- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Coaching Changes
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Carvana may have just quietly started liquidating
Posted on 12/18/22 at 10:52 pm
Posted on 12/18/22 at 10:52 pm
quote:
Carvana may have just quietly started liquidating:
The company is now advertising its *retail* inventory to *wholesale* dealers.
Look at the $5,000 price difference. Wild times.
quote:
Carvana web visitors are DOWN 45% month over month! You don’t just lose 45% of your web traffic WITHOUT shutting off your marketing. This tells me that they are likely in severe cost-cutting and downsizing mode.
LINK
5
Posted on 12/18/22 at 11:00 pm to hikingfan
Bankruptcy always takes longer than you think because there are so many levers they can pull.
That being said, I would be shocked if they don't file for bankruptcy by next summer.
That being said, I would be shocked if they don't file for bankruptcy by next summer.
Posted on 12/19/22 at 5:50 am to hikingfan
36K for essentially a Ranger or S10 lol
Posted on 12/19/22 at 6:21 am to Strannix
quote:
36K for essentially a Ranger or S10 lol
Yup. Still have a lot further to drop.
Posted on 12/19/22 at 8:13 am to hikingfan
Car dealers did this to themselves. There is going to be some serious pain for the next few years. I am far from an expert on this topic and even I could see this coming a long time ago.
This post was edited on 12/19/22 at 8:16 am
Posted on 12/19/22 at 9:35 am to hikingfan
Did Carvana ever build that site on Reiger Rd in BR?
Posted on 12/19/22 at 9:36 am to go ta hell ole miss
quote:
Car dealers did this to themselves. There is going to be some serious pain for the next few years. I am far from an expert on this topic and even I could see this coming a long time ago.
Wish they would get on with it already. I'd like a new truck but no way I'm trading in for an inflated note. I'll drive my current truck till it dies and am forced into buying.
Posted on 12/19/22 at 10:21 am to WhiskeyThrottle
Pain for the car dealers still won't fix the high prices unfortunately. I do think discounting will be coming very soon. I think the days of seeing prices below what they were pre-covid are very close to over.
Average car MSRP accelerated going into this year. I think we will just finally see a halt to rising car prices for a while
Average car MSRP accelerated going into this year. I think we will just finally see a halt to rising car prices for a while
Posted on 12/19/22 at 3:58 pm to UltimaParadox
quote:
Average car MSRP accelerated going into this year. I think we will just finally see a halt to rising car prices for a while
What I am afraid of with this is that, if we continue head into a recession and inventories pile up, car manufacturers and dealers may adjust to leaner inventory so as to limit the markdowns we grew accustomed to before COVID when dealers moved inventory based on prices. Now, it seems like they are only moving inventory because people want or need a new car. Unfortunately, this doesn’t help the market long term because that will dry up the used car market in a few years with less newer cars being produced. Also, customers who want and need a car now, because they have to wait for the next one to be built and shipped to you unless you are buying a used one.
Also, MSRP’s may stay high or continue to grow to factor in new government regulations and new add ons. So the minimum 20k starting price for a car may be here to stay.
This post was edited on 12/19/22 at 11:00 pm
Posted on 12/19/22 at 5:00 pm to Tarps99
Aren’t car dealerships paying a lot more in interest on the cars they are holding compared to last year? As rates have gone up isn’t that adding more pain?
Posted on 12/19/22 at 8:03 pm to Tarps99
I think the prices on used cars will be hit much harder than the prices on new cars.
That's what Carvana types will suddenly unload (and more supply from repossessions will eventually cycle through auctions into car dealers). For the most part new cars will have more limited supply.
Of course a severe depression or recession hits everything and puts the weakest manufacturers and dealers underwater.
That's what Carvana types will suddenly unload (and more supply from repossessions will eventually cycle through auctions into car dealers). For the most part new cars will have more limited supply.
Of course a severe depression or recession hits everything and puts the weakest manufacturers and dealers underwater.
Posted on 12/20/22 at 7:12 am to molsusports
Car buying will never be the same, dealers have learned that keeping inventory artificially low means they can sell for more money.
Right now the used car market is tanking and prices are coming down. Not as low as before but lower than what they were over the summer.
Eventually though you will start to see those used car prices come up as even that market starts to run dry. It is flooded by people who are underwater on their current vehicle or were hoping to make cash for their piece of crap.
Right now the used car market is tanking and prices are coming down. Not as low as before but lower than what they were over the summer.
