At these extreme prices, I wouldn’t be surprised if many of these Carvana buyers are exporting the vehicles. Have you ever tried to buy a Tesla in Russia??
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Until you dig into the financials…
- spent 1.1B in cash on Operations just in 2021
- spent 3x this quarter what they spent last quarter for cars
- vehicle inventory is up from 1.4B to 1.9B
Always dig below the headline:
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While I totally agree with you, those statistics you posted aren’t much better than just looking at top line #’s. Full disclosure I’ve never looked at any financials for Carvana, but these are the questions that come to mind….
- spent 1.1B in cash on Operations just in 2021
What should it have been? Is that good or bad? Was there just a big one time hit? - spent 3x this quarter what they spent last quarter for cars
Did GM % go up or down? EBITDA % was up it looks like. Is COGS growing faster than top line? How much is making its way to earnings? - vehicle inventory is up from 1.4B to 1.9B
How do they value inventory on the BS? Could it be they have the same # of days, but it’s just worth more? How healthy is the BS overall? Do they capitalize any costs of reconditioning/selling?
My gut would tell me they’ll [shareholders] be left at least holding some of the bag when the dust settles.
Tell us you’re short CVNA without telling us you’re short CVNA.
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Sounds like every company and VC when it comes to “numbers” all overstated to favor themselves.
nothing new, wall street standards as usual.
Dug this out (still true)
But I’ve read through enough of their history and financials to know there is no way I would take either side of the bet with them, even if it meant some karma payback for DriveTime (whose next Board Meeting needs to take place in the vacuum of space where they belong).
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I think it will be a while before prices come down
We are in August now, with no light in sight.
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The article didn’t say it would be over in a couple of weeks. It said commitments have been made which means the end is in sight.
End in sight still likely means not back to normal for 12-18 months. Assuming no other setbacks between now and then, of course.
Delta Economy Plus would like a word.
Peak insanity. I was chatting with a guy at my son’s baseball game last week. He had a gorgeous Black/Black V60 Polestar. Says he got it at the end of March. The crazy part is what he sold to Carvana. In 2017 he bought a 2015 CPO Volvo XC60. 3 weeks later, his wife gets T-Boned. The Volvo does it’s job and there is $22K worth of damages. The insurance fixed the car and the guy figures he’d be stuck with it until the wheels fell off. When this V60 Polestar became available, just for kicks he started checking its value with the usual suspects (Vroom, Carvana, Carmax, Local dealers). He fully disclosed the damage and the dollar amount of the damage. Vroom & Carvana both offered him $11K. He puts the info into Carmax. They offer him $20K. He literally dropped what he was doing at work and drove up to the Carmax in East Haven, CT. Was there for about 2 hours, then took and Uber home.
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There is a huge availability issue. I have been trying to get a new Highlander for over a week. I made a mediocre deal on 7/29 and the dealer called the next day to say they could not locate the car they thought they had. Were supposed to get me something this past week. Spoke to them to today and getting my deposit back because there is nothing for the next 6 weeks at least coming. Went shopping last night, there are no Toyota Highlanders available. There are no Nissan Pathfinders. The supply of MDXs and Pilots is pretty limited, with some expected mid month, many of which have already been sold. One place had one Highlander and the kid working without consulting his boss told me $5000 over MSRP. I laughed as I was walking out but I still have a car. Meanwhile Vroom offered $5800 over the buyout price for my 2018 Highlander that I lease
Nonsense. We all know it is the covid vax. Covid vax makes you FOMO.
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Ah! 'Splains your Tik Tok addiction. Rona Strikes Back, Return of the Medi, from the SARS Wars Trilogy.
Interesting. Availability by me in Northern Virginia is tight but there are cars on lots. The smallish Toyota dealership by me has 4 highlanders and 9 highlander hybrids. CarGurus says there are 100+ models within 25 miles and I confirmed some of them are actually available on lots. Similar with Acura dealership. Stock is low but MDXs are available. Of course, this doesn’t mean you can get the color/trim combo you want and I’m sure everyone is charging at or over MSRP for these crossovers.
Anecdotally I would guess that DC area may be a bit slower (relatively speaking) of an auto market since the biggest employer, the federal government, is still remote and it doesn’t look like that’s changing before labor day.
What region of the country are you in? Have you contacted any brokers here to see if they have a new Highlander that will fit your needs & budget? When is the lease up on your Highlander? Have you considered extending your lease 6 months?
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First world problems, eh ?
Metro NY area. Not a lot of Toyota brokers. Called the leasing people in Brooklyn I normally call to get an idea of price and availability and it was a joke. Wanted over $500 for a Highlander lease. For some reason except for one guy on here, the NE does not have a lot of Toyota brokers. Looked at what he had and he says inventory is slim and coming in slowly, if I do not resolve something by the end of tomorrow will have to extend my lease so I have a car that is not under warranty that already had one recent warranty repair