Carvana, ADESA, ACV, & Wholesale Auto Auctions

In Practise Weekly Analysis

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Last month, Carvana acquired ADESA, the second largest wholesale auto auction business in the US, for $2.2bn. Carvana is debt-financing $3.3bn for the acquisition and $1bn incremental capex to add IRC capabilities to the 56 ADESA sites. This acquisition places Carvana within 100 miles from 78% of the US population.

We believe this transaction not only accelerates Carvana’s retail growth trajectory, but could also fundamentally restructure the wholesale auto market.

We share our thinking below which is based on multiple executive interviews across the industry and a recent investor dialogue on CVNA vs KMX:

  1. Investor Dialogue: Carvana vs CarMax
  2. ACV Auctions & US Auto Wholesale Market
  3. Carvana, KAR Auction, & The Used Car Ecosystem
  4. Vroom, Carvana, & Optimising Vertical Integration
  5. CarMax: Competing with Carvana
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