Go | New | Find | Notify | Tools | Reply |
Victim of Life's Circumstances |
Ouch - Guess cars really don't come out of vending machines. https://www.cnbc.com/2022/11/0...-vehicle-market.html FTA: Shares of Carvana posted their worst day on record Friday after the company missed Wall Street’s top- and bottom-line expectations for the third quarter as the outlook for used cars falls from record demand, pricing and profits during the coronavirus pandemic. The stock cratered 39% to end the day at $8.76 a share — slightly higher than its worst-ever closing price of $8.72 a share from May 2017. Shares of the online used car retailer have plummeted by 96% this year, after hitting an all-time intraday high of $376.83 per share on Aug. 10, 2021 The stock’s all-time low of $8.14 a share occurred less than a week after it started trading publicly on April 28, 2017. Carvana’s previous worst day of trading was a 26.4% decline on March 18, 2020. Morgan Stanley on Friday pulled its rating and price target on Carvana. Analyst Adam Jonas cited deterioration in the used car market and a volatile funding environment for the change. “While the company is continuing to pursue cost cutting actions, we believe a deterioration in the used car market combined with a volatile interest rate/funding environment (bonds trading at 20% yield) add material risk to the outlook, contributing to a wide range of outcomes (positive and negative),” he wrote in a note to investors Friday... ________________________ God spelled backwards is dog | ||
|
Member |
Guess it is time to cover my shorts. | |||
|
Drill Here, Drill Now |
YAA broke this on YouTube on Oct 21st. Great news if you're a cash buyer in the market for a used car (i.e. used car wholesale prices rapidly decreasing), but not that great if you're financing (i.e. the Fed rate changes every other month are causing financing costs to increase). What the article leaves out is that: Here is an example of a YAA video on the used car market crashing (i.e. one of many on their channel): Ego is the anesthesia that deadens the pain of stupidity DISCLAIMER: These are the author's own personal views and do not represent the views of the author's employer. | |||
|
Member |
We got caught in this one. Wife's Flex needed replacing. Financed with the same credit union I used for car purchases in 2016 & 2018 at 1.99 & 2.9% respectively. Today's market, a hair over 5% Luckily, the Flex was a good trade & we had a chunk of cash down. The Enemy's gate is down. | |||
|
Get my pies outta the oven! |
I’ll bet you it has a lot to do with the fact that used cars are wildly overpriced and now the interest rates on them are approaching 10% | |||
|
Member |
That's one of the reasons I'm in no hurry to replace my 2012 Malibu. My wife's Flex needed replacing, mine runs fine. Rather not have 2 car notes, less 2 at >5%. The Enemy's gate is down. | |||
|
Washing machine whisperer |
I'm casually looking for a replacement for my 2010 F150. I was surprised to see yesterday that a 2021 model was at a price a 4 year old one was 3 months ago. I'm in no hurry to buy and it looks like prices are about to get a bunch more favorable __________________________ Writing the next chapter that I've been looking forward to. | |||
|
Member |
I had a 2016 XLT, sticker was $48k Priced the same truck as a 2021 & it's was $57k Cloth seats, 2wd, smaller ecoboost engine but it was the top trim XLT with the Sport pkg. The Enemy's gate is down. | |||
|
Fighting the good fight |
It's not just due to the used car market. Carvana has been a dumpster fire for quite some time. They've earned a reputation for terrible customer service and outright fraud, and therefore their business has been suffering for a while. It got to the point where various states pulled their car dealer licenses due to excessive complaints, plus a tsunami of lawsuits (several class-action), and a number of attorney general investigations and resulting fines. Couple all that with them piling on debt like it's going out of style, and the overall shakiness of the used car market, and it's no wonder investors are running as fast as possible from Carvana. | |||
|
Drill Here, Drill Now |
Carmax had been known for many years as one of the best trade-in prices. Carvana surpassed them the last 2 years. Bad combo paying more than your competition for inventory and having a ton of inventory in a rapidly declining market. Ego is the anesthesia that deadens the pain of stupidity DISCLAIMER: These are the author's own personal views and do not represent the views of the author's employer. | |||
|
Member |
^ TX Direct Auto/Vroom gave me a very fair price for my Mercedes. Didn't try Carvana, but Vroom was better than Carmax. The Enemy's gate is down. | |||
|
Member |
Car market declining with raising rates. Also there are some very serious questions about the family that runs the company and alleged shenanigans going on there. | |||
|
Page late and a dollar short |
There’s a FB group, Carvana Reviews and Experiences that time and time again reports of titling and licensing problems, undisclosed damages and other problems. Maybe ok for some but I want to see what I’m buying before I sign on the line, I hate surprises. -------------------------------------—————— ————————--Ignorance is a powerful tool if applied at the right time, even, usually, surpassing knowledge(E.J.Potter, A.K.A. The Michigan Madman) | |||
|
Yew got a spider on yo head |
***feverishly knocking on wood*** Love my mazda. Given the abuse I've dished out and the mods I've done I think I would have discovered if I had a bad one by now. Carvana was not a flawless buying experience. It took them 4 months to get CO the title paperwork so I could plate it. They ate the temp tags tho. I do think I got a good price. Interesting business experiment. | |||
|
Member |
Carvana car vending machine? What a waste of money... | |||
|
Member |
Typical American bullshit. An expensive tower of cars. Style over substance. | |||
|
Member |
I know that cratered stock prices can be scary. But, a related stock, KMX, once was near delisting and is now fairly stable. Carvana, though, has done something stupid in my view. They have chosen in their very unusual brick-and-mortar establishment, to portray the second most expensive purchase I will ever make as if it is candy out of a machine. Equating a major purchase with a whimsical choice is misguided. Beyond the vending machine, they offer nothing unusual or preferential. CarMax just facilitated the sale and delivery of a very nice Tiguan to my mother in Ian-ravaged Fort Myers, direct to her door. Total transaction time was two days. Carvana can do nothing different, and can only match the experience. This moves the equity message from "we have a vending machine" to "we can be like CarMax." Not good retail. Add to this the morass of bad business practices, and I don't think Carvana will survive. ------- Trying to simplify my life... | |||
|
Member |
I'm confused. If the stock was at 376 in August why does that chart above my post show a high of 150ish in August? Which is right? Even calling it an intraday high, which I assume is the high between open and close, I find it hard to believe it spiked from 150 to 350 during a trading day or if it did what the actual fuck? | |||
|
Member |
Because it's a different company's stock. | |||
|
Shit don't mean shit |
| |||
|
Powered by Social Strata | Page 1 2 |
Please Wait. Your request is being processed... |