Is Carvana about to go belly up?

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

Why are used car prices falling rapidly? I didn’t realize this was happening

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?

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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

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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

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.

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There are a growing number of repossessed vehicles that have not been sold at auction because banks don't want to accept the loss.

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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?

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they'll have to take the loss eventually, right?

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IMO yes. Just postponing the pain

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I suspect has prices will skyrocket after the election and this is a travel vehicle.

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Why?

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