Yeah, for the dealerships. Carvana gave me a big sum of money for my car months ago. No dealer would have done that. Dealerships are the ones should disappear, and they will, in fact, disappear in the sale department at least.
I used to work for them in underwriting and I have to say I'm couldn't be anymore happier knowing they are going down like this. Way to underhanded and shady even to their employees.
Same, I used to work for them as a customer advocate or delivery driver, seeing this company fail makes me happy. Especially how they lie to customers and treat employees. Fuck Carvana.
@@andromeda9340 yeah and the delivery driver's always caught the heat for that. Even though we have absolutely nothing to do with title and registration. I got sick of customers calling and yelling at me that they never got their titles. Again I was only a delivery driver, my job was to deliver cars, have them sign paperwork, that was it.
Yes Elijah! You can make up your losses by flipping 10 Ford Mavericks at 10k profit ea like the dealers do. My channel has a lot of Mav videos that can help.
For the life of me, I don’t understand his beef against Carvana. True they don’t give him any change. Also, true that He gets paid some trinkets from regular dealers.
They also have a problem with packaging up all the loans and re-selling them. No one wants to buy these bond bundles any more because the credit quality is garbage and repos are way up, plus the underlying assets (the Carvana cars) are shaky. They have literally had no-bid situations on their debt packages, and they are now holding the bag on all this stuff. If they hold too much, they won't be able to finance anything any more.
Carvana gets a lot of slack but honestly having bought a couple of new cars in the last few years I definitely prefer the carvana/ CarMax buying and trade-in experience. I don't want to hassle I just want to know the price of the car and the price he will give me for mine. Car dealerships feel like a Ponzi scheme full of sleazy salesman. Last year I bought a Hyundai palisade and last week I bought a new ram 1500 and both experiences were just not super enjoyable. I had to have my guard up at every moment because if they were being nice to me I knew that there was a sales pitch around the corner. So carvana is stock may go down but honestly I wish them the best of luck. I think it would be great if CarMax and carvana were able to get their hands on brand new inventory from the manufacturers so I could just buy brand new cars from them as well.
The problem with Carvana is they give you a price based on the book of the car, not the actual condition. While that is great for the seller, that screws the buyer. I would NEVER buy a car from Carvana. CarMax is completely different. They inspect and refurbish each car.
@@dennisd9554 I agree that business practice is awful for the buyer and needs to be changed. You do have to have confidence that the car you're buying online is a good car so if carvana is not doing that then that is bad and needs to be changed.
This will sound cliche, but really if you feel that way you need to find a different dealer. I bought my Ridgeline from a dealer that was zero hassle and no hard sales pitch on anything. It helped i was putting a ton of money down maybe, but other honda dealers around were nowhere near as easy to work with at this place. Shopping dealers as well as the car is just as important I think.
@@dennisd9554 I bought a vehicle from them (though it was from their marketplace division) with 11k miles on it, in excellent condition, other vehicles from other dealers were around the same price with substantially more miles. Guess I got lucky.
It's just a play by the owners to drive the value of the stock to near nothing so they can buy back the stock back and then rebuild the brand. They've done this kind of thing before.
What's the worst case scenario? Carvana goes bankrupt & "somebody" (a corporation) ends up with their inventory for pennies on the over-high dollar that Carvana paid. This might realy reduce prices in the used car market... but so what? They have been too high anyway. The bigger issue will be that a large portion of their inventory will STILL have no titles, so they are therefore unsellable.
It was never meant to make a profit! It was designed to take investers money to ramp up the stock price. So the CEO,s could cash out at the top before it crashed!
Ben they just go bankrupt then reissue stock. Dell is a big name that stuck it to the "common stock owner" but there are literally 1000s of businesses that do this.
Why don't people think things through all the way. Most people put buying an artmobile worse than going to the dentist. BECAUSE YOU CAN'T TRUST THEM. LET'S FIX THEM BIG PROBLEMS FIRST. WHEN I NEED TIRES, I GO TO DISCOUNT TIRES, THEY DON'T JACK WITH ME.
Carvana has a ton of inventory, and a lot of it has problems. It will be interesting to see what happens to all these Carvana cars once they’re eventually liquidated.
Most of it are overpriced junk cause of their computer algorithm-based way of appraising and buying cars instead of an experienced certified mechanic inspect and appraise the cars. Not to mention they now have an auction full of junk cars (Adesa). Cars that get sent to auction are junk reject cars. They sell them to suckers at high interest rate loans 😄.
I use to be friends with a guy who worked pretty high up at Manheim. He use to say that he really thought that carvana’s whole business plan was to try to last long enough till some venture capitalists bought them out because he didn’t see them being profitable.
I sold them a few cars and every time their offer generator would provide a higher number that previous days. At a certain point I just took the offer and thought "man, there's no way they are going to make money on this."
Someone at my work just bought a used 2014 ford escape with 80k miles on it for $23,000....off the rip it had a trashed transmission. Carvana is replacing it for free, but I thought they were joking when they said they bought it for $23k. I didn't think carvana was that bad
That's funny because carvana hasn't took over Adesa yet. They don't take control till the first of the year. Absolutely nothing has changed at our site. Still same business as usual.
