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I had 3 cars for last five years, decided one night to see what I could get for one of them online. Carvana picked it up two days later from my driveway.
$20,000 for a 7 year old VW GTI with 72k miles. Excellent shape, but damn.
I had 3 cars because when I tried to upgrade the GTI in 2017 (then 2 years old with 33k miles) for a new VW Toureq, it was only worth $13k because nobody bought used cars anymore, thanks to subprime lending in the automotive world at that time. So, 5 years later and nearly 40k more miles, it was worth $7k more?
Aren't their cars already on the used car market? How does someone else buying their cars and trying to sell them change the supply of used car inventory? No cars are being created or destroyed, just a change in the name of who is selling them.
If the cars are sold at auction, they will be priced to sell quickly, temporarily increasing supply. But a quick estimate suggests that the effective increase in supply is still only about 0.0005 cars per licensed driver nationwide. So not much.
If the cars are sold at auction, they will be priced to sell quickly, temporarily increasing supply. But a quick estimate suggests that the effective increase in supply is still only about 0.0005 cars per licensed driver nationwide. So not much.
You have to only compare it to the amount of vehicles currently for sale. When they flood the market via Manhiem auctions with 10k Camry’s…the price of Camry’s will drop in value. It costs dealers a lot of money each month to have one vehicle for sale. I posted a video from a car dealer owner who breaks down each cost to put a vehicle on the lot, it goes up each month it sits.
If the cars are sold at auction, they will be priced to sell quickly, temporarily increasing supply. But a quick estimate suggests that the effective increase in supply is still only about 0.0005 cars per licensed driver nationwide. So not much.
Those cars were previously on the market already. Going into bankruptcy would take them off the market for the transition, temporarily decreasing supply. Putting them back on the market is simply restoring the previous supply. We're not talking about a rental car dump where the cars were not previously on the market. The average supply overall will not be affected by Carvana bankruptcy. If anything it will be decreased as some of the cars will be scrapped. Dealers can destroy autos but cannot create autos.
You're thinking 2020, last year was fine. Few cars were being sold in 2020. And if that was the reason then ALL dealerships would have been having the same problem.
Exactly! Carvana's issue isn't with DMVs, it appears to be with their own inability to process required paperwork. It sounds like (based on what states that have suspended their sales ability are saying) Carvana is in a nice neat box as far as DMV processing is concerned and anything that is not within that nice neat computerized box is beyond their staffs ability to handle. When anything cases a bump, that particular sale's DMV processing is thrown into a corner in hopes it disappears. Worst is when they try to appease the customer, they do it in ways that violate the law.
Quote:
Originally Posted by oceangaia
TIf anything it will be decreased as some of the cars will be scrapped. Dealers can destroy autos but cannot create autos.
That is actually a consideration. The value of the vehicle whole is not as much as the vehicle in pieces. Carvana can always part out vehicles with high parts demand. Who knows, Carvana's vending machines may soon be dispensing door panels, powertrains, headlight assemblies, fenders, etc.
You're thinking 2020, last year was fine. Few cars were being sold in 2020. And if that was the reason then ALL dealerships would have been having the same problem.
Other dealerships may not sell out-of-state cars.
When I asked a dealership seller in Arizona if he could register my new car in California, he immediately refused. He sent the papers to Arizona DMV. Then, Arizona DMV was supposed to send a new title to me, but it didn't because the address was incorrect.
When I asked a dealership seller in Arizona if he could register my new car in California, he immediately refused. He sent the papers to Arizona DMV. Then, Arizona DMV was supposed to send a new title to me, but it didn't because the address was incorrect.
Autonation and Carmax are nationwide dealers. When I was looking for a truck last year, I didn't like the trim levels and features prevalent in our region so I started checking with various out of state dealers and all of them (Utah, Indiana, and others) said no problem selling and registering in Texas. Besides, that doesn't negate what I said. Carvana's title issues are not confined to particular states and if a given state is closed/slow to process titles for Carvana it would be closed/slow for all dealers in that state.
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