Not only is Carvana outbidding dealers for used cars at auction, but they also bid against themselves! It’s hard to believe this isn’t a play for them to corner the used car market at auction while also having more inventory available and gaining market share. Carvana isn’t doing anything wrong. You might argue that they are driving shareholder value and providing consumers with more competition amongst retailers.

Recently, Carvana acquired ADESA for $2.2 Billion! ADESA is the second largest auction company, after Cox’s Manheim. Why would they do that?