400k units is a large number, but the annual used car market is 30-35 MILLION cars sold. It may be even more if you include public auctions and private party sales.
Everybody praying for the downfall of Carvana doesn’t understand that this was dealerships biggest competitors. This was actually a good idea and I prefer buying a car without the mega hassle that comes with shopping with a dealership. If only they were intelligent with their inventory
Great review Ben.....I expect cheap car price arround oct 2023.......used and new....10% interest on overprice cars people can't affort it Fix your car.....
I don’t understand, you said it would be bad if Carvana cars and the flood cars all hit the market at once. As a consumer, I would think that would be the best time to go buy, since the supply is so high. Right? Somebody tell me where I’m wrong because I’m missing something.
I sold an Elantra to carvana a little over a year ago it had transmission problems and there was a tear from uv damage on the back seat as well as some paint fading, they paid me almost the price of a new base model and it was 8 years old just because it was well optioned and had around 40k miles. I was in disbelief at the "inspection" before they bought it the lady just walked around the car for like 20seconds, she didn't even look at the right side of the car (where most of the paint fading was) because she would have had to walk in the grass she turned it on and was ready to do paperwork. LOL
this is great, i worked as an auto glass technician under hypersport (contracted by carvana). I told everyone there about 6 months ago that they would go under. No one believed me when i told them why. This was one of the reasons i left hypersport as well as carvana has A LOT of issues. Its a complete mess there as well as hypersport.
Well this surprises no one. Said this when Zillows house flipping started going belly up - carvana is the same thing essentially, and only works with a really tight car market.
Do NOT buy from them!! I bought a car in IN on 9/12 after my car was totaled and I was on vacation from CA. Love the car BUT they still have NOT signed over title (10/27)!!
I've purchased two vehicles from Carvana, a 2015 Chrysler Town & Country and a 2020 Chevy Equinox both at a competitive market value. The Equinox was a steal, it only had 17000 miles on it and is still under factory warranty. Sure they have issues and there are plenty of overpriced cars on their website, but the one thing they did do is change the car market, and made it so local dealers have increased their online buying process to be competitive.
Agreed. I bought my 18 F150 from Carvana almost exactly a year ago (11/08/21) and got it for way less than any local dealer would of gotten even close to. Plus I was able to get almost exactly what I wanted. (18-20 F150 XLT FX4, 302A, 5L, 3.73 rear gear, 36 gallon fuel tank truck with the chrome 20" wheels) And they shipped it right to me. I'm in SC. My truck was is AZ. Trying to get that specific, and finding it locally would be lottery winning odds, and a time consuming process. They also made it easy for me to finance through my credit union which gave me a way better rate, better GAP insurance, etc instead of financing through Carvana. My experience with Carvana was positive, and convenient, and got me what I wanted for a far price. This during a time in 21 where the used car market was insanely high, with most car lots insanely low on new car inventory, which new cars were a better buy at the time. My daily was totaled in June of 21 because a semi hit me, right when the car market jumped off a cliff and went to straight chit. I certainly don't feel happy or amused that they're doing bad.
Mr. hardy, you obviously have no idea how Carmax operates. You give out such misinformation. Until last week I was a sales consultant at a CarMax location in NJ. Carmax does NOT have finance managers, no used car manager, no documentation fees except for fees required by the state. The sales process is transparent. As a sales consultant I did it all. I guided the customer to a vehicle that fit their mission (commissions are a flat rate, price of vehicle does not affect commission), ran the financing in front of the customer while they watched the same screen I did, the customer saw the finance decisions as I did, explained MaxCare (extended service plan), GAP insurance (if applicable) and finally e-signed purchase documents with them as the dealer representative. Appraisals for used cars were done by a buyer, who used very recent used car pricing history. CarMax does things differently, but I think very open.
Yeah I know that’s ridiculous . You should see the price that they are selling hellcats for. They give you access to the sticker to the window sticker from when it was brand new and they are selling this thing for more used than it was brand new.
@@williamrose7184 Agree... how could a 4-7 year old car be more expensive than a brand new one. I did buy a car from them and the experience was very good and the car is perfect but I cannot buy another because their interest rate is sub-prime levels even if you have good credit. So I suspect something is up.
Hi, I recently started working with Carvana (I write here as a private person), and I've purchased a vehicle from Carvana as well. When I saw your thumbnail I was worried, but after watching the video I'm now relieved. This is because you say at least half a dozen things that reveal you don't know how Carvana actually works. For example, you cite the cars sitting in the tower and lot as evidence that Carvana has lots of unsold cars, but except for the display cars in the tower, cars don't go to lots until just before delivery. This means if there are a bunch of cars in the lot, there are a bunch of pickups happening shortly. This is where you apply you experience to a different model and come up with a mistaken conclusion. I could go on. I will continue to watch your channel to get a better idea of how the broader car market works and what it's state is. I wish you all the best!
So all the cars on any Carvana lot are sold just waiting for pickup? Hmmm… well that’s pretty easy to prove/disprove. All anyone has to do is walk onto a Carvana lot (or go online) and find that all of those cars they’re seeing are “sold”. Which - in fact - they are not.
the online used may work, but it seems their issue is thinking they're a tech company first. i could totally see autonation picking them up in bankruptcy, or even----COX automotive. naah, well maybe. IMO any flood-damaged car should be crushed and junked. period. no exceptions.
