Carvana
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Used-car retailer Carvana has taken a beating on Wall Street recently, including Monday when trading was halted due to a turbocharged number of shares trading hands.
By midday Monday, Carvana was trading around $7.50 per share—up from its morning low of around $7.10, but far from its Aug. 15, 2021, peak of more than $376. CNBC pointed out that shares were down by nearly 25 percent Monday morning, which prompted the trading timeout. Since last year, Carvana has had a bumpy ride: regulators have revoked licenses to operate in states such as Michigan and Pennsylvania due to delayed registrations, execs have reported lower-than-expected revenue, and a cooling economy has all influenced the slumping stock.
But there’s more. Spurned by low inventory and high prices, used car shoppers now have another reason to delay their purchase: rising borrowing costs. Last week, the Fed hiked interest rates again, which was the third rate increase in the past year and another attempt to cool inflation in the U.S. That’s made used cars that were already at record highs even less desirable to buyers whose spending power was effectively kneecapped by higher borrowing costs. -
Can anyone summarize what their model is?
You buy a used car online, sight-unseen. They deliver it to your home.
You can also sell your car to them.
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Laying off 1500 (8%):
https://www.thetruthaboutcars.com/cars/news-blog/carvana-takes-another-hit-44497639
The cuts, along with the closing of some locations and the elimination of some work shifts, are all meant to save costs. A source told Bloomberg that it's because of the "challenging economic environment".
The cuts will affect operations, technology, and corporate roles. Those who are let go will get separation/severance pay through at least the new year, plus three months of healthcare coverage and unvested equity awards via cash payments.
Based in Tempe, Arizona, Carvana is struggling with a cratering stock price and cash outflow. That's because after seeing a surge of success in 2021 as the lack of new-car supply drove used-car prices up, the market has shifted. Used-car prices are falling while inflation is rising and that has negatively impacted consumer demand for pre-owned vehicles.
As of Thursday, Carvana stock had plummeted 96 percent during the year. The stock is just under $7 as I type this. -
C300 Coupe. 2022 3,770 miles on odometer. Still under factory warranty.
Traded the Toyota Crown for it. Even up trade pretty much. Paid cash, and that is a first for me on a car of this caliber. Taking that $540 monthly I was paying on the Toyota and putting it into a Roth.
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If I may ask, what was the reason for the change? Wanted a smaller car?
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The Toyota Crown is very nice. For a Toyota. It misses the mark for me with too many bugs in the electronics and software. It's ride is compliant and smooth but a little too cushy and a little too loose feeling for my taste. It doesn't feel as confident in the handling department as I would prefer. It's increased height doesn't contribute to great handling characteristics. It doesn't "feel" like a Mercedes.
I gave it a try. It was a nice car but one that I knew I wasn't going to keep long-term. I lost a few dollars in depreciation but that is always the case when buying a new car.
I wanted to pay it off to stop the interest payout monthly, but I didn't want the car.
I just wanted to be back in a Benz. I have been driving them since I was 25 years old. I have had many models in various vintages. I just sold my 2005 S500 that served me well for 13+ years and 100k+ miles. We didn't need 3 cars. We still have a 2021 Subaru CrossTrek.
