I thought about it as a theory, but that would require all manufacturers to agree to do this or risk losing market share to competitors, so I don’t really see that happening as a viable strategy for anyone.
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It hasn’t burst. Used car prices always pull back after June. People make their big car purchases ahead of the summer driving season, and then it starts to pull back until the fall when sales pick up again. This is normal.
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I think liquidity is simply exhausted. When you do this, you eventually run out of cash:
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We are in a totally different market environment, can’t compare normal years where the norm is that used car prices always pull back after June. This has never ever been seen before in history so to think this is the norm shall be taken with a simple grain of salt.
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I heard a GMTV commercial today where the owner urged to sell to them in August because he guaranteed that the prices will go down in September. Taking this with a grain of salt, obviously, but the guy knows what he’s doing.
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Colleges are slowly returning to in-class instruction…cars will still be needed at a time plants are idling. Sell to him now is loaded with self-interest.
That or the defaults are starting to roll in which will cause banks to stop writing paper on fugazi book values.
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Of course it is. Doesn’t mean it is not true, though.
It actually bursted in mid July
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Oddly enough, not the case with Tesla. Huge bubble forming there.
Anyone picking up some VRM on sale today???
I count a whopping 234 4Runners on Carvana’s site at the moment. Of course they serve a national market, but still, that’s a lot of inventory that they undoubtedly paid heavily inflated prices for, including my uncle’s 2018, which he sold to them in June per my suggestion for over its original MSRP. It has now been on the site for over a month, and has seen a $1k price drop so far.
Now imagine what happens when new 4Runners start showing up again on dealer lots in decent volume.
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~125-140K 4Runner’s are sold in the US each year. 234 popular Toyota SUVs in a 1-click national inventory sales base is a drop in the bucket
It all depends how good Carvana’s AI and systems integrate. In theory they could be in the best position of anyone for instant analysis of market prices, trends, clicks, purchase intent by make by model by year by trim by zip code. In addition to gauging seller interest by same categories and much much more. I would assume Carvana adusts prices instantaneously depending on buyer and seller data and trends.
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Purchase pending! Did Carvana finally find their sucker??
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just drive around and look at all of lots dealers are too greedy right now
The 2 dealers I drove by recently…looks like what a car dealership in North Korea might look like. Lol
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every single lot in my town is full what you looking for
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new cars none
While used car prices are rising most everywhere else, they’re dropping big time right here.
• Over 1400 Used Cars in Stock
• ALL Brands
• ALL Budgets
• ALL with No-Haggle Prices That Are Now Even Lower
Right where?
That sounds like an advertisement from somewhere like Carvana
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