CARVANA Just SHOCKED The Car Market - "Accounting Grift For The Ages"

[@scottlagasse3182]

Our economy has gone from a manufacturing, to a service and now our economy is a financial - debt driven economy. In my opinion.

[@JustherefortheLOLZ]

I think that’s established fact since Reagan implemented the Maquiladora strategy. I don’t know how much I blame him short term… but it turned us into a bunch of consuming debtors instead of producers.

[@davidbrayshaw3529]

@@JustherefortheLOLZ And then Bush's NAFTA, which just added more fuel to the dumpster fire. Clinton should never have followed convention and signed off on that trainwreck of a policy.

[@michaelvanhorn3271]

This is a complete currency collapse, looks. In my opinion Trump is being brought in to to deal with a "bankruptcy".

[@Bhatmann]

When you have Mexican truck drivers making deliveries into the U.S., it’s becoming an outsourcing economy. Or what I call a perverted economy.

[@johncam8420]

It's a consumer based economy. Yet, our interest rates and leaders act like we have a huge manufacturing base, our interest rates are at record highs ever since manufacturing left and people think things will be fine...interest rates will have to come down because car prices will crash and homes will see probably a 10-15% hit if not more.

[@olddude7401]

Sounds like Carvana was using "Enron" accounting methods !!!! LOL

[@williamosgood3565]

Debt parking and claiming the total profit from a loan as soon as the loan is written.

[@waynek805]

I knew it when they suddenly went from struggling financially with speculation that they were on the verge of going out of business to making big claimed profits. You knew it couldn't turn around that fast, especially as the car industry in general was going downhill at the same time.

[@TheGuruStud]

​​@@waynek805sounds like GM paying back their loans.... Yep, that never happened. GM lied. They did use tax payer money for 2.5 bil of it, though.

[@waynek805]

@@TheGuruStud Well if they didn't pay back loans to the government, then the government should have called them out on that 'lie'. Personally I don't think either they or Chrysler should have been 'bailed out' but should have been allowed to go out of business. Someone would have bought the physical assets out of bankruptcy and reconstituted the company on a sound financial footing without the UAW hanging around their necks. It was mostly a bailout of the unions - at that time a main Dem constituency.

[@dirteater63]

@@waynek805 I heard their CEO has a prior fraud conviction.

[@LegolasD]

if they're holding a lot of inventory that was bought at high prices, prices coming down absolutely hurt them

[@opa1004]

Literally sold my challenger last month to these fools. They definitely overpaid with what I see in this market. My girl picked me up and I was like let's get the hell outta here as soon they gave me the check, because they barely looked it over, lied bout smoking in it, some scratches and n dents.

[@williamwallace9427]

Wow. Shows some good integrity on your part.

[@Cokebutterrrcheeesee]

​@@williamwallace9427ha your telling someone on the internet about integrity.... you will probably never see this person in real life.... pray for em instead because this won't change their habits at the very least

[@peterhumphrys]

thank you for covering this situation and giving us your perspective on it.

[@halffast1850]

What sucks is when you work hard have good credit and want to treat yourself or need a new car or truck and they cost more than your years salary and I'm not talking about top trim with all the options just a regular truck or in my case a jeep and you see 50k plus and over 40k for a 2 door and can't even afford one. I could agree to 72 or 84 months and pay even more but still have $800 to 1k monthly payments. That's a mortgage payment. These prices have priced out I'm guessing around 75% of Americans. From what I Googled only 18% of Americans make over 6 figure incomes so who's the market that 18%??

[@charleneandrew1608]

no disrespect meant, but people agreeing to 72 and 84 month loans to be able to pay for autos is a big part of why prices have gone through the roof.

[@hawkinsjd11]

where is a mortgage payment $800?

[@halffast1850]

@hawkinsjd11 My mortgage payment is 835 a month with escrow

[@abcloft302]

Great assessment 👍

[@davidbeppler3032]

What if the car cost 50% less in fuel, and lasted 750k miles? Then is $50k a good value? That is a Tesla.

[@outlet6989]

Brandon, you just hit the nail on the head. I would like you to continue with your thoughts concerning Car Smart and other, I believe, scam extended car warranty companies. I find it hard to believe Ice Tea says Car Smart has paid over a billion dollars for car repairs. By the way, that's billion with a B.

[@capnkirk5528]

" Does he have a pulse?" "No" "Hmmm ..." Checks paperwork. "That's OK, having a pulse is optional".

[@troyharvey9822]

Just bought a 2015 Nissan Armada from carvana. Couldn't be happier. Dealt with many dealers and dealerships in my life. Have a close friend that owns a lot. Carvana , for me, was a dream come true. I'll never darken the door at a dealership again. Truly refreshing experience in the buying process.

