re: Is Carvana about to go belly up?

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