Image Source: Zacks Investment ResearchCarvana has significantly outperformed the industry as well as its close peers like CarMax Inc. KMX and Lithia Motors LAD. CarMax — being the largest retailer of used vehicles in the United States — witnessed its stock price decline more than 28% over the past year. Lithia Motors — one of the leading auto retailers of the country (selling both new and used vehicles) — saw its share price decrease 14% in the same timeframe.Factors Driving Carvana's GrowthCarvana has been steadily improving its e-commerce model and customer experience. Delivery times are now 0.7 days faster than a year ago, and processes have been simplified, making car buying easier and more appealing. These changes are showing up in the numbers. In the second quarter of 2025, Carvana's retail unit sales jumped 41% year over year to 143,280 units. That's well ahead of the broader auto market, which grew less than 5%.A big growth catalyst has been Carvana's acquisition of ADESA's U.S. operations.