Carvana posts record Q2 as U.S. shoppers shift to used cars

Carvana announced a record-breaking second quarter, moving nearly 200,000 vehicles—a 40% increase compared with the same period last year. Revenue rose 52% to about $7.4 billion, while net profit grew to $310 million from $183 million. Chairman and CEO Ernie Garcia III said the company’s simple, fun, and fair customer experience is fueling brand growth and word-of-mouth referrals.

Elevated new-car prices, now averaging $50,000 for standard models and over $66,000 for full-size pickups, are pushing consumers toward used cars, a trend reinforced by higher gasoline prices and inflation. Carvana saw its strongest gains in the Midwest and Northeast and noted a 60% jump in sales to households earning more than $100,000. Despite the robust results, the stock slipped 8% after the firm forecast full-year earnings below some analysts’ expectations. Looking ahead, Carvana is expanding into new-vehicle sales after acquiring several Stellantis dealerships and launching a smartphone-first buying experience.