American startup started selling cars at a giant vending machine car

American startup Carvana has opened a five-story vending machine to buy cars in Nashville, Tennessee.

The founders of the American startup Carvana set themselves the task of making the process of buying a car as easy as possible. Several years ago, they proposed moving all stages, including the choice of payment and guarantees, as well as signing the contract online. According to Ernie Garcia, CEO of Carvana, it takes an average of 20 minutes for his customers to purchase a car.

The only controversial issue was the process of getting the car itself. The company offered customers a choice of home delivery or drop-off. In most cases, customers chose the second option, so Carvana decided to make it more extravagant.

Because the delivery was to be free, the startup executives chose to invest the money saved in creating a “unique experience” for their customers – a giant five-story vending machine.

After the customer confirms his order, he is given a huge coin, which should be lowered into the machine. Then one robot lowers the car down, and the other drives it to the main entrance of the store.

Funds are withdrawn from the client’s account only at the moment when he leaves the territory of Carvana, and he has the opportunity to return the money within seven days without giving any reason. On the sixth day after the purchase, the startup employees even call the buyer to find out if he has forgotten about the opportunity to get the funds back.

According to the CEO of Carvana, the “foolish” move actually saves the company a lot of money. A vending machine requires fewer people to operate than a convenient pick-up point, and it requires less land to be rented than a conventional parking lot. For customers, these benefits translate into a discount of about two thousand dollars.

In case the buyer wants to come from another state, Carvana offers airfare and free taxi from the airport. However, over time, the company promises to open similar machines throughout the country.

Caravan’s solution is not unique: in 2012, Volkswagen began using a similar delivery method. However, the German company was more focused on practicality than some kind of unusual experience for buyers.