Went to go sell my 4xe and they declined to buy saying a new policy was recently been put into place. You can still get offers and such but once you submit paperwork, they will decline it! Wasted 4 hours of my life today lol
Apparently all brands are effected
Which brand Vehicle were you selling? Which bank?
Jeep so Chrysler cap
better for me. Might sell to vroom . All might follow.
USED CARS BOOM… lol.
About to lease a new car but I think I would wait for some time after this news.
They are stopping all brand buybacks
I guess it’s down to carmax and carvana now
@vhooloo Woof… there’s definitely something to that.
Vroom not going zoom zoom on Q2 report, Carvana performing better
Briefing.com, 1:25 PM Eastern 08/12/2021
“Vroom (VRM -18%) is not going zoom zoom today despite reporting modest upside with its latest earnings results last night. Vroom, which operates an online used car sales platform, is still pretty new on the scene; it made its IPO debut just over a year ago in June 2020. Unfortunately, it has not performed nearly as well as its main rival Carvana (CVNA), as was evidenced again with its Q2 earnings report.
Why is the stock trading lower despite the upside?
Vroom reported a loss - while a loss was expected, the quarter’s $0.01 EPS upside was much smaller than the earnings upside observed in Vroom’s recent quarters. The company is not known for big beats like Carvana is, but this underwhelmed even Vroom’s recent history. Revenue more than tripled yr/yr to $762 mln, surpassing expectations by a significant margin. However, a big revenue quarter was likely priced in following CVNA’s results last week. Also, CVNA blew away expectations by reporting revenue that was 35% above consensus. Vroom’s upside of 17%, despite a smaller base, is a letdown by comparison. We also think a key negative on the call was Vroom saying it believes the used car retail pricing environment “will likely provide less of a sales margin tailwind in Q3 than in Q2, as the market shows signs of normalizing.” The shortage of new cars available and people paying above sticker price has been a big tailwind for used car sales, so this was a disappointing and surprising comment from Vroom.
Our big picture thought on Vroom is that it’s no Carvana. We see Carvana as the gold standard in this space. Consider that Carvana announced several big milestones in its Q2 report last week. The biggest achievement was CVNA reporting its first-ever profitable quarter. CVNA also topped the $3 bln quarterly revenue marker and 100K+ retail units sold for the first time. We had doubts about whether consumers would embrace online car buying, but Carvana has proven skeptics wrong.
There was a lot of excitement around Vroom when it made its IPO last June, but its subsequent earnings reports were duds. The pandemic should have been the perfect tide lifting all boats scenario in this space, but Vroom has just not capitalized on once-in-a-lifetime conditions that forced consumers to shop online while chip shortages pressured the supply of new cars. Carvana is outperforming Vroom and is the clear leader in this space.“
Just ran into this over the weekend with Lexus. Dealership ended up matching offer and buying the car back.
Yeah, no idea how a company can continue to survive when 9 out of 10 of their Yelp reviews are one star reviews. Shockingly bad:
I can relate - selling our Volvo lease in January was one of the worse CS experiences we had - wish I kept a log of all phone calls / emails I sent - the trick is to go way up there and threaten with your “journalist” friends to go public lol.
Wouldn’t shock me if Vroom shuts down or possibly gets acquired by Carvana or Carmax. Their chances of survival on their own seem slim.
Interesting, so just leases? Are financed cars also affected? I bought out my lease 3 months ago with a bank of america loan and was going to attempt to sell to vroom in a few weeks. I guess if I have to go carmax I will, vroom was just beating all other offers by a lot.
wow those buyer reviews are out of this world. some of my customers who have scratches on a demo, but get an insane deal in this market should stop and read this stuff…
Financed cars are fine. No leases which makes no sense lol
It kind of does. Some banks won’t let a third party buy out a lease, others charge a different payoff. Buying out a lease is definitely more complicated than a loan. Not saying I agree with the decision just saying there is a distinction.
Makes perfect sense. All the lessors have been changing policies on 3rd party buy outs left and right. I’m sure they’ve been burned a bunch of times with committing to buy out a lease, only to be left holding the bag when policy changed. Probably isn’t worth the risk.
How are they left holding the bag. If the transactions would just never go through?
It might have gone through but then the pay off was $4k higher and vroom ultimately had to eat it. That’ll kill your margins.
