Carvana, the used-car e-commerce heavyweight, is quietly testing whether its online, no-haggle sales model can crack the new-vehicle market—a move that has traditional auto dealers rattled. A Kansas City buyer recently picked up a $51,000 Jeep Wrangler through a Carvana-owned dealership more than 1,000 miles away, never leaving his couch.

The buyer, Joshua Higginbotham, had sworn off new cars after losing a $500 deposit at a Stellantis dealership and spending an entire day navigating a frustrating sales process. He reconsidered only after finding Carvana's frictionless digital approach. Stellantis, parent of Jeep and Ram, operates franchised dealerships that many shoppers view as outdated and time-consuming.

Based in Tempe, Ariz., Carvana is betting its playbook scales beyond used cars. Traditional dealers enjoy state franchise protections that shield them from direct manufacturer competition, but Carvana's experiment shows a new sales channel that bypasses the showroom entirely.