CARVANA

I sold my 2019 stock sport for $38,450 and they put it on the website for $41,500. I just checked and its now listed for $38,900. It seems that maybe just maybe they bought to many.

 

I checked Carvana for the hell of it over a 5-6 week period and the offer would drop by like $200-$300 every week. So it was gradual.

Interestingly, my Vroom offer stayed the same over that same period of time and is now significantly more than the current Carvana offer.

 

Carvana still has about 400+ 3rd Gen Tacomas on their site with under 50k mileage.

Someone there obviously had a strategy on getting as many Tacomas as possible.
Even if they purchase and sell for the same price, the money made on self-financing might be their game.

We'll see what their next financial report says.

 

Here's one in MT

https://philadelphia.craigslist.org/ctd/d/philadelphia-2017-toyota-tacoma-access/7212490614.html

 

i noticed the same thing. around 2 months ago carvana was consistently offering me $35,000-$37,000. put my vin in yesterday and the offer was $30k.

 

This. I am an insurance broker and often see people do dumb shit for their children and give them the nice vehicles. Then they end up writing it off or some shit and nobody wins lol.

 

I drove shitboxes for years. You learn to take care of them as you rely on them. So easy for some kid to bag on a new/newer vehicle that was handed to them.

 

Excerpt from Carvana earnings report yesterday.

"Total gross profit per unit was $4056 in Q3, the highest level in company history, and an increase of $1093 year-over-year. Our record GPU this quarter drove our gross margin to 16.9%, near the midpoint of our long-term model.

Retail GPU was $1857 in Q3, an increase of $552. Growth in retail GPU was driven by a significant increase in the share of our vehicles sourced from customers. Vehicles sourced from customers reached 56% of retail units sold in Q3, exceeding the high end of our long-term target laid out in November 2018.

Total vehicles acquired from customers grew by 128% in Q3 leading us to buy 114% as many cars from customers as we sold to customers, up from 69% a year ago. We believe the high-quality experience we provide to customers creates a sustainable sourcing advantage, which we expect to continue to benefit GPU over time."

 

"supply and command, its not rocket appliances"- Ricky

 

I was reading an article yesterday that said new vehicle production was up 1200 percent, that should start to alleviate any supply and demand issues.

 

1200 percent from what? April?

 

The 3rd Quarter was up 1200 percent over the 2nd Quarter.

 

weird because ive read about projected shortages for 2021

 

Maybe they need to jack up production even higher as vehicle sales seem pretty robust.

 

Lol well considering they still probably aren’t at pre-Covid production rates I wouldn’t get too excited about inventory build up for quite some time. It’ll be quite some time before we even get close to that point.

I also think with the used car market getting overinflated, you’re going to continue to see low inventories. Why buy a used vehicle at almost the same price you can get a brand new vehicle for? Not only will it have a new vehicle warranty, but you will also get better finance rates. It’ll be interesting to see how this all plays out.

 

There wasn’t much production at all during the 2nd quarter. Most plants closed. Supplies from other countries and China in particular were pretty much halted. Almost every manufacturer (not just Automotive) was effected somehow. Most still are dealing with supply issues. This will continue well into 2021

 

Yeah it was my assumption that kind of increase would balance things out but it sounds as if its going to take awhile

 

My first car was a piece of shit falling apart 90 accord. That's why when I get in my tacoma I love this thing

 

Wonder how it’s going to help their earnings, overpaying for inventory. You’d have to be a fool to buy a used Tacoma for almost the same price you can get a brand new one for, with better interest rates on top of it all.

Even if you wanted to go used you could probably get one from a Toyota dealer certified for a better price. But then again you won’t have that cool nostalgia factor of buying one from a vending machine or getting it delivered to your driveway, I suppose.

 

I am super curious about this also. I keep checking on my truck they bought around Sep 5th. They purchased it from me for $38,500 and posted originally for $41,800. I have checked on it periodically and its now for sale for $35,990. I see a lot of other similar trucks with the same price. I can't imagine what their loss on all these Tacomas are.