Stocks only do things - go up or go down.
Late last winter I would've guessed bankruptcy was in the cards cause of their high prices and the $3.55 stock price but they rebounded?
You never know with stocks......now about those Yellow Freight boys.....
I see their commercials and I think: "So, how to pay the highest priced possible for a used car you have never seen in person"
But, I guess people are obsessed with convenience (and know almost nothing about cars), so maybe it's doing good business?
In one of the commercials, where a lady has a black, used, BMW delivered, I am thinking: "You just don't make good choices in life, do you?
aircooled said:I see their commercials and I think: "So, how to pay the highest priced possible for a used car you have never seen in person"
But, I guess people are obsessed with convenience (and know almost nothing about cars), so maybe it's doing good business?
In one of the commercials, where a lady has a black, used, BMW delivered, I am thinking: "You just don't make good choices in life, do you?
Remember that just the fact that you're on here means that you know more about cars than 99% of people in the world, and likely have negotiated more car transactions than 99% of people as well. Sure, most of those were on $350 driveway art pieces, but still, you're comfortable in that world.
Most of those people don't know how to check oil. They'd never think to look up the maintenance history of a car. They don't know how to identify frame repair. They're not going to look in the wheel wells or pop the hood before buying a car anyway.
They go into every car transaction in life completely convinced they're going to get screwed by the dealer.
Carvana offers a reprieve from that. Sure, you may pay a higher price, but they know exactly what they're going to get as far as price/product goes. They're not missing anything they'd otherwise do. Most people would pay extra to not have to deal with a sales person at a dealership. I can definitely see the value.
These are the people that ask our advice and then promptly ignore it.
WonkoTheSane said:aircooled said:I see their commercials and I think: "So, how to pay the highest priced possible for a used car you have never seen in person"
But, I guess people are obsessed with convenience (and know almost nothing about cars), so maybe it's doing good business?
In one of the commercials, where a lady has a black, used, BMW delivered, I am thinking: "You just don't make good choices in life, do you?
Remember that just the fact that you're on here means that you know more about cars than 99% of people in the world, and likely have negotiated more car transactions than 99% of people as well. Sure, most of those were on $350 driveway art pieces, but still, you're comfortable in that world.
Most of those people don't know how to check oil. They'd never think to look up the maintenance history of a car. They don't know how to identify frame repair. They're not going to look in the wheel wells or pop the hood before buying a car anyway.
They go into every car transaction in life completely convinced they're going to get screwed by the dealer.
Carvana offers a reprieve from that. Sure, you may pay a higher price, but they know exactly what they're going to get as far as price/product goes. They're not missing anything they'd otherwise do. Most people would pay extra to not have to deal with a sales person at a dealership. I can definitely see the value.
These are the people that ask our advice and then promptly ignore it.
I'm in both groups. I know a ton about cars, and have driven and raced amazing jalopies in constant states of disrepair, and then done those repairs.
I bought the Bolt on Carvana and it's the very first place I will check if ever buying a moderately nice vehicle again.
Carvana is no longer as aggressive with buying cars, I priced out a couple cars to sell them and the dealer was offering a lot more and it was a straight buy not a trade-in. The Ubereats style of purchasing must be popular still, the last car I leased I committed without seeing it, it was replacing the same vehicle no design changes just different options, it was a excellent deal. You have to wonder if some of the dealerships should try doing something similar, asking a dealership to deliver/ship a car always seems like a big ask, even though in theory they should have relationships with shippers. I am also suprised that Carvana wasn't bought out by a dealership just to use as a shill company.
I probably know as much or more about cars than 99% of the population but I bought my TDI Touareg through Carvana and was very happy with everything about the purchase.
When I started looking, there wasn't a TDI Tourag or Cayenne within 500 miles of my home. Rather than pissing away money and time dealing with a long-distance fly-and-drive or having a car shipped in from some shady dealer or individual, Carvana dropped one off in front of my house and let me play with it for a week. At the end of the week, I could keep it or return it at no charge and order a different car. I will happily pay the extra price again when I buy my next nice car. My time is much more valuable than the little bit of premium they get. I call that money well spent and they are at the top of the list of places I search when looking at newer cars. Odds are very high my wife's next vehicle will come from there.
aircooled said:I see their commercials and I think: "So, how to pay the highest priced possible for a used car you have never seen in person"
But, I guess people are obsessed with convenience (and know almost nothing about cars), so maybe it's doing good business?
