What Happened To Carvana?

[@JeanSantana000]

I knew that their business wasn't serious when a friend received an online over-evaluation for his old car, dropped it off, received the check, and left without any sort of visual inspection to determine the condition of the car. Anybody with even a little bit of knowledge about the car industry knows that this business model was destined to fail.

[@SaltySparrow]

100%

[@lancescarlife]

^This!!!!!!!!!

[@MrStanfordMD]

Yep. and that’s why I sold our two cars to them 😂 young lady walked up and handed us a check and a truck picked them up the next day

[@JoeKyser]

Yup

[@jonathantaylor6926]

That’s exactly how I sold them a car.. the guy who picked it up legit didn’t even walk a complete circle around it. Handed me a check a left and paid $10,500 when carmax offered $7,800 and the dealer $6,500.

[@sarayusarayu832]

Q:“Where do you see carvana in 5 yrs?” A: “We don’t.” Ouch*

[@justanotheruser03]

Co-founder defends the Adesa purchase because of “long term outlook” but can’t answer where he sees Carvana in 5 years. Good job buddy!

[@adamdunlaptv]

Great point.

[@j121212100]

that's funny.

[@kozad86]

I love the quality of these documentaries by CNBC. Great job to the team behind them.

[@theironsheik6322]

They apparently know what a bonehead Jim Cramer is.

[@glenncanning8189]

Eh, not sure I can agree. It'd be nice for them to rely on zoom calls less often for their talking head interviews. They lend an amateurish quality to anything they're included in.

[@SexyLeaForYou]

😂😂😂

[@chrisr4220]

When a co-founder can’t answer where they see the company in 5 years and are only focused on the here and now, that’s a problem

[@KTCA0P]

Especially given earlier in the piece @6:42 he talks about "Long Term Outlook" when talking about the purchase of Aldessa.

[@kalmes]

Yeah. I'm not very business savvy, but even I noticed that, so it's probably pretty bad.

[@mike325ci]

Yep, I also cringed when he said that... If someone that high up has no vision, then nobody in the rank and file does. Company is doomed to fail.

[@Lazirus951]

When the co-founder says that thinking about 5 years from now "is a distraction", you know the situation is dire.

[@ToAnEnd]

I bought a car from Carvana toward the end of ‘21. Got a great price on an Accord Hybrid, and even greater price on my 350z trade-in. After I had such a great experience, I considered buying some stock (it was about $250/share I think) but after looking into the numbers a little more, and talking to others who had a horrible experience, I decided against investing. *so glad I didn’t buy into this company*

[@sandtanmaroon]

Should’ve kept that 350z

[@blackout2610]

But did you get a title and registration?

[@eugene44569]

@@sandtanmaroon peoples needs change so what you like or need is objective.

[@themuffinman25]

could have made $100+ a share and taken the profit.

[@troytruong8246]

uve just dodged a bullet.

[@Inspironline]

Another thing that likely contributed to the Carvana's downfall was the problems surrounding their titling department. Multiple reports from buyers not receiving their title in time or at all. Here is a link to a local news agency covering this topic :kzbin.info/www/bejne/g5i3pX2QfNufZpo

[@mfax1000]

That's the real reason...you can get the car but never own it. yup that's a profitable sustaining business model.

[@MistaP13]

Exactly! Not sure why they didn’t mention that? 😳 That is some of the most shady practice in the industry!

[@poulticegeist]

It was mentioned at 7:11

[@Cj-xl3jv]

Yep, my neighbor waited over 6 months for title paperwork to finally run the VIN himself and find out the car was stolen out of Alaska and sold in Alabama. He had to get a lawyer involved

[@thearmy88ify]

Yup. took 9 months and a lawsuit to get my title. Never again!...and I told anyone I saw.

[@MrLebowski405]

I bought a car through Carvana about a year ago. It was a relatively good experience overall. The buying process was easy, getting it delivered went smoothly. However, i don't think they made a profit off of me due to the amount of warranty work they had to pay out on the car. (Their 100 day warranty is pretty good). The day after it was delivered; I took it to a local dealership and had a pre-purchase inspection done. They found a couple things wrong in the suspension and the in-dash the GPS unit wasn't working right. Carvana covered all of it. At Dealership rates too... It was over $6,000 worth of work for parts and labor and the dealer had the car for 5 weeks! Out the door i had to cover like $200 in fees and a co-pay for "out of network" service center since i didn't go to one of their "preferred" shops. But I doubt their margins are big enough to hand over that $6k to the dealership without a grimace...

