How Carvana’s Stock Crashed | WSJ What Went Wrong
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- Опубліковано 26 чер 2024
- Carvana’s share price skyrocketed in 2021, but less than a year later it dropped by 95%.
WSJ’s Ben Foldy explains the factors that helped drive the online car dealer’s growth and why investors are now questioning its future.
Illustration: Preston Jessee
What Went Wrong explores the challenging conditions and decisions that led to a company's downturn.
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Carvana has had MAJOR issues with titles. Many Carvana customers got pulled over and arrested for stolen vehicles because Carvana never cleared the vehicle's title before they resold the vehicle. This report is way understating how much of a paperwork nightmare Carvana has.
I agree, Carvana has a huge backlog of unprocessed titles to their cars.
Something tells me they are either saving money on not acquiring the titles or maybe
even borrowing money from the titles that they own. I'm sure it's all linked to money.
Correct
Many?
Can't get a title to a car they don't own. Half are stolen and Carvan buys them anyway. Craziest place, never buy a car from them
I feel sad that even though I am investing, I don't have the brain power to dig through how each company is doing, is this a good time to buy stocks or not, my reserve of $450K is laying waste to inflation and I don't know what to do at this point tbh, I need solid data on market trajectory
I'll suggest you find a mentor or someone with experience guide you especially in this recession.
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Just lots of mismanagement. I sold my 2017 Subaru BRZ to Carvana and I was thinking the pickup process was going to be a very vigorous test drive, examination, and inspection that the vehicle does indeed follow the criteria that they base their offer on. What actually happened is the guy came, took 2 low quality pictures, couldn't drive stick so he couldn't even move it and they took it away no questions asked. That is not a good recipe for gaining an inventory of cars worth the price Carvana has payed.
Anecdotes are not evidence.
@@miniena7774 Single ones, sure. But when those data points add up it can tell a good story.
@@miniena7774 theres plenty of them that paint a picture. Lots of people reported waiting up to 2 years for their title. Some even reported that the car was stolen when sold to them.
Did you think they'd send out a team of NASA engineers to do a full tear down? It seems like that might undercut their margins. Instead they'll just buy everything at low ball prices and write off the lemons as a tax credit.
@@williamrori1274 yea there's a ton of horror stories with them when I did research before buying from them. From waiting 2 years for title, to receiving a stolen car. So your story fits with what I read
No joke: my friend bought a car from them, had them repair it free of charge (even though they reduced the price BECAUSE of those defects), and then sold it back to them for a profit since it was in good condition.😂😂
I’m not shocked but wow. You’d think they’d track vins and pay more for a vehicle they previously owned.
Let's be honest, there was probably a pump and dump scheme and market manipulation responsible for some of the 95% decline. Investors didn't all just decide simultaneously that a slight decline in sales meant $100 of the stock should really be worth $5.
Come on. Nobody believed it was ever worth $100. People bought it for the sole reason that they thought someone else would pay a higher price for it in a month or so. When that stopped being the case (when the stock stopped increasing in price, and even began decreasing) everyone who owned it was incentivized to sell their stock as soon as possible, when the price was still higher than the intrinsic value. When everyone does that at once, the stock collapses. Classic bubble mechanics at work.
@@johnpuri1024 exactly. In 2005 at a bbq, these guys were talking about buying 2nd and 3rd houses as investments. I said this whole thing is going to blow up. When the price is going up for the reason the price is going up, it will sooner of later go kablooey.
It's not worth anything only debt
Right..this was probably the usual Market Makers coordinated "bull squeeze" short. The bulls got squeezed and they had to sale FAST (thus driving down the price) to get out of their position. It's really a supply and demand of available shares function and happens all the time.
🎶 ... Check that price sticker
and listen to your heart beat quicker;
look at that mileage rating;
what's the sense in waiting?
Chevy Chevette, it'll *drive you happy*,
Chevy Chevette, it'll *drive you happy*... 🎶
One cal always count on the WSJ to report business failures just after a crash. Up until then the business is hailed as genius.
What?
@@I_WANT_MY_SLAW He's criticizing WSJ (and others NYT etc) for puff pieces on founders/businesses up until the disaster has happened/is obvious.
@@danielwalker6653 They're like a bunch of weathermen reporting to you live -- from the aftermath of the hurricane they failed to warn you about.
