Carvana Used Maverick Trade In Values are NUTS!

[pigsareus]

My Carvana offer is not at all compelling. $23,400 for a 2022 XLT ECO AWD LUX CP360 HPR in mint condition, new tires, 37,000 miles. Replacement cost is a $15,000 difference after shipping, taxes, registration, dealership paperwork. Doesn't compute.

Basically, my Maverick has depreciated almost $5,000 a year compared to new. Yea, I only paid $30,500 for it three years ago. But you have (1) adjust that for inflation, and (2) adjust it for replacement cost. Because if you sell it, what, you're going to walk to work?

I see some of these reported Carvana offers and I scratch my head. I believe that people are getting those offers, but it must a hybrid-only thing, in certain regions.

I mean, I can walk down to my local dealership and buy a great NEW Maverick off the lot for about the same as some of the reported offers I'm seeing.

yeah it hurts that it's an eco and not a hybird. I got an offer of 17,500 for my pure base '22 XL hybrid with 36k on it....so my annual 'loss' is about 1k$.

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[MaverickDragon]

Interesting offers, and as usual, location makes a big difference.
Can Carvana Change their Offer After Inspection?
Yes they can, and do.
It's in the fine print.

• Carvana's online offer is conditional, and can be lower as a result of the physical inspection when the vehicle is examined at pickup.
• Common rationale for reductions are cosmetic damage, mechanical issues, mileage, and any condition discrepancies between online answers and the physical inspection.
• The adjusted offer can be declined, but may be inconvenient if you rely on their quote.
• Providing dated photos before the inspection may help to minimize sale price adjustments.

Getting offers from other buyers isn't a bad idea, as Carvana isn't the only option, and that can be used for leverage if your vehicle is in high demand.

I haven't sold a vehicle to Carvana, but used a similar service with the same business model, and even tiny imperfections were used as a justification for a price reduction.
The imperfections were there, you just needed a magnifying glass to see them.

It still put me light years ahead of a dealer low ball trade in.

 

[Geo8866]

$24,200 for my 2025 XLT. That seems about average and doesn't compel me to go "looking."

 

[Geo8866]

I did Carmax for the hell of it. Their offer was $25,400, which is $1,200 over Carvana.

 

[Scott Asheville]

I got an offer of 17,500 for my pure base '22 XL hybrid with 36k on it....so my annual 'loss' is about 1k$.

Well, no. Because you have to account for the inflation of the dollars you paid in 2022 to the current value of those dollars in 2026. And then you have to account for replacement cost of a 2026 hybrid. People on this forum make this basic financial mistake all the time.

So assuming you paid $21,500 OTD in 2022 dollars for your base hybrid XL in 2022, you paid $24,900 in 2026 dollars. So just on an inflation basis your depreciaation over three years is more than double what you think ($25K - $17.5K = $7.5K or $2,500 a year). And of course you paid taxes and registration and dealership paperwork, unless your dealer was a saint.

But then you have to factor in replacement cost. Today a base hybrid is $30,700 OTD - and that's before taxes, dealership costs, registration. So the real depreciation on your vehicle, when considering both inflation and replacement cost, is your current trade value subtracted from the new acquisition price ($30.5K - 17.5K = $13K), or closer to $4,000 a year.

Hopefully I did all that math in my head correctly. At 70, I'm prone to mental boo-boos .

 

[MaverickDragon]

I'm thinking as others have mentioned, that gas prices have made the hybrids very attractive and perhaps harder to find at dealers as well.
Every time a prolonged fuel price spike happens, the fuel hungry market tanks and the fuel sippers flourish.
While the Mav EB is a very nice vehicle, there is a big difference in fuel use cost between the EB and the hybrid, especially in high traffic urban areas where a hybrid shines.

Try to sell a recent large SUV and discover depreciation at its finest.

 

[710-oil-614]

Well, no. Because you have to account for the inflation of the dollars you paid in 2022 to the current value of those dollars in 2026. And then you have to account for replacement cost of a 2026 hybrid. People on this forum make this basic financial mistake all the time.

So assuming you paid $21,500 OTD in 2022 dollars for your base hybrid XL in 2022, you paid $24,900 in 2026 dollars. So just on an inflation basis your depreciaation over three years is more than double what you think ($25K - $17.5K = $7.5K or $2,500 a year). And of course you paid taxes and registration and dealership paperwork, unless your dealer was a saint.