[@hamiltonrealestategroup696]

Yes you paid 5k more than going into a dealer. Good job lol

[@jerrysanders9101]

Who in the HELL would buy a car from a vending machine or website sight unseen? It’s so social media age moronism

[@Unpopularopiniontalk]

Welcome to the 21st century. Get with the times or get left behind. Just about everything is digital.

[@ticktock2383]

Hoping to buy a car from you this year. Thank you for all the information you provide!

[@markmcminn5100]

You should have started with... "rated junk" Really, it would have set everything up. I'm a sub. Love your honesty.

[@solvend]

Im still waitin on Tesla to have a normal P&E statement. Its 10x overvalued still

[@tHebUm18]

What do you mean normal P&E statement?

[@murrayterry834]

​@@tHebUm18price earning statements overpricing of stocks in relation to real company earnings. sometimes denotes overpriced stock values.

[@tHebUm18]

​@@murrayterry834 You mean P/E ratio? For Tesla it got down to 20 in early 2023 which was pretty normal. Regardless, I'm still confused how the original comment relates to this video--market expectations are very different than a report alleging malfeasance by Carvana.

[@murrayterry834]

@tHebUm18 me too.

[@mikehouser5430]

Sold them my car a few years back… no one could even come close to what they paid me

[@hawkinsjd11]

same. They gave me $4000 more than anyone else. I did also buy a car from them. I was one of the lucky ones.

[@r.a.monigold9789]

I buy and finance a USED car for $20,000.00 over 60 months at the car lot. Price is inflated to cover instant profit as the average price is $15,000.00 but I don't qualify for a "traditional loan. My car devalues $5,000 when I sign the papers. So I can't sell the car and get my money back if I lose my job. Six months later the average price for that model DROPS to $12,000.00 - to pay pay off my loan and eliminate my car payments I'll need $8,000.00 in cash. The lower price of that car model hurts ME.

[@johnstone7697]

I sold Carvana my car, and looked at the selling price they listed it for. The difference was $1800. So not counting for any costs to repair, prep, and list the car they'd have to make up at least $5200 in interest payments on the loan. That's a whole lot of money on a $20,000 sale.

[@ldkellandshaw]

Well Carvana wanted to charge me 22.75% interest on a Ford Maverick and my credit score is 765.... so yeah, they probably do make plenty on those loans.

[@matthewsocal2540]

Yup. Shady. Everytime family's involved in the business end, they're screwing people over. Think Penske.

[@RichardWiazardry]

It’s not the 1st time of them having a “failing” business…

[@jamesclapp6940]

the tern"arms lenght" comes to mind in referance to the bundler on the retail loan!

[@beebop9808]

They just announced that they're opening some kind of facility around Atlanta and hiring 300-500 people. Don't recall what was said exactly on a local radio station a couple of days ago.

[@garycrawford2256]

I work for an auto parts company. I have seen Carvana cars in shops that people have purchased getting brake jobs and other work.

[@dirteater63]

Their inspection process is a joke.

[@indygirl810]

Taxpayers better not be a bailout again for their ignorance

[@outlet6989]

Please remember who your next President is.

[@JustherefortheLOLZ]

@@outlet6989That was my first observation too.

[@tHebUm18]

When have taxpayers bailed out a used car dealer chain? lol

[@Bhatmann]

Taxpayers have bailed out multimillionaires musicians/artists for not being able to perform during the pandemic to the tune of millions and millions of dollars. Would not be surprised if used car dealers are next 😂

[@MegaWhatever86]

Bonds are debt , stock is equity... meaning the Bond market is less speculative.

[@randyhenderson5485]

good, now i am buying puts on Ally.

[@timkis64]

alot of parents never taught their kids financial responsability.which is fine for a while.but after generations & preditory credit schemes.many are sitting ducks for the interest shotguns.& underwater in life.

[@chezz0527able]

What's the story with the obd2 on the shelf?

[@txcombatmedic]

How is Bridgecrest associated with Carvana? I know a lot of their loans go thru them.

[@jdub929]

That's a shame cause I absolutely love how hassle free my purchase was from them. I bought a 2021 4Runner in 2022 and everything went smooth. I would buy again from them again just so I don't ever have to deal with a stealership again. Oh btw, I used my own credit union for financing

[@franzvanjulio5523]

I’m I hope you’re enjoying your 4Runner. :)

[@eddie-xi6ls]

I've been buying stocks for decades and have never shorted any. For the first time I'm seriously thinking of shorting Carvana.

[@drivewayhero]

Only way regular person can "short" is to buy a put option

[@randyhenderson5485]

Look at the 15.00 puts expiring 01/16/26. around 8500 contracts. im in.

[@bruceleeharrison9284]

​@@randyhenderson5485 Seems risky AF, that's a really short horizon.

[@matthewsocal2540]

Just understand that's what they're counting on you for. Which is all good as everyone should be able to make money. But we are dealing with the ramifications of this kind of synergistic marketing of businesses and customers. It should be win,win not win, screwed thanks to the "market". Just my opinion.

