I knew that their business wasn't serious when a friend received an online over-evaluation for his old car, dropped it off, received the check, and left without any sort of visual inspection to determine the condition of the car. Anybody with even a little bit of knowledge about the car industry knows that this business model was destined to fail.
That’s exactly how I sold them a car.. the guy who picked it up legit didn’t even walk a complete circle around it. Handed me a check a left and paid $10,500 when carmax offered $7,800 and the dealer $6,500.
Sold my SUV to Carvana in February 2022 for $15,000 which is exactly what I paid for in back in 2017. I knew it was insane. I couldn’t believe it. I knew they were gonna be in trouble the moment I saw how inflated the offers were. But I was gonna take FULL advantage.😂 For reference when I checked the cars value in 2019-2020 it was closer to $8,000. Carvana thank you for the life changing money. I knew y’all were doomed. They stock was $160+ when I sold my car to them. I should’ve bought PUTS with the check they sent 😂😂😂
I have bought so many stocks in individual companies, There are so many stocks going to rocket in the long run, right now safe to invest in an ETF that tracks the S&P500 and ride it out. I put $290k into some growth stocks, some of my picks are VOO, BRK-A, AAPL, IVV, NYSE, NASDAQ, TSLA, I've gotten 91% return so far this year, I'll see where it goes... fingers crossed
@Flora Quntinilla Uncertainty... it took me 5 years to stop trying to predict what bout to happen in market based on charts studying, cause you never know. not having a mentor cost me 5 years of pain I learn to go we’re the market is wanting to go and keep it simple with discipline.
I bought a used car recently and specifically AVOIDED Carvana. I heard way too many horror stories of people not ever receiving their titles, of hidden fees and vehicle condition reports that failed to disclose significant mechanical issues.
there are no hidden fees, yes i would worry about the condition but you get the vehicle for 7 days before the purchase is finalized, day 1 you take it to a mechanic you trust and go over the car. I bought 2 cars for them and had no issues. The titling department is an issue so i won't defend that. But the model works. Just have to fix up some things.
title issue is not that common. It happens here and there. The news just blew it out of proportion. I would never buy cars from carvana or carmax due to their inflated price. Hell no.
My friend was working in a dealership mechanic shop recently. He said he absolutely hated getting cars from Carvana because they'd always come in with what sounds like a minor problem only to discover it's a major issue.
Haha who would have guessed. Every car owner across the countries eyes lit up. Every single minor issue that you wouldn't notice, costing thousands to repair, easily dumped off at an overvalued sale? Hell yeah!
As an ex employee I can attest the idea of Carvana is great. The management is horrible and the company is run by a lot of clueless people which eventually cause it's demise.
@MegaDIEHARD75 when you give a company a $10B evaluation early in it's existence it's destined to be a disappointment. It's like expecting every first round draft pick to be the next GOAT. When in reality there's only a handful of Bradys and Jordan and Tigers in existence i.e. Apple, Google, Amazon
Yea the father sold at least 50000 shares for over a year every single day changing the tranches to up to 100000 shares. Made like 3.5 billion. He didn't just sell the top he dumped for like 18 months everyday after buying non float shares for pennies in March 2020. The son did what he was told but they're absolutely fine financially and will not care to file chapter 11.
As an automotive technician, I can't begin to tell you the amount of Carvana customers that have come in with problems. One vehicle was so bad it looked obvious it had been rolled over and repaired in someone's back yard. Customer had no idea. I also find it hilarious that a company in such a financial crisis and laying off thousands of employees, they still somehow find the funds to sponsor a race team.
Reputation absolutely contributed to their sales slowing. I had 3 co workers all have the same issues with registering their cars MONTHS after purchase.
@@Captain_tame yeah we still have titles on paper. You bring them into a designated government ran building that handles anything legally dealing with cars. It’s called the DMV. The lines are super long and the workers move extremely slow because it’s a state job and they know they won’t get fired, lol. It’s lame
So you'd rather purchase a car online without any sort of vehicle inspection,test drive,comparison etc. Thats a great mindset they must love you at dealerships.
@@armandobroncas4124 Carvana inspects the car. By now, with the power of the Internet, most people already know what they want and don't need a sales guy at a dealership to "sell" them anything.
@@armandobroncas4124 Test drive? Like the 7 day of testing and if you don't like it you can return it? Comparison? Like the one you as a normal person do when buying a car? Inspection? Like the one they do?
@@TEverettReynolds man I dont think you could've proved my point better then that thank you, carvana was made for the "informed and know it all" crowd that can't handle one on one interaction with a real person.
Eh, not sure I can agree. It'd be nice for them to rely on zoom calls less often for their talking head interviews. They lend an amateurish quality to anything they're included in.
I bought a car from Carvana toward the end of ‘21. Got a great price on an Accord Hybrid, and even greater price on my 350z trade-in. After I had such a great experience, I considered buying some stock (it was about $250/share I think) but after looking into the numbers a little more, and talking to others who had a horrible experience, I decided against investing. *so glad I didn’t buy into this company*
My daughter has purchased 2 vehicles over the past 5 years and had no problems. In fact, the last one, a couple of months ago, was delivered and she didn't like it so she returned it within 7 days and they brought her a new one she selected without charging, questions or issues. I would buy from Carvana.
I had no issues with them. Got my dream car, and it had a warranty. I used it for a hill assist issue and again, zero hassle. A tech came to the house, fixed the problem. Smooth buying process and got my registration via fedex a week after purchase. I live in South Florida. Sad to see them in such bad light, especially since I had a great experience.
I bought a car through Carvana about a year ago. It was a relatively good experience overall. The buying process was easy, getting it delivered went smoothly. However, i don't think they made a profit off of me due to the amount of warranty work they had to pay out on the car. (Their 100 day warranty is pretty good). The day after it was delivered; I took it to a local dealership and had a pre-purchase inspection done. They found a couple things wrong in the suspension and the in-dash the GPS unit wasn't working right. Carvana covered all of it. At Dealership rates too... It was over $6,000 worth of work for parts and labor and the dealer had the car for 5 weeks! Out the door i had to cover like $200 in fees and a co-pay for "out of network" service center since i didn't go to one of their "preferred" shops. But I doubt their margins are big enough to hand over that $6k to the dealership without a grimace...
Smart. This is what you should do when you buy a car online. I don't know why people are so hesitant, you get 7 days with the vehicle get it checked out.
I did the same thing, they paid out $11,600 dollars of things on my car to the dealership and body shop. It was payed for without any issue from Carvana. Alot of the stuff wasn’t necessarily broken but recommended. My local Audi dealer took care of everything minus the deductible 🤷🏽♂️ I doubt there was a dime of profit.
I had an “ok” experience with Carvana. I got an good deal on my car. I did researched the price before I signed the paperwork. The registration process was a nightmare.
@@BigcountryReactions dam. It took them 2 months to not do it right. I had to go down to the secretary of state to fix it. They did refund the cost to fix it, and an full refund on the registration cost as well. Michigan laws say 15 days. How many temp tags did you have? I had 2.
@@BigcountryReactions that nuts. I found out though the news technically my temp were illegal because they weren’t Michigan temp tags. Guess by law because they have an Michigan dealer license, and i’m an Michigan resident it’s illegal for me to use out of state temp tags. I had Arizona, and Georgia temp tags. I’m all good now with normal plates, but it’s still good to know!
I had multiple customers say they couldn’t get titles to cars they bought. And when I sold a vehicle thru them, they paid 5k over anyone else without hardly looking at it. Doing this with used cars is so complicated and costly it makes no sense.
Another thing that likely contributed to the Carvana's downfall was the problems surrounding their titling department. Multiple reports from buyers not receiving their title in time or at all. Here is a link to a local news agency covering this topic :czcams.com/video/MgTtJZGvl08/video.html
Yep, my neighbor waited over 6 months for title paperwork to finally run the VIN himself and find out the car was stolen out of Alaska and sold in Alabama. He had to get a lawyer involved
We had a great experience with Carvana- got a good rate for the car we bought, had no issues and amidst the thick of Covid lockdowns, had the car delivered to us in a safe and responsible manner. I get that some had some crappy experiences, but remember that the folks who had decent or excellent experiences may not have posted about it since modern internet culture seems to skew attention towards the bad, the shameful, and the controversy.
