Stock has tanked 97%.
I was in TX last week and saw one of their vending machines sitting there empty. Nothing in or on it except dust.
JMO, but I personally think that it’s a lame way of buying a car and I don’t think a swift kick is going to boot it into action.
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Carvana lost $500 million… that will tank a stock. So will lawsuits.
Yeah I read that a while back. Paid top dollar for the cars, then demand and prices fell, as interest rates zoomed ahead. We are in the process of re-examining our business plan of buying high and selling low. The answer might be buying more cars. (Sarc). The guy with the corner used car lot should have been consulted.
I sold my CX-7 to those guys and didn’t have a problem with them. They paid me what I would have accepted as the lowest amount in a private sale and didn’t have to worry about the oddballs showing up, trying to lowball me, waste my time or any of that nonsense.
What amazes me is not that Carvana’s stock price has cratered, or that the company’s losses have mounted, but the fact that there are still people willing to invest in this non-viable business, and as recently as last week, I read news articles claiming that Carvana stock is a “buy”. At this point, it should be glaringly obvious that the company is destined for bankruptcy, that its stock will ultimately go to zero, and that the business model of selling overpriced used cars online is simply not sustainable, period. The cash burn is just too great for this company to survive in today’s environment of higher interest rates.
I called it back in 2021, as stock prices (in general, not just Carvana stock) reached bubble proportions, completely unhinged from any rational valuation. Even companies such as Carvana, which have literally never turned a profit saw their stock price reach hundreds of dollars per share, and I could not understand what people were seeing that I wasn’t seeing, because I wouldn’t have agreed to pay even $50/share, let alone the $300+ per share that some of these companies were trading for.
It goes without saying that companies such as Peloton, DoorDash, and Carvana were pandemic-era fads, and now that the pandemic is over, these companies will collapse. The business models are just not sustainable now that better alternatives exist.
lol … good point there !
@ok4450 I would never buy a car from a vending machine. I had enough bad luck with the vending machines on the campus where I taught. The cup wouldn’t drop down in the coffee machine and the coffee would go down the drain. When I would try to buy a candy bar, the candy bar would get stuck in the machine and then the next person would get two candy bars for the price of one. I am sure that if I tried to buy a car from the vending machine that the same thing would happen. I would lose my money and the next person would get two cars for the price of one. I had better luck with a slot machine in Las Vegas. We took Amtrak and it stopped at the Union Plaza hotel where we were staying. When we arrived, Mrs. Triedaq went to the Ladies room and I put a penny in the slot machine. It gave me back seven cents. I never played another machine–one should quit while ahead.
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We bought a car from Carvana earlier this year. Overall it was a really smooth experience; I would buy from them again. We had some issues with the delivery time, but we also live away from a larger city/hub too. While their prices were a bit higher than say Cars.com, the selection was excellent, and they took care of all the paperwork, registration, etc. And they delivered the car to my house, which was appreciated.
You were fortunate but I doubt that will be case again . They have been suspended from doing business in several states . Many complaints about getting the titles to people .
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Yeah, we had a little delay on that too. But we did eventually get it.
Despite the problems documented here, I still see a lot of Carvana commercials on television.
Might be an issue of not paying the seller promptly so transfer is a problem.
Exit 30 Northway, NY! I wound up bringing a cup from home and stuffing it into the little space to make sure I got my coffee. As a joke, but a little peeved, I called the address of the vending co. and lodged a complaint. A few weeks later, I received a letter with a $5 bill and an apology for previous lost coffees. That was sweet. There is now a sleeker machine there. (and probably a newer corporate vendor) I feel remorse ~