Every used car dealer has been pummelled as 9 of the past 10 months the value of units have dropped. And that's gonna continue for another year'ish? Carvana will be frontpage, but lots of others are gonna get flushed unless they empty their lots today.
On what basis are you saying all this? Is Carvana bankrupt as of the time you wrote up your clickbait thumbnail? Most people who interacted with Carvana has positive experience, which is totally opposite for most of dealerships. I think it is just matter that they could come up
I think I am one of the few people who have had a pleasant experience with Carvana. I bought a 2019 MINI Cooper S. I chose my down payment, set my monthly payment and bought my car. It arrived on time with a full week for me to drive it to my guy for inspection and give it back if I found out something bad. The car was good with no issues so I bought it. The car had 27,000 miles and I only paid $24,000 for it. 2019 MINI Cooper S are going for about $27,000 as of this comment. I bought the car 4 years ago and have never had any issues with it. I feel bad because I advocated to others about how good my experience was. It really was a good experience for me. After paying the car off I've put a bigger turbo, racing suspension, exhaust and other goodies on it. It's now pushing about 370hp and runs a 4.3 0-60. It's one of the best sleepers I've ever owned. In my opinion it's ashame that Carvana did not work. If a decent person with business sense invented the concept with a good group of investors backing them I believe it would have worked. Everything else is bought online, why not cars! Hopefully we will get a "Carvana" type of gig in the future because I absolutely HATE buying cars through dealerships. I know my Carvana experience is extremely rare. Because I was lucky and got that good online car buying experience, I know what it's like to buy a car online with no issues... It was an extremely passive and freeing experience that I wish others could have. The more bad news I hear about Carvana the worse I feel. I have spoke with a few others who lucked out with the Carvana experience and they feel the same way. I've also talked to others who had an absolute horrible experience with Carvana. Man... If it worked it would have been great!
Same here!I bought two cars from carvana , the 1st with 45k miles , drove it till 110k miles with no issues ,bought my current car from carvana with 5k miles on..and is about 40k now with no issues.Bet , it depends on what type of car you choose.Regarding titles , I never had any issue.
If you want to roll the dice and possibly never get the title to your car. And you like hoping that someone actually took care of the car they sold to Carvana sight-unseen.
I purchased my car from Carvana at a substantially lower price than what new and used dealerships were selling. Where dealerships were asking 35K for a 2018 used car with over 40,000 miles, Carvana was asking 27K for a 2021 with 10,000 miles. Carvana does charge for the extra warranties but it is worth it. Now mind you, the car I purchased from Carvana is the highest trim and it was fully loaded. Not even Carmax was giving us any good deals. Most of the cars we saw at Carmax had tons of mileage and they were asking too much in my opinion. We have been driving our car for a year now and we have not had any issues whatsoever. And we did get our Title with two months of purchasing.
@@orlandocarrillo5552 That's because they cut alot of corners using the cheapest no-name aftermarket Chinese parts and used EBay parts installed by unqualified and inexpericed mechanics VS buying a certified used car from the dealer that sells that particular make and model, who uses brand new genuine factory OEM parts since they have them in stock, follow strict factory certified used car like-new standards, and have the experienced and factory certified mechanics working on the car. As the adage says "you get what you pay for"
The only way I would buy a used car these days is if it’s a private party and a CLEAN TITLE one owner car with oil change paperwork with service intervals of 5k or6months. Outside of that, nope nope nope nope. Bought a new car just so I wouldn’t have to worry about that shit.
To me the idea of buying such an expensive personal item without testing it out is a level of foolishness I would once have called far beyond that of mortal men. That said, some treat cars like buying a new washing machine. And with no title in hand, what happens if the car you buy is found to be stolen?
So, what about the "Partners" that they work with? Aren't those legitimate dealers who also list their inventory on Carvana? Doesn't that give them a little more credibility as far as the quality of the car?
Think this is a victim of the crazy real estate situation combined with oil prices indeed auto prices still in insane mode. Hopefully not eyesores for the next 50 Years!
"Who does a good job is Tesla" tesla relies on, and directly advertises government subsidies right in their advertised sale price. A lack of government subsidies may remove a large portion of their middle class buyers. Our tax dollars are making them sustainable. There is no reason that non tesla owners should be incentivising tesla owners. If their business is a good model, it should survive on its own.
Hope Shift is next to go under. Bought a car from them and it was a huge nightmare from the get go. Luckily I had the 200 mile guarantee to return the car. Very poor and unprofessional staff at the local hub where I picked up the car. Never again.
Bankruptcy means nothing…….they may figure it out, they may not. Many businesses are the same as consumers…….over leveraged. Profits or income is not enough to service the debt they have.
Carvana still suspended in several states & having title issues. They now going to be selling flooded vehicles out of Florida from Hurricane Ian before they get on the Carfax report as it can take up to 120 days to go on it. Carvana been buying vehicles out of salvage title auctions such as Copart & IAA & been caught. DO NOT BUY FROM THEM! & neighbor sold a vehicle to them they overpaid for it & the check bounced. Lots of law suits going with them now. They will buy anything except a leased vehicle. Vroom, Shift & Driveway also have similar issues as well so stay away from them. Carmax & AutoNation only ones that seem stable. If you are currently in a lease BUY IT NOW or at end as new car stock so limited & leasing isn't a option at this time due to shortage. You will pay much less for your lease than buying a new one & many used ones as well.