[@NPAMike]

Smart. This is what you should do when you buy a car online. I don't know why people are so hesitant, you get 7 days with the vehicle get it checked out.

[@zeemughal86]

I did the same thing, they paid out $11,600 dollars of things on my car to the dealership and body shop. It was payed for without any issue from Carvana. Alot of the stuff wasn’t necessarily broken but recommended. My local Audi dealer took care of everything minus the deductible 🤷🏽‍♂️ I doubt there was a dime of profit.

[@aroundomaha]

They likely reinsure the repair risks but large claims will impact the rates they get charged for their policy.

[@gabrielgalaxygh]

Sounds like you gota good deal and they treated you good. You should brag about them

[@jponz85]

How much did you pay your mechanic to do a thorough inspection ?

[@DetroitTintStudio]

I had multiple customers say they couldn’t get titles to cars they bought. And when I sold a vehicle thru them, they paid 5k over anyone else without hardly looking at it. Doing this with used cars is so complicated and costly it makes no sense.

[@awilhammer]

I had an “ok” experience with Carvana. I got an good deal on my car. I did researched the price before I signed the paperwork. The registration process was a nightmare.

[@BigcountryReactions]

You are lucky mine was horrible Took almost 9 months to get it registered

[@awilhammer]

@@BigcountryReactions dam. It took them 2 months to not do it right. I had to go down to the secretary of state to fix it. They did refund the cost to fix it, and an full refund on the registration cost as well. Michigan laws say 15 days. How many temp tags did you have? I had 2.

[@BigcountryReactions]

@@awilhammer 4. Lol what’s funny is during that time they was sending me emails everyday threatening to repo the car because it wasn’t registered

[@awilhammer]

@@BigcountryReactions that nuts. I found out though the news technically my temp were illegal because they weren’t Michigan temp tags. Guess by law because they have an Michigan dealer license, and i’m an Michigan resident it’s illegal for me to use out of state temp tags. I had Arizona, and Georgia temp tags. I’m all good now with normal plates, but it’s still good to know!

[@Haffmatthew]

We had a great experience with Carvana- got a good rate for the car we bought, had no issues and amidst the thick of Covid lockdowns, had the car delivered to us in a safe and responsible manner. I get that some had some crappy experiences, but remember that the folks who had decent or excellent experiences may not have posted about it since modern internet culture seems to skew attention towards the bad, the shameful, and the controversy.

[@arglebargle5531]

A strong amount of negative feedback establishes that going with Carvana could be a risk *even if* some people have positive experiences.

[@stevechance150]

CARVANA would buy people's car as a trade-in, and they just took people's word as to the condition of the car. CARVANA routinely overpaid people for these cars.

[@drewh3224]

@@stevechance150 so it is like Zillow when it was overvalued the housing stocks across the board, and caused its own stock crumbled. This type of artificial algorithm based technology businesses are disrupting the true market vlaue out there. For some small towns or cities where lacked of skilled or talented workers in the government jobs, they are simply took the zillow to price their local housing property tax assessments, and they are over assessed. These type companies should be sued, and dismantled for disrupting the real market.

[@sirseriously]

Same here; I've purchased 3 cars and sold them 4, never had any issued outside of normal used car stuff. My title/registration will actually be here tomorrow (per FedEx) for a car I bought from them two weeks ago. I think the state you live in matters a lot. I hope they find a way to survive, I hate dealerships.

[@Haffmatthew]

@@arglebargle5531 that’s fair. I am not advocating that others be completely unaware of the potential risks. That’s a good point. I like to simply add my experience to show there’s plenty of positive experiences as well as the worrisome ones.

[@lysandertavish1684]

"where do you see your company in 5 years" Response: "hey I just want to survive the next 5 days" energy lol

[@sharonh2991]

I find that whenever Jim Cramer gives advice it’s best to do the opposite.

[@shasmi93]

I find that when ever I poop, I also pee.