CARVANA would buy people's car as a trade-in, and they just took people's word as to the condition of the car. CARVANA routinely overpaid people for these cars.
@@stevechance150 so it is like Zillow when it was overvalued the housing stocks across the board, and caused its own stock crumbled. This type of artificial algorithm based technology businesses are disrupting the true market vlaue out there. For some small towns or cities where lacked of skilled or talented workers in the government jobs, they are simply took the zillow to price their local housing property tax assessments, and they are over assessed. These type companies should be sued, and dismantled for disrupting the real market.
Same here; I've purchased 3 cars and sold them 4, never had any issued outside of normal used car stuff. My title/registration will actually be here tomorrow (per FedEx) for a car I bought from them two weeks ago. I think the state you live in matters a lot. I hope they find a way to survive, I hate dealerships.
@@arglebargle5531 that’s fair. I am not advocating that others be completely unaware of the potential risks. That’s a good point. I like to simply add my experience to show there’s plenty of positive experiences as well as the worrisome ones.
100%! Their prices have been extremely high. I have absolutely no idea why people paid these high prices. Even in this video, $14k for a 4 year old Elantra that was probably $18k new--insane!
I bought a car from Carvana in Nov 2022 and it turned out to be a lemon- completely undrivable. It took me a month to get my old car back between fighting with them and the mechanic, leaving me hundreds of dollars in debt having to ride-share and renting a car to get by.
@@pennysworld8189 it was a 2014 Chevy Sonic. There were apparently issues with the breaks from the start- I drive the car a couple of miles tops before the car seized up.
@Mark B that's not really carvanna fault, old chevy sonics are terrible cars to begin with and have history of problems. Same with that same model year chevy cruze
I owned 25 cars in the past 20 years, both for personal and business use. Only one of these cars was new from a dealers lot. It was a 2006 Honda CRV with almost $22k ticket price that I paid $19500 and with tax and finance charges it was $27k out the door. After seeing this huge difference in numbers I started buying private party cars, mostly off of Craigslist and sold thru CL also. There are very nice and honest people around. I don't like dealers! I would not care if they all shut down. Same applies to Carvana and sorts too
@Ike I mean it's true, most individuals are buying cars from the auction underneath the dealer and then reselling it lol so now they're dealer of used cars, so yea dealers will never go away even if u buy from a individual lol
@@cormaro13 The cars I buy from individuals are NOT the ones purchased from auctions. I buy from people who bought and drove those cars for themselves and decide to sell them. I don't buy cars from people who want to make a profit from an auction-purchased car. Also, when I buy a car I don't ONLY look at the car! I look at the people/owners... shady people, pushy, greedy, aggressive salesperson types of people are not on my list to make a deal. I do not buy their cars! I know, unfortunately, dealers will not go away. I said I do not care if they all were to shut down. I hope this explanation will help you understand my way of purchasing cars 😁
@Ike must be lonely at home to have this much time to type lmao, I was just saying the dealers will never go away cause everyone is themselves a dealer at the end of the day when trying to get rid of the car, like a catch 22, any individual selling a car is trying to make a profit if not they would've taken the dealership offer lol
I bought my car from Carvana about a year ago after I had a accident hitting a deer and totalling my other car. I needed a car quickly and nobody else had the civic I was looking for. Bought my car from them and have not had a problem ever since...much easier and better than a dealership fir me. A lot of the problems with them seem to come from people with bad credit...I have excellent credit and had no problems setting up financing and making payments..it was a smooth transaction and I love Carvana...
Never used them but have heard enough negative or mixed reviews that I won’t be using them. I am grateful that they’re challenging the traditional brick and mortar type experience because that has got to change.
I had mine appraised in 5 minutes online. Lady came over 2 days later, drove it around the block like 45 seconds, handed me a check for 10k and took the car an hour later. It was such a weird experience.
@@kylen6430 The guy who founded Carvana, founded DriveTime. There were some background shenanigans he was doing, and they were never profitable with the exception of one quarter. Many customers overpaid for cars, without ever receiving titles and had to file multiple lawsuits against them. It'll come out later.
I had a good experience with Carvana. Being a single woman going into a traditional dealership was intimidating to me, so being able to buy my car online was awesome. I just don't like the financing company they used, Bridgecrest
I had a great experience with Carvana with no issues at all with the vehicle I purchased or the process, and I would buy from them again, if needed. I do hope everything works out for them.
They are on borrowed time. The two vending machines around where I live have been torn down. The brand cannot sustain itself because of how loopy their inventory and acquisition is managed. How can you make money when you overpay for something and sell it cheap? That's the experience several people have mentioned in the comments. They said it was insane what Carvana was paying for their cars just to fill inventory quotas. And the constant comments about dodgy inspections, lack of proper registration, paperwork, etc. are what drove me away from the vending machines in the first place. I'm not going to waste more money paying for all of those necessary inspections when Carvana should have done it themselves. Every physical used car dealer USUALLY inspects and fixes up their inventory prior to selling. I can't trust Carvana to do that every time despite their refund claims. The brand will not survive, their stock is worthless and their vending machines are impossible to find.
As a mechanic seeing the way they buy cars , and the way they sell cars without being mechanically inspected ,as well as not having a dealership to take your car to for problems you encounter , it astounds me that anyone would buy anything from them .... Ever .
You described my fears and why I avoided them. It makes no sense how their business model was put together. There was no PHYSICAL support network in the form of dealers to support the cars such as a place to get them fixed under warranty. I just don't understand how they thought this model would sustain itself.
I always finance through my credit union, even if I'm ready to pay cash. Here's why: The credit union issues a conditional draft to the dealer. The draft essentially says, "Deliver the proper and clean title to the vehicle and then we'll give you the amount of money on the draft." So they don't get paid until a good title is produced. I'll make payments for 6 months so the credit union gets some return on the deal, then pay it off and get my cleared title.
Hopefully carvana crashing means private party used sales will actually get back to reasonable prices. Until then, I'll happily keep driving my $1,000 89 honda civic and getting 35mpg!
Lol I drive a 2016 Prius I got used for 10k the thing gets 60mpg and I have made thousands of dollars in gig work with it. Be smart and stay modest in life and you will go far.
I’ve been driving my 1996 impala I bought 8 years ago for 2k n im legit going to drive it till the frame snaps cuz these prices in new england for used cars don’t make any sense at all.
I'll say just this: I will NEVER, EVER, EVER set foot in a regular auto dealership (i.e. criminal enterprise), to be subjected to their humiliating and deceptive "haggling" game. That's based on personal experience as a dealership employee.
They purchased an SUV from us earlier this year for much more than local dealerships were offering. The Chevy finance manager said he sold his cars to them because they offered so much more. Wild!
So it is like Zillow when it was overvalued the housing stocks across the board, and caused its own stock crumbled. This type of artificial algorithm based technology businesses are disrupting the true market value out there. For some small towns or cities where lacked of skilled or talented workers in the government jobs, they are simply took the zillow to price their local housing property tax assessments, and they are over assessed. These type companies should be sued, and dismantled for disrupting the real market.
@@drewh3224 AI has limitations. We should have learned that from Credit Default Swaps, if not earlier. But then you're taking things too far in the rest of your comment.
Bought my car with caravan in 2019. Best car buying your experience of my life. Great car no hassle no problems besides waiting an extra day for delivery. I hate that so much has changed. I would’ve bought with them again.
I bought a car from Carvana in March 2022, and didn't get the hard tags until October 2022. I'm still just so confused why it took them 7 months to deliver me the tag for it.
I just sold my car for $32k, dealerships were offering me $22k!!! My car was basically new only had 9k miles and 2021 at that. I think big corporations/ dealers and car dealership salespeople are mad carvana came in the picture!!
