Tempe-based Carvana has been a leading name in the used car market since its inception in 2012. With its vast collection of 25,000+ certified cars, hassle-free financing options, a car vending machine, and 7-day return policy, it continues to revolutionize how people buy a pre-owned vehicle.
But today’s resale car market doesn’t revolve around Carvana anymore. It’s saturated with numerous other car dealer alternatives, each with unique pros to grab your attention.
In this guide, we’ll look at the top 17 Carvana competitors driving innovation in this space.
Top 17 Carvana Competitors
CarsDirect
Scott Painter founded CarsDirect in 1998 to facilitate the direct sale of used or new vehicles to consumers.
While its competitors deploy sophisticated algorithms and automation to analyze car pricing data, CarsDirect relies on its one-of-a-kind team of human experts for the same. They constantly analyze the latest available data to identify the best deals and pricing trends, thus benefiting car shoppers.
This has helped CarsDirect serve over a million users worldwide, clock a revenue of a whopping $38.9M, and get recognized with awards like Top 100 Classic Websites by PC Magazine and Top Site for Buying or Selling Anything by PC World.
CarsDirect is yet to release a mobile application but their website is more than enough to find your next car, be it used or new. It may not be intuitive, still, has every base covered. You’ll find useful tabs like buyer resources, 24/7 customer service, the latest industry news, and more.
TrueCar
TrueCar, Inc. is an online retailing website for new and used car buyers. Located in California, this automotive pricing website doesn’t sell cars directly. Instead, it uses an “asset-light” business model to link buyers with sellers, and the other way around.
In simple words, TrueCar lets customers (or buyers) see what the other person paid for a used car and get it at the best price from any of the 15,000 licensed dealers. Thus, it’s the dealers who pay the platform a fee to connect with potential buyers, not the buyers.
Similar to Carvana and its other alternatives, the TrueCar website is extremely user-friendly and consists of several tools to find the perfect car for you by answering a few simple questions. Some top features include Know Your Buying Power, Shop by Budget, etc.
AutoTrader
Next comes AutoTrader, another American new and old car car listing platform. This platform allows listings for both, private sellers as well as wholesale dealers.
With a huge inventory of vehicles across different categories and countries, AutoTrader offers a comprehensive platform for car shoppers.
Its features include advanced search filters to narrow down choices based on make, model, price range, mileage, and more. It also provides you with an option to read vehicle’s valid history reports, compare prices, and read reviews to make informed decisions.
AutoTrader’s user-friendly interface allows for easy navigation and seamless browsing on both desktop and mobile devices. Moreover, the platform provides resources such as financing options and insurance quotes to streamline your car buying process.
CarTrade
CarTrade is by far the most beginner-friendly online platform we’ve come across for car shopping, and its easy-to-navigate website is its key highlight.
It’s based out of Slatington, PA, and its search engine is designed to connect you with your nearby sellers, or local dealers. You can refine your search through the built-in filters, such as make, model, and max price. If you’re new to all this stuff, CarTrade is certainly the ideal option for you.
Another highlight of CarTrade’s website is its “Featured Vehicles” section, which lists the top-selling car models you can’t miss checking out. There’s an option for credit-based financing and home delivery, too.
This Carvana competitor may be a work in progress and lacks a considerable inventory, but it’s still a worthy platform out there.
CarLotz
Source: LinkedIn
Founded in 2011, CarLotz specializes in buying and selling used wagons, cars, vans, trucks, SUVs, sedans, convertibles, bikes, and other vehicles.
It acts as a reliable mediator between interested customers and private sellers, offering both a range of advantages over other platforms. But it must be noted that CarLotz does all this without charging you any fee. Thus, lower car prices, too!
The website has a smooth interface with numerous search filters, and every listing you see is of used vehicles thoroughly inspected by CarLotz’s internal team. This ensures each car is ready to hit the road as and when required.
AutoTempest
AutoTempest is a leading player in the online used car aggregator segment. Its advanced search engine uses complex algorithms to gather millions of pre-owned cars from dealers and private sellers. These include platforms Cars.com, Carvana, TrueCar, eBay Motors, etc.
Using an aggregator like AutoTempest, thus, helps you view all the results in a single search, saving time and effort in finding your ideal next car.