I bought 2021 Camry, 2021 Corolla I’m 2022 was a great experience cars are in great condition. You have to really look at the cars and detail to find the good ones.
Ben, You are right. They are going belly up. CarVana will reorganize and re-open under a new name .... I Vana Car. Cheers. PS: You have a great idea there for a "garage". With all your rides, you are gonna need a bigger garage. Just a thought Buddy. Buy Safe.
Wouldn't they try to sell the fleet of cars to a bigger nationwide dealership even if it was for a steep discount. Obviously whoever would buy it would have to be prepared to recondition most of them because obviously people know they can sell their car to Carvana without anyone knowledgeable looking at them... doesn't seem like they will all flood the market at once but I guess it's possible.
But they seem to be selling lot of cars on their website. Is it fake ??? I don’t think they will claim bankruptcy. They will take as much money they can from these car sales. Make enough $ first. This is a long process. Then they will file bankruptcy.
I've been using Carvana for a couple years now, what I mean is I have their app on my phone and I also go to their website to check stuff out. I sold a car to them one time and I got an obscene amount of money for my used car. That being said, I noticed that looking at their financing terms and the fact that everyone qualifies to purchase, even with 0% down, this is a sub-prime operation and as such a lot of these cars will be coming back to the lender, whoever that is, in short order. I can't imagine what the default rate is on Carvana loans.
The only good way to buy a used car is private party. Find a retirement community and take a walk. You might find a 20 Year old car with 30.000 miles and pay 3k. I personally will not buy used. Just don't want someone else's crap.
Carvana‘s downfall is the best thing that could ever happen.
Cant wait for it to happen. All the influx of used vehicles will bring down the used car market.
Yeah, for the dealerships. Carvana gave me a big sum of money for my car months ago. No dealer would have done that. Dealerships are the ones should disappear, and they will, in fact, disappear in the sale department at least.
No it’s not!! They have the most inventory in the country.
@@ptjr89 Plus those car vending machines off the highway are really annoying. LOL
@@rafars2246 dealerships take your car and sell it to carvana, especially if it's garbage or ugly duckling.
I used to work for them in underwriting and I have to say I'm couldn't be anymore happier knowing they are going down like this. Way to underhanded and shady even to their employees.
Same, I used to work for them as a customer advocate or delivery driver, seeing this company fail makes me happy. Especially how they lie to customers and treat employees. Fuck Carvana.
the customer side isn't helping either since they fail to give car owners their titles
As an ex employee I too am happy f them
@@andromeda9340 yeah and the delivery driver's always caught the heat for that. Even though we have absolutely nothing to do with title and registration. I got sick of customers calling and yelling at me that they never got their titles. Again I was only a delivery driver, my job was to deliver cars, have them sign paperwork, that was it.
@@Bluelinechevy82 bro being a Carvana advocate means just lying to customers everyday and I’m glad I quit
The CEO and his son sold most of their shares in Carvana when it was over $300 per share, they’ll be fine.
I KNEW it. That’s always the case.
Yes would not want the owners to get hurt now would we. Just their sucker shareholders left holding the bag.
Dumped on dumb retail
Good thing I sold at $3 and bought back in at $300. Phew what a relief
Yes Elijah! You can make up your losses by flipping 10 Ford Mavericks at 10k profit ea like the dealers do. My channel has a lot of Mav videos that can help.
Shopping for a used car online and noticing that Carvana's asking prices are still far too high.
All car dealers
Carvana was $5,000 less for what I looked at compared to Carmax and local dealers.
Bought a volvo s60 with 55k miles for 12500 at a Toyota dealer vs carvana asking 18k for 80k miles for similar models lol
For the life of me, I don’t understand his beef against Carvana. True they don’t give him any change. Also, true that He gets paid some trinkets from regular dealers.
Big fan of your new format. Seems like honest opinion in a time where the truth is not easy to find.
They also have a problem with packaging up all the loans and re-selling them. No one wants to buy these bond bundles any more because the credit quality is garbage and repos are way up, plus the underlying assets (the Carvana cars) are shaky. They have literally had no-bid situations on their debt packages, and they are now holding the bag on all this stuff. If they hold too much, they won't be able to finance anything any more.
I'm struggling to figure out where I heard that before. 🤔 😆
I tried buying from this location just last week and the dumb vending machine wouldn't take my crumpled up bills
Carvana gets a lot of slack but honestly having bought a couple of new cars in the last few years I definitely prefer the carvana/ CarMax buying and trade-in experience. I don't want to hassle I just want to know the price of the car and the price he will give me for mine. Car dealerships feel like a Ponzi scheme full of sleazy salesman. Last year I bought a Hyundai palisade and last week I bought a new ram 1500 and both experiences were just not super enjoyable. I had to have my guard up at every moment because if they were being nice to me I knew that there was a sales pitch around the corner. So carvana is stock may go down but honestly I wish them the best of luck. I think it would be great if CarMax and carvana were able to get their hands on brand new inventory from the manufacturers so I could just buy brand new cars from them as well.