Caravan was one of the reasons why car values went up. They caused it to do that. The main problem I think they had was they couldn't catch up to the demand. I work in the car business. I can tell you around 2021 before car values went up crazy, Carvana were bidding everyone at auction, they were buying crazy when no dealer could over bid them, They made tons of money on those cars, but they were too confident with paying high for trade ins as well. If they had organized their team better and expected the business to shoot up like that. They would be doing much better now, especially after buying ADESA. They can sell all their trade ins there as is, avoiding all the inspection process. They got greedy.
Their business model wasn't sustainable: buy high and sell low. You'll lose the shirt off your back. There are tons of comments on this page about Carvana paying hilariously over what the car was worth just to stock their inventory to meet demand that was never going to stay high.
Classic case of greed, they bought too many cars and wanted to sell them at high prices, and now they can't afford to do that anymore. I don't feel sorry for any company that participates in price gouging and screwing over the public.
Things have gotten so bad for Ernie Garcia III, founder of Carvana Co., that his share of wealth lost this year is second only to Sam Bankman-Fried. The fortune of Garcia III has tumbled by $6.7 billion this year to $119 million, according to the Bloomberg Billionaires Index. It tumbled $87 million, or 42%, on Wednesday alone as shares of the Arizona-based online car seller plummeted after its largest creditors signed a deal to act together in potential debt-restructuring negotiations.
Here's what I know about Carvana: Their prices are NOT low...... in fact, they're considerably higher than the cars are worth. The cars are rarely exactly as they were represented to be..... in some cases a completely different car than was bought. They DON'T deliver "from coast to coast" unless you live in a city with a million or more population. The cars are NOT delivered on time...... and once you've paid, they make themselves very difficult to contact. So as it turns out, they're nothing like they advertise themselves to be. I can't imagine having to deal with them..... especially if you want to return a car.
The stock might drop a little more but this company will survive and they will come out much leaner and better. They changed the used car industry for the better. By the way, CNBC titling this "The Rise and Fall" like it already failed is stupid, there's a lot more for this company to do
It'll go from used cars to used EV as the EV will cause a new headache that people are buying and dumping. Nobody want to buy a broken EV. ICE are mainly metal and not acids. We have no plan how to handle waste and recycle EV's , a Finnish EV owned exploded his EV into pieces as replacing the battery costed more than the car.
@Ramez Wissa If I knew you were correct, I'd buy a bunch of their stock (currently trading at $4.04). But while some believe as you do, others are convinced that they're toast. What do I know? They _do_ have a bunch of cash, so that helps.
Give me a break, Carvana was in it to try and make money be getting borrowers to purchase vehicles through their financing. Carvana was overpaying for vehicles not inspecting those vehicles and then trying to sell those uninspected vehicles to the public. I attempted to purchase two vehicles from Carvana, neither vehicle was as described on their listing. Both vehicles had electrical issues and one had a crack in the front fender. I would advise anyone to stay far away from Carvana.
Yeah, there's an old saying. Behind a great fortune there is a great crime. Cars are kind of a scam. A car is a depreciating asset. Real estate always gains value due to inflation. If you take out any loan on a car, the loan will be more than the car is worth. Inflation makes it less valuable.
Real estate also gains value due to scarcity. The US population since 1900 has increased from 70 to 370 million. But available land to house those people has remained the same. That creates scarcity
I got my 2018 Chevy Cruz from Carvana in March of 2020, had less then 8k miles and I got a great deal. I’m 2 years from paying it off with 0 issues. Now that I’m seeing these stats it looks like I got lucky and purchased in the best possible time, prices were low and stock of used cars was high, right before things went south. I stalked their website for about a month before I made the purchase. Literally checked dozens of cars/deals daily until I found my car. It was a noticeably good deal. This is how I recommend anyone else do it. Don’t wait until your desperate and go look to make a purchase that week, you’ll get drug across the coals, it takes time to find a good deal that your interested in.
I've heard a lot of bad things about Carvana's business practices. Customers not receiving the titles on cars being one of them. I guess it's similar to putting money in a vending machine for a candy bar and it doesn't come out.
So surprised to see bad reviews or experiences with Carvana, my family and myself bought 2 cars through them and had nothing but a great experience. Friends of ours that used it also had nothing but good things to say as well.
They are crashing for sure. I recently bought a 2002 Honda Odyssey with only 116k this year. Was in mint condition and got a deal from my coworker for 4k. I listed on Carvana for fun to see how much I will get it for. They offered me $100.00.
yep echo what others already have said, when we sold both of our cars to Carvana last/this year there was no serious inspection whatsoever when they came picking up the cars. We took care of our cars but i can image it goes horribly wrong with the wrong kind of sellers
my youngest bought a car from them. It was literally the worst customer experience I think I've ever seen. I would never deal with them again nor would I recommend them to anyone I know.
I use to work at the inspection center in Haines city Florida. I really hope this company burns to the ground. Awful management and even worse reconditioning team. Would be glad to see the look on their faces when they get that termination letter
I worked as a T3 in PDI, Winder, GA. It was fascinating to see the greed and lack of respect for the customer and the employee the company shows behind the scenes. Burn to the ground!
Location is critical. I bought 3 cars from Carvana. I still have all 3 cars and they run great. No rust and only 1 needed new tires. I have had no issues getting the titles either, not one! Everything was nice and smooth.
Carvana was a great place to sell your used car and make a decent buck in the process, but buying an overpriced vehicle from them and having to deal with a PITA registration process is simply not worth it. How can they not even handle the basics of providing the car title or registration to the new buyer? There's a class action lawsuit open against Carvana for a reason.
Damn, imagine being sued by your customers because you're too lazy to do what everyone else in the car business KNOWS is necessary. Carvana's management make no sense. Plus how the freak can you even survive if you buy a car for too much and resell it for cheap?
I worked at a software company that was looking to integrate our reconditioning tools into their ecosystem back in 2019. They hired anyone to check boxes with pen/paper for their safety and reconditioning process using both on/off-site vendors. Chaos. Their DMV process for title transfers was set-up for negligence. Why were titles not being transferred?? - Simple. They weren't paying off existing liens to roll the money for more units, operations and false reserves.
I've bought a car from Carvana and I was extremely happy with the entire process. I've noticed one thing that the company has never seem to have corrected on their site. I have actually complained to them and still, this happens. That's pictures of the interior of the car you're interested in. Specifically, the manual transmission cars! I only want to drive manuals so when I click on "more filters," "transmissions," and "manual," I get cars with that preference. Yet, every photo I look at shows an automatic transmission (shifter). That's very deceptive and all photos are supposed to show the actual interior of the car you're potentially buying (unless it states stock photo). They are basically showing you a different car!
Imagine trying to buy a used car without seeing, touching, smelling, or driving it first. They also don't let you get it looked at by an independent mechanic before buying. Buying a used car from Carvana is about as dumb as buying a house without an inspection.
@@flyingdaytrader Really?? I was about to comment that there should be such an ETF! I once saw a headline on my newsfeed, something about Cramer being bearish on some stock I never heard of. So I immediately bought some shares, and sold them a day or two later at a profit. No idea what the company does. I intend to check out the ETFs you mentioned. It is amazing that anyone takes Cramer seriously, considering that he is so bad at his job. (Bear Sterns!)
I have an old issue of Car & Driver from ~2015 that had a blurb about a business that was taking the car-buying experience completely online. It talked about how revolutionary and disruptive to the industry this new business model would be. I went back recently and was reading through some old issues, and lo and behold, that business became Carvana. Who would have seen this coming 7 years ago?
I’d like to see all those who pumped this stock up come out and share their thoughts now, where are they? This is why Buffett is as a great as he is… never jumps on an investment that could be deadly…
Sad.. they seemed to be a great company. I bought 2 cars from them.. great cars and hard to find cars that I couldn't get at a dealer. They had great selection as well for them.. I hope they can fix their issues. Titling issues weren't just their issue. Many dealers also had that problem as DMVs around were closed down. They were extremely friendly, and from a business aspect they treated me better than any real dealer I ever dealt with.
