Carvana Co.
Company History
Carvana History: Founding, Growth & Key Milestones
Founded 2012 in Tempe, Arizona
When was Carvana founded?
Carvana was founded in 2012 in Tempe, Arizona by Ernest Garcia III, Ryan Keeton and Ben Huston, making it 14 years old.
- Founded
- 2012
- Founding place
- Tempe, Arizona
- Founders
- Ernest Garcia III, Ryan Keeton and Ben Huston
- Headquarters today
- Tempe, Arizona
- Milestones documented
- 12 (2012–2026)
- Current CEO
- Ernest Garcia III
- Acquisitions
- 4
| Year | Event |
|---|---|
| 2012 | Carvana Founded as DriveTime Subsidiary |
| 2013 | Carvana launches in Atlanta |
| 2015 | First coin-operated vending machine |
| 2017 | IPO on NYSE |
| 2018 | Car360 Acquired |
| 2021 | Pandemic boom and peak valuation |
| 2022 | ADESA U.S. acquisition |
| 2022 | Layoffs of 2,500 Employees |
| 2023 | Survival and Restructuring |
| 2024 | Return to Record Profitability |
| 2025 | Record Revenue and Net Income |
| 2026 | Record quarters |
- Where was Carvana founded?
- Carvana was founded in Tempe, Arizona in 2012.
- Who founded Carvana?
- Carvana was founded by Ernest Garcia III, Ryan Keeton and Ben Huston.
- When did Carvana start?
- Carvana was founded in 2012.
- How old is Carvana?
- Carvana is 14 years old as of 2026.
Founding Story
Ernie Garcia III started Carvana in 2012 as a project inside DriveTime, the used-car dealer and lender built by his father, Ernest Garcia II. The idea was to sell cars online without a salesperson. Carvana launched in Atlanta in 2013, opened its first coin-operated car vending machine in Nashville in 2015, and was spun out of DriveTime before its April 2017 IPO.
Founders
Ernest Garcia III
Carvana was founded in 2012 by Ernest Garcia III (Ernie), Ryan Keeton, and Ben Huston, but its origins are controversially intertwined with a legacy used car operation: DriveTime Automotive Group. Ernie Garcia III is the son of Ernest Garcia II, a successful but controversial billionaire who pleaded guilty to bank fraud in 1990 during the Charles Keating savings and loan scandal. Following his probation, Garcia II built DriveTime, a 'buy here, pay here' used car dealership empire that catered specifically to subprime borrowers. Ernie Garcia III grew up immersed in the harsh, lucrative economics of the used car business. However, rather than simply taking over his father's traditional dealership empire, Garcia III recognized a vulnerability in the industry: the complete lack of digital innovation. In 2012, operating as a subsidiary incubated within DriveTime, Garcia III and his co-founders launched Carvana. The foundational vision was to build the 'Amazon of used cars.' They digitized the transaction, allowing a customer to secure financing, sign documents, and purchase a vehicle entirely from their couch, with the car delivered on a flatbed truck the next day. While Carvana heavily relied on DriveTime's infrastructure in its early years (purchasing inventory and using its reconditioning centers) it was eventually spun out as an independent entity prior to its 2017 IPO. Garcia III's effective, aggressive application of Silicon Valley e-commerce principles to the archaic, entrenched used car industry disrupted the American automotive landscape. Education: Stanford University. (Exact birth year remains publicly undisclosed).
Ryan Keeton
Ryan Keeton is the Co-Founder and Chief Brand Officer of Carvana Co., a marketer who recognized that the automotive industry was ripe for disruption and played a critical role in shaping Carvana customer-centric brand identity and creating a different way to buy a car: a 100% online experience where customers could browse inventory, secure financing, and schedule delivery without ever speaking to a salesperson. Prior to Carvana, Keeton worked in brand marketing and was instrumental in overseeing the development of the 150-point inspection guarantee and the 7-day return policy that built consumer trust in buying a car sight unseen, a critical factor in the company ability to sell hundreds of thousands of vehicles online without a physical dealership network. Keeton marketing strategies, including high-profile partnerships with professional sports teams and celebrities, helped Carvana achieve brand awareness, driving the company retail unit sales to a record 596,641 in FY2025 and creating a powerful competitive advantage that is difficult for legacy players to overcome without restructuring their entire business model. His vision for the car vending machines, which function as high-density, automated fulfillment centers that reduce the cost of last-mile vehicle delivery, has become a powerful brand differentiator and a critical component of Carvana logistics network, demonstrating his ability to combine innovative marketing with operational efficiency. Keeton ability to build a strong brand and create a smooth customer experience has been critical to the company success, ensuring that it can continue to generate free cash flow and maintain its dominant position in the online automotive retail sector. His focus on customer satisfaction and transparency has created a powerful competitive advantage that is difficult for legacy players to overcome without restructuring their entire business model. (Exact birth year remains publicly undisclosed).
Ben Huston
Ben Huston is the Co-Founder of Carvana Co., an operational whose background in operations and supply chain management was essential in translating the founders e-commerce vision into a physical reality and creating an efficient logistics network that reduces the labor hours required per vehicle compared to a traditional dealership service department. He oversaw the build-out of Carvana initial reconditioning centers and the integration of the company proprietary logistics software, which tracks every vehicle from the wholesale auction block to the customer driveway, creating an efficient supply chain that eliminates the dead inventory that plagues traditional dealers and ensures that every vehicle acquired by the company is monetized efficiently, either at a retail premium or through a liquid wholesale outlet. Huston operational frameworks allowed Carvana to scale rapidly while maintaining strict quality control, a critical factor in the company ability to achieve record gross profit per vehicle in 2024 and 2025, and demonstrating his ability to combine innovative technology with operational efficiency. His focus on operational discipline and cost reduction has been critical to the company success, ensuring that it can continue to generate free cash flow and maintain its dominant position in the online automotive retail sector. Huston ability to build an efficient logistics network and create a smooth customer experience has created a powerful competitive advantage that is difficult for legacy players to overcome without restructuring their entire business model. His architectural design of Carvana centralized reconditioning network, which operates with assembly-line precision, has reduced the labor hours required per vehicle and established the operational backbone that allows Carvana to process hundreds of thousands of units annually, creating a powerful competitive advantage that is difficult for legacy players to overcome without restructuring their entire business model. (Exact birth year remains publicly undisclosed).
