Carvana is expanding its business of selling cars through vending machines.
The company has raised $160 million from a series of unnamed investors, in addition to the $140 million in equity, as well as the $400 million in debt previously raised by the company.
The way the company works its simple–you can make a reservation online in a participating city, then show up to a Carvana location, and pick up your vehicle through a virtual vending machine. The car service says its vehicles are reliable, $1,500 cheaper than their dealership equivalent, and there are no hidden fees attached to the sale.
The company — which is three years old — offers a 150-point inspection, a bumper-to-bumper warranty at 4,189 miles, and customers actually save an average of $1,681 on their purchases, according to Carvana.
The first Carvana opened in Nashville last year, but with the extra cash, expect an expansion of cities that offers these vehicles at a cheaper rate. At least 20 additional markets will have the service by the end of the year.
In addition to offering more vehicles, the company will create more warehouses to store and sell the vehicles. CEO Ernie Garcia noted that Carvana’s growth started slowly, but now is the time to ramp up efforts and spending.
The company also offers subsidies of up to $200 in airfare outside its vending cities.
Carvana netted $150 million in 2015 revenue, and this figure is expected to more than double in 2016 at $350 million.
