversation.

PPO Advice

Today, pull up your top 10 high-intent units and ask:

• Do the photos match the story I’m telling in price and description?
• Are the key packages and features clearly called out?
• Would a shopper feel more confident clicking on my car or a competitor’s?

5. Early Tax-Season Browsers Are Already in the Market

You may not see the lead spike yet, but the browsing behavior is there — especially in:

• Sub-$15K units
• Older, clean-title sedans and crossovers
• Basic transportation with solid CRs

Budget buyers are starting their research now and will convert as tax refunds hit in Q1.

PPO Tip

Go tighten your under-$15K inventory today. These are your fast-turning January wins if you price and merchandise them with intention now.

PPO Morning Market Action Checklist

Use this quick-hit checklist with your team this morning:

• ✅ Review your market’s Carvana presence — inventory volume, pricing posture, and merchandising style.
• ✅ Audit 3–5 key segments where you overlap heavily with Carvana and CarMax.
• ✅ Tighten CR review standards for lane purchases this week.
• ✅ Identify your top 5 mid-price crossovers and upgrade photos/descriptions where needed.
• ✅ Pull a quick report on sub-$15K units and validate pricing + photo sets ahead of tax season.

Download the PPO Morning Market Action Checklist (PDF)

If you want to keep this in front of your team, download the checklist as a one-page PDF you can print, share in your group chat, or use in your morning huddles.

Get the PPO Morning Market Action Checklist and keep your team focused on the right moves each day.

Download the PPO Morning Market Checklist (PDF)