The process sounds great but we have been waiting over 2 months for our car to arrive and its been delayed another 2 weeks. They use third parties to deliver so they have little control on time frames and shouldn't be advertising quick deliveries
So many companies with poor business practices get funding whilst great companies, meaning great revenue plans, get completely overlooked.
Truth
you should invest in those companies then. you might be on a gold mine
@@bannaboy89 I’m investing in myself right now actually. Already ahead of ya
When they gave me 15K for my 10K car, I knew that their model couldn’t be sustainable.
Darn pyramid schemes. You really have to be on the rail at the beginning or pay a low cost for each stock.
@@robertagren9360 Yep!
It was insane. I work at a dealership and you don’t know how many cars we didn’t take in on trade because Carvana offered a ridiculous amount to the customer. Then they realized they overbought and we started beating every offer they gave out.
Hope you got in while the gettin’s good
its the wheel of time, that gives you a flat tire
Who'd of thought building a giant car vending machine might not work out economically?
your grammar teacher
Yeah really. I feel buying a car is a big purchase and a vending machine doesn’t put confidence in my purchase.
The Garcia family began dumping billions in stock between 2020 and 2021. They knew this was not going to last and Garcia SR was going to get his no matter what. I remember reading that it was one of the largest stock distributions a family equity partner had ever taken from a company. This was a bad sign to investors also
After selling a vehicle to Carvana with substantial body damage that did not deduct from their offer and was not even mentioned by the agent who picked it up and gave me the check, for a price nearly double what I was offered as a trade-in for my new vehicle, I knew their business model couldn't possibly work. There is simply no way they could have possibly resold my vehicle, repaired or otherwise, in a way that would net a profit for a reasonable price. They're a great option if you want some VC money for your car before they run out, but I'd certainly never buy from them.
They seem to know nothing about cars.
looks like they are offering lower and lower prices. they only offered 20k for a 2017 impala top trim where private party sales can get 25K+
Look into Drivetime their bread and butter company. Selling some questionable cars
It seems like their idea of fixing it is to put a band aid on it and hope the new owners dont notice until if ur the one buying then u see how bad the car is and what a poor job they did fixing it.
That's not my problem anymore 🤣. Bought the stock at 22.75 and sold it at 47!
That’s what I was going to do too, but couldn’t because I was afraid that it might go down even more. Got some at 20s tho and sold at 39
Carvana is overpaying to buy used car. They bought my 2019 Hyundai Tucson for $23k while exact same car with lower miles selling at $21k from CarMax. After few days they listed my car for $21300.. I mean I’m happy with what they paid me but wouldn’t survive long if they are losing money by selling cars
"We lose $5 on every sale but make it up in volume." Said every failed business manager.
They are no doubt overpaying but so are their buyers and they also profit from finance and stuff like warranties.
During the pandemic everyone was buying used cares for more than they are worth.. People were literally buying new cars Driving them off lots then turning around and selling them back to dealers for more than the sticker price
Unless you also own a bunch of lending companies and make your real money in subprime car loans. A lot of people used their stimulus money to put down payments ignoring double-digit interest rates (as high as 25%) for long terms. $20,000 at 25% for 84 months means you would pay $23,000 in interest. They can lose 2K and come out 21K ahead.
Basic problem was that their prices were higher than comparable cars at regular car dealers.
People wanted "no haggle" not knowing that means you opt-in to paying market rate for these cars..
Basic problem was it was a ponzi fron the start.
It's a terrible company....simple
Price was not actually that bad, but likely that was causing them to lose money.
@@Pizzonia295 I shopped for two different cars at two different times and they always came up around $2k more than dealers here in California. I bought private party and dealer. The additional title hassles did not help.
bought a vehicle from them in 2019 and overall was a great experience. I would buy another if inflation wasn't so bad, everything has gone up 30% in a year including my rent :(
I feel like a bigger piece of this story for Carvana and companies like it is that valuations are often just tied to vibes and all it takes is one strong signal from reality to break through that mist. This is likely true of lots of companies but so long as they keep growing the share price can be justified.
It's actually most equity securities. Not numbers, facts, etc. But "feels" i.e. sentiment.
I’ll save the viewers 7 minutes: Carvana was overvalued and it was obvious
Not to mention all the stolen cars they resold. That never works out well for a car dealer.