In one of the commercials, where a lady has a black, used, BMW delivered, I am thinking: "You just don't make good choices in life, do you?
Eh. I wouldn't call convenience an obsession, but time has value. And looking at used cars is possibly one of the worst time-sinks in existence.
I would certainly consider Carvana or similar (dealers offer similar services now) in the future.
Toyman! said:I probably know as much or more about cars than 99% of the population but I bought my TDI Touareg through Carvana and was very happy with everything about the purchase.
When I started looking, there wasn't a TDI Tourag or Cayenne within 500 miles of my home. Rather than pissing away money and time dealing with a long-distance fly-and-drive or having a car shipped in from some shady dealer or individual, Carvana dropped one off in front of my house and let me play with it for a week. At the end of the week, I could keep it or return it at no charge and order a different car. I will happily pay the extra price again when I buy my next nice car. My time is much more valuable than the little bit of premium they get. I call that money well spent and they are at the top of the list of places I search when looking at newer cars. Odds are very high my wife's next vehicle will come from there.
I hate everything about the dealership experience. I don't have the time for even one dealer visit, not to mention five to compare and contrast prices and stuff. It's hours sunk into each one. I'd pay for those hours.
Carvaan, for the car I wanted when I wanted it, was much cheaper than the advertised price at dealers. Could I have negotiated past the Carvana price at a dealer? Maybe. Screw that.
And that is why they are still in business. They are filling a need some people have.
aircooled said:
In one of the commercials, where a lady has a black, used, BMW delivered, I am thinking: "You just don't make good choices in life, do you?
My ex bought a peach of a 2010 328IX from them while no she absolutely does not make good choices the car has been a delight.
You know how used car salesmen have a reputation? You don't have to deal with the chance of that with Carvana. My wife told me that next time we are buying a car, she doesn't care if her name is on the title or not - she's going to be there for the test drive, and nothing else. She seriously hated the experience, and for good reason.
I'm amazed they surviving tbh. And I personally sold them some absolute piles since they don't check before buying.
The best way to come up with a new business is find something that people are pissed off about and fix it. Carvana does that with the car buying experience. Maybe not the exact business model I'd have created, but certainly not stupid.
The thing is that buying from dealers is just. awful. Like I swear they go out of their way to make the process as painful as possible. Especially if you're looking for a particular thing that isn't just sitting on a lot within a few miles of home. The carvana system isn't perfect but everything coming straight to your door and just signing a few papers in exchange for your vehicle is so much less painless than all the dealer BS. The price might be a bit high but at least they're clear and up front about it. And it is buying unseen but they're usually pretty good about resolving any issues they missed in their inspection. I almost bought from them last year after getting fed up with dealing with dealerships, if the prices get a little better I would absolutely buy from them in the future, out of spite if nothing else.
Just saw this news article. This might help them survive.
Carvana stock spikes 20% after co. announces debt restructure, quarterly results
I'd like to know how much those glass towers, with the huge hydraulic systems for the car display platforms, cost to build.
Then the cost to air condition that glass hot box...
jharry3 said:I'd like to know how much those glass towers, with the huge hydraulic systems for the car display platforms, cost to build.
Then the cost to air condition that glass hot box...
I'm ignorant on construction costs, but I know part of their strategy is land management. Intentionally small footprints help them plop down a Carvana in a well developed, urban area for relatively cheap. Granted, they can only store a dozen or so cars there. I've never been in one, but I doubt the glass box is air conditioned.
The way it ws looking I would have expected them to be long gone by now.
I think at this point most, if not all, the big used car dealers here are fixed price. There is no pressure, no sales guy, they give you the keys to anything you want to drive and if you want to buy then the sales guy does the paperwork. The only real douchey part comes when you're paying and the money people try to sell you warranties, and the nitrogen that's already in the tires.
So maybe that's why the dealers that tried the Carvana model up here went out of business.
calteg said:jharry3 said:I'd like to know how much those glass towers, with the huge hydraulic systems for the car display platforms, cost to build.
Then the cost to air condition that glass hot box...
