Carvana Expands in Phoenix with New Auction-IRC Megasite Integration to Boost Production and Customer Offerings
Carvana a trailblazer in the online used car marketplace, has announced an ambitious new development in its operational footprint: the integration of a state-of-the-art Inspection and Reconditioning Center (IRC) into its existing ADESA Phoenix auction location. This strategic move will result in the formation of a multifunctional “Megasite” in the greater Phoenix area, positioning Carvana to enhance both its retail and wholesale offerings.
By incorporating IRC capabilities into its already robust wholesale auction site in Chandler, Arizona, Carvana aims to significantly expand its vehicle production capacity and improve logistical efficiency. At the same time, it will continue to support full digital and in-lane auction services at the ADESA Phoenix facility, ensuring that wholesale clients maintain seamless access to the services they have relied on for more than two decades.
Strategic Site Expansion to Serve Retail and Wholesale Customers
The ADESA Phoenix location, situated in Chandler, AZ, has been a cornerstone of wholesale automotive services in the region for over 20 years. The expansive site spans nearly 100 acres and is equipped with over 5,000 parking spaces, making it uniquely positioned to host both high-volume vehicle reconditioning operations and regular wholesale auction events. With its ample space and infrastructure, the site offers Carvana the opportunity to combine two key components of its business—vehicle inspection and reconditioning, and vehicle auctioning—under one roof.
This co-location of services is expected to yield significant benefits. For retail customers, the new Megasite will improve vehicle selection and availability, potentially enabling same-day or next-day vehicle delivery for many in the Phoenix metro area. Wholesale clients will not only retain access to full in-lane and online auction services but also benefit from enhanced on-site reconditioning capabilities. This means wholesale buyers can acquire better-prepared vehicles with less delay, improving the value and speed of their own operations.
Creating Local Jobs and Driving Economic Growth
As part of the integration, Carvana has already initiated the hiring process for new employees to staff the expanded Chandler facility. The company anticipates creating around 200 new jobs over time, including both entry-level positions and skilled roles in vehicle inspection, repair, and logistics. This move represents a meaningful investment in the local economy and workforce.
Chandler Mayor Kevin Hartke praised the initiative, highlighting its alignment with the city’s growth-focused values:
“Carvana’s expanding operations at ADESA Phoenix are another example of the bold innovation and growth we are proud to foster here in Chandler,” said Mayor Hartke. “It brings exciting new opportunities for our residents, reflects our commitment to supporting job creators and a strong local economy, and reminds us—there truly is no place like Chandler.”
Strengthening a Key Market for Carvana and ADESA
The Phoenix area is more than just a regional hub for Carvana—it is home to the company’s headquarters and serves as a critical anchor point for both Carvana and ADESA operations nationwide. The decision to enhance capabilities in the region underscores the company’s commitment to building on its local roots and investing in scalable infrastructure to support long-term growth.
“The Phoenix area is home to our headquarters and a significant anchor for Carvana and ADESA operations, so we couldn’t be more excited to expand our local capabilities and team here,” said Brian Boyd, Senior Vice President of Inventory at Carvana. “Bringing Carvana Inspection and Reconditioning Center capabilities to ADESA Phoenix will drive additional speed and selection for our local retail customers and an even more robust offering for our local wholesale customers while also creating new entry-level and skilled jobs in the Chandler community.”
Leveraging Technology for Seamless Integration
Carvana’s ability to quickly and efficiently integrate its IRC operations into the ADESA Phoenix site is supported by its proprietary CARLI software platform. This in-house solution underpins the efficiency, scalability, and consistency of Carvana’s IRC network nationwide. CARLI enables seamless workflow management, quality control, and process optimization across all reconditioning sites, making it easier to replicate best practices and maximize output from day one.
By deploying CARLI at the new Megasite, Carvana expects to achieve significant operational efficiencies while maintaining high standards of quality and customer satisfaction. The platform will also facilitate streamlined communication and coordination between auction and reconditioning teams, reducing friction and accelerating vehicle readiness for both retail delivery and wholesale auction sale.
A Model for the Future
Carvana’s Megasite initiative in Phoenix may serve as a model for future integrations in other markets, combining auction and reconditioning services into consolidated, high-capacity locations. As consumer demand for used vehicles continues to grow and expectations around speed, convenience, and transparency rise, Carvana is positioning itself to deliver more vehicles to more customers faster and with greater reliability.
For wholesale partners, these integrated sites offer the added benefit of improved vehicle quality, faster turnaround times, and enhanced access to inventory that’s been through a comprehensive reconditioning process. For retail customers, it means a broader selection of vehicles, better condition quality, and shorter delivery windows—all of which enhance the overall car-buying experience.
This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements reflect Carvana’s current expectations and projections regarding a variety of business factors, including but not limited to: financial performance, operational efficiency, long-term strategic plans, infrastructure utilization, and market expansion initiatives.
Words such as “aim,” “anticipate,” “believe,” “expect,” “forecast,” “intend,” “may,” “plan,” “potential,” “project,” “should,” “will,” and similar expressions are intended to identify these statements. However, actual results may vary materially due to a number of risk factors and uncertainties.
Among the key risks cited by Carvana are: the ability to realize expected benefits from its infrastructure and capacity expansion; the performance and market impact of initiatives related to ADESA; evolving macroeconomic conditions including supply chain disruptions, inflation, or new tariffs; access to capital and management of debt; and competitive pressures within the automotive retail and auction sectors.
Further details on these and other risks can be found in Carvana’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024, under the “Risk Factors” section.
Investors and stakeholders are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date they are made. Carvana undertakes no obligation to publicly revise or update any such statements in light of new information or future developments.