Same as everything in the stock market nowadays. The stock market is totally disconnected from the economy.
Remember how Google never showed a profit for five years?
They really downplayed the issue with titles. People were literally not getting the title for their cars for upwards of a YEAR!! There was indication that Caravana was breaking several different state laws in regards to car sales as well. This went well beyond logistical problems and straight into the realm of deliberate malice. Also not mentioned the father/son duo of the company have been selling off billions of dollars worth of the company stock before it crashed.
Hope they went to jail for this
I worked for FedEx express for 7 years. I can confirm this. Everytime i got a Carvana envelope it had a car in the driveway with an expired tag.
@@brucew3693 not siding with any but why should they go to jail? Legitimately cashing out on your own hard-built enterprise may sound unethical because it may degrade the trust but not that it’s illegal..
@@ondreiii Theft through deception because they cannot deliver a vehicle in proper condition that can be legally titled in the new owner's name.
Not much different than buying a stolen vehicle without knowing and not being able to use it. One would expect a dealership not to sell them a vehicle that can't be legally owned.
That's criminal, not civil.
They updated tags on time duh. And people buying on Carvana markup will not sell the vehicle locally at a steep loss.
The titles thing was a big deal. People weren’t getting their titles, new license plates, registration, etc. Covid played a big part in the delay but this is still a bad look on carvana end. The process is actual real smooth to purchase and trade in a vehicle. I also think it’s the future of buying cars. I think the biggest part was their mishandling of finances and the quality control of their company. They are growing too fast without a strong stepping stone to each new phase. They went for the moon and fell hard. It might be too difficult to get back up but there’s a chance if they play their cards righr
Hopefully they don’t and have to liquidate everything so I can buy a sports car 50% off
If history has taught us anything, it’s that bad market environments are the best times to find great opportunities.
Talked to my millionaire uncle (been investing in Vanguard funds for 30 years) last night and asked what advice he would give investors in today's market: "If you're a long-term investor, you should be buying stocks now. Ignore the news, it doesn't matter over the long-term."
People are almost always focused on the short term and never the long term. Yeah, market is brutal at the moment and it sucks for everyone, but the market always rebounds higher than it ever hit before. Cheap investments today bring better returns in the future.
Market collapses are fantastic opportunities to amass significant riches. Nobody is able to predict the future of any market. I've put everything I have into this. I don't care how low we go because market timing and emotion are deadly. Even while I will continue to purchase, I will only invest what I can afford to lose. Currently, my diversified portfolio has a 24 percent gain. Long-term investing is usually profitable.
@@oneiljerry9460 This is a superb mindset to have towards the market. How are you able to navigate the volatility that comes with?
@@stephaniestella213 In order for us to prepare for the future we need to look into safer investment with good prospect . If you have the mindset of investing 5 years ahead and just keep DCA every time you get paid. My portfolio have accrued gains of about $130k under the guidance of my investment -Advisor "Eileen Ruth Sparks" whose skills in portfolio diversification are unmatched and client-centered
Their Service and Promise to bring charge is terrible . I waited 3 weeks for a car that they didn’t check out & it turned out to be a Lemon. Instead of them making a right wrong they only made it worse. I was already Approved but they made me ReApply for a different but same year car. Then they wanted me to Provide 6 Months Bank Statements and wanted me to give them the Down Payment before I was even Approved. I explained to them, that why would I give them the Down payment early when they couldn’t even deliver the last car. It was totally their fault but they never made it right. Every time that you call, you get someone different on the phone telling you different things. When you go to the Vending Machine no one can help you and they tell you to call Customer Service. Terrible experience and I will never recommend anyone to this Company. I purchased a car from the Cadillac Dealership instead.
Why didn't you touch on ALL the customer issues from Carvana? People not getting their car titles for almost a YEAR after purchase would be one mention...
It was mentioned at 4:50
@@9regorio just felt like it was an "oh and also" part of the video. In reality it's part of the core for the stock devaluation.
@@CannabisTechLife at least one dude waited 2 years
I knew I remember the name Carvana from some where. There was a news report story that was on Carvana.