AutoTempest’s website also features a handful of useful filters to discard unwanted results and ones that don’t match your interests. If you’ve suddenly changed your mind and want a new car instead, this Carvana competitor has also got you covered here.
The company also provides its customers with car buying and selling guides, as well as other resources, to make the whole process informative and enjoyable.
Autolist
Autolist is another leading used car aggregator platform. Its free search engine has a database of over 5,000,000 car listings from numerous dealers, further categorized based on price, body styles, and cities.
If you’ve any specific car model in your mind, chances are you might find it listed right on the main screen.
While other platforms let you compare cars, on Autolist, you can also get other useful insights, like how long the car’s been on listing, its price history (drops and increases), and its downloadable Carfax report. This helps you make the best deal and get the best value-for-money car.
Autolist has its own Android and iOS mobile applications apart from the website. Thus, you can carry on your next car search on the go!
Cars.com
Cars.com is a Chicago-based online marketplace to buy and sell used cars. Accessible on both mobile apps and websites, Cars.com is a top-rated retailer on the internet with over 20,000 local car lots and detailers to buy from.
Aimed at empowering car shoppers with the data, resources, and digital tools needed to make the right buying decision, Cars.com acquired Dealer Inspire to supplement its already roaring business model.
It’s an innovative solution to help dealerships operate more efficiently, simplify the car buying process, and enhance digital experiences for selling and servicing more vehicles.
While the app needs some refinements in its overall performance, user-interface, and limited functionality, the website of Cars.com is well-organized and presents every option right in front of you. The website also features a good collection of helpful resources, including guides on car buying and selling, for first-time users.
Vroom
If you want to buy, sell, or trade-in your old vehicle entirely online, you don’t need to look further than Vroom. This Carvana competitor from Houston, which touched a $0.89B revenue in 2023 is an innovative online marketplace known for convenience, transparency, and quality assurance.
Its key highlights include a vast inventory of pre-owned vehicles thoroughly inspected and certified for quality and reliability. Vroom provides a seamless purchasing experience with online browsing, economical pricing, and home delivery options, eliminating those tiring visits to car dealerships.
The online platform also offers relatively better financing solutions than its peers, making it accessible to a wide range of car buyers. Additionally, their intuitive website and mobile app streamline the car-buying process, allowing you to find your dream car with a few clicks.
Enterprise Car Sales
Enterprise Car Sales has operated since 1962 and has been a pioneer in the used car industry. Most vehicles it sells come from its parent company, Enterprise Holdings’ fleet of rental cars, after multi-point inspections.
Interestingly, Enterprise Car Sales was the early user of the “haggle-free” business model to price its used cars inventory, which is now used by other retailers as well. For example, CarMax and Carvana.
Enterprise Car Sales score a brownie point by offering a 7-day/1,000-mile buyback policy, a 12-month/12,000-mile limited powertrain warranty, and 12 months of roadside assistance on all its vehicles, regardless of price.
Furthermore, the company has partnered with a wide network of high-quality lenders, including Chase, for its College Graduate Car Program. Under the program, Enterprise Car Sales helps college graduates with limited credit history to fulfill their dream of owning a car.
CarMax
With an online and offline retail presence in over 248 locations in the United States, CarMax is a 30-year-old used car retailer from Virginia. It has a huge fleet of 45,000+ CarMax Certified Cars and has sold over 11+ million cars to date.
The main benefits of purchasing a used vehicle from CarMax are their 24-hour test drives and 30-day “no question asked” return policy. As a result, you can rest assured of spending your hard-earned money on the right car.
Not just this, but affordable financing options starting @ $90/month further add to the legacy of CarMax, and its annual revenue which crossed $26B in 2023.
Hertz Car Sales
Hertz Car Sales is probably one of the oldest used vehicle dealership companies on the list, with an experience of over 47 years. Based out of Florida, Hertz Car Sales is a division of The Hertz Corporation.
It’s also the largest second-hand car company in North America, operating in 68+ locations. Plus, Hertz Car Sales operates some of its offices in France, Italy, Germany, Spain, and the United Kingdom, as well.