[@rafborrero]

Went looking for a car, Carvana's price was $2k higher than many local dealers.

[@IRUNU10X]

At least 2K higher

[@gabrielgalaxygh]

Lol go the the dealership by the time you leave you'll pay an extra 5k in fees and warranties and other markups

[@Max-ve5tu]

In an age of marketplace platforms and cutting out the middleman, it amazes me that Carvana managed to attract that many investors.

[@oleradiodudea.m.4735]

Stupid is as stupid does.

[@av8ionUSMC]

Never used them but have heard enough negative or mixed reviews that I won’t be using them. I am grateful that they’re challenging the traditional brick and mortar type experience because that has got to change.

[@ike7539]

I owned 25 cars in the past 20 years, both for personal and business use. Only one of these cars was new from a dealers lot. It was a 2006 Honda CRV with almost $22k ticket price that I paid $19500 and with tax and finance charges it was $27k out the door. After seeing this huge difference in numbers I started buying private party cars, mostly off of Craigslist and sold thru CL also. There are very nice and honest people around. I don't like dealers! I would not care if they all shut down. Same applies to Carvana and sorts too

[@cormaro13]

🤣 dealers will never go away, individuals don't have the licenses to bring those cars in/ have the inventory on hold, good dream tho lmao

[@ike7539]

@@cormaro13 ...said mr dealer

[@cormaro13]

@Ike I mean it's true, most individuals are buying cars from the auction underneath the dealer and then reselling it lol so now they're dealer of used cars, so yea dealers will never go away even if u buy from a individual lol

[@ike7539]

@@cormaro13 The cars I buy from individuals are NOT the ones purchased from auctions. I buy from people who bought and drove those cars for themselves and decide to sell them. I don't buy cars from people who want to make a profit from an auction-purchased car. Also, when I buy a car I don't ONLY look at the car! I look at the people/owners... shady people, pushy, greedy, aggressive salesperson types of people are not on my list to make a deal. I do not buy their cars! I know, unfortunately, dealers will not go away. I said I do not care if they all were to shut down. I hope this explanation will help you understand my way of purchasing cars 😁

[@cormaro13]

@Ike must be lonely at home to have this much time to type lmao, I was just saying the dealers will never go away cause everyone is themselves a dealer at the end of the day when trying to get rid of the car, like a catch 22, any individual selling a car is trying to make a profit if not they would've taken the dealership offer lol

[@DASamX5453]

I bought my car from Carvana about a year ago after I had a accident hitting a deer and totalling my other car. I needed a car quickly and nobody else had the civic I was looking for. Bought my car from them and have not had a problem ever since...much easier and better than a dealership fir me. A lot of the problems with them seem to come from people with bad credit...I have excellent credit and had no problems setting up financing and making payments..it was a smooth transaction and I love Carvana...

[@markb8549]

I bought a car from Carvana in Nov 2022 and it turned out to be a lemon- completely undrivable. It took me a month to get my old car back between fighting with them and the mechanic, leaving me hundreds of dollars in debt having to ride-share and renting a car to get by.

[@pennysworld8189]

What car was it?

[@At9ra]

@@pennysworld8189 He won't go into specifics. Probably a bot account.

[@markb8549]

@@At9ra actually I’m not a Bot, but I appreciate your concern. I don’t check KZbin very often but I reply when I can.

[@markb8549]

@@pennysworld8189 it was a 2014 Chevy Sonic. There were apparently issues with the breaks from the start- I drive the car a couple of miles tops before the car seized up.

[@thanosianthemadtitanic]

@Mark B that's not really carvanna fault, old chevy sonics are terrible cars to begin with and have history of problems. Same with that same model year chevy cruze

[@uptowndann109]

They paid msrp for my used 2021 in December of that year. One of the few times to be able to make a profit on a used car as a consumer.

[@hipsterkennyrogers909]

I always finance through my credit union, even if I'm ready to pay cash. Here's why: The credit union issues a conditional draft to the dealer. The draft essentially says, "Deliver the proper and clean title to the vehicle and then we'll give you the amount of money on the draft." So they don't get paid until a good title is produced. I'll make payments for 6 months so the credit union gets some return on the deal, then pay it off and get my cleared title.