Eventually though you will start to see those used car prices come up as even that market starts to run dry. It is flooded by people who are underwater on their current vehicle or were hoping to make cash for their piece of crap.
Posted on 12/20/22 at 8:52 am to Falco
quote:
Car buying will never be the same, dealers have learned that keeping inventory artificially low means they can sell for more money.
I think some would like to do that but don't think that's sustainable for customers, dealers, or manufacturers
There's still enough different manufacturers for the Hyundai types (who want more market share) to gobble up volume when the Subaru types aim at margin. The advantage for the Hyundai types are the profits on the back end from financing and service revenue.
ETA the dealer margins this year were a perfect storm of both severely constrained supply and customers still flush with stimulus money. Even if most manufacturers try to go lower volume for higher margins the customers just won't have the stimulus money to be so price insensitive in the future.
This post was edited on 12/20/22 at 9:10 am
Posted on 12/20/22 at 8:54 am to go ta hell ole miss
Wife and I went car shopping on Saturday. Ended up at Team Honda looking at a 2020 Honda Pilot Elite. They want 37,566. They were only willing to come down $200 off of that price and let me walk out. Guy said they were already losing money on the car and I said yeah you’re going to lose even more if you don’t make this deal today. He said maybe, maybe not. I just laughed.
I left because I wanted $800 more off and they wouldn’t come down. The whole experience is making us wait now. These guys have death grips on their vehicles trying to lose the least amount of as possible. I’ve watched individual used cars drop literally 10k the last 2 months.
I left because I wanted $800 more off and they wouldn’t come down. The whole experience is making us wait now. These guys have death grips on their vehicles trying to lose the least amount of as possible. I’ve watched individual used cars drop literally 10k the last 2 months.
Posted on 12/20/22 at 9:23 am to dualed
lol, when the cost just to live in a house is 2000/month for a piece of shite or 2500/mo for something actually decent, normal people are not buying a new car anytime soon for 600/mo.
Housing costs are going to dunk on everything over the next 5~ years or so. Better buckle up.
Housing costs are going to dunk on everything over the next 5~ years or so. Better buckle up.
Posted on 12/20/22 at 9:30 am to go ta hell ole miss
quote:
Car dealers did this to themselves. There is going to be some serious pain for the next few years. I am far from an expert on this topic and even I could see this coming a long time ago.
I think you are going to see the Carvana, Givemethe vin, CarMax types go way before the dealerships go. One of the issues with the dealerships was they couldn't touch the money these companies were offering to buy your car. As a result, they were running out of their used car options. These companies were loading up on inventory at a time where it wouldn't be that much more expensive to buy brand new. It wasn't sustainable, because everyone knew at some point the bottom had to drop.
You also have the fact that many States will not allow manufacturers to sell directly to the consumers. A dealer is actually required, but that's a discussion for a different thread.
Posted on 12/20/22 at 12:32 pm to Falco
quote:
Car buying will never be the same, dealers have learned that keeping inventory artificially low means they can sell for more money.
I disagree. Most of the low inventory was created by the chip/ manufacturing issues and was forced. I drove by a dealership the other day that was maybe 25% full, at least the parking lot looked like it.
At some point the market will change and buyers will prefer to go to a dealer with tons of options over a dealer that just has 1 or 2 options. If people shop in person they want options, options help a dealer make a sale.
Certainly I think lessons are learned and it may be changing to some degree. I do think that the manufacturers likely have no issues with low inventory levels, but again that's going to be market driven.
Posted on 12/20/22 at 4:28 pm to baldona
Yeah.
Carmax has been around for 20 years. This isn't the first cycle they've seen in the auto market.
I can't speak for carvana, but most established companies are going to be fine. This isn't their first rodeo.
Carmax has been around for 20 years. This isn't the first cycle they've seen in the auto market.
I can't speak for carvana, but most established companies are going to be fine. This isn't their first rodeo.
Posted on 12/20/22 at 4:34 pm to hikingfan
The carvana vehicle obviously sold. Any idea what the final bid was?
Posted on 12/20/22 at 10:54 pm to dualed
quote:
Guy said they were already losing money on the car
A dealership employee talking to a retail customer doesn’t have a clue if they make or lose money on a vehicle. The only numbers they see are gross which are FAR from what the bottom line of a dealership is. Overhead is huge and he wouldn’t have a clue about that.
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News