Starting early is the best way to move forward building wealth, investment remains a priority. The stock market has many opportunities to earn decent payouts, with the right skills and the right understanding of how the market works.
@7:37 - Give me a break. I can see if there were isolated times where the title was late. But you keep hearing over and over and over again the number of people that are unable to obtain their title. Meanwhile, Carvana keeps issuing temporary plates, usually from a different state.
@@allenwiddows7631 I’m just waiting for them to file bankruptcy then I’m gonna get my truck for 1/3 of what I owe lol I’m just gonna offer a lowball cash offer
Realistically, if I bought a car from them recently and they end up going under, what could happen? I assume another lender takes over , but Rates changes or any recourse?
your loan is an asset that can be sold to the highest bider. Your contract should have details about any clauses that mention changes to your financial agreement, repo, and if they can request payment in full at anytime. if you have no contract they/you can do what ever they/you want and go to court.
Wishful thinking but I would love to see the day we don’t need dealerships or companies like this anymore. There is absolutely no reason we shouldn’t be able to buy directly from manufacturers. Just the thought of a car salesman becoming jobless puts a smile on my face.
Our experience with Carvana was terrible. The delivery time was from 11am-2pm EST. 2pm passes, but we get no call, no notification, nothing. We call to follow up, and were told to wait another hour or so. Carvana would not give us a valid ETA on the late delivery. Calling this unprofessional and a lack of customer focus is an understatement. We would not recommend buying or selling a car from Carvana.
Lmfao, it was hilarious how much more Carvana was willing to pay trade-in versus dealerships, like alone NADA values. My old man went to go trade-in his wife's Q5, Audi offered like $18k, NADA was about $32k, and Carvana deadass gave him $43k. Same fair estimate of even private sales at the time of same/similar were close to NADA around $35-37k at best. Winning.
@@jimwerther -- The old man since passed, we had a relationship where I could rib him as he would me, so how about _YOU_ have some GD respect and mind your own business?
In 2021 I sold my condo to Zillow, and my car to Carvana. Zillow paid 40K over the market price, and Carvana paid me what I had bought the car for 3 years earlier. The lesson is: when a buyer offers a ridiculously good price.....SELL.
Carvana prices are nuts, its cheaper to walk into a dealership and talk to real people. I got my new Maverick online from a Ford dealership and had a great easy experience, there's a reason brands have dealerships and Ford is doing a great job adjusting to the times
The problem is that the stock market is no longer about investment, its about speculation and instant $$ like a casino or sports bet. Stocks today don't correlate with the company performance or earnings reports. For the most part its all speculation about the future release of a product or how the company *could* change the world.
Now you know why interests have an impact. It's all a lie. Stocks are debts. The company make loans to make them look better. They have become China and the central bank owns them.
"You just fired us in a zoom meeting and said 'have a good day' at the end," one Twitter user posted. "I am so disgusted by how this was handled." Another user posted that an email preceding the Zoom call had caused "mass hysteria at 7:30 a.m." because it didn't indicate who would be affected by the layoff.
I knew that their business wasn't serious when a friend received an online over-evaluation for his old car, dropped it off, received the check, and left without any sort of visual inspection to determine the condition of the car. Anybody with even a little bit of knowledge about the car industry knows that this business model was destined to fail.
100%
^This!!!!!!!!!
Yep. and that’s why I sold our two cars to them 😂 young lady walked up and handed us a check and a truck picked them up the next day
Yup
That’s exactly how I sold them a car.. the guy who picked it up legit didn’t even walk a complete circle around it. Handed me a check a left and paid $10,500 when carmax offered $7,800 and the dealer $6,500.
Sold my SUV to Carvana in February 2022 for $15,000 which is exactly what I paid for in back in 2017. I knew it was insane. I couldn’t believe it. I knew they were gonna be in trouble the moment I saw how inflated the offers were. But I was gonna take FULL advantage.😂
For reference when I checked the cars value in 2019-2020 it was closer to $8,000. Carvana thank you for the life changing money. I knew y’all were doomed. They stock was $160+ when I sold my car to them. I should’ve bought PUTS with the check they sent 😂😂😂
Same. Sold my camaro for 4k more than all the other offers I had gotten. A very good clean car yes, but glad they helped me out by buying 😜
@@xcaliberVirus I love that for you 😂😂. I couldn’t believe my eyes I said don’t mind if I do.
@@kevinowens3774 I think I said that exact quote when they quoted me. 😜 lol
Just curious how much they sell your car and what its profit for this deal
This made me so happy lmaooo.
When a co-founder can’t answer where they see the company in 5 years and are only focused on the here and now, that’s a problem
Especially given earlier in the piece @6:42 he talks about "Long Term Outlook" when talking about the purchase of Aldessa.
Yeah. I'm not very business savvy, but even I noticed that, so it's probably pretty bad.
Yep, I also cringed when he said that... If someone that high up has no vision, then nobody in the rank and file does. Company is doomed to fail.
Q:“Where do you see carvana in 5 yrs?”
A: “We don’t.”
Ouch*
I have bought so many stocks in individual companies, There are so many stocks going to rocket in the long run, right now safe to invest in an ETF that tracks the S&P500 and ride it out. I put $290k into some growth stocks, some of my picks are VOO, BRK-A, AAPL, IVV, NYSE, NASDAQ, TSLA, I've gotten 91% return so far this year, I'll see where it goes... fingers crossed
@Flora Quntinilla Uncertainty... it took me 5 years to stop trying to predict what bout to happen in market based on charts studying, cause you never know. not having a mentor cost me 5 years of pain I learn to go we’re the market is wanting to go and keep it simple with discipline.
0
Co-founder defends the Adesa purchase because of “long term outlook” but can’t answer where he sees Carvana in 5 years. Good job buddy!
Great point.
that's funny.
I bought a used car recently and specifically AVOIDED Carvana. I heard way too many horror stories of people not ever receiving their titles, of hidden fees and vehicle condition reports that failed to disclose significant mechanical issues.
there are no hidden fees, yes i would worry about the condition but you get the vehicle for 7 days before the purchase is finalized, day 1 you take it to a mechanic you trust and go over the car. I bought 2 cars for them and had no issues. The titling department is an issue so i won't defend that. But the model works. Just have to fix up some things.
@@NPAMike i bought a car from them with a stripped oil pan didn't find out till I had to do my own oil change
title issue is not that common. It happens here and there. The news just blew it out of proportion. I would never buy cars from carvana or carmax due to their inflated price. Hell no.
Me too! Anytime I see the car from caravana I don’t even check it out. Too many horror stories.
they are a incredibly shady company
My friend was working in a dealership mechanic shop recently. He said he absolutely hated getting cars from Carvana because they'd always come in with what sounds like a minor problem only to discover it's a major issue.
Auto1 ? The next Wirecard?
Haha who would have guessed. Every car owner across the countries eyes lit up. Every single minor issue that you wouldn't notice, costing thousands to repair, easily dumped off at an overvalued sale? Hell yeah!
Market cap of 60 billion in Aug 2021 to 723 million in Dec 2022. Insane
Not really. Classic overblown Virus growth for total speculation market
Insiders cashed out billions before the crash
As an ex employee I can attest the idea of Carvana is great. The management is horrible and the company is run by a lot of clueless people which eventually cause it's demise.
@MegaDIEHARD75 when you give a company a $10B evaluation early in it's existence it's destined to be a disappointment. It's like expecting every first round draft pick to be the next GOAT. When in reality there's only a handful of Bradys and Jordan and Tigers in existence i.e. Apple, Google, Amazon
Yea the father sold at least 50000 shares for over a year every single day changing the tranches to up to 100000 shares. Made like 3.5 billion. He didn't just sell the top he dumped for like 18 months everyday after buying non float shares for pennies in March 2020. The son did what he was told but they're absolutely fine financially and will not care to file chapter 11.