[@drewh3224]

So it is like Zillow when it was overvalued the housing stocks across the board, and caused its own stock crumbled. This type of artificial algorithm based technology businesses are disrupting the true market value out there. For some small towns or cities where lacked of skilled or talented workers in the government jobs, they are simply took the zillow to price their local housing property tax assessments, and they are over assessed. These type companies should be sued, and dismantled for disrupting the real market.

[@andrewheng5176]

I think the video also attributed some macro elements like a temporary supply chain chokehold on new supply, therefore demand also drove up prices.

[@drewh3224]

@@andrewheng5176 you have no clue!

[@jimwerther]

@@drewh3224 AI has limitations. We should have learned that from Credit Default Swaps, if not earlier. But then you're taking things too far in the rest of your comment.

[@lynnmckenney1987]

Hopefully carvana crashing means private party used sales will actually get back to reasonable prices. Until then, I'll happily keep driving my $1,000 89 honda civic and getting 35mpg!

[@jonathantaylor6926]

Save up some cash car prices are going to crash in the next 12-18 months.

[@shasmi93]

Lol I drive a 2016 Prius I got used for 10k the thing gets 60mpg and I have made thousands of dollars in gig work with it. Be smart and stay modest in life and you will go far.

[@lerg12]

Same here, I’ll keep driving my ‘07 Crown Vic Police Interceptor I got for 3K over the summer from a small dealership

[@chevyhead7274]

I’ve been driving my 1996 impala I bought 8 years ago for 2k n im legit going to drive it till the frame snaps cuz these prices in new england for used cars don’t make any sense at all.

[@lerg12]

@@chevyhead7274 I’m from MA over here, I got lucky with my vic. The prices here are insane

[@TheOriginalRasheedat]

I just got a car from there. Had a great experience! They did the registration on time too!

[@thewavehunter]

U folks at CNBC do a great job on these auto-related “series” stories - topical and informative. Please produce more.

[@FinancialShinanigan]

Knew they were in trouble when reports came saying they were buying cars sight unseen because used car prices to the moon!

[@jeremytaunton8813]

They purchased an SUV from us earlier this year for much more than local dealerships were offering. The Chevy finance manager said he sold his cars to them because they offered so much more. Wild!

[@FXAllThingsFun]

yep echo what others already have said, when we sold both of our cars to Carvana last/this year there was no serious inspection whatsoever when they came picking up the cars. We took care of our cars but i can image it goes horribly wrong with the wrong kind of sellers

[@mr.darknight416]

I just cant buy a used car without inspection, and a test drive. There are so much that can go wrong.

[@LCJammer]

you literally have 7 days to try it before u buy lol.

[@craigbridge6538]

No kidding.

[@JR-pr8jb]

I'll say just this: I will NEVER, EVER, EVER set foot in a regular auto dealership (i.e. criminal enterprise), to be subjected to their humiliating and deceptive "haggling" game. That's based on personal experience as a dealership employee.

[@alanc7772]

It is such a pleasure not to own a car anymore! Sold it in 2017 back to the dealer and never looked back.

[@bangmain5355]

Dude said "FIVE YEARS 😳😳?! BISH, I don't see myself coming to work tomorrow!"

[@BausofHogs]

I got my 2018 Chevy Cruz from Carvana in March of 2020, had less then 8k miles and I got a great deal. I’m 2 years from paying it off with 0 issues. Now that I’m seeing these stats it looks like I got lucky and purchased in the best possible time, prices were low and stock of used cars was high, right before things went south. I stalked their website for about a month before I made the purchase. Literally checked dozens of cars/deals daily until I found my car. It was a noticeably good deal. This is how I recommend anyone else do it. Don’t wait until your desperate and go look to make a purchase that week, you’ll get drug across the coals, it takes time to find a good deal that your interested in.

[@ramezwissaful]

The stock might drop a little more but this company will survive and they will come out much leaner and better. They changed the used car industry for the better. By the way, CNBC titling this "The Rise and Fall" like it already failed is stupid, there's a lot more for this company to do

[@robertagren9360]

It'll go from used cars to used EV as the EV will cause a new headache that people are buying and dumping. Nobody want to buy a broken EV. ICE are mainly metal and not acids. We have no plan how to handle waste and recycle EV's , a Finnish EV owned exploded his EV into pieces as replacing the battery costed more than the car.