In order to save the economy, everyone must go out and buy a $1500 folding phone and sign up for 10 streaming services. Get a $6 coffee every morning in your new ev, throw away all your perfectly good hd tv’s and buy bigger 8k tv’s… that’s really what these companies are banking on
You seen the Diablo Immortal critique comic? Because it sounds exactly like that and it's hilarious.
i.redd.it/p1rd9910mi691.png
I love how they kept out all the fraud committed by the owner and his son the CEO, there is no nefarious relationship there to cheat investors, hiding the connection was an oversight.
Yeah very suspicious they didn't mention how crooked the father is. Carvana is a carbon copy of DriveTime with different window dressing.
Wasn't an oversight, was totally intentional to rip people off. Dude should have assessets frozen and distributed to all the people ripped off. And he should be in jail
Their principal business focus was/is to sell subprime loans for their many finance companies: GO Financial, SilverRock Group, and Bridgecrest Acceptance Corporation, etc. That type of finance has more ups and downs than an elevator. "Buy Here Pay Here" on Steroids.
Yup DT definitely a shady business and questionable cars
I used to work for them and they suck, they harassed me until i had to quit, I almost had a heart attack at one point thanks to my manager at the facility and now Carvana fired everyone that’s karma
A lot of people there were treated so bad they should be given refunds
It was a miserable experience dealing with Carvana. I hope they go out of business.
My experience was just the opposite although that was two and a half years ago.
@@robertd9850 I had great experience with carvana as well but that was also over a year ago
I've had two wonderful experiences with Carvana, hard to imagine better.
We have had a good experience with Carvana - Sep 2021 we bought a used car and the whole transaction was smooth and free of drama. Seems alot of folks have had varied experiences, so I feel lucky now!
That’s excellent and that should be the experience across the board but the fact that it’s not is the problem that they have to alleviate going forward.
@@davidpachecogarcia I agree!
Yeah true, I guess dealing with them was kind of the luck at a vending machine, maybe its a good one
Isn’t that the case though with all dealers? I’ve had several bad experiences at local brick and mortar car dealers swindling us into bad situations over the years- and partly I suppose I was to blame for not doing my own research beforehand but my point is that all venues of obtaining new cars or used cars can be a good or bad thing.
Yes, I remember back to the Iomega Zip drive. Stock prices driven through the roof by the Motley Fool and then their crash.
Cars too pricey that's why. The marketing guy was too high on sativa.
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Any thoughts on CVX, NIO? Almost opted for Carvana a few days back however, I got wind of their purported crash earlier.
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Makes you realize how ridiculous the stock market can be
Valuation is determined by scammers rather than actual company value
It’s a casino. It’s all about the hustle and momentary perception of what a stock will do, and not how good the company is.
It's determined by projected future earnings.
@@prism8289 The stock market is not a casino. For a start, it's not a zero sum game like a casino. It only gets into gambling territory if you invest in companies making outlandish predictions about future earnings
@@tomlxyz no. When you are no longer betting on what a company is or does, and instead on what the stock market will do say to day, it’s a casino. 70% of trades are high frequency. It has forced CEOs to play the game to bend the company to manipulate a share price and not build a strong company that endures. Even Buffett says so. Carvana is an excellent example. Anyone looking into Carvana for ten minutes saw problems. But they kept buying stock because they thought it would go up, not because it was a good company.
So you understand the stock market
I worked for a competitor called Shift (Shift Operations/Shift Technologies)
The houston hub was shift down earlier this month after merging with CarLotz. The co-founder and CEO left the company, and now only have 3 locations in California left.
There was plenty of smoke in the company…and where there’s smoke, there’s fire.
During the chip shortage carvana was buying cars with crazy prices. Usually bought cars for 4000-6000$ than what a dealership would buy. My sister and friend sold their cars to carvana and made 5000$ profit each for a car already driven 40,000miles. I thought it was crazy back then
Their car prices seemed to be _very_ high to me. Their vending machine buildings look cool though.
They acquired that auction company ADESA in Feb 2022, so now the are controlling half of the SUPPLY SIDE used car inventory. Their PER CAR SOLD margin will be wider, so revenue will go up and then the stock price will go up.
Houses are unaffordable and soon used cars will be too
@@rogerfloyd852 It's because the new car inventory is almost non existing.
Nah it's because the world locked down for the sniffles
Also carvana is actively overpaying for used cars in auctions around the country. It went so far they started buying auctions and were constantly outbidding small dealers. They actually lose money on every single car they sell
Lose*
Yes sure, but they make it up on volume!