As an automotive technician, I can't begin to tell you the amount of Carvana customers that have come in with problems. One vehicle was so bad it looked obvious it had been rolled over and repaired in someone's back yard. Customer had no idea. I also find it hilarious that a company in such a financial crisis and laying off thousands of employees, they still somehow find the funds to sponsor a race team.
Reputation absolutely contributed to their sales slowing. I had 3 co workers all have the same issues with registering their cars MONTHS after purchase.
Changing title takes about 2 mins online here in the UK - is it still paper in the US or are they just overwhelmed by volume
@@Captain_tame yeah we still have titles on paper. You bring them into a designated government ran building that handles anything legally dealing with cars. It’s called the DMV. The lines are super long and the workers move extremely slow because it’s a state job and they know they won’t get fired, lol. It’s lame
Incorrect. Dealers can issue titles right on the spot. It’s all done electronically (same way we process personal checks)
.
The only “wait time” is for the DMV to replace the Dealer’s temp title with a permanent one (a few days)
Also in my state we have private businesses that handle titles. Or the AAA auto club. I haven’t visited a govt-owned DMV in decades
Carvana's failure is unfortunate because the dealership experience remains terrible. I really wish they would be able to come back strong.
So you'd rather purchase a car online without any sort of vehicle inspection,test drive,comparison etc. Thats a great mindset they must love you at dealerships.
@@armandobroncas4124 Carvana inspects the car. By now, with the power of the Internet, most people already know what they want and don't need a sales guy at a dealership to "sell" them anything.
@@armandobroncas4124 Test drive? Like the 7 day of testing and if you don't like it you can return it? Comparison? Like the one you as a normal person do when buying a car? Inspection? Like the one they do?
@@TEverettReynolds man I dont think you could've proved my point better then that thank you, carvana was made for the "informed and know it all" crowd that can't handle one on one interaction with a real person.
@@dkrampage2933 oh ok so I see you're just going to lay down and believe anything a 2 bit car company has to say about the cars they're selling?
When the co-founder says that thinking about 5 years from now "is a distraction", you know the situation is dire.
I love the quality of these documentaries by CNBC. Great job to the team behind them.
They apparently know what a bonehead Jim Cramer is.
Eh, not sure I can agree. It'd be nice for them to rely on zoom calls less often for their talking head interviews. They lend an amateurish quality to anything they're included in.
😂😂😂
Last April, the CEO and his father bought over $500 million in stock. They've lost 95% of that in just 8 months. Crazy.
I bought a car from Carvana toward the end of ‘21. Got a great price on an Accord Hybrid, and even greater price on my 350z trade-in. After I had such a great experience, I considered buying some stock (it was about $250/share I think) but after looking into the numbers a little more, and talking to others who had a horrible experience, I decided against investing. *so glad I didn’t buy into this company*
Should’ve kept that 350z
But did you get a title and registration?
@@sandtanmaroon peoples needs change so what you like or need is objective.
could have made $100+ a share and taken the profit.
uve just dodged a bullet.
My daughter has purchased 2 vehicles over the past 5 years and had no problems. In fact, the last one, a couple of months ago, was delivered and she didn't like it so she returned it within 7 days and they brought her a new one she selected without charging, questions or issues. I would buy from Carvana.
2 vehicles in 5 years? Using a car for 2.5 years is not good.
@@ViburaBlanca One was totaled in an accident.
@@miamiboarder I’m sorry to hear that
@@miamiboarder Ouch, at least she survived. It could have been worse...
@@ViburaBlancadon’t accuse so quick you will look foolish in real situations
I had no issues with them. Got my dream car, and it had a warranty. I used it for a hill assist issue and again, zero hassle. A tech came to the house, fixed the problem. Smooth buying process and got my registration via fedex a week after purchase. I live in South Florida. Sad to see them in such bad light, especially since I had a great experience.
I bought a car through Carvana about a year ago. It was a relatively good experience overall. The buying process was easy, getting it delivered went smoothly.
However, i don't think they made a profit off of me due to the amount of warranty work they had to pay out on the car. (Their 100 day warranty is pretty good).
The day after it was delivered; I took it to a local dealership and had a pre-purchase inspection done. They found a couple things wrong in the suspension and the in-dash the GPS unit wasn't working right. Carvana covered all of it. At Dealership rates too...
It was over $6,000 worth of work for parts and labor and the dealer had the car for 5 weeks! Out the door i had to cover like $200 in fees and a co-pay for "out of network" service center since i didn't go to one of their "preferred" shops.
But I doubt their margins are big enough to hand over that $6k to the dealership without a grimace...
Smart. This is what you should do when you buy a car online. I don't know why people are so hesitant, you get 7 days with the vehicle get it checked out.
I did the same thing, they paid out $11,600 dollars of things on my car to the dealership and body shop. It was payed for without any issue from Carvana. Alot of the stuff wasn’t necessarily broken but recommended. My local Audi dealer took care of everything minus the deductible 🤷🏽♂️ I doubt there was a dime of profit.
They likely reinsure the repair risks but large claims will impact the rates they get charged for their policy.
Sounds like you gota good deal and they treated you good. You should brag about them
How much did you pay your mechanic to do a thorough inspection ?
I had an “ok” experience with Carvana. I got an good deal on my car. I did researched the price before I signed the paperwork. The registration process was a nightmare.
You are lucky mine was horrible Took almost 9 months to get it registered
@@BigcountryReactions dam. It took them 2 months to not do it right. I had to go down to the secretary of state to fix it. They did refund the cost to fix it, and an full refund on the registration cost as well. Michigan laws say 15 days. How many temp tags did you have? I had 2.
@@awilhammer 4. Lol what’s funny is during that time they was sending me emails everyday threatening to repo the car because it wasn’t registered
@@BigcountryReactions that nuts. I found out though the news technically my temp were illegal because they weren’t Michigan temp tags. Guess by law because they have an Michigan dealer license, and i’m an Michigan resident it’s illegal for me to use out of state temp tags. I had Arizona, and Georgia temp tags. I’m all good now with normal plates, but it’s still good to know!
I had multiple customers say they couldn’t get titles to cars they bought. And when I sold a vehicle thru them, they paid 5k over anyone else without hardly looking at it. Doing this with used cars is so complicated and costly it makes no sense.
Went looking for a car, Carvana's price was $2k higher than many local dealers.
At least 2K higher
Lol go the the dealership by the time you leave you'll pay an extra 5k in fees and warranties and other markups
Another thing that likely contributed to the Carvana's downfall was the problems surrounding their titling department. Multiple reports from buyers not receiving their title in time or at all. Here is a link to a local news agency covering this topic :czcams.com/video/MgTtJZGvl08/video.html
That's the real reason...you can get the car but never own it. yup that's a profitable sustaining business model.
Exactly! Not sure why they didn’t mention that? 😳 That is some of the most shady practice in the industry!
It was mentioned at 7:11
Yep, my neighbor waited over 6 months for title paperwork to finally run the VIN himself and find out the car was stolen out of Alaska and sold in Alabama. He had to get a lawyer involved
Yup. took 9 months and a lawsuit to get my title. Never again!...and I told anyone I saw.
We had a great experience with Carvana- got a good rate for the car we bought, had no issues and amidst the thick of Covid lockdowns, had the car delivered to us in a safe and responsible manner. I get that some had some crappy experiences, but remember that the folks who had decent or excellent experiences may not have posted about it since modern internet culture seems to skew attention towards the bad, the shameful, and the controversy.
A strong amount of negative feedback establishes that going with Carvana could be a risk *even if* some people have positive experiences.
CARVANA would buy people's car as a trade-in, and they just took people's word as to the condition of the car. CARVANA routinely overpaid people for these cars.
@@stevechance150 so it is like Zillow when it was overvalued the housing stocks across the board, and caused its own stock crumbled. This type of artificial algorithm based technology businesses are disrupting the true market vlaue out there. For some small towns or cities where lacked of skilled or talented workers in the government jobs, they are simply took the zillow to price their local housing property tax assessments, and they are over assessed. These type companies should be sued, and dismantled for disrupting the real market.