[@zonkar]

It’s over

[@henryd1981]

I would say they have fallen. However, they could still rise again. Just because a company falls on hard times doesn't mean it's permanent.

[@jimwerther]

@Ramez Wissa If I knew you were correct, I'd buy a bunch of their stock (currently trading at $4.04). But while some believe as you do, others are convinced that they're toast. What do I know? They _do_ have a bunch of cash, so that helps.

[@skimanfree1073]

Sounds like you are a stockholder. Good luck!!!

[@broeheemed32]

Here's what I know about Carvana: Their prices are NOT low...... in fact, they're considerably higher than the cars are worth. The cars are rarely exactly as they were represented to be..... in some cases a completely different car than was bought. They DON'T deliver "from coast to coast" unless you live in a city with a million or more population. The cars are NOT delivered on time...... and once you've paid, they make themselves very difficult to contact. So as it turns out, they're nothing like they advertise themselves to be. I can't imagine having to deal with them..... especially if you want to return a car.

[@duancoviero9759]

Everybody who needed to make their money already did, especially during the IPO period.

[@oldaccount67543]

this is a lesson for all businesses. don’t overleverage and be careful and calculated as you can with risks. the gold doesn’t last forever

[@davidreykbeatz]

I just sold my car for $32k, dealerships were offering me $22k!!! My car was basically new only had 9k miles and 2021 at that. I think big corporations/ dealers and car dealership salespeople are mad carvana came in the picture!!

[@Mr.DMZ.]

I bought a car from Carvana before they went public and had a real good experience. Shame they went downhill

[@yourshyness32]

Same here!

[@baldeagle4710]

they are majorly lowballing now...is this normal? their offer was insulting to me

[@JohnSmith-dk7th]

Why would anyone buy a car unseen ?

[@Mr.DMZ.]

@@JohnSmith-dk7th they offered 7 day trial. Don't like it for any reason they would've picked it up and money back

[@CaptainAstronaut]

I bought a car from Carvana in March 2022, and didn't get the hard tags until October 2022. I'm still just so confused why it took them 7 months to deliver me the tag for it.

[@thesaurusrex7919]

I use to work at the inspection center in Haines city Florida. I really hope this company burns to the ground. Awful management and even worse reconditioning team. Would be glad to see the look on their faces when they get that termination letter

[@leeler5]

I worked as a T3 in PDI, Winder, GA. It was fascinating to see the greed and lack of respect for the customer and the employee the company shows behind the scenes. Burn to the ground!

[@arigutman]

I’d like to see all those who pumped this stock up come out and share their thoughts now, where are they? This is why Buffett is as a great as he is… never jumps on an investment that could be deadly…

[@مناياتالذكرالحكيم]

Try to remember that at the time of publishing that video the share price was at $7, but now it is $87 and is highly expected to reach $100 😂

[@nathane2243]

Location is critical. I bought 3 cars from Carvana. I still have all 3 cars and they run great. No rust and only 1 needed new tires. I have had no issues getting the titles either, not one! Everything was nice and smooth.

[@brantisonfire]

I have an old issue of Car & Driver from ~2015 that had a blurb about a business that was taking the car-buying experience completely online. It talked about how revolutionary and disruptive to the industry this new business model would be. I went back recently and was reading through some old issues, and lo and behold, that business became Carvana. Who would have seen this coming 7 years ago?

[@theproffessional9]

Classic case of greed, they bought too many cars and wanted to sell them at high prices, and now they can't afford to do that anymore. I don't feel sorry for any company that participates in price gouging and screwing over the public.

[@singloc3021]

I've bought a car from Carvana and I was extremely happy with the entire process. I've noticed one thing that the company has never seem to have corrected on their site. I have actually complained to them and still, this happens. That's pictures of the interior of the car you're interested in. Specifically, the manual transmission cars! I only want to drive manuals so when I click on "more filters," "transmissions," and "manual," I get cars with that preference. Yet, every photo I look at shows an automatic transmission (shifter). That's very deceptive and all photos are supposed to show the actual interior of the car you're potentially buying (unless it states stock photo). They are basically showing you a different car!