What makes this online platform stand out is its distinct offerings, adding extra convenience to the entire car buying process. Unlike other companies, it uses various ways to sell its vehicles to consumers, like Hertz Dealer Direct, Hertz Rent2Buy Program, and Hertz Car Sales Locations.
115-point pre-delivery inspection cars and best-in-class financing through trusted lending partners are the two other positives of this Carvana competitor.
CarGurus
Cambridge-based CarGurus entered the automotive industry in 2006 to create a better car-shopping experience using the latest tech.
Its biggest plus point is its complex algorithm-based search engine. It analyzes over 5 million car listings on price, mileage, dealer reputation, accident history, certified pre-owned (CPO) status, location, etc. Result? You get the best-valued car for your money.
If it’s your first time buying a second-hand car, you can chat with CarGurus’ test-drive team and seek guidance to make the right decision. Additionally, you can connect with automotive experts via its Q&A forum.
The only drawback of this Carvana alternative is its limited delivery option, meaning only listings with a “truck” sign are eligible for nationwide doorstep delivery. Speaking of the cost, it’ll depend upon the seller’s preferred mode—flat fee or per mile.
Facebook Marketplace
If you’re in the market for buying a pre-owned vehicle or selling one, chances are you might come across the Facebook Marketplace to make a deal.
Facebook officially started allowing private sellers and dealerships to list their vehicles on the Marketplace in 2018 and reach potential buyers. A few key features of Facebook Marketplace include its intuitive UI, tons of built-in filters to narrow your search to a specific car, and no mediator fee.
You can access this online marketplace through the web or mobile application. On the main screen, you’ll find the Vehicles option under Categories and the related filters. For example, you can filter the results based on the price, vehicle type, manufacturing year, make, model, body style, and whatnot.
There’s a separate filter for mileage as well. To buy your favorite car, you must only text the seller via the message option and make the deal. That’s it!
eBay Motors
eBay Motors is a subsidiary of the online marketplace eBay. Similar to Carvana, it’s a go-to destination for second-hand car sellers and buyers.
But what makes it unique?
One of the key features of this 2000-founded eBay Motors is its vast selection, giving buyers plenty of options to choose a vehicle from. You can search for cars by their categories, make, model, year, and location, making it easy to find the perfect four-wheeler without hassles.
Additionally, the online platform provides detailed listings with photos, descriptions, and vehicle history reports, helping you make informed decisions. Still, you must stay aware of the risks involved in online transactions while browsing eBay Motors.
If you’ve got a decent credit history, eBay Motors also offers exclusive financing options, shipping, and vehicle protection plans, adding convenience and peace of mind to the buying process.
With its user-friendly interface and extensive inventory, eBay Motors is undoubtedly Carvana’s top alternative for anyone in the market to buy a used car or sell one!
ACV Auctions
A leading online car auction for dealers, ACV Auctions stands out from its rivals with its customer-centric approach and competitive pricing based on real-world data.
It’s popular for its daily auctions that see wholesale dealers worldwide bid for clean title used cars from various categories, like SUVs, pickup trucks, sedans, hatchbacks, luxury cars, and more. These vehicles are thoroughly inspected by the fleet of ACV Auctions inspectors spread across the United States.
Along with the basic inspection, they study vehicles’ interior, exterior, tires, engine, and most importantly, the engine sounds—ensuring high confidence among bidders.
All these not just help buyers and sellers but also dealers who can match industry leaders in service quality and efficiency, optimizing their business model for better performance.
DriveTime
DriveTime is also headquartered in Tempe, Arizona, as Carvana. Ernest García II launched it in 2002 after rebranding it from “UglyDuckling.”
As per the data available till 2019, DriveTime has a presence in over 138 locations, with 3,800+ employees serving second-hand vehicle enthusiasts in the United States. The company’s business model revolves around selling used cars and in-house financing—based on its proprietary credit scoring system.
It annually buys approx. 150,000 cars from various auctions, like ACV Auctions, and sends them for 14-day inspection at any of its 24 centers. Out of these, about 8% fail the inspection check and are rejected for sale to dealers.
One interesting thing about DriveTime is that it encourages its employees to create startups and GO Financial, Carvana, and SilverRock Group are some of its sister companies.