Is Carvana Broken?!?

[Landric]

Not too long ago that you lost about 20-30% in value as soon as you drove it off the lot. Any offer at break-even or above is still wildly inflated. Hope those who need/want to cash out are making plans to get it done.

No doubt. I bought a 2022 RAV4 Hybrid in April. I have no intention of selling it but just for S&G's I priced it on VROOM yesterday. They offered $38,500. I paid about $35,000 out the door (including taxes, fees, etc.). That isn't as much as it would have been just a few months ago, but it is still solid for my now "used" RAV4.

I sold two cars to Carvana over the last year. I got more for each than I paid for them new, one was a 3 year old Kia Sorento LX, the other a 18 month old Kia Soul X-Line. I think I sold them at the right time given what seems to be happening now.

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[Nick]

Maverick Hybrid XL with 360 Carvana flip calculation

$23,000 + 10% for TTL and dealer fees ~ $25300 OTD.

Carvana Offer as of today $28000 = ~ $2700 profit per Maverick.

 

[athertonbt]

I lost about $600 when I sold my 2022 Nissan Frontier to Carvana this year...they paid 2k over what I paid new, which covered all the cost except about $600 in taxes. Once I saw the Granger deal and realized I could get into a Mav for half as much as the Frontier, I jumped on it. Truth be told, I don't need a RWD 300hp truck. I'll save a lot more than the $600 I lost over the life of the Mav, both in the payment amount and in gas mileage. Also will be able to finance for 3 years, rather than the 6 I was locked into with the Frontier. I overextended myself and got bailed out by the bubble. Nothing but dumb luck.

 

[Texastbone]

Well,
I got an offer from vroom today..$31.000 bare bones xl with a hitch as the only option..44 miles on it

 

[dbmurray]

A friend of mine bought a Maverick last year direct from a lot for MSRP last October. He then sold his Nissan Frontier to Carvana for $1400 more than he'd paid for it originally. I priced my Escape Titanium with 45,000 miles around the same time, and Carvana's offer was $300 more than I'd paid for it in 2018 when it only had 13,000 miles.

It was crazy for a while but now it seems that sort of business model isn't sustainable.

 

[Hot Runr Guy]

I tried to get an estimate for my brand new Maverick XLT Hybrid and much to my surpise, it gave me only 24k!? Same thing with my other car which I've getting estimate with equity of at least 2k now seats 2k-3k below what I owe!

Is this the end of the era of flipping cars? I have not tried any other companies so I can't compare.

Anyone have the same experience recently?

Maybe we're from different generations, but how does this equate to a company being "broken"? They still seem to be in operation, so lower values means something different?

HRG

 

[BlueBayou]

Just remember with Carvana when you keep checking your price it will go down each time you check. I went with vroom about 6 months ago to sell my F150. 2018 5.0 paid 40k 3 years ago with 29000 miles. They gave me 38,700. So I only lost 1300 over 3 years. Took the equity and bought a ranger. Cut my payment almost in 1/2. Now my Maverick in Velocity blue is coming in a week or two. Going to see if I can Flip the Ranger for the Maverick

 

[athertonbt]

Maybe we're from different generations, but how does this equate to a company being "broken"? They still seem to be in operation, so lower values means something different?

HRG

Shares of Carvana have dropped close to 90% this year. While this thread is more focused on what kind of prices they're offering in the used market, the company as a whole has taken a beating because of bad management and service.

 

[stoptothink]

Carvana went beyond their business plan, which from what I had read, was originally aimed toward $20-30k vehicles and the majority of the middle class workers who could make a $300-400 monthly payment and add the gimmick of getting an option to receive your car from a "vending machine ", or having it delivered.

Can't believe Carvana did not learn from Zillow; they are literally doing the exact same thing and will experience the same fate . They tried to expand WAY too quickly.

 

[huunvubu]

Just remember with Carvana when you keep checking your price it will go down each time you check.

This is not true.

My offers went UP the first three time I checked after my initial offer even with more miles put on the Maverick including the 2804 miles I had on my vacation just before the 6/17 quote. Only the last two offers did it go down.

The offers are more than likely based on how many Mavericks Carvana has in inventory unsold that determines the current offer price.

Here are my Carvana offers in date order:

4/13: $31,196
5/6: $32,974
5/29: $34,889
6/17: $35,646
7/1: $34,294
7/24: $28,547

Note that the three checks on 5/6, 5/29 and 6/17 had the offers increase in price. That shows your statement "when you keep checking your price it will go down each time" as false.

Also note that Carvana's current offer is about $6,000 lower than Vroom which again shows that the offers from Carvana is based on their inventory issues and not the overall market.

 

[Michaelkov]

I am planning on trading in a Dodge Minivan, they quoted me 23k on 7/6. On 7/19 they quoted me 17k. Supposedly used car prices are falling fast. I may have lost at least 6k on trade cause I still haven't gotten my Mav.

 

[Nick]

Carvana will be forced to give us 35K for the XL's with the 2023 order delay Don't sell for 28K haha

 

[cavemold]

This is not true.

My offers went UP the first three time I checked after my initial offer even with more miles put on the Maverick including the 2804 miles I had on my vacation just before the 6/17 quote. Only the last two offers did it go down.

The offers are more than likely based on how many Mavericks Carvana has in inventory unsold that determines the current offer price.

Here are my Carvana offers in date order:

4/13: $31,196
5/6: $32,974
5/29: $34,889
6/17: $35,646
7/1: $34,294
7/24: $28,547

Note that the three checks on 5/6, 5/29 and 6/17 had the offers increase in price. That shows your statement "when you keep checking your price it will go down each time" as false.

Also note that Carvana's current offer is about $6,000 lower than Vroom which again shows that the offers from Carvana is based on their inventory issues and not the overall market.

Here I was thinking the market would come down a little ! But it’s just Carvana thing then

 

[cavemold]

Carvana will be forced to give us 35K for the XL's with the 2023 order delay Don't sell for 28K haha

They have bigger issues besides buying right now …. Not looking great

 

[cavemold]

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