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Is Carvana about to go belly up?
Posted on 11/4/22 at 10:44 pm
Posted on 11/4/22 at 10:44 pm
Remember when they were trading at $300+ last year? Who would have thought a vending machine for cars would never work?
This post was edited on 11/5/22 at 1:40 am
Posted on 11/4/22 at 10:50 pm to hikingfan
I wonder is the cost of cars/inflation on the middle class has anything to do with it
Posted on 11/4/22 at 11:25 pm to hikingfan
This was inevitable the company is run by literal crooks. Garcia III literally plead guilty to bank fraud in his previous business. He used carvana and drive time to make himself rich.
Carvana did not even make money during the peak run up of used car prices. They thought that they could only grow by buying up inventory at inflated prices. Now that used car prices are falling rapidly, they are doubly screwed since now they have no one buying their depreciating vehicles. Plus they borrowed money to buy these vehicles and interest rates are rising fast.
I have no doubt that some bank will loan them some money to extend them some money. But bankruptcy is inevitable. Garcia gets rich and stock holders are left with the bag
Carvana did not even make money during the peak run up of used car prices. They thought that they could only grow by buying up inventory at inflated prices. Now that used car prices are falling rapidly, they are doubly screwed since now they have no one buying their depreciating vehicles. Plus they borrowed money to buy these vehicles and interest rates are rising fast.
I have no doubt that some bank will loan them some money to extend them some money. But bankruptcy is inevitable. Garcia gets rich and stock holders are left with the bag
Posted on 11/5/22 at 7:12 am to hikingfan
Tinmely, theres one of those Carvana elevator display cases a few miles from me and passed it last weekend, it was empty, not a single car.
First time I've ever seen it like that, so I wondered what was going on with them.
First time I've ever seen it like that, so I wondered what was going on with them.
Posted on 11/5/22 at 8:15 am to UltimaParadox
Why are used car prices falling rapidly? I didn’t realize this was happening
Posted on 11/5/22 at 8:38 am to tigersfan1989
quote:
Why are used car prices falling rapidly? I didn’t realize this was happening
Bunch of factors lead to lack of demand. Higher interest rates, higher new inventory due to chip shortage easing, consumers worried about recession... Etc
Just starting to head back to a more balanced market. Look at black book trends, used cars have been falling 1% week for a while now and it is only accelerating
Posted on 11/5/22 at 9:08 am to UltimaParadox
Good to hear new inventory is coming back then. Will we ever see the days of commercials advertising 10k off msrp for 1/2 ton pickups?
Posted on 11/5/22 at 11:29 am to hikingfan
They should go bankrupt. They offered me $38,000 for a truck that I traded in for $62,000
Posted on 11/5/22 at 12:52 pm to UltimaParadox
quote:
Why are used car prices falling rapidly? I didn’t realize this was happening
Bunch of factors lead to lack of demand. Higher interest rates, higher new inventory due to chip shortage easing, consumers worried about recession... Etc
Just starting to head back to a more balanced market
Agree there are multiple factors. Ability of consumers to afford prices is arguably the biggest issue. Interest rates rising make monthly payments higher and cars less affordable. Relatively few vehicles are affordable in general when you compare median income with median vehicle asking price.
There are a growing number of repossessed vehicles that have not been sold at auction because banks don't want to accept the loss. The patient buyer should have better options over the next year
Posted on 11/5/22 at 1:00 pm to tigersfan1989
quote:
Why are used car prices falling rapidly? I didn’t realize this was happening
Interest rates
Posted on 11/5/22 at 4:37 pm to tigersfan1989
quote:
Will we ever see the days of commercials advertising 10k off msrp for 1/2 ton pickups?
Yes. The domestic manufacturers will go back to making more than they can sell to keep the price inflated.
Posted on 11/5/22 at 7:22 pm to hikingfan
Maybe people finally figured out that their cars were 15-20% higher than any given dealer. But i guess you got the video game buying experience and/or home delivery. Good riddance.
Posted on 11/5/22 at 8:45 pm to hikingfan
Damn, they were good to me when I sold my vehicle
Posted on 11/7/22 at 7:36 am to molsusports
quote:
There are a growing number of repossessed vehicles that have not been sold at auction because banks don't want to accept the loss.
What exactly is the bank's end goal with something like this? Try and work out a plan with the original borrower? If not, they'll have to take the loss eventually, right? If there really is a growing number or repossessions, why not do it now to lessen the blow before everyone does it and floods the markets?
Posted on 11/7/22 at 7:37 am to hikingfan
quote:
Who would have thought a vending machine for cars would never work?
quote:
Remember when they were trading at $300+ last year?
I mean it sounds like it did work some?
Posted on 11/7/22 at 7:45 am to Witty_Username
quote:
they'll have to take the loss eventually, right?
IMO yes. Just postponing the pain
Posted on 11/7/22 at 5:08 pm to molsusports
I’ve been looking for a used car for the family travel vehicle. Don’t want anything huge as I suspect has prices will skyrocket after the election and this is a travel vehicle.
Found a 2019 GMC Terrain SLT with under 40k miles for $24,312 and it’s been on the lot for 6 months. After research they first priced it at $32,500 in April. I’m considering lowballing just to see if they want to move it.
I can’t imagine the bath used dealers are going to take with aging cars they bought when the wholesale market was sky high.
Found a 2019 GMC Terrain SLT with under 40k miles for $24,312 and it’s been on the lot for 6 months. After research they first priced it at $32,500 in April. I’m considering lowballing just to see if they want to move it.
I can’t imagine the bath used dealers are going to take with aging cars they bought when the wholesale market was sky high.
Posted on 11/7/22 at 7:01 pm to beebefootballfan
quote:
I suspect has prices will skyrocket after the election and this is a travel vehicle.
Why?
Posted on 11/7/22 at 7:10 pm to beebefootballfan
quote:
I suspect has prices will skyrocket after the election and this is a travel vehicle
If anything prices will continually slide downward for used cars
Posted on 11/7/22 at 9:40 pm to hikingfan
I’m not surprised
I sold a car to them a few months ago for very good price and another to CarMax 2 weeks ago and the guy at car max said the prices were starting to fall.
He said new car inventory was starting to catch up to demand and that will hurt used car prices bigtime.
To verify, I went to 2 dealerships this weekend and both confirmed that they’re loading up on inventory. Their lots were full btw.
Carvana has other issues tho. Some financial question marks
I sold a car to them a few months ago for very good price and another to CarMax 2 weeks ago and the guy at car max said the prices were starting to fall.
He said new car inventory was starting to catch up to demand and that will hurt used car prices bigtime.
To verify, I went to 2 dealerships this weekend and both confirmed that they’re loading up on inventory. Their lots were full btw.
Carvana has other issues tho. Some financial question marks
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