Carvana Layoffs

I looked at some cars at Carvana. I believe they made money off the financing as previously stated. They had a couple cars I was interested in at a reasonable price, but when I looked at the rate they wanted, it was too high.
 
Tons of used cars on dealers lots here. I don't know how they have gotten so many in a time of used car "shortages"
 
the two vehicles I sold Carvana last year both sold again within a month and for more than I was paid...and I was paid what I'd consider well for them...

I keep up since last year on what the three other cars I help take care of and Carvana has been up again (prices have gone up and down significantly I think) on them...

Bill
 
Putnam Lexus told me Carvana offered me great money when we were about to return our leased 2018 RX450h. They matched the offer as the RX hybrids are always in demand around here.

Not all business models work; in fact businesses have to change or will ultimately die out.
 
M
Interesting how that doesn't work.

In the late '70's, there was a Colonial Ford dealership in Salt Lake City. They had a beautiful new facility right in the heart of SLC. Huge inventory.

They advertised that they would beat the price on any new Ford. Their business model was that what they lost on profit for individual sales, they would make up in volume, by being the number 1 in sales for the region. And they sold a LOT of cars. But they still went bankrupt.

They were a huge example to other new car dealerships in the area, for many, many years. I suspect they may still be discussed in training and sales meetings to this day
Meanwhile-there are a small group of players that control the new car market in Salt Lake City that make buying a new car in this state is a miserable experience and you pay more.

You can't even take delivery of a new Tesla in Utah.

I have a few dealers in Idaho scoped out for my next new car dealer. Screw the dealers in Utah.
 
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M

Meanwhile-there are a small group of players that control the new car market in Salt Lake City that buying a new car in this state is a miserable experience and you pay more.

You can't even take delivery of a new Tesla in Utah.

I have a few dealers in Idaho scoped out for my next new car dealer. Screw the dealers in Utah.
Larry H. Miller?
 
Larry H. Miller?
Young is the other big player in Northern Utah dealerships.

But they don't control the market. There are plenty of others. There are other dealerships besides LHM and Young in Northern Utah, for any auto make that I can think of.

CKN, I've never bought a car from an LHM dealership. What in particular spoiled the experience, or experiences, for you?
 
https://www.yahoo.com/lifestyle/carvana-cuts-2-500-jobs-142545280.html

Interesting to note this comment;

"The company has never logged an annual profit over its 10 years of existence, preferring instead to plow cash flow into expansion."

That and those STUPID vending machines. Those things are a gimmick. What do you think those things cost to build and maintain? Maybe if they sold cars on an asphalt lot with a modest sales building they would be doing better.

And the story continues and says this;

"Earlier this year, Carvana announced plans to buy ADESA U.S., a vehicle-auction business, for $2.2 billion. The company has announced no changes to that plan."

So, they haven't been profitable in 10 years, yet they still spend $2.2B on expansion.

Tell me fellow peons, how many of us would be bankrupt and homeless if we managed our personal finances like Carvana?

No sympathy,

Scott
 
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What about the price? There are more used vehicles on the lots here than a year ago but with the INSANE prices there might as well be none. And they won't deal.
Yeah, my car with 70k and 5 years old is supposedly worth 2k more than I paid new for it. Hopefully we get another 10 bajillion trillion in printed stimulus money so it's worth 15k more next year with 90k and 6 years old.
 
Looks like they are buying Adesa U.S., a wholesale auction platform at a $2.2 billion price tag. Remember what I said about them sending more cars through auction than any other dealer? Best way to liquidate your toxic assets is to buy the place that was charging you millions in fees on cars that we’re losing money to begin with, while also generating a bit of income on its own. I don’t see how Carvana survives, but this move is not a surprising one. It also signals to me that they have no real intention on changing their business model. They may make surface changes to keep investors from completely jumping ship, but I think largely it will remain the same.
 
I bought a Fusion hybrid from Carvana yesterday. Longest buying process I’ve ever been involved in. Between Carvana and my insurance company I spent most of the day on my phone.
 
I bought a Fusion hybrid from Carvana yesterday. Longest buying process I’ve ever been involved in. Between Carvana and my insurance company I spent most of the day on my phone.
I thought Carvana's process was to make the transaction simple.....
 
Prices are dropping a bit on used cars so no surprise. Carvana is massive and flipped the card table on the used car market.

So glad I did not bite on a few less popular or higher mileage vehicles as I noticed they dropped about $2k from dealers.

I paid the premium in private market instead but got a great lower mileage 2013 southern car that will last me 5 years at least.
 
carvana 21700, vroom 22800, webuyanycar 23400

CARMAX!
View attachment 99401

That is what I paid new.. has 55500 miles on it. 4 years old this month.

Of course a new one is around 38k now.

Base FWD COMPASS is 30k ugh.
Carmax can offer more because they get to physically inspect your vehicle lowering their risk.
Others who do only virtually by you filling out a form assume more risk, assume they will take a bath on 1 in 4 vehicles so as a result have to build in more margin into each offer
 
Another factor here is I would wager that Carvana being a relatively new company, their employees are less costly to sever than Adesa's.

The Adesa play is a good move for Carvana, buys them a large physical and geo presence but also market 'maturity', but they will need to take significant costs out of the business.
 
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