BREAKING news! Carvana & Vroom is bleeding cash. Is Ecommerce in auto DOA?

[DrewAment]

Follow the money -- and ask yourself.. why?

CEO’s dad gets a $3.6B stock windfall at Carvana

The company was founded in 2012 by Mr. Garcia’s son, Ernie Garcia III, inside his father’s chain of used-car dealers. Known for its car towers and home delivery, the online car dealer was spun off and taken public in 2017.

www.foxbusiness.com

 

[Ryan Everson]

Carvana posts Q3 loss of $68 million but total gross per vehicle was up to $4,672

Carvana, struggling with robust trade-ins, pandemic, posts Q3 loss

Revenue at the used retailer more than doubled to $3.48 billion in the latest period, on retail vehicle sales that increased 74 percent to 111,949.

www.autonews.com

 

[BillKVMotorCo]

Carvana posts Q3 loss of $68 million but total gross per vehicle was up to $4,672

Carvana, struggling with robust trade-ins, pandemic, posts Q3 loss

Revenue at the used retailer more than doubled to $3.48 billion in the latest period, on retail vehicle sales that increased 74 percent to 111,949.

www.autonews.com

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When they say "robust" trade-ins do they mean the quantity or the cost of acquiring them?

 

[Ryan Everson]

When they say "robust" trade-ins do they mean the quantity or the cost of acquiring them?

I'm guessing quantity, they increased their average inventory levels from 12,800 to 16,400 units. Will be interesting to see what happens next quarter.

 

[BillKVMotorCo]

I'm guessing quantity, they increased their average inventory levels from 12,800 to 16,400 units. Will be interesting to see what happens next quarter.

So if they are "struggling" with it then the perception must be that they have too many?

 

[Jeff Kershner]

They better hope the market doesn't make a swift change.

 

[Tallcool1]

They better hope the market doesn't make a swift change.

This is what is keeping me in check with my inventory levels. We can get inventory that we are able to sell for a profit. I just don't want a pile of it in case the market makes that swift change.

 

[Jeff Kershner]

This is what is keeping me in check with my inventory levels. We can get inventory that we are able to sell for a profit. I just don't want a pile of it in case the market makes that swift change.

Same here by friend. Keeping it mean and lean.

 

[Jeff Kershner]

Carvana Has a Major Problem !!!

 

[Tallcool1]

Carvana Has a Major Problem !!!

That does not look good at all!

The title thing is something that just really messes things up. I have often wondered how much time Auto Auctions spend trouble shooting title issues. Sure it is generally smooth, but do the issues outweigh the amount of effort and manpower required to put out the fires?

If there is a Manheim or Adesa employee in here, I would pose this question: What would happen if you stopped selling Title Absent? No title, no run number. That simple.