/J
It seems they mark up the value of the used Vehicle somewhat above its Bluebook value including mileage, and eventually a creating a profit.
@@arasb3258 used to make through financing but not anymore due to raised federal interest
The current stock market is not a good indicator of a companies health because it is still fueled by speculation. The value proposition of Carvana is growing and even if it's not Carvana, their business model is likely here to stay.
Yeah what about the insider trading by the CEOs daddy. Billions of stock sales since October last year. Pump and dump! They lose money on every car they sell.
He's a convicted felon.
Technically the shareholders lost because they invested in hope that it would work but when you have inflation the costs increases and debts aren't what people want to make to buy cars because cars are debts and when it goes bad for the real estate it goes bad for the car industry.
Carvana is one of those companies that harassed me with their ads so many times that I refuse to give them a chance.
Really not gonna say anything about how sketch the Garcia family is or how many illegal sales and lemon cars they sold? Quality journalism WSJ...
Sold my used car with Carvana. Really liked the experience. Also, they paid twice the price offered by a dealership. I hope they’ll get over this period.
they paid twice the price offered by a dealership, thats why they wont get over it
I sold my used car to Carvana, terrible experience. They left the car blocking my driveway for 3 days before I had to threaten to have the car towed away.
@@2011blueman terrible 😢
@@timothy1949 dealerships are a bunch of scammers. If you think that they offer fair price, you’re probably one of those crooks.
@@timothy1949 lol people are so stupid. Sure 'we'll pay you twice as much for your car than anyone else. We have a magic wand.
It took me a year to get my car registered. They literally kept giving me temp tags but I was able to get my car registered in my state and I have the title as well
no way. hyper growth stock didnt work out? never posted a profit, profit to earnings ratio no where near where share price was? it was speculation pure & simple. smart people cashed out late 2021 at the height of the stock market. left the rest as bag holders.
My opinion on carvana stock is either they go bankrupt which is hard to believe would happen and the stock price falls to zero or they could be worth 20 times or more what their worth today at just $4 a share. The question is are you willing to take the risk?
Transfer of wealth usually occur during market crash, I've been looking up strategies and apparently both bull and bear market condition provides equal avenue to accrue massive gains, and a news article particularly mentioned a 54 year old that made $180k in 8weeks, how do I learn these strategies, my portfolio has been stagnant for months.
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You can tell carvana is started by some rich dude never bought a used car. I would never buy a used car sight unseen. And seller of used car is always hiding something and unlike dealer might be able to inspect and fix some issues, carvana can't. And business take risk if car is not as described and spend a lot on shipping to every buyer. And used car buyer buy car every 10 years so hard to get repeat business and spend a lot to earn new customer. Biz model sucks
What went wrong? In my experince, changed my receiving date that took me two weeks to to arrange with my schedule, car not as advertised and needed repairs upon delivery. Oh and second car is now delayed twice and I still have to make it to work and the miles are counting through no fault of my own however th $1 p mile
I swear to god at first I thought the title said Canada and I was thinking “the house prices finally coming down to earth hmm? 👀”
I thought about using carvana but I had heard multiple horror stories. Theres plenty of UA-cam videos about it, some people waited TWO YEARS for their titles, some cars were in bad conditions, they even sold stolen cars. Yea, no thanks.
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I wonder how Carmax has been able to avoid some of the same issues? Their pricing isn’t always the most competitive either. At least potential buyers can test drive the vehicle first which helps. Also, being established means they don’t have to spend as much on advertising.
Well, one major reason is Carmax doesn’t have the operational problems that Carvana does. A major strength of Carmax is its supply chain and logistics, which when it is operating as it should, it’s seamless and bulletproof. The downside of that is when something doesn’t quite work as it should on the system, it can really come off the rails fast, which unfortunately management doesn’t seem to concerned about in the rare times it happens.
For the most part, cars we MOSTLY good. The big horror stories you hear about of extreme ripoffs and completely taking advantage of customers almost never happened. People knew they were paying more, but for that piece of mind were willing to pay it. They took the sleaze factor out, and that reputation matters a lot. It sells A LOT of cars.
That said, as the bean counters take over and with the reputation established, suddenly execs are thinking more about their bonuses and shareholders. The quality care declined, which is something they were kind of forced into doing. They have been busted in the past for not doing the inspections they claimed they were, or they weren’t fixing them. But overall, things were really good. However when all their online sales and deliveries were starting to roll out, they were getting sloppy.