Key Milestones
Carvana Founded as DriveTime Subsidiary
Ernest Garcia III, Ryan Keeton and Ben Huston started Carvana as a project inside DriveTime Automotive Group to test selling used cars fully online.
Source: en.wikipedia.orgCarvana launches in Atlanta
Carvana began selling cars online in Atlanta, its first market.
Source: en.wikipedia.orgFirst coin-operated vending machine
Carvana opened its first coin-operated car vending machine in Nashville, Tennessee.
Source: en.wikipedia.orgIPO on NYSE
Carvana priced its IPO at $15 per share in April 2017 and listed on the NYSE under the ticker CVNA.
Source: en.wikipedia.orgCar360 Acquired
Carvana bought Car360, a maker of 3D vehicle imaging technology, in April 2018 for about $22 million.
Source: en.wikipedia.orgPandemic boom and peak valuation
Revenue reached $12.8 billion as online car buying surged, and Carvana shares hit an all-time high in August 2021.
Source: en.wikipedia.orgADESA U.S. acquisition
Carvana closed its $2.2 billion purchase of ADESA's U.S. auction business in May 2022 as the used-car market turned.
Source: en.wikipedia.orgLayoffs of 2,500 Employees
Carvana laid off about 2,500 employees in May 2022 as used-car demand slowed.
Source: en.wikipedia.orgSurvival and Restructuring
After shares fell about 98% from their peak in 2022, Carvana completed a debt exchange in 2023 that reduced debt and pushed out maturities, and returned to profitability with $150 million net income.
Source: en.wikipedia.orgReturn to Record Profitability
Carvana earned $404 million in net income on $13.673 billion revenue as retail units grew again.
Source: en.wikipedia.orgRecord Revenue and Net Income
The company processed 596,641 retail units, generating $20.322 billion in revenue and a record $1.895 billion in net income, achieving a 9.3% net income margin, a very large recovery that demonstrates the company ability to generate free cash flow and maintain its dominant position in the online automotive retail sector.
Source: en.wikipedia.orgRecord quarters
Q2 2026 revenue reached a record $7.376 billion on 197,325 retail units, up 52% and 38% year over year.
Source: investors.carvana.comMajor Acquisitions
ADESA U.S. (from KAR Global)
2022Bought ADESA's U.S. physical auction business, adding 56 sites to expand reconditioning capacity and wholesale capabilities.
Car360
2018Carvana bought Car360 in April 2018 for its smartphone-based 3D vehicle photography technology.
ADESA (U.S. physical auction business)
2022Accelerate growth, bolster physical infrastructure and remarketing capabilities.
Calypso
2017Automotive startup to support expanding digital retail operations.
Keep researching Carvana
Carvana Company History FAQ
When was Carvana founded and where was its first market launch?
Carvana was founded in 2012 in Phoenix, Arizona, by Ernie Garcia III, Ryan Keeton, and Ben Huston, officially launching its online car-buying platform in its first market, Atlanta, Georgia, in January 2013.
When did Carvana build its first glass Car Vending Machine?
Carvana unveiled its first multi-story automated glass Car Vending Machine in Atlanta in November 2013, followed by its signature custom-built 8-story glass tower in Nashville, Tennessee, in November 2015.
When did Carvana complete its initial public offering on the NYSE?
On April 28, 2017, Carvana completed its initial public offering on the New York Stock Exchange under the ticker symbol CVNA, raising $225 million at an IPO price of $15 per share.
How did Carvana perform during the 2020-2021 COVID-19 e-commerce boom?
During 2020 and 2021, consumer demand for contactless online car buying surged, driving Carvana's annual retail sales from 244,000 units in 2020 to over 425,000 units in 2021 and pushing its stock price to an all-time peak of over $360 per share.
When did Carvana acquire ADESA's physical auction business?
In May 2022, Carvana completed the landmark $2.2 billion cash acquisition of ADESA U.S., acquiring 56 physical wholesale vehicle auction sites across the country to expand its national reconditioning network.
What caused the severe financial crisis at Carvana in late 2022?
In late 2022, rapid Federal Reserve interest rate hikes, falling used-vehicle prices, and heavy debt service from the ADESA transaction caused Carvana's stock price to plummet by over 98% to under $4 per share, sparking bankruptcy speculation.
How did Carvana execute its historic corporate turnaround in 2023-2024?
Carvana executed an aggressive turnaround by restructuring $5.2 billion in corporate debt, cutting over $1 billion in annual operating expenses, driving Total GPU to record highs above $7,000, and achieving consecutive quarters of GAAP operating profitability.
What is Carvana's current position in the US automotive industry?
Today, Carvana is the second-largest used-car retailer in the United States, operating over 40 Car Vending Machines, 56 ADESA reconditioning hubs, and delivering billions in annual revenue as a highly profitable e-commerce leader.
Was Carvana originally part of DriveTime?
Yes, Carvana was founded in 2012 by Ernie Garcia III within his father's massive used-car company, DriveTime. It operated as a subsidiary before being spun off into an independent company in 2014.
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