Is Carvana trying to corner the market on 18-19 Mustangs?

[Briebee72]

The used car inventory is drying up. COVID19 has squashed a lot of driving/transportation due to people staying home, being let go from their jobs and Big Corps having people work from home.

Car Rental Agencies are not turning over their inventory due to the same. This all means the dealer trade ins as well as car auctions are drying up.

Carvana, CarMax, Autolenders, etc - they’re now paying more for a used car by competing with Big Box Dealerships to keep their inventory stocked. The Dealerships aren’t willing to pay same values that places like Carvana are willing to pay. Some Dealerships may get close to a Carvana offer to make the deal happen, but not all.

With world wide used car inventories being low, people who need or want to buy a used car seem to be willing to pay top dollar when they can’t (or don’t want to) spend nearly $50k+ for a decent new vehicle that has a nice option package.

Let’s face it, some of the new car and truck prices are getting crazy... who wants to finance a new car for 72-84-96 months (or in some instances longer term)?

More power to Carvana for stocking their inventories - most people have them a bad rap and said their business model would not work; it’s working and I’ve seen nothing but positive reviews from many on this site alone.

We have a Chevy dealer here that has almost no cars on its lot. I stopped in to look for a C8 and talked with the salesman. They are not getting trade ins and they are not gonna pay the prices auctions are getting. So they have no cars. The online car companies are a different beast. they make money off their stocks not so much their sales so they can over pay because an investment fund is behind them and so on. companies anymore are about stocks and not product. for instance go look up a company stock sign gnus. The company had revenue of 170k last year but has a market cap of 220 million cause of stocks. Tesla same way. They still barely make a profit at all yet are swimming in cash from stocks. This is how on line car companies can beat dealers all day long. cause for them its not so much about the product its the stock money and investment funds that pay their checks. dealers dont have this power. and honestly I hope dealers go away.

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[shogun32]

Let’s face it, some of the new car and truck prices are getting crazy

Getting? They've been INSANE since 2008. Well after you factor in currency debasement, it's actually not moved a whole lot. Just shows the power of inflation as a tool for systemic theft. Nobody noticed their dollar was rapidly becoming even more worthless.

After the housing crash the next bubble desperately being inflated is in autos. People by in large look only at the monthly payment and pay no mind to actual purchase cost over term of loan. And with the Fed lending money at zero, even the dealers and manufacturers can get in on the same racket. For the same carrying cost (monthly payment burden) when you half the rate, you can "afford" a car that is roughly 8% (depends on inputs) more expensive. So manufacturers can hike the MSRP and sales won't go down appreciably since to the consumer it's a wash.

Paying zero is a great scam. You get value now (the car) and you get to pay the bank back with evermore worthless scrip. So by say year 5 when you pay it off, you really only paid them 93% or so of the supposed note.

most people gave them a bad rap and said their business model would not work; it’s working

Unless someone rewrote the business textbooks and Websters, a business that hasn't made money and likely never will, is not a business that's "working". It's just a time-delayed scam to rob investors of their wealth. Granted there seem to be a LOT of investors who are happy to just piss away millions of value on cockamamie flights of fancy.

 

[FatPat]

Everyone talking about the great offers from Carvana, and they have a market adjustment of -$2,100 in my area

 

[Matti777]

If you are selling at a loss you can' t make it up in volume lol

ps I suspect a lot of cars in demand are leaving our country and going to yours because of the delta in the exchange rate

 

[shogun32]

I think Tesla is worth somewhere in the 20-30 billion range

Tesla is one of the few who can sell gov't protected/sanctioned indulgences - aka carbon credits. That's their only source of 'profit'. As a car company they are a zero or damn close to it. When the evil internal-combustion companies have significant EV unit sales, the value of Tesla's indulgences will crash big time and take their automotive business with it.

 

[Spartan1]

I bought mine new about 11 months ago, same dealer I bought it from in Flat Rock has the same exact car in right now, looked at Carvana and they would pay me $2,000 less than what I paid, with 4,500 miles on vehicle now.