When buying from anyone, buy a car with a return policy, and immediately take it to a trusted, objective mechanic to do an examination of it. Pay the $100 for that. It is very well worth it and could save you thousands.
We bought two cars in three years from Carvana. Great Experience! Best car buying experience ever!!
Congrats, you won the lottery
Me too! I love carvana
It feels wrong to buy a used car sight unseen. I’d rather buy from dealership’s certified used or from an individual seller locally. I bought my 3 used cars this way and not one was having issues be it title or mechanical.
It is not smart to buy sight unseen. Any technician will tell you this. But they will refund you if you find issues but it’s still bad practice. Check a car out in person always
I sold my bumblebee Camaro to them. Great price , quick , never left my house. They got a great deal too. No miles , garage kept , plastic still on the seats. The guy who picked my car up and gave me the check , said he was going to buy it. It was that nice.
I bought my benz by $24k in carmax 2016 and sold it by $17 in carvana 2022. I wondered why carvana gave me this generous money. god bless carvana.
A buddy of mine bought a car from Carvana probably a year ago. They shipped him the wrong car. Only took a couple days to get it figured out.
Carvana's facade is so legit that people didn't mind over paying for a used car lol. "my experience was good" = "I couldn't tell i was getting screwed"
I bought 3 cars from them over the last 3 years. They have been fantastic in every aspect of the buying experience.
I always find Carvana's prices way too high when compared to traditional dealerships. even before COVID.
I also think the test driving experience is priceless, and you can't do that with online shopping. but I am an old person...LOL
I’m a Gen Z and I MUST test drive my car before a purchase. Private seller or dealership.
I trust buying a used car without a test drive or scoping like I trust buying the right fitting shoe online from a reseller. Just too risky
I got a job in July of 2021 when I was living in Tempe. Complete joke of a company. Their training program was the worst I’ve ever dealt with, and my trainer seemed like he was on drugs 😬
There are a ton of lessons from a lot of recent collapsing businesses to talk about in your 7PM strategy class
This is not a shock. They paid too much for their inventory, paid too much for their staff, sold the cars for average money. Too much overhead, not enough profit……not sustainable
Why people would buy a vehicle without test driving it is beyond me.
Bingo
My experience with Carvana wasn't great or awful, the delivery time kinda sucks, but so much better than dealing with dealer salesmen.
Got a car from carvana myself. Hopeing here nothing weird happens. What are you thoughts on this?
Car dealership salesmen are a nightmare. After being traumatized at my last car purchase I vowed to drive this one into the ground. I loathe dealerships with a passion now.
I had a really good experience selling my car to Carvana. Was really easy. Seems like everyone either has a really good experience or really bad experience with them.
Buying was a major issue
It makes perfect sense that you were able to sell easily, they were desperate for cars.
As someone who does a lot of car loans.... They are a nightmare to deal with
It probably didn’t help that I sold them multiple cars with major issues that they paid well over market value for. They don’t or didn’t look them over at all.
Probably the wrong channel to say this, but maybe we shouldn’t just invest in and support everything.
The US is too car dependent. If people had alternative transportation like metro subways, robot taxi, light rail, HSR, bikes, or buses, then a lot of major car company stocks would crash as well.
Car business is always a tough competitive business. Slapping a high tech sticker on it does not make it any easier.
I got a really good deal on my car in April 2021. Crazy how they fall so fast…
I’ve seen one carvana delivery truck my entire life
They outsource. We sold our car to them. A local tow company picked it up. Driver said he was taking it straight to auction.
This barely scratched the surface. Should discuss stock ownership, cashflow, degree of title latency.
Nicely explained.
I mean the big reason I didn't buy from them with my last car purchase is they were literally $4k more expensive than the dealer for an identical car, with the cheaper dealer car being lower mileage. It was a win win going to the dealer ironically.
Me before this video: vaguely familiar with Carvana mostly via commercials
Me after this video: you didn’t know about the trouble Carvana is having with its business model and the subsequent stock fallout?
Never heard of them before
You must live under a rock.