The problem with Carvana is they give you a price based on the book of the car, not the actual condition. While that is great for the seller, that screws the buyer. I would NEVER buy a car from Carvana. CarMax is completely different. They inspect and refurbish each car.
@@dennisd9554 I agree that business practice is awful for the buyer and needs to be changed. You do have to have confidence that the car you're buying online is a good car so if carvana is not doing that then that is bad and needs to be changed.
This will sound cliche, but really if you feel that way you need to find a different dealer. I bought my Ridgeline from a dealer that was zero hassle and no hard sales pitch on anything. It helped i was putting a ton of money down maybe, but other honda dealers around were nowhere near as easy to work with at this place. Shopping dealers as well as the car is just as important I think.
If you go through life as a doormat, you'll get a little dirty. But you'll always know where you belong!
@@dennisd9554 I bought a vehicle from them (though it was from their marketplace division) with 11k miles on it, in excellent condition, other vehicles from other dealers were around the same price with substantially more miles. Guess I got lucky.
You should see how much inventory they have at the reconditioning facility.
It’s a big place
well we're in a Recession weather some people wsnt to or not believe it.
Cars without titles....Carvana!
It's just a play by the owners to drive the value of the stock to near nothing so they can buy back the stock back and then rebuild the brand. They've done this kind of thing before.
Carvana concept was cool , but car quality and high prices sucked !
People drowning in debt, inflation and with no money, means a pileup of vehicles & repos! It's almost the end for dealerships!
An absolutely huge Carvana just opened in the Sacramento Ca area. Should be interesting!
The bigger they are the harder they fall…
Shining brightest before the night.
What's the worst case scenario? Carvana goes bankrupt & "somebody" (a corporation) ends up with their inventory for pennies on the over-high dollar that Carvana paid. This might realy reduce prices in the used car market... but so what? They have been too high anyway. The bigger issue will be that a large portion of their inventory will STILL have no titles, so they are therefore unsellable.
It was never meant to make a profit! It was designed to take investers money to ramp up the stock price. So the CEO,s could cash out at the top before it crashed!
Ben they just go bankrupt then reissue stock. Dell is a big name that stuck it to the "common stock owner" but there are literally 1000s of businesses that do this.
Crap, the used car market is crashing as my 2023 4Runner just arrived at the port. What am I going to do with my old Tacoma?
Why don't people think things through all the way. Most people put buying an artmobile worse than going to the dentist. BECAUSE YOU CAN'T TRUST THEM. LET'S FIX THEM BIG PROBLEMS FIRST.
WHEN I NEED TIRES, I GO TO DISCOUNT TIRES, THEY DON'T JACK WITH ME.
Didn’t know you could offer. That explains why I see so many crazy prices vehicles showing purchase in progress
No, that is just NPCs buying.
This should apply to all of the dealerships who marked up the prices on their inventory.
Carvana has a ton of inventory, and a lot of it has problems. It will be interesting to see what happens to all these Carvana cars once they’re eventually liquidated.
'Cash for [Vana-]Clunkers' ?
Most of it are overpriced junk cause of their computer algorithm-based way of appraising and buying cars instead of an experienced certified mechanic inspect and appraise the cars. Not to mention they now have an auction full of junk cars (Adesa). Cars that get sent to auction are junk reject cars. They sell them to suckers at high interest rate loans 😄.
I use to be friends with a guy who worked pretty high up at Manheim. He use to say that he really thought that carvana’s whole business plan was to try to last long enough till some venture capitalists bought them out because he didn’t see them being profitable.
I sold them a few cars and every time their offer generator would provide a higher number that previous days. At a certain point I just took the offer and thought "man, there's no way they are going to make money on this."
What a gong show, thx for explaining the backstory to this whole Carvana situation.
Someone at my work just bought a used 2014 ford escape with 80k miles on it for $23,000....off the rip it had a trashed transmission. Carvana is replacing it for free, but I thought they were joking when they said they bought it for $23k. I didn't think carvana was that bad
That is why they do not want you to know that they have lousy car inventory that is used!
It’s “Adesa” I worked there for 14 years in Massachusetts and I left after Carvana took over. It was amazing how quick they screwed everything up.
I don’t know why I said it with an O😆
That's funny because carvana hasn't took over Adesa yet. They don't take control till the first of the year. Absolutely nothing has changed at our site. Still same business as usual.
I was about to say....not really sure why Carvana needed to buy a whole ass city, but maybe that had something to do with why they're going under.
400k units is a large number, but the annual used car market is 30-35 MILLION cars sold. It may be even more if you include public auctions and private party sales.
Sold a car to them three years ago and it was an easy experience much better than the truck I sold to Vroom last year which was a big PITA.
PITA!?
PETA...meow...meow...bark...bark!?
I had to brother...
@@daviddefranco5218 PITA =Acronym for Pain In The A$$. You though I was talking about PETA= People Eating Tasty Animals? LOL
Everybody praying for the downfall of Carvana doesn’t understand that this was dealerships biggest competitors. This was actually a good idea and I prefer buying a car without the mega hassle that comes with shopping with a dealership. If only they were intelligent with their inventory
Those vending machines would make for a cool way to rent a car via Phone App or park your car in downtown cities like they do in Tokyo.