I'm ignorant on construction costs, but I know part of their strategy is land management. Intentionally small footprints help them plop down a Carvana in a well developed, urban area for relatively cheap. Granted, they can only store a dozen or so cars there. I've never been in one, but I doubt the glass box is air conditioned.
I would have to imagine that it has some sort of climate control, otherwise they are storing vehicles in a weird greenhouse.
And yea having to interact with a dealer is the absolute worst. I reached out to a dealer last night regarding another Raptor and asked for the out-the-door price, their response: "Well you would have to come in for that." Nope, you just lost my business, if you can't even provide that to me, I'm not stepping foot in your dealership because I know the rest of the process is going to be painful as all hell.
I am reluctant to purchase anything off Carvana but I also am a sucker for any time saving. As other have stated, time is a valuable resource and dealerships have zero consideration for that. Plus you have to negotiate dealer fees, markups, and add-ons like "Pro-packs" that are quite literally worthless to a consumer.
I feel Carmax is almost the perfect inbetween. No haggle prices at a premium but you can inspect the car in person + a return policy. Just don't let them run a credit app for you and bring your own financing or cash.
DirtyBird222 said:calteg said:jharry3 said:I'd like to know how much those glass towers, with the huge hydraulic systems for the car display platforms, cost to build.
Then the cost to air condition that glass hot box...
I'm ignorant on construction costs, but I know part of their strategy is land management. Intentionally small footprints help them plop down a Carvana in a well developed, urban area for relatively cheap. Granted, they can only store a dozen or so cars there. I've never been in one, but I doubt the glass box is air conditioned.
I would have to imagine that it has some sort of climate control, otherwise they are storing vehicles in a weird greenhouse.
And yea having to interact with a dealer is the absolute worst. I reached out to a dealer last night regarding another Raptor and asked for the out-the-door price, their response: "Well you would have to come in for that." Nope, you just lost my business, if you can't even provide that to me, I'm not stepping foot in your dealership because I know the rest of the process is going to be painful as all hell.
I am reluctant to purchase anything off Carvana but I also am a sucker for any time saving. As other have stated, time is a valuable resource and dealerships have zero consideration for that. Plus you have to negotiate dealer fees, markups, and add-ons like "Pro-packs" that are quite literally worthless to a consumer.
I feel Carmax is almost the perfect inbetween. No haggle prices at a premium but you can inspect the car in person + a return policy. Just don't let them run a credit app for you and bring your own financing or cash.
I'll say it again, the dealer where I bought the new BRZ handily beat PenFed on rates, and they had the best rates I could find for my 820+ credit score.
In reply to Peabody :
You guys don't have the dealer lobby that we do.
z31maniac said:DirtyBird222 said:calteg said:jharry3 said:I'd like to know how much those glass towers, with the huge hydraulic systems for the car display platforms, cost to build.
Then the cost to air condition that glass hot box...
I'm ignorant on construction costs, but I know part of their strategy is land management. Intentionally small footprints help them plop down a Carvana in a well developed, urban area for relatively cheap. Granted, they can only store a dozen or so cars there. I've never been in one, but I doubt the glass box is air conditioned.
I would have to imagine that it has some sort of climate control, otherwise they are storing vehicles in a weird greenhouse.
And yea having to interact with a dealer is the absolute worst. I reached out to a dealer last night regarding another Raptor and asked for the out-the-door price, their response: "Well you would have to come in for that." Nope, you just lost my business, if you can't even provide that to me, I'm not stepping foot in your dealership because I know the rest of the process is going to be painful as all hell.
I am reluctant to purchase anything off Carvana but I also am a sucker for any time saving. As other have stated, time is a valuable resource and dealerships have zero consideration for that. Plus you have to negotiate dealer fees, markups, and add-ons like "Pro-packs" that are quite literally worthless to a consumer.
I feel Carmax is almost the perfect inbetween. No haggle prices at a premium but you can inspect the car in person + a return policy. Just don't let them run a credit app for you and bring your own financing or cash.
I'll say it again, the dealer where I bought the new BRZ handily beat PenFed on rates, and they had the best rates I could find for my 820+ credit score.
Most dealers get spifs from local lenders and banks in the area for using them as a financing arm. With that sometimes you can get a hell of a deal.
I say that about Carmax because they ran my credit app once through 15 different lenders and only gave me terrible options for rates with a 800+ credit score.
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