As Carvana $CVNA ( ▼ 9.8% ) continues expanding its Stellantis $STLA ( ▲ 1.14% ) footprint, many franchise dealers are still debating what it represents: a direct competitor, a temporary disruption, or something else entirely.
But Matt Bowers, owner of Matt Bowers Automotive Group, says many dealers may be framing it the wrong way.
What he’s saying: "It's just not [a] business that I'm in or want to be in," Bowers said on Daily Dealer Live, referring to Carvana's approach, later adding, "We're [doing] the distribution business basically then, which is different than what I know."
That distinction, he said, should influence how dealers think about Carvana’s role in the market.
For context: When Carvana began acquiring Stellantis dealerships, Bowers said he expected a more traditional approach, selling cars locally, retaining customers for service, and building long-term relationships.
But based on his observations, vehicles from multiple stores appear to be pooled together, priced aggressively online, and shipped across the country rather than sold primarily into local markets.
“I have yet to have the first customer online or otherwise say, ‘Hey, you know, you have a white one. They have a white one.’”
In his view: That approach only works by consistently hitting high volume targets and leaning heavily on manufacturer-supported programs (things like volume bonuses, advertising assistance, and floorplan support), while operating with a lean cost structure.
That’s where Bowers sees the disconnect for traditional dealers.
Most franchise stores are still built around local margins, service retention, and repeat business.
Carvana, at least in this setup, appears to be prioritizing scale, pricing, and logistics instead.
Those are different economics, he said, and treating them as the same kind of competition can push dealers toward bad decisions, especially around price.
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What he means: Dealers shouldn’t try to copy Carvana’s model or chase it down on price.
As Bowers sees it, the smarter move is understanding the environment dealers actually operate in, and leaning into the parts of the business that don’t translate well to a national distribution model.
That’s also where Bowers says Stellantis comes into play.
Like any automaker: Stellantis sets the rules around how its vehicles are marketed and advertised. And Bowers said he expects pricing and advertising guidelines to matter more as the brand looks to bring more consistency back to its retail network.
Bowers said the advertising covenant "will blow a hole in the side of this plan that's happening currently…"
Still, his broader point was this: The market has tightened over the last 60 to 90 days. Inventory is less scarce, payments are higher, margins are thinner, and mistakes cost more than they used to.
With that in mind, Bowers said the edge will go to dealers who understand who they’re actually competing with, strip the emotion out of the conversation, and focus on how those models really work, adjusting where it makes sense and staying disciplined where it doesn’t.
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