Same here; I've purchased 3 cars and sold them 4, never had any issued outside of normal used car stuff. My title/registration will actually be here tomorrow (per FedEx) for a car I bought from them two weeks ago. I think the state you live in matters a lot. I hope they find a way to survive, I hate dealerships.
@@arglebargle5531 that’s fair. I am not advocating that others be completely unaware of the potential risks. That’s a good point. I like to simply add my experience to show there’s plenty of positive experiences as well as the worrisome ones.
I just looked at Carvana’s website and they have some ridiculous prices. 17k for a 2012 GMC Canyon with over 100k miles. I’m glad they are failing
Yep 👍🏾
100%! Their prices have been extremely high. I have absolutely no idea why people paid these high prices. Even in this video, $14k for a 4 year old Elantra that was probably $18k new--insane!
I bought a car from Carvana in Nov 2022 and it turned out to be a lemon- completely undrivable. It took me a month to get my old car back between fighting with them and the mechanic, leaving me hundreds of dollars in debt having to ride-share and renting a car to get by.
What car was it?
@@pennysworld8189 He won't go into specifics. Probably a bot account.
@@At9ra actually I’m not a Bot, but I appreciate your concern. I don’t check CZcams very often but I reply when I can.
@@pennysworld8189 it was a 2014 Chevy Sonic. There were apparently issues with the breaks from the start- I drive the car a couple of miles tops before the car seized up.
@Mark B that's not really carvanna fault, old chevy sonics are terrible cars to begin with and have history of problems. Same with that same model year chevy cruze
I find that whenever Jim Cramer gives advice it’s best to do the opposite.
I find that when ever I poop, I also pee.
I owned 25 cars in the past 20 years, both for personal and business use. Only one of these cars was new from a dealers lot. It was a 2006 Honda CRV with almost $22k ticket price that I paid $19500 and with tax and finance charges it was $27k out the door. After seeing this huge difference in numbers I started buying private party cars, mostly off of Craigslist and sold thru CL also. There are very nice and honest people around. I don't like dealers! I would not care if they all shut down. Same applies to Carvana and sorts too
🤣 dealers will never go away, individuals don't have the licenses to bring those cars in/ have the inventory on hold, good dream tho lmao
@@cormaro13 ...said mr dealer
@Ike I mean it's true, most individuals are buying cars from the auction underneath the dealer and then reselling it lol so now they're dealer of used cars, so yea dealers will never go away even if u buy from a individual lol
@@cormaro13 The cars I buy from individuals are NOT the ones purchased from auctions. I buy from people who bought and drove those cars for themselves and decide to sell them. I don't buy cars from people who want to make a profit from an auction-purchased car. Also, when I buy a car I don't ONLY look at the car! I look at the people/owners... shady people, pushy, greedy, aggressive salesperson types of people are not on my list to make a deal. I do not buy their cars! I know, unfortunately, dealers will not go away. I said I do not care if they all were to shut down.
I hope this explanation will help you understand my way of purchasing cars 😁
@Ike must be lonely at home to have this much time to type lmao, I was just saying the dealers will never go away cause everyone is themselves a dealer at the end of the day when trying to get rid of the car, like a catch 22, any individual selling a car is trying to make a profit if not they would've taken the dealership offer lol
"where do you see your company in 5 years"
Response: "hey I just want to survive the next 5 days" energy lol
In an age of marketplace platforms and cutting out the middleman, it amazes me that Carvana managed to attract that many investors.
Stupid is as stupid does.
I bought my car from Carvana about a year ago after I had a accident hitting a deer and totalling my other car. I needed a car quickly and nobody else had the civic I was looking for. Bought my car from them and have not had a problem ever since...much easier and better than a dealership fir me. A lot of the problems with them seem to come from people with bad credit...I have excellent credit and had no problems setting up financing and making payments..it was a smooth transaction and I love Carvana...
Never used them but have heard enough negative or mixed reviews that I won’t be using them. I am grateful that they’re challenging the traditional brick and mortar type experience because that has got to change.
I had mine appraised in 5 minutes online. Lady came over 2 days later, drove it around the block like 45 seconds, handed me a check for 10k and took the car an hour later. It was such a weird experience.
I’ve been covering this from 2 years ago…this is probably gonna go down as one of the greatest car scandals in history. Still a lot to uncover.
How is it a scandal?
how is this a scandal?
How is it a scandal?
@@kylen6430 The guy who founded Carvana, founded DriveTime. There were some background shenanigans he was doing, and they were never profitable with the exception of one quarter. Many customers overpaid for cars, without ever receiving titles and had to file multiple lawsuits against them. It'll come out later.
@@BrkDownMedia Yep; Ernest García II and his son.
I had a good experience with Carvana. Being a single woman going into a traditional dealership was intimidating to me, so being able to buy my car online was awesome. I just don't like the financing company they used, Bridgecrest
Sold my camaro to carvana in November of 2022. They easily gave me 4k more than any other place. I just wish they sold new cars as well
I got an onmost new car. An 2020 Kia with 7k miles. The car was an year old when I got it.
They paid msrp for my used 2021 in December of that year. One of the few times to be able to make a profit on a used car as a consumer.
I had a great experience with Carvana with no issues at all with the vehicle I purchased or the process, and I would buy from them again, if needed. I do hope everything works out for them.
They are on borrowed time. The two vending machines around where I live have been torn down. The brand cannot sustain itself because of how loopy their inventory and acquisition is managed. How can you make money when you overpay for something and sell it cheap? That's the experience several people have mentioned in the comments. They said it was insane what Carvana was paying for their cars just to fill inventory quotas. And the constant comments about dodgy inspections, lack of proper registration, paperwork, etc. are what drove me away from the vending machines in the first place. I'm not going to waste more money paying for all of those necessary inspections when Carvana should have done it themselves. Every physical used car dealer USUALLY inspects and fixes up their inventory prior to selling. I can't trust Carvana to do that every time despite their refund claims. The brand will not survive, their stock is worthless and their vending machines are impossible to find.
As a mechanic seeing the way they buy cars , and the way they sell cars without being mechanically inspected ,as well as not having a dealership to take your car to for problems you encounter , it astounds me that anyone would buy anything from them .... Ever .
You described my fears and why I avoided them. It makes no sense how their business model was put together. There was no PHYSICAL support network in the form of dealers to support the cars such as a place to get them fixed under warranty. I just don't understand how they thought this model would sustain itself.
I always finance through my credit union, even if I'm ready to pay cash. Here's why: The credit union issues a conditional draft to the dealer. The draft essentially says, "Deliver the proper and clean title to the vehicle and then we'll give you the amount of money on the draft." So they don't get paid until a good title is produced. I'll make payments for 6 months so the credit union gets some return on the deal, then pay it off and get my cleared title.
Hopefully carvana crashing means private party used sales will actually get back to reasonable prices.
Until then, I'll happily keep driving my $1,000 89 honda civic and getting 35mpg!
Save up some cash car prices are going to crash in the next 12-18 months.
Lol I drive a 2016 Prius I got used for 10k the thing gets 60mpg and I have made thousands of dollars in gig work with it. Be smart and stay modest in life and you will go far.
Same here, I’ll keep driving my ‘07 Crown Vic Police Interceptor I got for 3K over the summer from a small dealership
I’ve been driving my 1996 impala I bought 8 years ago for 2k n im legit going to drive it till the frame snaps cuz these prices in new england for used cars don’t make any sense at all.
@@chevyhead7274 I’m from MA over here, I got lucky with my vic. The prices here are insane
I'll say just this: I will NEVER, EVER, EVER set foot in a regular auto dealership (i.e. criminal enterprise), to be subjected to their humiliating and deceptive "haggling" game. That's based on personal experience as a dealership employee.
I just cant buy a used car without inspection, and a test drive. There are so much that can go wrong.
you literally have 7 days to try it before u buy lol.
No kidding.
It is such a pleasure not to own a car anymore! Sold it in 2017 back to the dealer and never looked back.
I just got a car from there. Had a great experience! They did the registration on time too!
