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

[Cobra Jet]

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.

and how well was the enticement value they were going to give you for a trade...

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[Balr14]

and how well was the enticement value they were going to give you for a trade...

They were willing to give me about what I paid for it a year ago, but that was only part of the sales pitch. Among the other big incentives were....
Lower payments (I pay cash).
Better gas mileage (I only drive it 1500 miles a year, so gas mileage isn't a concern).
Huge selection ( All kinds of SUVs).
Better winter driving (I park it in winter to avoid salt damage).

 

[poncho@home]

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

This

 

[poncho@home]

https://www.google.ca/amp/s/www.foo...-carvanas-sales-growth-is-about-to-skyrocket/

 

[shogun32]

https://www.google.ca/amp/s/www.foo...-carvanas-sales-growth-is-about-to-skyrocket/

what is this, sell-side analysis? kiddie (5yr old) level insight? (see recent CNBC kerfuffle)

in 2019 40.8 million used light vehicles changed hands. Carvana had 177,549 or 0.4% of the market. Assuming they could conceivably push thru the whole 500,000 units/yr that's 1.2% of units. Yeah, let's buy this stock!

Just wait till the 'stimulus' gets delayed if it happens at all. Or tax rates and economy go south after Nov 3.

I could see a competitor to Carvana (or they themselves) abstract away the Used Car experience much like CarGurus and Cars.com did for listings. In other words, you'd never interact with a local dealership beyond walking in the door and being handed the keys and handshake. But I don't see the dealerships going quietly into that gentle night on their cash cow.

turns out a podunk operation in nowhere Iowa spends 575,000/yr (how?) on their dealership.
(https://gmauthority.com/blog/2020/0...hip-for-selling-fca-vehicles-under-same-roof/) so going virtual is a very useful advantage.

 

[Lgb0250]

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.

Not even close to being correct. Dealers make a ton of money on every vehicle they sell Whether new or used. Even if they sell them at invoice! just Their holdback/doc fees can easily give them $2K+ on new vehicles. Then throw in their F&I income along with their service dept income and it’s easy to understand why large vol dealers have morphed into mega dealers. Small mom and pop dealers are a thing of the past.

 

[Lgb0250]

LOL. Evidently they got their fill of these from my area! Last I checked about a month ago they offered me $35K. Decided to check again yesterday and they only offered $25K. Would have been $30500 but there is a $5500 adjustment for my zip code! You snooze you loose.

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