Stellantis and Carvana are testing a new way to sell vehicles. Carvana has bought seven Chrysler, Dodge, Jeep, and Ram franchises. The acquisitions put Stellantis vehicles inside Carvana’s online sales system and extend their reach beyond local markets. Sales have risen quickly, but dealers question how the arrangement works. This new partnership between Stellantis and Carvana is watched closely by the industry.
Carvana did not sidestep the franchise system. It entered by purchasing dealerships across six states. Notably, Stellantis and Carvana’s collaboration lets the latter sell new models while using the fixed-price, digital-first process that built its used-car business.
Carvana Gives Stellantis a High-Volume Sales Channel
According to Automotive News, Carvana’s Casa Grande, Arizona, dealership sold 706 new vehicles in May. It became the top-selling Stellantis store in the United States that month. Before Carvana took control, the location reportedly sold between 30 and 50 vehicles per month. Together, The Netherlands-based automaker and Carvana changed the business model for this dealership.
The result helps explain why the experiment may appeal to Stellantis. More inventory can be moved through a retailer already known for online convenience. Additionally, Carvana receives factory-backed vehicles, financing opportunities, trade-ins, and service customers by working alongside the automaker of Jeep and Ram.
Carvana’s 2025 SEC filing shows the scale of its investment. The retailer paid $160 million for five franchise dealerships during the year. In fact, the credit line of $214 million from Stellantis Financial Services demonstrates how closely Carvana and Stellantis are working together to fund new inventory. Two more stores were later acquired.
Price has not slowed sales. Automotive News found eight models advertised above prices offered by nearby competitors between May 7 and Aug. 5. Some vehicles cost over $4,000, or about 6%, more. Buyers paid extra for Carvana’s simpler process. The Stellantis and Carvana agreement is attracting unique buyers.
Competing Dealers Question the Operating Rules
Competing Stellantis dealers worry that Carvana may receive more freedom with national advertising, websites, inventory storage, and dealership upgrades. Those complaints have not established that any franchise regulation was broken. Still, it’s clear the Stellantis and Carvana arrangement is causing concern among traditional dealers.
Stellantis says its allocation methods, incentives, facility rules, and performance standards are applied consistently. The company denies giving Carvana unfair treatment, emphasizing parity between Carvana and Stellantis retailers.
The harder question concerns market reach. A traditional Stellantis dealership mainly serves nearby buyers and maintains local service bays. Carvana can use each franchise as part of a much larger online network, especially now that Carvana partners with Stellantis in this way.
That creates a risk for both companies. Selling new Jeeps and Rams quickly is one measure of success. Recalls, warranty repairs, parts, and routine maintenance will test the model after delivery. The evolving test between Carvana and Stellantis may set new industry standards.
Stellantis gains sales volume, while Carvana gains inventory and new customers. Their experiment will depend on whether those buyers receive reliable support without damaging Stellantis’ relationship with its established dealer network. Many are watching to see how the partnership between Stellantis and Carvana unfolds.