Car vending machine

Online-only car retailer Carvana has installed what it says is the world first fully-automatic vending machine for 20 cars in a five storey building just outside of Nashville, Tennessee.

“The experience itself is exactly a vending machine experience,” Carvana CEO Ernie Garcia explained. “The customer even gets a customized, oversized coin that they drop into a slot.”

The coin triggers a robotic arm, which goes up and grabs the car that the customer purchased online. When the car comes down, it’s transferred to another robot that drives the car down a hallway and parks it in a bay, where the customer receives their purchase.

After that, Garcia says, customers can be walked through the features on their car, or even take it for a test drive.

No funds are transferred until the customer takes the final receipt of the car and drives it off the lot. Carvana then also offers a seven-day, “no questions asked” return policy.

“We even proactively call them on the sixth day and remind them that their return policy is expiring to ensure that they’re happy with the car,” Garcia says. He claims the “test-to-own” period ” is much more useful to a consumer than just visiting a traditional dealership.

By employing fewer staff, leasing less acreage, and carrying fewer cars, Carvana drastically lowers overhead, selling cars for up to $2,000 less than most dealerships and arranging all finance online.

The company has plans to attract buyers from beyond the immediate area, offering $200 toward airfare and transport from the airport.

Garcia said: “I think if we’ve got the car that they’re looking for, and we’re selling it for $1,500 to $2,000 less, and we offer a purchase process that takes 20 minutes, and then you get to go to a vending machine and watch your car moonwalk to you, people are going to respond to that.”