Its every one of them, Shift for example has closed 7 out of 10 locations and fired 60% of its employees
I PROMISE you Carvana will completely go bankrupt unless they completely elevate their standards for selling cars. My buddy sold Carvana his car and during his ownership, he put in air suspension, aftermarket wheels and tires, HKS blow off valve, and worked on it himself and all he did was revert everything back to stock before he sold it to Carvana for MORE than he paid for it originally. If y'all want an ex stance car for more than market value go to Carvana, there's at least one of those there ;)
Your buddy scammed a company and is bragging about it? Imagine it happened the other way around.
Sure I guess so but Carvana didn't ask so he didn't tell. That was all lol. Generally always a good idea to sell to carvana but never buy. That's why they'll go bankrupt
Imagine thinking that's the worst car they bought...
Come on, anybody who bought used car prior to 2020 would make money. I sold two cars (bought in 2018 and 2019), for more than what I paid, one was sold for 30% profit
@@arunmfive carvana deserves it.
So I tried selling a car low miles recent yr 16’ and the cost of sell would be $632 like wth I can sell my whip with well over $10k at the very least but to buy a car from there is actually more expensive than a used car lot
Buying Adesa US means they have 52 seas of cars to cherry pick their inventory. If they do this right they'll have a corner on the market that I dont think has ever been played.
I don't know how/why people bought from this company. Their cars are always sold higher than their competitors for the same car. You would think they'd be lower in price given that they cut out the middlemen, but it's higher.
I think Carvana's business model would be more sucessful if they rented cars instead of selling.
I had a good experience. Bought my rav4 in 2014 for 25k. Sold it to Carvana for 14k after 3 accidents and 80k mileage in 2022🤷♀️
I was looking for a used car. Being someone who hate going to dealership, I immediately go to Carvana website. The price is outrageous. Used car market is already outrageous but for Carvana to have the same price or more to the dealership along with problems with title, that's when I'm just gonna suck it up and go to a dealership.
That’s the price you pay for being averse to human contact
Mechanic of 20 years. Buy new Acura and one year old BMW. Never buy from these companies. All of these 3rd party dealers sell their cars non certified. They say they have a certified program. But it’s a lie. If you get a certified used car from a actual dealership like Chevy or BMW. You pay extra for certified. But the cars will have good brakes and tires etc. Also they will offer better warranty’s for repairs and maintenance. I still cannot believe the last 3 years people pay for a used car as much as it was new. My wife and I have not purchased a new car since 2016. I purchased a play truck 2 years ago. It’s a 04 Dodge Ram 4x4. I paid 7500 for it. A few months ago I saw it for sale for 15k plus. It’s nuts the markup for anything recently.
Please do a video on Vroom. Buy, don't buy?
Apparently they don't deliver to my area of Indiana.....
If you were to look at the long-term history of some of the BIGGEST winners from the last 10, 15, 20, 30 years in the stock market, every single one of them have been down at least 50% from their peaks at one point in time. Volatility is the price you pay for great returns.
One thing I'm grateful to bear markets for is the humble reminder that broad diversification and 8% returns aren't "boring" Its a necessary mental checks and balances event that reminds overconfident investors that 20%+ annual returns aren't the norm & shouldn't be expected.
Making money from stocks look deceptively easy. The reality is that stock market is one of the toughest mental games in the world.
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They charge way more over close to 4K for a car that’s not even actually valued in the amount they are asking for
NC banned its operations in Wake County (Raleigh to be exact) last year until early this year so they lost profit in this state
Lol there was a Carvana add right before this
Hilarious!! There's was a carvana ad before the video started!
As a former employee. The company is just as bad as it is internally for employees than it seems externally.
Never purchased a car from Carvana but read many reports that their vehicles are very cheaply "repaired"
What actually the idea behind this crypto, Stock and bitcoin investment, I have been listening and watching some videos and I was thinking about investing in cryptocurrency, but still don't know where to start from any recommendation?
Same here, It's strange how people talk about all the profits, they've been making through investing in cryptocurrency, while am here not making any profit at all. Please can someone put me through on the right path.
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Buying a used car online is insanity all in its own, not to mention the fact that they do not care what they pay for cars at auction as long as they get them, meaning it's more expensive than competition
Nothing would make me happier than seeing that idiotic company go under and take the investors with them.
0:01 hmm it's definitely not thousands of people who haven't received titles rendering their vehicle to show up stolen.
I've purchased 5 vehicles..
Love the process...paperwork slow but got titles just fine.