They purchased an SUV from us earlier this year for much more than local dealerships were offering. The Chevy finance manager said he sold his cars to them because they offered so much more. Wild!
So it is like Zillow when it was overvalued the housing stocks across the board, and caused its own stock crumbled. This type of artificial algorithm based technology businesses are disrupting the true market value out there. For some small towns or cities where lacked of skilled or talented workers in the government jobs, they are simply took the zillow to price their local housing property tax assessments, and they are over assessed. These type companies should be sued, and dismantled for disrupting the real market.
I think the video also attributed some macro elements like a temporary supply chain chokehold on new supply, therefore demand also drove up prices.
@@andrewheng5176 you have no clue!
@@drewh3224
AI has limitations. We should have learned that from Credit Default Swaps, if not earlier. But then you're taking things too far in the rest of your comment.
Bought my car with caravan in 2019. Best car buying your experience of my life. Great car no hassle no problems besides waiting an extra day for delivery. I hate that so much has changed. I would’ve bought with them again.
Everybody who needed to make their money already did, especially during the IPO period.
I bought a car from Carvana in March 2022, and didn't get the hard tags until October 2022.
I'm still just so confused why it took them 7 months to deliver me the tag for it.
Dude said "FIVE YEARS 😳😳?! BISH, I don't see myself coming to work tomorrow!"
I just sold my car for $32k, dealerships were offering me $22k!!! My car was basically new only had 9k miles and 2021 at that. I think big corporations/ dealers and car dealership salespeople are mad carvana came in the picture!!
Caravan was one of the reasons why car values went up. They caused it to do that. The main problem I think they had was they couldn't catch up to the demand. I work in the car business. I can tell you around 2021 before car values went up crazy, Carvana were bidding everyone at auction, they were buying crazy when no dealer could over bid them, They made tons of money on those cars, but they were too confident with paying high for trade ins as well. If they had organized their team better and expected the business to shoot up like that. They would be doing much better now, especially after buying ADESA. They can sell all their trade ins there as is, avoiding all the inspection process. They got greedy.
Their business model wasn't sustainable: buy high and sell low. You'll lose the shirt off your back. There are tons of comments on this page about Carvana paying hilariously over what the car was worth just to stock their inventory to meet demand that was never going to stay high.
Classic case of greed, they bought too many cars and wanted to sell them at high prices, and now they can't afford to do that anymore. I don't feel sorry for any company that participates in price gouging and screwing over the public.
I bought a car from Carvana before they went public and had a real good experience. Shame they went downhill
Same here!
they are majorly lowballing now...is this normal? their offer was insulting to me
Why would anyone buy a car unseen ?
@@JohnSmith-dk7th they offered 7 day trial. Don't like it for any reason they would've picked it up and money back
Timesplitters 2 sound effect around :30 seconds. When someone catches on fire lol
There is no room for negotiation in carvana. The used cars are often priced more than new cars in the market.
Knew they were in trouble when reports came saying they were buying cars sight unseen because used car prices to the moon!
Things have gotten so bad for Ernie Garcia III, founder of Carvana Co., that his share of wealth lost this year is second only to Sam Bankman-Fried.
The fortune of Garcia III has tumbled by $6.7 billion this year to $119 million, according to the Bloomberg Billionaires Index. It tumbled $87 million, or 42%, on Wednesday alone as shares of the Arizona-based online car seller plummeted after its largest creditors signed a deal to act together in potential debt-restructuring negotiations.
Here's what I know about Carvana: Their prices are NOT low...... in fact, they're considerably higher than the cars are worth. The cars are rarely exactly as they were represented to be..... in some cases a completely different car than was bought. They DON'T deliver "from coast to coast" unless you live in a city with a million or more population. The cars are NOT delivered on time...... and once you've paid, they make themselves very difficult to contact. So as it turns out, they're nothing like they advertise themselves to be. I can't imagine having to deal with them..... especially if you want to return a car.
The stock might drop a little more but this company will survive and they will come out much leaner and better. They changed the used car industry for the better. By the way, CNBC titling this "The Rise and Fall" like it already failed is stupid, there's a lot more for this company to do
It'll go from used cars to used EV as the EV will cause a new headache that people are buying and dumping. Nobody want to buy a broken EV. ICE are mainly metal and not acids. We have no plan how to handle waste and recycle EV's , a Finnish EV owned exploded his EV into pieces as replacing the battery costed more than the car.
It’s over
I would say they have fallen. However, they could still rise again. Just because a company falls on hard times doesn't mean it's permanent.
@Ramez Wissa
If I knew you were correct, I'd buy a bunch of their stock (currently trading at $4.04). But while some believe as you do, others are convinced that they're toast. What do I know? They _do_ have a bunch of cash, so that helps.
Sounds like you are a stockholder. Good luck!!!
I bought a Tesla Model 3 from Carvana. I went 433 days without registration. The company is wildly incapable.
Give me a break, Carvana was in it to try and make money be getting borrowers to purchase vehicles through their financing. Carvana was overpaying for vehicles not inspecting those vehicles and then trying to sell those uninspected vehicles to the public. I attempted to purchase two vehicles from Carvana, neither vehicle was as described on their listing. Both vehicles had electrical issues and one had a crack in the front fender. I would advise anyone to stay far away from Carvana.
would you recommend people sell their car to carvana or shift?
@@baldeagle4710 Sell to carvana but don't buy from them
Yeah, there's an old saying. Behind a great fortune there is a great crime. Cars are kind of a scam. A car is a depreciating asset. Real estate always gains value due to inflation. If you take out any loan on a car, the loan will be more than the car is worth. Inflation makes it less valuable.
Real estate also gains value due to scarcity. The US population since 1900 has increased from 70 to 370 million. But available land to house those people has remained the same. That creates scarcity
I got my 2018 Chevy Cruz from Carvana in March of 2020, had less then 8k miles and I got a great deal. I’m 2 years from paying it off with 0 issues. Now that I’m seeing these stats it looks like I got lucky and purchased in the best possible time, prices were low and stock of used cars was high, right before things went south.
I stalked their website for about a month before I made the purchase. Literally checked dozens of cars/deals daily until I found my car. It was a noticeably good deal. This is how I recommend anyone else do it. Don’t wait until your desperate and go look to make a purchase that week, you’ll get drug across the coals, it takes time to find a good deal that your interested in.
I've heard a lot of bad things about Carvana's business practices. Customers not receiving the titles on cars being one of them. I guess it's similar to putting money in a vending machine for a candy bar and it doesn't come out.
So surprised to see bad reviews or experiences with Carvana, my family and myself bought 2 cars through them and had nothing but a great experience. Friends of ours that used it also had nothing but good things to say as well.
They are crashing for sure. I recently bought a 2002 Honda Odyssey with only 116k this year. Was in mint condition and got a deal from my coworker for 4k. I listed on Carvana for fun to see how much I will get it for. They offered me $100.00.
U folks at CNBC do a great job on these auto-related “series” stories - topical and informative. Please produce more.
yep echo what others already have said, when we sold both of our cars to Carvana last/this year there was no serious inspection whatsoever when they came picking up the cars. We took care of our cars but i can image it goes horribly wrong with the wrong kind of sellers
this is a lesson for all businesses. don’t overleverage and be careful and calculated as you can with risks. the gold doesn’t last forever
If you want to buy a used car, get it from a person, not a dealer
There more risks involved with buying directly from another person than through a dealer. It could be a trap by criminals.
@@guardianoffire8814 Do research, meet in a public place, bring someone with you, most people I meet are decent people & had no safety issues
That's a gray area. And there is always a risk of something going wrong with a used vehicle, no matter who you buy it from.
What or where do private parties provide warranties to eliminate risk? They don't!
@@oleradiodudea.m.4735 You trust a used car salesman? The only reason you talk to one is if you know him personally for many years & trust him
my youngest bought a car from them. It was literally the worst customer experience I think I've ever seen. I would never deal with them again nor would I recommend them to anyone I know.
