Carvana Opens Second Car 'Vending Machine' for the Credulous
Online used-car dealer Carvana opened its second coin-operated car “vending machine” in Houston, Texas. The four-bay location allows customers either to pick up cars they’ve purchased through the company’s website, or to buy one of the 30 vehicles in stock at the location.
While customers can have their purchase delivered directly, Carvana must think there are enough interested rubes willing to make a pitstop in Houston on their pilgrimage to the world’s biggest ball of twine to make this gargantuan novelty worthwhile. Considering that Las Vegas has remained on the map, there might be something to that way of thinking.
“People responded so positively to our Nashville Vending Machine that we knew we had to bring the experience to additional markets. Houston is a natural fit for a Car Vending Machine, and we are thrilled to be able to offer customers this unique and, we hope, memorable pick-up option in addition to the free, as-soon-as next day delivery services we launched in Houston late last year,” said Ernie Garcia, founder and CEO of Carvana.
The company says the entire process is automated, although videos from the original site in Nashville always show a Carvana representative present — usually standing on a Hovertrax — to help select your vehicle, use the machine, and answer any questions that you might have. According to the company, buyers also have to arrive at a pre-scheduled time before the 7 P.M. closing time.
The giant fake coin and the cosmic-bowling lighting really finish off this futuristically hokey masterpiece. It’s a gimmick and one Carvana seems committed to using to drum up some attention. The company said it will fund customers’ airfare up to $200 and arrange transportation from George Bush Intercontinental Airport to the vehicle dispenser for those who live more than 100 miles outside of the Houston area.
According to VentureBeat, Carvana raised a sizable $160 million last August, bringing the total money raised to just below $500 million. Meanwhile, New York-based used car dealer Vroom took in $218 million over the last three years. There is a clear market for buying and selling cars online and, so long as nobody tells prospective buyers that major cities have had automated parking garages for years, Caravana will have its ace in the hole.
A staunch consumer advocate tracking industry trends and regulation. Before joining TTAC, Matt spent a decade working for marketing and research firms based in NYC. Clients included several of the world’s largest automakers, global tire brands, and aftermarket part suppliers. Dissatisfied with the corporate world and resentful of having to wear suits everyday, he pivoted to writing about cars. Since then, that man has become an ardent supporter of the right-to-repair movement, been interviewed on the auto industry by national radio broadcasts, driven more rental cars than anyone ever should, participated in amateur rallying events, and received the requisite minimum training as sanctioned by the SCCA. Handy with a wrench, Matt grew up surrounded by Detroit auto workers and managed to get a pizza delivery job before he was legally eligible. He later found himself driving box trucks through Manhattan, guaranteeing future sympathy for actual truckers. He continues to conduct research pertaining to the automotive sector as an independent contractor and has since moved back to his native Michigan, closer to where the cars are born. A contrarian, Matt claims to prefer understeer — stating that front and all-wheel drive vehicles cater best to his driving style.
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I hate when you go to buy a car out of the car vending machine and it gets stuck and is half hanging out. Although if you are lucky, you will get the stuck car that the guy before you left and the next car.
There is one under construction in Austin. By I35 next to all the big car dealerships.