CARVANA

The trick being you have to stay solvent long enough for that to actually work.

 

If they couldn't turn a profit in the good times, I do question if they can do it during the worst of times. However maybe they found a niche to sell used cars at new car list. If anything I venture to say a number of their customer base has to be upside-down if they're paying list price for used vehicle. I do wonder what the average credit score of a Carvana customer is vs. Drivetime.

 

If Carvana was on Shark Tank it would be shot down. The customer cost is far too high, but yet the stock market doesn't care.

 

I think covid actually helps their business model in the long run. I think they have rebounded exceptionally well from the past several months from what I’ve read.

 

The WeWork of car sales!

Just checked the Audi S4 prices as another benchmark. 2013 S4 with 75K miles goes for about 15K locally, Carvana price is 23K.

 

The problem is that all the dealers are selling tacoma for msrp. Carvana will buy my 2018 for what i paid for it 2 years ago, but getting a new tacoma is going to cost full price.

Thinking of selling tacoma for a chevy colorado, because those are still getting discounted. But this may prove disastrous. Idk what the reliability is on a 2020 colorado

 

That's a car where the buyer needs to have a good cushion to stay on top of maint. I couldn't imagine paying thousands more than market and having to deal with the care and feeding of an S4. This is how people end up broke.

 

To many what ifs:

What if repos ramp up
What if Covid ramps up
What happens when the terms of PPP loans wrap up

The current market is too far out of whack and is alive on hopium and intervention.

 

Once you sit in a Colorado/Canyon, you'll change your mind. I drove one a few weekends ago because I was intrigued by the diesel and its no where near as comfortable as the Tacoma. Just feels cheap.

 

Yes

 

I sold my spare tire to a guy with another 3rd gen locally. He got rid of his Colorado because of endless problems with the diesel engine and check engine lights.

Everyone likes to get excited about diesels, but they have their own set of problems these days.

 

yeah, lots of guessing from my end for sure and lots of what ifs that can't be asnwered unless you're in the drivers seat of the company. If COVID ramps up though, their business ramps up. I mean they are an *instant online buying/selling service with all the touchless stuff already in place.

 

this is horse shit

 

I remeber when I bought my brand new LML duramax 2500 in 2011. I was sooooo excited, but I can't tell you how quick that excitement wore off.

 

seems fair for that hoopty

 

If Covid ramps up those that can work from home and not commute may not be too hot trot about making a used car purchase sight unseen.

The whole curbside touchless stuff is still killing restaurants and retail. IMO just because it's offered doesn't make it a game changer.

If i'm buying a car i'm going to look at it person, test drive it etc. I once bought a late model car off pictures and what was described as mint in the David Freiburger tone was needing a few hundred dollar in misc trim parts that were broken or missing. Hey it had a stack of service history and one owner.

 

@LTDSC you think yours is BS!? ....I feel insulted. I mean c'mon, this is a recreational activity vehicle!

 

Junk yard around here pays more than that for one that is not running. LOL

 

I'm pretty sure Rachel would buy it as her first car for $500. She is training a guide dog and dad sure the fuck isn't going to give her the old FJ because he's still trying to relive his youth.

 

I wouldn't get the diesel colorado, just the v6. The second generation has been out for years now. Hopefully you'd think they worked the kinks out by now.