I use to work at the inspection center in Haines city Florida. I really hope this company burns to the ground. Awful management and even worse reconditioning team. Would be glad to see the look on their faces when they get that termination letter
I worked as a T3 in PDI, Winder, GA. It was fascinating to see the greed and lack of respect for the customer and the employee the company shows behind the scenes. Burn to the ground!
Location is critical. I bought 3 cars from Carvana. I still have all 3 cars and they run great. No rust and only 1 needed new tires. I have had no issues getting the titles either, not one! Everything was nice and smooth.
Carvana was a great place to sell your used car and make a decent buck in the process, but buying an overpriced vehicle from them and having to deal with a PITA registration process is simply not worth it. How can they not even handle the basics of providing the car title or registration to the new buyer? There's a class action lawsuit open against Carvana for a reason.
Damn, imagine being sued by your customers because you're too lazy to do what everyone else in the car business KNOWS is necessary. Carvana's management make no sense. Plus how the freak can you even survive if you buy a car for too much and resell it for cheap?
I worked at a software company that was looking to integrate our reconditioning tools into their ecosystem back in 2019. They hired anyone to check boxes with pen/paper for their safety and reconditioning process using both on/off-site vendors. Chaos. Their DMV process for title transfers was set-up for negligence. Why were titles not being transferred?? - Simple. They weren't paying off existing liens to roll the money for more units, operations and false reserves.
I've bought a car from Carvana and I was extremely happy with the entire process. I've noticed one thing that the company has never seem to have corrected on their site. I have actually complained to them and still, this happens. That's pictures of the interior of the car you're interested in. Specifically, the manual transmission cars! I only want to drive manuals so when I click on "more filters," "transmissions," and "manual," I get cars with that preference. Yet, every photo I look at shows an automatic transmission (shifter). That's very deceptive and all photos are supposed to show the actual interior of the car you're potentially buying (unless it states stock photo). They are basically showing you a different car!
Bait and switch.
I've bought 2 cars from them and did not have that experience. All the pictures were of the car i bought
Imagine trying to buy a used car without seeing, touching, smelling, or driving it first. They also don't let you get it looked at by an independent mechanic before buying. Buying a used car from Carvana is about as dumb as buying a house without an inspection.
They sold a stolen rental car! If you think a company that can screw up at that level can "get better" you deserve to lose all your money!
Anything you can buy "sight unseen" is never bound to end well.
Showing Jim Cramer being exited about carvana is as relevant as showing a coked up chipmunk.
Do the opposite of what he says.
There is literally an ETF now that does just that. SJIM and LJIM.
@@flyingdaytrader
Really?? I was about to comment that there should be such an ETF! I once saw a headline on my newsfeed, something about Cramer being bearish on some stock I never heard of. So I immediately bought some shares, and sold them a day or two later at a profit. No idea what the company does.
I intend to check out the ETFs you mentioned. It is amazing that anyone takes Cramer seriously, considering that he is so bad at his job. (Bear Sterns!)
@@flyingdaytrader
I just went onto Robinhood. They have neither SJIM or LJIM listed. Is there another name, or does RH not carry them for some reason?
I have an old issue of Car & Driver from ~2015 that had a blurb about a business that was taking the car-buying experience completely online. It talked about how revolutionary and disruptive to the industry this new business model would be. I went back recently and was reading through some old issues, and lo and behold, that business became Carvana. Who would have seen this coming 7 years ago?
Try to remember that at the time of publishing that video the share price was at $7, but now it is $87 and is highly expected to reach $100 😂
I’d like to see all those who pumped this stock up come out and share their thoughts now, where are they? This is why Buffett is as a great as he is… never jumps on an investment that could be deadly…
Whenever you see Jim Cramer promoting something, you know it is going to fail.
Sad.. they seemed to be a great company. I bought 2 cars from them.. great cars and hard to find cars that I couldn't get at a dealer. They had great selection as well for them.. I hope they can fix their issues. Titling issues weren't just their issue. Many dealers also had that problem as DMVs around were closed down. They were extremely friendly, and from a business aspect they treated me better than any real dealer I ever dealt with.
Starting early is the best way to move forward building wealth, investment remains a priority. The stock market has many opportunities to earn decent payouts, with the right skills and the right understanding of how the market works.
you are right the importance of multiple streams of income sadly having a job does not mean finances freedom or security
talk about having succeeded. I know I am blessed otherwise I would not have met someone as spectacular as Mr Alexander Griebsch
I've stuck through my investment with him, I'm so glad I invested when I did. I make $25,000 weekly with it
Investing is the fine line that separates the rich from the poor.
I totally agree with you on that,
@7:37 - Give me a break. I can see if there were isolated times where the title was late. But you keep hearing over and over and over again the number of people that are unable to obtain their title. Meanwhile, Carvana keeps issuing temporary plates, usually from a different state.
Took me 8-9 months to get mine
Yeah, class action law suits over titling issues is a pretty clear indication that title problems aren’t just “isolated.”
@@allenwiddows7631 I’m just waiting for them to file bankruptcy then I’m gonna get my truck for 1/3 of what I owe lol I’m just gonna offer a lowball cash offer
I would never pay these used car prices now, your better off just buying a new one
Realistically, if I bought a car from them recently and they end up going under, what could happen? I assume another lender takes over , but Rates changes or any recourse?
your loan is an asset that can be sold to the highest bider. Your contract should have details about any clauses that mention changes to your financial agreement, repo, and if they can request payment in full at anytime. if you have no contract they/you can do what ever they/you want and go to court.
Wishful thinking but I would love to see the day we don’t need dealerships or companies like this anymore. There is absolutely no reason we shouldn’t be able to buy directly from manufacturers. Just the thought of a car salesman becoming jobless puts a smile on my face.
used cars became expensive for customers in inflation is what happened
Our experience with Carvana was terrible. The delivery time was from 11am-2pm EST. 2pm passes, but we get no call, no notification, nothing. We call to follow up, and were told to wait another hour or so. Carvana would not give us a valid ETA on the late delivery. Calling this unprofessional and a lack of customer focus is an understatement. We would not recommend buying or selling a car from Carvana.
Lmfao, it was hilarious how much more Carvana was willing to pay trade-in versus dealerships, like alone NADA values. My old man went to go trade-in his wife's Q5, Audi offered like $18k, NADA was about $32k, and Carvana deadass gave him $43k. Same fair estimate of even private sales at the time of same/similar were close to NADA around $35-37k at best. Winning.
* father
Be respectful
@@jimwerther -- Did you just try and tell me what to call my Pops?
@@jimwerther -- The old man since passed, we had a relationship where I could rib him as he would me, so how about _YOU_ have some GD respect and mind your own business?
not now though they majorly lowballed me
@@j.ballsdeep420
Refer to, not call, but yes. "Old man" is disrespectful.
ryans eyes are insanely close to each other a true reptile in the flesh
I bought two cars from Carvana. It was a wonderful experience. They are prompt in repairs, deliveries and warranty. Sad to see them in this situation.
In 2021 I sold my condo to Zillow, and my car to Carvana. Zillow paid 40K over the market price, and Carvana paid me what I had bought the car for 3 years earlier. The lesson is: when a buyer offers a ridiculously good price.....SELL.
Carvana prices are nuts, its cheaper to walk into a dealership and talk to real people. I got my new Maverick online from a Ford dealership and had a great easy experience, there's a reason brands have dealerships and Ford is doing a great job adjusting to the times
The problem is that the stock market is no longer about investment, its about speculation and instant $$ like a casino or sports bet. Stocks today don't correlate with the company performance or earnings reports. For the most part its all speculation about the future release of a product or how the company *could* change the world.
Now you know why interests have an impact. It's all a lie. Stocks are debts. The company make loans to make them look better. They have become China and the central bank owns them.
"You just fired us in a zoom meeting and said 'have a good day' at the end," one Twitter user posted. "I am so disgusted by how this was handled."
Another user posted that an email preceding the Zoom call had caused "mass hysteria at 7:30 a.m." because it didn't indicate who would be affected by the layoff.