That's pretty crazy

 

[IrishStallion]

Part of the problem with the stupid pricing on cars these days is the Banks are willing to lend the money. I was in a boat dealer yesterday looking at a 56k Crownline and the GM of the store tells me he can do a 20 year note for 5.5%. WTF...?? Cars too will start being 8-12 year loans I bet. Craziness!!!

 

[Mustang50Man]

it's only certain geographic regions though which doesn't make sense. I mean, cars are trivially transportable after all... The Carvana quote for my EB was KBB. AutodealersGo is paying a decent premium though. The dealer who "wants" my trade isn't willing to pay KBB let alone a premium.

yeah but you can list whatever zip code you choose right? theyll come with the check and pick it up from wherever.
I’m guess what region you input they try and keep it in line with what the region is offering even though it will be transported to another region possibly

 

[Brico]

I sold my 17 GT to carvana last month for $2k more than I paid for it in December of 2018 lol

 

[Matti777]

.... I was in a boat dealer yesterday looking at a 56k Crownline and the GM of the store tells me he can do a 20 year note for 5.5%. WTF...

That was about what the mortgage was on my first house.

 

[Lgb0250]

Getting? They've been INSANE since 2008. Well after you factor in currency debasement, it's actually not moved a whole lot. Just shows the power of inflation as a tool for systemic theft. Nobody noticed their dollar was rapidly becoming even more worthless.

After the housing crash the next bubble desperately being inflated is in autos. People by in large look only at the monthly payment and pay no mind to actual purchase cost over term of loan. And with the Fed lending money at zero, even the dealers and manufacturers can get in on the same racket. For the same carrying cost (monthly payment burden) when you half the rate, you can "afford" a car that is roughly 8% (depends on inputs) more expensive. So manufacturers can hike the MSRP and sales won't go down appreciably since to the consumer it's a wash.

Paying zero is a great scam. You get value now (the car) and you get to pay the bank back with evermore worthless scrip. So by say year 5 when you pay it off, you really only paid them 93% or so of the supposed note.


Unless someone rewrote the business textbooks and Websters, a business that hasn't made money and likely never will, is not a business that's "working". It's just a time-delayed scam to rob investors of their wealth. Granted there seem to be a LOT of investors who are happy to just piss away millions of value on cockamamie flights of fancy.

https://www.cnbc.com/2020/09/22/car...ny-projects-record-quarter.html?&qsearchterm=

 

[Andrew@Lethal]

There is like 40 plus 18 up Gt mustangs on Ebay right now. Lol.

They are trying to corner the market in general with certain "hot" cars. I'm looking to buy a ST for a daily driver and the prices are for sure higher on Carvana but I see multiple new ones pop up and sell the same day. They are for sure making money on these cars. They deliver the car to your door but you can return it in 7 days if you do not like it. From my recent experiences with dealing with these dealerships, i'd rather just pay the extra $500 at Carvana and not have to deal with the BS. Carvana will soon be as big as Carmax and I have a feeling they will eat their lunch as well in the future.

 

[shogun32]

it'll be interesting to see how the legacy dealers handle this. Used car price gouging is their sole money maker. When you get 7-day no question returns and low BS and "better" pricing (within margin of tolerance) nobody will set foot in a dealership anymore. A legacy dealership has huge built-in costs - realestate, utilities and employees. Carvana has vanishingly small figures for the 2 of those.

 

[IrishStallion]

I always pre-negiotate everything (selling price, trade, get my own financing) up front even before entering dealers lots via email/text to sales managers anyway. Nobody wants to put up with the sales pressure cooker BS tradition dealers try to pull. They are preying on the uninformed (not financially savy) buyers anyway. That is where 95% their margins come from. I like the Carvana business model.

 

[Balr14]

I took my Mustang in to the dealer for an annual oil change and checkup, on Monday. They were very eager to have me trade my car in on a brand new vehicle. They have all sorts of financing and marketing incentives to try to entice me.

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