CARVANA

I've also been checking. I sold my 2020 Tacoma SR5 DCSB 4x4 with tech, other add-ons on August 15 (1800 miles). They paid me 35 for it. They listed it at 40,990 and gradually dropped until it sold las week for 35,990. Seeing that they had to advertise, detail it and sit on it for 2 months and a half don't see much profit. Must be those interest rates that are helping them a bit.

 

I had a chebby Equinox for a loaner while the service dept. took care of my recall on my truck last week. Damn it felt good setting in a nice comfortable seat and I liked the way the Equinox drove. Once I turned it in and got about 1 mile down the road in my Tacoma I soon forgot about the Equinox and realized how happy I am in my Tacoma. (Not to mention I bought my truck twice.)

 

Why Carvana could excel:

1. Simple no hassle purchasing. Millennials hate talking to people in person. Becoming a trusted online vendor (and being the first to do so) will help their brand recognition in coming years. Buying a car on an app is better than 5 hours on a Saturday haggling.

2. They are shortcutting the purchasing of cars. I think they over-paid for some stock right now, but this is also a marketing expense for them. People are still unfamiliar with what Carvana is so the idea of selling to Carvana prior to 2020 seemed nuts. By positioning themselves as the market leader location to check to easily sell a car for a fair price with minimal hassle, this is part of building their brand. I can say I won't sell another car without checking a Carvana quote first. This is a change in model of having to sell on your own or deal with trade ins. Experiences most people don't enjoy.

3. They are making about $4,000+ on each vehicle they turn over. This is more than a traditional dealer by a good margin. Reason why is probably because of their back-end financing.

4. They have low "holding costs". I don't know where they park their cars, but it's not on expensive lots in suburban locations.

5. Better use of inventory. They have a presence in all 48 lower states and the ability to sell used cars there. If they tried to encompass the whole U.S. with physical locations, they would need 100's of lots, each with 50-100 plus cars. They are more effectively utilizing all of their inventory than a Carmax or any other dealership due to their strong online presence and their ship-to-buyer model


Concerns:
1. With any startup, they are burning through cash. It seems this last quarter they might be turning the corner edge closer to real profits.

2. There are a couple other competitors out there with a similar model who could compete.

3. They'll never have the ability to sell "new cars" but new car profits aren't usually what Carvana is hitting on a per car basis.


I decided recently to purchase some Carvana stock. I think their future is bright.

 

any update to stories to this place? taco inventory seems to be up in full effect nowadays.

 

They're offers are far lower now vs. Fall 2020.

 

Just got an offer of $33k for my 2019 DCSB OR with 27k miles. If I remember right I got an offer of just under $34k in September 2020

 

I'll play (again). $32,459 2018 Sport 4x4. 15k miles.

 

My offer today $34,501 19 TRD OR 4x4 premium and tech package 13k miles.

My offer in August 2020 was $38,838 with 10K miles

 

29,550 For mine at 57k miles. Not bad since I paid 32k for it on 12/16.

I got an offer of 25k in July.

This is with my truck returned to stock, which I can do since I have all my stuff still. Much like GME, I aint sellin'.

 

I'd sell... For $10k (+tax) you could have a 4 year newer OR, factory warranty, a brand new start.

 

It took me 4 years to get my truck where I want it lol.

Also no payment wins. Anyways, no chance I'd trade for essentially the same truck I have now, I'm waiting for the next gen or move on at this point. Your point is valid though, just not for me.

 

I guess I did pretty well trading mine in last weekend. 2018 TRD Off Road DCSB 4WD Auto, stripper and got $33,070 only had 4k for miles, but had the hallmarks of being a lemon

 

Did you get a new ford focus?

 

Prices seems to have gone up for me in my area. At least on the 4runner. I was only getting offers of $36-38k last fall and early winter and i just received an offer of $40,767 through carvana now despite extra mileage. Very tempting. That's basically what i paid when new Oct of 2019

Only problem is i don't know what to replace it with if i get rid of it. Leaning towards a 2021 Turbocharged outback for DD and an old 4th gen v8 4runner.

 

Just got an email about Carvana raising their offers...



I went to see what they were offering and...



for my 2019 with 15k miles. Holy shit I don't think I even paid that much...

 

What success are people having from the offer to actual selling price?

 

My daughter recently sold her Jeep and got a 4Runner - all with Carvana. She said it was hassle-free, easy as could be, and they gave her a better than expected price for her Jeep. And just like the commercials, they dropped off the 4Runner and took the Jeep away in a matter of minutes. I didn't believe it, so she showed me the pics.
Welcome to the 21st century! and Congrats on getting such a good price for your Tacoma.

 

i got the same email, refreshed my offer and it dropped $1,200

 

I got an offer for my 2020 4x4 base off-road with 10k miles for $35,400...doing the deal Friday.

 

So tempted again on this- since getting the truck I’ve taken a 100% remote job (even without covid) and put on no miles. A lot of $$ sitting in the driveway that I could get $2k more than I bought it for 18 months ago and replace with a cheaper SUV...