But then you have to factor in replacement cost. Today a base hybrid is $30,700 OTD - and that's before taxes, dealership costs, registration. So the real depreciation on your vehicle, when considering both inflation and replacement cost, is your current trade value subtracted from the new acquisition price ($30.5K - 17.5K = $13K), or closer to $4,000 a year.

Hopefully I did all that math in my head correctly. At 70, I'm prone to mental boo-boos .

Good post Scott and I agree those all need to be factored in. I was 38,300 OTD on my Lariat and being only 15 months removed from that purchase price would take 38,300 to around 39,300 today or mean if I sold for $37,200 I would have spent about $2,100 to drive it for 15k miles and 14 months. Not too shabby.

 

[Pointyears]

As I stated in another post, Carvana wants newer vehicles because they make their money on financing. No one finances cars under 5K.

I know that. I was (trying to be) being funny.

 

[MaverickDragon]

.....
But then you have to factor in replacement cost. Today a base hybrid is $30,700 OTD - and that's before taxes, dealership costs, registration. So the real depreciation on your vehicle,...
Hopefully I did all that math in my head correctly. At 70, I'm prone to mental boo-boos .

Great points.
The only boo boo I saw was the OTD figure you noted.
Out The Door includes all costs, as you have to pay that total to drive it off the lot, or out the door.

The figure you were quoting is the MSRP, which does not include those costs you noted, and you can't, because those vary by location and dealer shenanigans or lack of same.

Depreciation is normally a big part of the ownership expense, and is most of the cost in a lease.
Of course it doesn't bite as bad if spread out over a long period, or you sell at an unusual time, like this week...

 

[Pointyears]

Depreciation is normally a big part of the ownership expense, and is most of the cost in a lease.

How do you have depreciation in a lease? No ownership stake, and plus the buyout at the end of the lease is always on the high end?

 

[CaliMav68]

This post made me curious like most of us. I got ranges of 22k to 24.5k. I've got a loaded 22 EB AWD Lariat 4K tow at 75,000 miles. Not great, but it could be zero for all I care. I pretty much use up all my vehicles.

For those that are curious, I payed the first year premium of 40k OTD. Still above 50% so I'm satisfied.

 

[MaverickDragon]

How do you have depreciation in a lease? No ownership stake, and plus the buyout at the end of the lease is always on the high end?

You don't have depreciation in the typical sense, but the majority of your lease payment is paying for the leaseholder's depreciation, as well as interest and taxes.

 

[pigsareus]

Well, no. Because you have to account for the inflation of the dollars you paid in 2022 to the current value of those dollars in 2026. And then you have to account for replacement cost of a 2026 hybrid. People on this forum make this basic financial mistake all the time.

So assuming you paid $21,500 OTD in 2022 dollars for your base hybrid XL in 2022, you paid $24,900 in 2026 dollars. So just on an inflation basis your depreciaation over three years is more than double what you think ($25K - $17.5K = $7.5K or $2,500 a year). And of course you paid taxes and registration and dealership paperwork, unless your dealer was a saint.

But then you have to factor in replacement cost. Today a base hybrid is $30,700 OTD - and that's before taxes, dealership costs, registration. So the real depreciation on your vehicle, when considering both inflation and replacement cost, is your current trade value subtracted from the new acquisition price ($30.5K - 17.5K = $13K), or closer to $4,000 a year.

Hopefully I did all that math in my head correctly. At 70, I'm prone to mental boo-boos .

OK. Well -it's all relative to other vehicles depreciating considerably more over time and the replacement costs and inflationary factors that they similarly incur so at the end of this game I still consider myself far ahead of most of the pack.

 

[MavStangVa]

So do you guys just look at your vehicles and not drive them lol? Mines a 22 and i have close to 70 on mine

Retired and drive it almost every day. 7700 miles, will be 1 year old on April 3. Previous 2 vehicles were out of 36k warranty within 9 months.

 

[Cleatus]

Retired and drive it almost every day. 7700 miles, will be 1 year old on April 3. Previous 2 vehicles were out of 36k warranty within 9 months.

See thats enjoying your vehicles lol

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