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Bumping this thread...A LinkedIn contact shared some stats from Carvana's Q4 '19 Earnings Call that I found interesting:6 consecutive years of triple-digit growth2019 104,000 vehicles bought from customers (up 231%)43% of inventory sold from customer purchases$2,883 GPU - Opened 61 markets in 2019 (146 total)The industry has picked on Carvana for "bleeding cash." We've done it here in a thread that may only be rivaled by Quinn's favorite, the QR Code thread that started in 2011 and won't die, but I don't think that the financial impact of this acquisition strategy should be ignored. I don't want to steal Chad's thunder for the upcoming Refresh Friday, but we know through partners that the units acquired from an individual bring greater gross profits. Acquiring from an individual also avoids auction fees and "getting some other dealer's problem."Yesterday's solutions won't solve for today's challenges, and certainly not for tomorrow's problems. If you aren't thinking about evolving your acquisition strategy, I think it is worthy of your consideration.I believe we are seeing "pricing transparency" evolve from simple "retail pricing transparency," to "complete pricing transparency." A lowball, back of wholesale book offer strategy is going to seem as silly to us in a year or two as the "call for price" non-pricing strategy seems to us today.
Bumping this thread...
A LinkedIn contact shared some stats from Carvana's Q4 '19 Earnings Call that I found interesting:
The industry has picked on Carvana for "bleeding cash." We've done it here in a thread that may only be rivaled by Quinn's favorite, the QR Code thread that started in 2011 and won't die, but I don't think that the financial impact of this acquisition strategy should be ignored. I don't want to steal Chad's thunder for the upcoming Refresh Friday, but we know through partners that the units acquired from an individual bring greater gross profits. Acquiring from an individual also avoids auction fees and "getting some other dealer's problem."
Yesterday's solutions won't solve for today's challenges, and certainly not for tomorrow's problems. If you aren't thinking about evolving your acquisition strategy, I think it is worthy of your consideration.
I believe we are seeing "pricing transparency" evolve from simple "retail pricing transparency," to "complete pricing transparency." A lowball, back of wholesale book offer strategy is going to seem as silly to us in a year or two as the "call for price" non-pricing strategy seems to us today.
