State-by-State. Dealer franchise laws are state-based and therefore can look like a patchwork of specific rules and lobbying efforts. Recently, Iowa passed a remote vehicle sales law allowing the online sale and home delivery of vehicles.
The law passed unanimously in the State House and Senate, received strong support from Carvana, and was crafted with help from the Iowa Department of Transportation and Iowa Auto Dealers Association. Of course, the bill does specify "licensed vehicle dealers," so we doubt you'll see any OEM airdrops anytime too soon.
Not the only recent win for Carvana. Creditors holding about 90% of the used-car company's bonds have proposed a debt-for-equity swap. The swap would forgive some existing debt in exchange for company shares. News of the potential move shot the company's share value up, but no terms have been finalized. The deal would increase liquidity for Carvana and save a pretty penny in interest payments.
Frustrated? Customer satisfaction with the car buying process has declined to 61% since it peaked in 2020 at 72%. Used car shoppers accounted for the most significant drop at just 58% currently reporting satisfaction with the buying process, down from 65% in 2021.
Data shows an 89% increase in shoppers opting to pre-order their car from 2021 to 2022, with buyers ordering directly from an automaker reporting higher satisfaction than those who ordered through a dealership.