Carvana made me a pretty healthy offer on a 2013 Honda Fit Sport yesterday…
Grab it..
Great review Ben.....I expect cheap car price arround oct 2023.......used and new....10% interest on overprice cars people can't affort it
Fix your car.....
I don’t understand, you said it would be bad if Carvana cars and the flood cars all hit the market at once. As a consumer, I would think that would be the best time to go buy, since the supply is so high. Right? Somebody tell me where I’m wrong because I’m missing something.
I sold an Elantra to carvana a little over a year ago it had transmission problems and there was a tear from uv damage on the back seat as well as some paint fading, they paid me almost the price of a new base model and it was 8 years old just because it was well optioned and had around 40k miles. I was in disbelief at the "inspection" before they bought it the lady just walked around the car for like 20seconds, she didn't even look at the right side of the car (where most of the paint fading was) because she would have had to walk in the grass she turned it on and was ready to do paperwork. LOL
The only issue i had , was a delivery date cancellation twice due to a shortage of staff , which in my view was justifiable.
this is great, i worked as an auto glass technician under hypersport (contracted by carvana). I told everyone there about 6 months ago that they would go under. No one believed me when i told them why. This was one of the reasons i left hypersport as well as carvana has A LOT of issues. Its a complete mess there as well as hypersport.
if i sell my car to them today, will the check they give me be good?
As long as the check clears
What about all the titles they have not given out to owners
Well this surprises no one. Said this when Zillows house flipping started going belly up - carvana is the same thing essentially, and only works with a really tight car market.
We have a Carvana refurbishing facility near me, and the lot is full. Acres of cars, trucks, and SUVs just sitting.
Great topic.
Thanks Ben
No lie, this video played a Carvana ad shortly in to watching. Hilarious!!
CensorFail.
Great. I was gonna get a job as a carvana mechanic. Easy job, no major repairs, rig stuff.
Lol
I guess my Jimmy Johnson Carvana Indycar diecast will be a collectors item LOL
The cars at Carvana hubs have either already been purchased by customers or they’re trade ins. Nonetheless it is a tough market.
Tough stock market too, Carvana is down from $360 to $13 in a little over a year.
@@jordanbressler728 trust me I know.
Great video. I'm trying to buy a car right now and I need all the good info I can get.
I just shared something. Might work for you. Check it out.
Do NOT buy from them!! I bought a car in IN on 9/12 after my car was totaled and I was on vacation from CA. Love the car BUT they still have NOT signed over title (10/27)!!
I've purchased two vehicles from Carvana, a 2015 Chrysler Town & Country and a 2020 Chevy Equinox both at a competitive market value. The Equinox was a steal, it only had 17000 miles on it and is still under factory warranty. Sure they have issues and there are plenty of overpriced cars on their website, but the one thing they did do is change the car market, and made it so local dealers have increased their online buying process to be competitive.
Agreed. I bought my 18 F150 from Carvana almost exactly a year ago (11/08/21) and got it for way less than any local dealer would of gotten even close to. Plus I was able to get almost exactly what I wanted. (18-20 F150 XLT FX4, 302A, 5L, 3.73 rear gear, 36 gallon fuel tank truck with the chrome 20" wheels) And they shipped it right to me.
I'm in SC. My truck was is AZ. Trying to get that specific, and finding it locally would be lottery winning odds, and a time consuming process. They also made it easy for me to finance through my credit union which gave me a way better rate, better GAP insurance, etc instead of financing through Carvana.
My experience with Carvana was positive, and convenient, and got me what I wanted for a far price. This during a time in 21 where the used car market was insanely high, with most car lots insanely low on new car inventory, which new cars were a better buy at the time. My daily was totaled in June of 21 because a semi hit me, right when the car market jumped off a cliff and went to straight chit. I certainly don't feel happy or amused that they're doing bad.
If there's one thing that tech start ups are good at, it's failing.
I'm glad I never ended up investing in Carvana!
Mr. hardy, you obviously have no idea how Carmax operates. You give out such misinformation. Until last week I was a sales consultant at a CarMax location in NJ. Carmax does NOT have finance managers, no used car manager, no documentation fees except for fees required by the state. The sales process is transparent. As a sales consultant I did it all. I guided the customer to a vehicle that fit their mission (commissions are a flat rate, price of vehicle does not affect commission), ran the financing in front of the customer while they watched the same screen I did, the customer saw the finance decisions as I did, explained MaxCare (extended service plan), GAP insurance (if applicable) and finally e-signed purchase documents with them as the dealer representative. Appraisals for used cars were done by a buyer, who used very recent used car pricing history. CarMax does things differently, but I think very open.
Our local carmax has it all, yours must be different. Interesting.
BTW you cannot make an offer to carvana. The price is what it is.
Yeah I know that’s ridiculous . You should see the price that they are selling hellcats for. They give you access to the sticker to the window sticker from when it was brand new and they are selling this thing for more used than it was brand new.
@@williamrose7184 Agree... how could a 4-7 year old car be more expensive than a brand new one. I did buy a car from them and the experience was very good and the car is perfect but I cannot buy another because their interest rate is sub-prime levels even if you have good credit. So I suspect something is up.