[@bruceleeharrison9284]

@@eddie-xi6ls Nearly impossible to time this, shorting it would be suicide unless you work at a brokerage. Better off buying puts so you don't lose your house or car if things go sideways.

[@BIgBass255]

No wonder the GOAT is repoing the sh-t out of vehecles.

[@kentuckycowboy7660]

❤ excellent

[@tomjones8608]

Dude, shave that beard. It looks like it's flipping us off

[@hellodrjeckyl]

😂 Now I can't unsee it.

[@markjohnson3485]

Haha I totally agree! 😂😂😂

[@phyllo2694]

This is the third possible scam that has come to light since the beginning of the year 1) honey and pay pal 2)New York company price fixing rents for 13 million rental units 3) now carvana 2025 is going to be very interesting!

[@jaredpmoser]

Where can I find your dealership, I would love to buy a car from you.

[@natehendricksen3338]

They're buying their own debt to improve the balance sheet. Sell out before the SHTF.

[@williamosgood3565]

Creating shell companies to park debt into to get it off the books.

[@jonsaircond8520]

Would have been a heck of a ride if i had bought when i thought they were done for. They were building one of those tower things not far from me a few years ago. Everytime I drove by I thought what a qaste they'll never even finish it........... boy I was wrong

[@r2dad282]

$7200 must be present value on loans on the books, held for the entire duration of the loan. Not very realistic, but somebody must have been wearing the kneepads during their audit !

[@Shalmaneser1]

The feds were responsible for subprime mortgage loans (Fanny & Freddy). Look ma! No Feds in the car market (impending) debacle.

[@JustherefortheLOLZ]

Feds as in Federal Goverment or Feds as in Fed?

[@darcyrogers8881]

This isn’t new news. Carvana had a bad article written a few years ago. But nobody paid attention.

[@stevemorris270]

Nobody should be buying cars from a dealer with that kind of margin... but, alas, it appears to be lies.

[@JustherefortheLOLZ]

Reminds me of 2008… “You can’t afford rent. Wanna buy a house?” 😂

[@madmatt1964ify]

They are shorting Carvana. Cool. They should.

[@WoodgemanX]

How was this Carvana business supposed to work? Buy used cars sight unseen for over book value and then try to sell them at a higher price without the necessary paperwork?

[@Whilewearestillhere]

Carvana? The only place you can find a 30-year car loan😂

[@SimplyJack3]

$5100 a year? WTH

[@Tommyt212002]

I used to watch these videos and follow CarEdge regularly, but I’ve decided to boycott until the clickbait and exaggerated titles stop-especially the constant use of "Shocked" in every video. I would have been just as interested in content like "Carvana Accounting Grift for the Ages" without the sensationalism. Unfortunately, this approach feels sleazy and no different from the tactics used by dealerships.

[@CQALive]

If I didn't use those types of titles the system would not show you the video anyway since no one would click... So either way you wouldn't be able to watch it

[@ericstevens8744]

Car-edge is a scam …called them about helping fund me a vehicle 🚗 and they said that if wasn’t buying brand new they wouldn’t be able to help me Fuck them bro

[@Ring0--]

Oops.. Our bad.

[@elcastorgrande]

Am I glad I got out of Ally! Sketchy bank.

[@BillyBobDingledorf]

If I could sell $3 billion of stock in any company, I'd do it today. Probably even less.

[@mc4277]

Enron style accounting. Sounds like somebody is going to prison. Probably not, they're billionaires. They never go to jail.

[@christophreuter9572]

Sounds like the property collapse of 2008

[@SuperUbuntudude]

[@tHebUm18]

20:57 Selling stock when the price is high seems pretty logical. What's nefarious about that? Presumably, he also owns enough that he needs to schedule the sales months in advance and register them with the SEC.

[@davey5586]

carvana

[@gwats19577]

My guess is they feel invincible with Trump taking office...😮😮😮

[@richdiana3663]

Survival of the fittest is going rampant in the auto industry. Who can come out with decent, realistically priced vehicles without being dragged down by huge losses you'll take from all your thousands of unsellable, overpriced machines.

[@tHebUm18]

Just starting the video, but for those who don't know: Hindenburg Research is a financial firm that focuses on short selling (betting that companies stock will go down) so they are not impartial and very much publish targeted research hoping to make money. That's not to say the research is wrong, but that they are publishing this out of their own self-interest and have a mixed record of accuracy. They are trying to make a buck, not do investigative journalism.

[@t9606]

Buy bitcoin, Wall Street is rigged

[@davidpenwood5028]

Bit coin has never been rigged. Just look at assets that bitcoin could be sold for.

[@Brasi4522]

😂😂

[@JustherefortheLOLZ]

Pot calling the kettle black, ya think? At least Wall Street investments are backed by real assets even if the fix is in.