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

[ChrisR]

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.

We just sold a car to a Carvana employee. Why didn't she want to buy from her employer? Because of the title issues, among other things she hears/sees being wrong with the company.

 

[Jeff Kershner]

OUCH!!

 

[Rick Buffkin]

 

[Jeff Kershner]

Carvana gets $1.6 billion junk bond offer from Apollo to help finance Adesa deal
Carvana raised nearly $3.3 billion through the junk bond sale, which will finance its acquisition of Adesa Inc.’s U.S. car-auction business and improvements across 56 of its sites.

Carvana gets $1.6 billion junk bond offer from Apollo to help finance ADESA deal

Carvana raised nearly $3.3 billion through the junk bond sale, which will finance its acquisition of Adesa Inc.’s U.S. car-auction business and improvements across 56 of its sites.

www.autonews.com

Deep-Junk-Rated Carvana Gets $4.5 Billion from New Investors, after Shares Collapsed by 79%, Hoping the World Hasn’t Run out of Greater Fools Yet.
Carvana, which sells used cars online, is rated deep-junk, and has been losing a ton of money every year, even in the hottest used-car market ever, and whose shares collapsed by 79% from the peak in August last year, now needs to extract more cash from investors to fuel its cash-burn machine and to pay for the $2.2 billion acquisition of Adesa.

Deep-Junk-Rated Carvana Gets $4.5 Billion from New Investors, after Shares Collapsed by 79%, Hoping the World Hasn’t Run out of Greater Fools Yet | Wolf Street

wolfstreet.com

 

[Colin Rodger]

Carvana to lay off 2,500; executives to forgo salaries for rest of year

Carvana is laying off 12 percent of its work force and executives won't take salaries for the rest of the year.

www.autonews.com

Carvana to lay off 2500 employees. Ouch.

 

[craigh]

We believe these decisions, while extremely difficult, will result in Carvana restoring a better balance between its sales volumes and staffing levels and facilitate Carvana returning to efficient growth on its mission to change the way people buy and sell cars.

I wonder how many cars you need to sell to employ 20,800 people.

 

[Colin Rodger]

I wonder how many cars you need to sell to employ 20,800 people.

I wonder how many cars you need to sell to employ enough lawyers to defend the state and federal lawsuits they're facing....

Can you imagine buying stock at it's peak of $360....

 

[Ryan Everson]

I wonder how many cars you need to sell to employ 20,800 people.

Carvana napkin math...

Carvana employs ~20,8000 employees and sold 425,237 cars last year.

425,237 cars
÷ 20,800 employees
----------
20 cars sold annually per employee
÷ 12 months
----------
= 1.7 cars sold monthly per employee

1.7 cars per month? Suddenly our 5 car Freds look pretty good!

 

[Jeff Kershner]

Carvana laid off 2,500 employees and chose to do so over Zoom​

The move affects approximately 12 percent of the company's workforce.

Carvana laid off 2,500 employees and chose to do so over Zoom | Engadget

On Tuesday, online used car retailer Carvana took to Zoom to lay off 12 percent of its workforce..

www.engadget.com

 

[Jeff Kershner]