Hi, I recently started working with Carvana (I write here as a private person), and I've purchased a vehicle from Carvana as well.
When I saw your thumbnail I was worried, but after watching the video I'm now relieved. This is because you say at least half a dozen things that reveal you don't know how Carvana actually works.
For example, you cite the cars sitting in the tower and lot as evidence that Carvana has lots of unsold cars, but except for the display cars in the tower, cars don't go to lots until just before delivery. This means if there are a bunch of cars in the lot, there are a bunch of pickups happening shortly. This is where you apply you experience to a different model and come up with a mistaken conclusion. I could go on.
I will continue to watch your channel to get a better idea of how the broader car market works and what it's state is. I wish you all the best!
So all the cars on any Carvana lot are sold just waiting for pickup? Hmmm… well that’s pretty easy to prove/disprove. All anyone has to do is walk onto a Carvana lot (or go online) and find that all of those cars they’re seeing are “sold”. Which - in fact - they are not.
The fact is that they are losing money hand over fist. Just read the press release for their recent Q3 earnings report.
Carvana is going bankrupt, their business model sucks, buy high… sit on cars.
the online used may work, but it seems their issue is thinking they're a tech company first. i could totally see autonation picking them up in bankruptcy, or even----COX automotive. naah, well maybe. IMO any flood-damaged car should be crushed and junked. period. no exceptions.
Every used car dealer has been pummelled as 9 of the past 10 months the value of units have dropped. And that's gonna continue for another year'ish? Carvana will be frontpage, but lots of others are gonna get flushed unless they empty their lots today.
Great video, thanks for the update on carvana
On what basis are you saying all this? Is Carvana bankrupt as of the time you wrote up your clickbait thumbnail? Most people who interacted with Carvana has positive experience, which is totally opposite for most of dealerships.
I think it is just matter that they could come up
I think I am one of the few people who have had a pleasant experience with Carvana. I bought a 2019 MINI Cooper S. I chose my down payment, set my monthly payment and bought my car. It arrived on time with a full week for me to drive it to my guy for inspection and give it back if I found out something bad. The car was good with no issues so I bought it. The car had 27,000 miles and I only paid $24,000 for it. 2019 MINI Cooper S are going for about $27,000 as of this comment. I bought the car 4 years ago and have never had any issues with it. I feel bad because I advocated to others about how good my experience was. It really was a good experience for me. After paying the car off I've put a bigger turbo, racing suspension, exhaust and other goodies on it. It's now pushing about 370hp and runs a 4.3 0-60. It's one of the best sleepers I've ever owned. In my opinion it's ashame that Carvana did not work. If a decent person with business sense invented the concept with a good group of investors backing them I believe it would have worked. Everything else is bought online, why not cars! Hopefully we will get a "Carvana" type of gig in the future because I absolutely HATE buying cars through dealerships. I know my Carvana experience is extremely rare. Because I was lucky and got that good online car buying experience, I know what it's like to buy a car online with no issues... It was an extremely passive and freeing experience that I wish others could have. The more bad news I hear about Carvana the worse I feel. I have spoke with a few others who lucked out with the Carvana experience and they feel the same way. I've also talked to others who had an absolute horrible experience with Carvana. Man... If it worked it would have been great!
Same here!I bought two cars from carvana , the 1st with 45k miles , drove it till 110k miles with no issues ,bought my current car from carvana with 5k miles on..and is about 40k now with no issues.Bet , it depends on what type of car you choose.Regarding titles , I never had any issue.
So would it be a good idea to purchase a car from Carvana right now? Or will you be screwed if they go out of business?
If you want to roll the dice and possibly never get the title to your car. And you like hoping that someone actually took care of the car they sold to Carvana sight-unseen.
I purchased my car from Carvana at a substantially lower price than what new and used dealerships were selling. Where dealerships were asking 35K for a 2018 used car with over 40,000 miles, Carvana was asking 27K for a 2021 with 10,000 miles. Carvana does charge for the extra warranties but it is worth it. Now mind you, the car I purchased from Carvana is the highest trim and it was fully loaded. Not even Carmax was giving us any good deals. Most of the cars we saw at Carmax had tons of mileage and they were asking too much in my opinion. We have been driving our car for a year now and we have not had any issues whatsoever. And we did get our Title with two months of purchasing.
@@orlandocarrillo5552 It seems as if Carmax is selling at nearly twice the market.
@@orlandocarrillo5552 That's because they cut alot of corners using the cheapest no-name aftermarket Chinese parts and used EBay parts installed by unqualified and inexpericed mechanics VS buying a certified used car from the dealer that sells that particular make and model, who uses brand new genuine factory OEM parts since they have them in stock, follow strict factory certified used car like-new standards, and have the experienced and factory certified mechanics working on the car.
As the adage says "you get what you pay for"
They just don't have the titles.
I still hate majority of crappy dealers with ridiculous mark ups. Glad that carvana is just another shady e dealers.
The only way I would buy a used car these days is if it’s a private party and a CLEAN TITLE one owner car with oil change paperwork with service intervals of 5k or6months. Outside of that, nope nope nope nope. Bought a new car just so I wouldn’t have to worry about that shit.
I honestly thought carvavna was a joke
Good, honestly. Their cars were extremely overpriced, their financing was ridiculous as well.
