The ADESA Auction acquisition is going to have more drag than sail. It thrived as a local car wholesaler auction - dealer-only buyers, but technology that Carvana has used to its advantage will be a serious disadvantage to the old bricks-and-mortar ADESA. It takes a lot of capital to open retail car sales locations - not so wholesale, especially online - from dealer to dealer.
The ADESA Auction acquisition is going to have more drag than sail. It thrived as a local car wholesaler auction - dealer-only buyers, but technology that Carvana has used to its advantage will be a serious disadvantage to the old bricks-and-mortar ADESA. It takes a lot of capital to open retail car sales locations - not so wholesale, especially online - from dealer to dealer.