Carvana tests franchise operations with second CDJR dealership in Dallas

On the Dash:

• Carvana has acquired its second CDJR dealership of 2025 in Dallas, following a February purchase in Casa Grande, Arizona, as part of an early experiment in traditional franchise operations.
• The Dallas market offers strategic advantages, including high-volume new car sales, trade-ins, and off-lease returns.
• Carvana’s move signals a shift from a fully online retail model to a hybrid approach, blending e-commerce with brick-and-mortar operations.

The giant online e-commerce platform, Carvana, has just acquired Park Cities Chrysler Dodge Jeep Ram (CDJR) in Dallas, Texas, marking its second CDJR dealership this year as the online retailer tests traditional franchise operations. 

The transaction, completed Monday evening, follows Carvana’s February acquisition of a CDJR dealership in Casa Grande, Arizona, near its Phoenix headquarters. However, the parties involved in the Dallas deal did not disclose the financial details.

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Industry analysts note that the Dallas market could provide Carvana with access to high-volume new car sales, trade-ins, and off-lease returns, which helps to alleviate the tight supply of certified pre-owned (CPO) vehicles that has challenged used-car retailers. Additionally, Texas’s lack of state income tax and low corporate taxes reduces operational costs, making it easier to integrate physical franchise operations without eroding margins. 

Carvana’s move represents a shift from its traditional fully online used-car model, which signals an interest in blending e-commerce with brick-and-mortar operations. While the experiment is still in the early stages, it could challenge long-held assumptions about who can operate within the franchise dealership system and under what conditions.

Ultimately, the company will continue to monitor the performance of its Dallas and Casa Grande dealerships as it refines its approach. Broader implications for Carvana’s business model and the automotive retail industry will depend on consumer adoption, operational efficiency, and the profitability of its franchise approach.