In this day and age, its crazy but I agree 100% with you.
Agree on the never purchasing from those types of dealers part. But they are great to comparison shop similar vehicles from different manufacturers at the same time.
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Funny, I thought the same thing and got turned off with these no haggle dealers.
But then very recently I have noticed a big automotive group: Auto Nation has been pricing their Porsche cars below that of other dealers. I guess they figured out no one will buy a fixed price car unless it’s competitive…
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It’s absolutely true and the premium paid by Carvana should continue for at least the next year. On the buy side you are also likely to get a better deal. The reason? It’s not technology (they like to pretend so) but rather they desperately need to sell vehicles. The losses are subsidized by investment dollars, and if you have a pulse there is a good chance you will be approved by those with insider connections fronting loans. Carvana loses tens of millions of dollars, but what they are really selling are shares of the company. They recognize each sale as “revenue” and by growing revenue, they can promote the stock to investors who don’t know any better. A single luxury corner car dealer can have astronomical “revenue” but they make very little profit, and personal vehicle ownership is not a growth industry. There is a lot of money to be made selling the stock, so lenders can also get in on the act, approving bad loans, etc. If they can keep growing the so-called revenue, the stock will rise until the market catches on to what is really going on. Imagine selling $10 bills for $8 and jumping up and down at how much “revenue” you make. That’s essentially what is going on and you, the customer, can benefit from these subsidies from unwitting (often naive) investors .
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Old thread revived