Carvana going bankrupt (rentals, vehicle, credit, seats)

[inquisitive2]

With carvana going bankrupt who will buy their excess inventory and will prices go down if this floods the used car market?

[somebodyfromnc]

They'll go to wholesale dealer auctions and be purchased by other dealerships.

Carvana currently has about 55,000 vehicles in its nationwide inventory. That's but a blip on the overall market.

[oceangaia]

Originally Posted by inquisitive2

With carvana going bankrupt who will buy their excess inventory and will prices go down if this floods the used car market?

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.

[mojo101]

if they file bankrutcy,the creditors own its inventory and it will be liquidated and proceeds used to pay creditors.

[Hemlock140]

I could never understand how anyone could buy a car without seeing it, test driving it, and comparing it to others. When the interest rates went up, it slowed sales, and the smaller subset of buyers that will purchase sight unseen is just not enough to pay the bills.

[SirDrums]

I was beginning to think I was old fashioned when wanting to see and test drive a car in person before signing anything.

Perhaps I am not that old fashioned... yet.

[formerlynorthofnowhere]

Originally Posted by somebodyfromnc

They'll go to wholesale dealer auctions and be purchased by other dealerships.

Carvana currently has about 55,000 vehicles in its nationwide inventory. That's but a blip on the overall market.

I think Manheim Orlando has that many on their grounds every week

[Paul E Wannacracker]

Originally Posted by Hemlock140

I could never understand how anyone could buy a car without seeing it, test driving it, and comparing it to others. When the interest rates went up, it slowed sales, and the smaller subset of buyers that will purchase sight unseen is just not enough to pay the bills.

I'm with you on that. There's only so much you can tell about a vehicle by researching it online. Are the seats comfortable? Is it easy to get in & out of? Are the controls well-placed and intuitive? All very much individual preferences, and not to be taken for granted.

[RocketDawg]

Originally Posted by SirDrums

I was beginning to think I was old fashioned when wanting to see and test drive a car in person before signing anything.

Perhaps I am not that old fashioned... yet.

I do that even with a new car.

[Malloric]

Originally Posted by Hemlock140

I could never understand how anyone could buy a car without seeing it, test driving it, and comparing it to others. When the interest rates went up, it slowed sales, and the smaller subset of buyers that will purchase sight unseen is just not enough to pay the bills.

Well, you have a 7-day test drive. One the one hand that's really convenient as it's hard to get a good feel for a car in 30 minutes. Where I'm able to I like to rent a car on Turo or whatnot for few days. Some traditional dealers likewise offer extended test drive rentals for customers. Tough business to do as there's a lot non-serious joy riders. Probably a good part of why Carvana's prices are so ridiculously high is how much the 7-day test drives cost them, although I do imagine after the second test drive they don't want to do business with you anymore.

That's kind of an in theory argument though for Carvana. Given their... issues... well, there's just companies that you'd have to be a fool to do business with. Carvana is one of them. As much as theoretically the 7-day test drives is great, not a company to do business with.