Is Vroom also failing?
To me the idea of buying such an expensive personal item without testing it out is a level of foolishness I would once have called far beyond that of mortal men. That said, some treat cars like buying a new washing machine. And with no title in hand, what happens if the car you buy is found to be stolen?
Good, let them fail. Saw a 2013 Toyota Avalon for $18k and I was furious
So, what about the "Partners" that they work with? Aren't those legitimate dealers who also list their inventory on Carvana? Doesn't that give them a little more credibility as far as the quality of the car?
Think this is a victim of the crazy real estate situation combined with oil prices indeed auto prices still in insane mode. Hopefully not eyesores for the next 50 Years!
Poignant insight Ben.
Keep up the great work.
Stay classy my friend.
"Who does a good job is Tesla" tesla relies on, and directly advertises government subsidies right in their advertised sale price. A lack of government subsidies may remove a large portion of their middle class buyers. Our tax dollars are making them sustainable.
There is no reason that non tesla owners should be incentivising tesla owners. If their business is a good model, it should survive on its own.
Hope Shift is next to go under. Bought a car from them and it was a huge nightmare from the get go. Luckily I had the 200 mile guarantee to return the car. Very poor and unprofessional staff at the local hub where I picked up the car. Never again.
Awesome review.
Amazon only made a profit in 1 year in its company history 2021, from 1994-2022 just1 year.
So should I buy a car from them
Bankruptcy means nothing…….they may figure it out, they may not. Many businesses are the same as consumers…….over leveraged. Profits or income is not enough to service the debt they have.
Carvana still suspended in several states & having title issues. They now going to be selling flooded vehicles out of Florida from Hurricane Ian before they get on the Carfax report as it can take up to 120 days to go on it. Carvana been buying vehicles out of salvage title auctions such as Copart & IAA & been caught. DO NOT BUY FROM THEM! & neighbor sold a vehicle to them they overpaid for it & the check bounced. Lots of law suits going with them now. They will buy anything except a leased vehicle. Vroom, Shift & Driveway also have similar issues as well so stay away from them. Carmax & AutoNation only ones that seem stable. If you are currently in a lease BUY IT NOW or at end as new car stock so limited & leasing isn't a option at this time due to shortage. You will pay much less for your lease than buying a new one & many used ones as well.
They need to Abolish all dealerships. Let the manufactures sell their own products at a cheaper cost.
Car gumball machine was a sign.
Can’t wait to buy my next car from Carvana. This will be my second one.
They might not be around much longer, their stock went from $360 to $13 in just over a year.
I bought 2021 Camry, 2021 Corolla I’m 2022 was a great experience cars are in great condition. You have to really look at the cars and detail to find the good ones.
So what happens to the loan i have with them ?
dont pay it and find out
They have a lot of cars, not lowering their prices, and smart people will stay away.
Weeks if not months behind industry trends....
Ben, You are right. They are going belly up. CarVana will reorganize and re-open under a new name .... I Vana Car. Cheers. PS: You have a great idea there for a "garage". With all your rides, you are gonna need a bigger garage. Just a thought Buddy. Buy Safe.
Haha
Carvagina! Lol
Easy money dries up with higher interest rates. "You only find out who is swimming naked when the tide goes out. " Warren Buffet
I'm glad I sold my jeep to them for $17k over what I owed. When I did in December
Wouldn't they try to sell the fleet of cars to a bigger nationwide dealership even if it was for a steep discount.
Obviously whoever would buy it would have to be prepared to recondition most of them because obviously people know they can sell their car to Carvana without anyone knowledgeable looking at them... doesn't seem like they will all flood the market at once but I guess it's possible.
No one is going to lend the money for that kind of deal. LOL 100,000 used cars as collateral.
I got a Carvana ad before this video 🤣
YUP-
Currently working in the engineering dept there. Starting to look elsewhere just in case
But they seem to be selling lot of cars on their website. Is it fake ???
I don’t think they will claim bankruptcy. They will take as much money they can from these car sales. Make enough $ first. This is a long process. Then they will file bankruptcy.
Chapter 11 bankruptcy - company can reorganize and continue operating. It depends on what kind of bankruptcy they are doing.
I've been using Carvana for a couple years now, what I mean is I have their app on my phone and I also go to their website to check stuff out. I sold a car to them one time and I got an obscene amount of money for my used car. That being said, I noticed that looking at their financing terms and the fact that everyone qualifies to purchase, even with 0% down, this is a sub-prime operation and as such a lot of these cars will be coming back to the lender, whoever that is, in short order. I can't imagine what the default rate is on Carvana loans.
How do you buy a huge auction like adesa, when your net income is: -2billion….. seems legit
Carvana ad popped up watching this...
Well so much for carvana will take over the car industry.
wait where is carvana taking offers on cars?
Ben, I have to say that you are my favorite when it comes to reviews and the auto industry. Nice work, young man.
Tomorrow, "carvana is buying all dealerships in the country!"...
Only worked during the stay @ hone situation ‼️
The only good way to buy a used car is private party. Find a retirement community and take a walk. You might find a 20 Year old car with 30.000 miles and pay 3k. I personally will not buy used. Just don't want someone else's crap.