[@ctrlaultdel6608]

Bait and switch.

[@dangolfishin]

I've bought 2 cars from them and did not have that experience. All the pictures were of the car i bought

[@joywebster2678]

They also hit the move to electric vehicle mandates, and yes people were scrambling for good used cars to prepare for lack of cars available from sellers and corner lots. I have a low mileage older car, and dealers have offered to buy it, as have mechanics when getting my oil change. 21, 22. My concern about carvana was how do you test drive, and inspect a vending machine car?

[@thunderb00m]

Showing Jim Cramer being exited about carvana is as relevant as showing a coked up chipmunk.

[@aguyandhiscomputer]

Do the opposite of what he says.

[@flyingdaytrader]

There is literally an ETF now that does just that. SJIM and LJIM.

[@jimwerther]

@@flyingdaytrader Really?? I was about to comment that there should be such an ETF! I once saw a headline on my newsfeed, something about Cramer being bearish on some stock I never heard of. So I immediately bought some shares, and sold them a day or two later at a profit. No idea what the company does. I intend to check out the ETFs you mentioned. It is amazing that anyone takes Cramer seriously, considering that he is so bad at his job. (Bear Sterns!)

[@jimwerther]

@@flyingdaytrader I just went onto Robinhood. They have neither SJIM or LJIM listed. Is there another name, or does RH not carry them for some reason?

[@jaiboogz]

I got my Truck from them and never had a problem. Everything went smooth.

[@patrickm6000]

my youngest bought a car from them. It was literally the worst customer experience I think I've ever seen. I would never deal with them again nor would I recommend them to anyone I know.

[@gifford1984]

I love Carvana. They are a great company. I bought a car from them

[@charliesteadman9397]

Carvana was a great place to sell your used car and make a decent buck in the process, but buying an overpriced vehicle from them and having to deal with a PITA registration process is simply not worth it. How can they not even handle the basics of providing the car title or registration to the new buyer? There's a class action lawsuit open against Carvana for a reason.

[@largol33t1]

Damn, imagine being sued by your customers because you're too lazy to do what everyone else in the car business KNOWS is necessary. Carvana's management make no sense. Plus how the freak can you even survive if you buy a car for too much and resell it for cheap?

[@comfy950]

If you create a profile on Carvana you cannot delete it, and they will not delete it for you even you ask. The answer is a straight up "no". I was told that if my account goes inactive for 45 days then it will cease to exist. That was a while ago and I haven't signed back in to test it because I just know that once I do my account will still be there and I'll start receiving marketing emails and seeing car ads everywhere. I REALLY did not appreciate when they told me they wouldn't delete the account for me. Maybe Stanford needs to upgrade, or start teaching, customer service curriculum because many of their graduates start businesses with a serious blindspot in that department.

[@alphadrone06-aerialimagery47]

Our experience with Carvana was terrible. The delivery time was from 11am-2pm EST. 2pm passes, but we get no call, no notification, nothing. We call to follow up, and were told to wait another hour or so. Carvana would not give us a valid ETA on the late delivery. Calling this unprofessional and a lack of customer focus is an understatement. We would not recommend buying or selling a car from Carvana.

[@gustavoacosta215]

I love Carvana back in 2018 no one would give me a car but they did😍

[@gravestone9831]

Well that was fast...

[@isrealgordon4146]

Love in Minnesota and had a good experience I wanted to swap the car I bought but it was going to be a month before I got it, they let me keep the car I had didn’t have to make a payment or pay for mileage since the delivery was out of my control. Warranty was good too i bought a Audi SUV took it to the dealer and it needed 8k in repairs they paid it no problem and waived the co pay. Anytime I called everyone was nice and helpful and I like that they put you straight on the phone with someone. I know everyone’s experience is different but mine was actually pretty good that was spring this year btw.

[@auro1986]

used cars became expensive for customers in inflation is what happened

[@Atomic.101]

Crazy that Carvana stock was at its highest $370.10 on 8/10/2021 and now it’s at $4.05 on 12/23/2022..

[@waynenoel1923]

that company is in survival mood right now!

