Carvana (NYSE: CVNA) stock is outperforming companies like Nvidia, Google, Apple, Tesla and Meta in terms of annual percentage gains.
The used car retailer’s share price is up over 95% year-over-year as of Dec. 10. It also popped 12% Monday following its inclusion in the S&P 500 index, according to Yahoo Finance. In December 2023, it was trading at a low of $4.05 a share. Today, its share price has increased by over 11,000% from 2023 lows.
What’s the secret behind Carvana’s success and what does its stock price say about the way American drivers are shopping for used cars leading into 2026?
The company attributes “tighter cost controls, debt reduction and a rebound in demand” as factors that led to its major comeback, says Reuters. Carvana has focused on fundamentals and is hot on the tail of rival used car retailer CarMax in terms of quarterly sales volumes.
Carvana stock is on the rise because retail traders and financial professionals alike have decided that the company has a real chance at disrupting the used car space. What does that mean for used car buyers and sellers?
In case you missed it: Carvana is selling this 2024 SUV for under 60% of its original MSRP. Is it a good buy?
There are plenty of online used car marketplaces on the internet, but Carvana’s end-to-end online platform nails a few key pain points that drivers can struggle with when purchasing vehicles. Fixed pricing is a huge cornerstone in Carvana’s business. The company provides transparent pricing and financing plans without the added financial fluff that some used car dealers can work into deals.
Aside from a streamlined purchasing process (which is integral to its success), the company also offers home delivery and a seven-day refund policy. Additionally, Carvana has an app that can make the car shopping process even more user-friendly.
Carvana also lets drivers trade and sell their vehicles by allowing you to input most of the pertinent information via the website or app. It can provide drivers with quick offers and payments for their used vehicles.
Carvana may be a great tool for some drivers, but like any shopping experience, going in with an idea of what you’re looking for can expedite the process and get you the best results.
The online marketplace and app have filters that can help you refine your search. If you already know your price range, mileage range and vehicle segment, you can save time and have a more productive researching and purchasing experience.
Choosing the year range and specific make/model can make your search even quicker. Browsing ranking lists from previous years compiled by authoritative sites like U.S. News & World Report can also help narrow down your used car search. Cross-referencing Carvana’s prices with Kelley Blue Book’s fair market value for specific vehicles can help you determine whether pricing is reasonable.
Carvana had an incredible year in terms of share price gains. Its market value has surpassed that of Big Three automakers like General Motors, Stellantis and Ford, hitting $86.6 billion as of Monday’s share price, according to Forbes.
Joseph Spak, an analyst from UBS wealth management company, believes that Carvana’s used vehicle sales market share can grow from 1.5% to 4% by 2030. The company could transform the car buying experience for millions of American drivers in the years to come based on its current performance and trajectory.

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