Prediction: Carvana's New-Car Business Will Work. Early Numbers Are Stunning.

Carvana is expanding into new-car sales by acquiring brick-and-mortar dealerships while maintaining its online-only sales strategy. The company's Arizona dealership sold over 700 vehicles in May, dramatically exceeding the previous average of 30-50 sales. By leveraging its online platform and focusing on high-margin services like financing and parts/service, Carvana aims to disrupt the traditional new-car dealership model.