I have had two great experiences selling vehicles to them. My truck was absolutely mint so whoever bought it (at a premium) got an excellent vehicle. The Equinox had ~75k on it. Paying a premium for something with 75k on it is hard to justify. We bought it new and kept up on all maintenance so it was still a nice vehicle but they could have easily gotten burned by it.
It's kind of a strange model. Who are the people trading in their vehicles? Generally people with decent cars and are going to buy a new one. They are not going to trade their current vehicle for a Carvana vehicle as it doesn't make financial sense.
Okay, the next tier of buyers fall into Carvana targets. Those with higher mileage vehicles looking to move onto something newer. Who is going to buy all the 100k+ miles POS that these people are driving? Carvana can't because it's just too much of a headache. These people still have to sell a vehicle the traditional way and then buy one at a premium which doesn't make any sense. It's still a headache and you end up getting bent.
It's like they need two businesses: Carvana Premium and Carvana Lite. One deals with the low mileage group and the other is more of a traditional used car/buy at your own risk lot.
Edit: They did buy that car auction for quite a bit. I don't remember the exact price but I believe it was 1.5-2billion. Perhaps they are leaning toward that route?
It's kind of a strange model. Who are the people trading in their vehicles? Generally people with decent cars and are going to buy a new one. They are not going to trade their current vehicle for a Carvana vehicle as it doesn't make financial sense.
Okay, the next tier of buyers fall into Carvana targets. Those with higher mileage vehicles looking to move onto something newer. Who is going to buy all the 100k+ miles POS that these people are driving? Carvana can't because it's just too much of a headache. These people still have to sell a vehicle the traditional way and then buy one at a premium which doesn't make any sense. It's still a headache and you end up getting bent.
It's like they need two businesses: Carvana Premium and Carvana Lite. One deals with the low mileage group and the other is more of a traditional used car/buy at your own risk lot.
Edit: They did buy that car auction for quite a bit. I don't remember the exact price but I believe it was 1.5-2billion. Perhaps they are leaning toward that route?
