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Carvana Partnering With Dealerships - Partner Inventory?

Retail My Ride

Lot Lizard
Feb 14, 2020
40
21
First Name
Jim
Always points back to one truth in this industry, "He who has the cars, wins the game." And one of the key rules of the game has always been and will continue to be, "You don't have own them to sell them and make money. You just have to have access to them"- its called Inventory Sourcing, and Carvana, Carmax, AutoNation and the other goliaths are leveraging their size and scale to dominate the traditional sources - eventually at the expense of small-medium sized independent dealers - think mom-and-pop hardware stores, then came Home Depot/Lowes and now Amazon. The auto industry is huge and still extremely fragmented market shares, but the big guys keep getting bigger and that's how it happen over time.

Any dealers out there feel good about going to auction the past 3-4 years? Prices are up, buy fees are way up and margins for average independents are falling (hard to compete against no-haggle, high volume, tech-savvy retail giants). I don't want to sound like the sky is falling, because it isn't (noticably) and I am not here trying to sell anything. But, I will share with everyone who will listen - if you haven't considered "consignment" as an untapped, proven inventory source, then you should at least look into it (again, "you don't have to own it to sell it and make money"). Consignment isn't the cure all and its not going to replace the traditional sources (auction, trade-in, etc.), but its a safe arena (source) for now where the giants aren't playing.

Hit me up if you want more info about how consignment works for dealers. I am a small independent dealer (since 2013) and also Founder & CEO of Retail My Ride - the first & only online platform (free) that helps fellow dealers source their inventory through professional consignment.
 
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Alexander Lau

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Feb 11, 2015
2,498
765
First Name
Alex
They might have to in order to stay afloat, because it looks like they are headed for bankruptcy.


From its February peak of over $100, CVNA has fallen way faster than the market, recently hitting a low of around $36. Like we guessed, investors did not want to hold a cash burning, debt-laden company during the most severe economic crisis since 2008. While the price has fallen drastically, we believe the current valuation is still drastically overvalued as the company has a high chance of filing for bankruptcy during this crisis.
 
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Reactions: Retail My Ride
May 18, 2020
2
0
First Name
Fred
It seems like the original compass in question sold.. I haven't been able to find another example of the "partner inventory" listings, has anyone else?
 

Patrick O

Boss
Feb 18, 2020
19
18
First Name
Patrick
It seems like the original compass in question sold.. I haven't been able to find another example of the "partner inventory" listings, has anyone else?
I was in contact with the team responsible for this project, they went MIA a couple moths ago. FWIW, it was before the lock downs started, so I don't think it's COVID-related.
 

Jeff Kershner

Founder
May 1, 2005
3,778
1,340
Awards
2
First Name
Jeff
They might have to in order to stay afloat, because it looks like they are headed for bankruptcy.


From its February peak of over $100, CVNA has fallen way faster than the market, recently hitting a low of around $36. Like we guessed, investors did not want to hold a cash burning, debt-laden company during the most severe economic crisis since 2008. While the price has fallen drastically, we believe the current valuation is still drastically overvalued as the company has a high chance of filing for bankruptcy during this crisis.
@Alexander Lau have you heard anymore about this?
 
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May 18, 2020
2
0
First Name
Fred
I was in contact with the team responsible for this project, they went MIA a couple moths ago. FWIW, it was before the lock downs started, so I don't think it's COVID-related.
That's interesting Pat.. a little weird they wen't dark. Do you know if they were actively recruiting partner dealers, or was it a small trial?
 

Patrick O

Boss
Feb 18, 2020
19
18
First Name
Patrick
That's interesting Pat.. a little weird they wen't dark. Do you know if they were actively recruiting partner dealers, or was it a small trial?
TBH, it wasn't too weird based on my experiences with them. They are quick to test and just as quick to drop a project or change direction. I don't know the size or scale of this program, but it was presented to me as invite-only.
 
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