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The Journal.

The Shake-Up Coming for Car Dealerships

The Journal.

The Wall Street Journal

News, Daily News, Business News

4.25.8K Ratings

🗓️ 28 May 2026

⏱️ 22 minutes

🧾️ Download transcript

Summary

There’s finally another way to buy a new car, as companies like Carvana and Volkswagen’s new brand Scout are challenging the traditional dealership model. WSJ’s Christopher Otts explains how a decades-old system is starting to show some wear. Jessica Mendoza hosts.Further Listening: - Why People Aren't Lining Up for This $120,000 Job - The Repo Man Is Busier Than Ever Sign up for WSJ’s free What’s News newsletter. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

Click on a timestamp to play from that location

0:00.0

When you head southeast out of Phoenix, Arizona, what you'll see is mostly empty space.

0:13.0

You're driving through just miles and miles of essentially desert.

0:20.0

There's like cactuses and just a clear sky,

0:25.6

and it's very remote.

0:28.3

Our colleague Chris Otts made that trip recently

0:31.2

to the small town of Casa Grande.

0:34.3

Chris covers the auto industry,

0:36.3

and he was on his way to a sleepy car dealership out in the desert that had caught his interest.

0:41.7

It's pretty small. There's a few people inside. There's a few people waiting on their cars to be serviced.

0:49.4

There's a few mechanics out back.

0:53.1

For years, this dealership sold maybe a few dozen cars a month.

0:58.5

But now?

0:59.9

This particular store is now doing about 350 sales a month.

1:08.6

Those skyrocketing sales have taken place over the last year,

1:12.6

ever since the store was taken over by a new owner, Carvana,

1:16.6

a company most known for selling used cars online.

1:20.6

But Carvana is now bringing its modern approach to car sales into the new car business,

1:26.6

and the dealership in Casa Grande is early

1:29.3

proof of success. Chris says this new kind of dealership might be a sign of big changes coming

1:38.5

to the car sales industry, which has stayed pretty much the same for decades. And right now, we're seeing a number of different challenges to that model,

1:48.9

companies that are trying to offer a different experience.

1:54.8

I just see the car dealership model generally as a really well-built fortress,

...

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