Why Carvana Has a Chance to Win with Women

The auto industry has notoriously missed one of the largest opportunities for growth in the female market. Women make 65% of new car purchases, and 74% of women feel largely misunderstood by auto manufacturers’ marketing. 

According to market research firm J.D. Power, Millennials hate car dealerships, or rather they vastly prefer online car shopping. I suspect nearly all women regardless of age have this sentiment in common with Millenials. Why? Just imagine the typical car dealership scenario, largely dominated by male salespeople who most likely primarily address the male or will ask about the husband when encountering the solo female. 

Women That Hate Car Dealers

The last thing a woman wants to hear when shopping for a new car, which is a huge purchase, is “do you want to talk to your spouse about it?” Not only are women often disregarded but car salesmen can be a bit pushy and generally uncomfortable. 

I recently stumbled across a Facebook page called “Women That Hate Car Dealers” with over 5,309 likes, which is just one of many examples.

Enter Carvana, whose stock has gained more than 200 percent since March 2020, and revenue grew 67% in 2021, albeit pandemic-induced, it’s not slowing down nearly 3 years later! There is now a long list of similar concepts and competing services emerging. 

The Holy Grail of Online Car Sales

What is it about online car shopping that hits the mark for the largest market segment and buying power for the automobile industry? To be more specific, Carvana is an online marketplace for used cars. I’d suggest the following are true statements easily backed by existing research: 

• Women are time-starved, they are supporting themselves, their families, and often a career. 
• Women like to research products before making a decision. 
• Women are more organized in the car-buying process. 
• Women notice stereotypes. 
• Women want to be heard, understood, and respected. 

Carvana, or any e-commerce automobile service for that matter, virtually eliminates these issues for the female buyer. 

Also, as a woman, you, unfortunately, exist in society a bit differently than a man, and what I mean by that is you often have to consider safety. Meeting up with random strangers to kick the tires or test drive a car can be a vulnerable situation for a solo female. Carvana’s platform removes this piece from the used car shopping puzzle. 

This is in no way an endorsement or advertisement for Carvana, but let me just say that free home delivery from a professional company (as opposed to a random individual) is everything! At least when it comes to used cars for women.    

And car vending machines! Are you serious? I will be watching this company. 

How Can the Auto Industry Earn HER Business? 

What are car dealers to do in this new competitive marketplace? I would suggest the best place to start would be investing in making a female-friendly environment that focuses on the service experience.

What do you think? Will Carvana maintain its position in the market thanks to a strong female market, or is it just another e-commerce concept without staying power?