[@Mytwistedvoices]

Our family has purchased cars from Car Max and Rental sales. Very happy with these outfits. We still like ti see the car before purchasing them.

[@Misshughestrm]

When I was car shopping Carvana wanted 3-5k more for similar cars than other dealers. And the warranty isn't great

[@glenncanning8189]

I've never understood why so many people hate the car buying process (apart from the actual spending of your money, of course😉). I mean, yes, there are bad salespeople, but there are also good ones. In the natural course of such a major purchase, you'll likely come across both- just avoid the bad ones. And is a bit of haggling really that awful? I was always taught that haggling was a useful skill to have in practice; it always surprises me how many people seem to abjectly hate it. Businesses like Carvana, where the goal is to "take all the difficulty out" of the buying experience for something huge, have always struck me as misguided at best and troubling at worst. There are certain massive purchases in life, like cars and homes for instance, which SHOULD be more involved, and yes even 'difficult,' than just buying something on Amazon. I think a certain level of dedicated action on your part is to your own benefit, and is an important part of the process of buying a car.

[@randallhash9283]

Sold them 3 vehicles…A very good experience…They gave me fair prices for all 3…2020-2022

[@najemscu5077]

Adesa purchase is the best Move Carvana made. Caravana will not lose on this deal.

[@therealanonymousartist]

I thought buying glasses without trying them on first was bad, but buying a car without taking it on a test drive is insanity to me. I'm sure returning the car before seven days goes by isn't free either. Remember the 90s and early 2000s when buying stuff online was considered sketchy? Now, CARS are being sold online. It's just "wow."

[@teresaalford5978]

I would never pay these used car prices now, your better off just buying a new one

[@anji_tangirala]

I bought two cars from Carvana. It was a wonderful experience. They are prompt in repairs, deliveries and warranty. Sad to see them in this situation.

[@ahjeezrick]

Wishful thinking but I would love to see the day we don’t need dealerships or companies like this anymore. There is absolutely no reason we shouldn’t be able to buy directly from manufacturers. Just the thought of a car salesman becoming jobless puts a smile on my face.

[@sir.confident]

Carvana had potential! That's what's so sad about their shady business dealings.

[@loisberry-rose5175]

I bought a Mini Cooper from Carvana! I am very happy with the vehicle and customer service. Sorry to see this happening to them.

[@twicenightley]

The owners son of Drivetime had a vision of burning people to better himself. Why did Carvana buy Adesa auction for over $2 billion the same week they laid of thousands? Because Adesa makes $500-$1,000 each car they sell (they pay nothing to consign a car so no cost for inventory) to dealers and wholesalers. Dealers and wholesalers don't complain and just fix the vehicles themselves unlike consumers. Once I saw them purchase Adesa for $2.2B and layoff thousands of people the same week, I knew they were jumping ship.

[@taofouajarodeve]

I sold my vehicle to them. I got the highest price from them, had 4 quotes from other resellers. Selling was the easiest process and got check right away. I might not buy from them but selling was a breeze to unloading a vehicle.

[@mackpines]

I've seen so many commercials for Carvana and yet, never once saw one of those "Car vending machine" towers in my area. No wonder the company is a wreck. (No pun intended)

[@ganjacats]

I’m here in Las Vegas and we have one. Everytime I drive by it when I’m in the freeway I just think about how much debt they probably took on building it lol.

[@obrien6320]

My friend sold a car to them. Blue book said it was worth 5 thousand, caravana quoted 6 thousand. The guy showed up with a cheque for 7 thousand and didn't even kick the tyres.

[@indianoutlaw5702]

Interesting how a business model initially proved successful until it began challenging the status quo. Carvana began to challenge even new car dealers with a simple, easy to understand pricing model. Compaired to CarMax, they are lower in price and the language used was easier to understand. Just buy a car online. When the market began leaning toward this concept, suddenely stories appeared how bad the customers were treated or how shoddy the product turned out to be. However I simply asked a few people how they faired and absolutely no one complained. They were to overly glowing but no one seemed to have any realy issues. When asked about previous car buying experiences, no one had any kind or likely kind things to say about the experience. I watched more stores and youtube channels tell us how bad Carvana (and Zoom) was. Afterall, unlike other one price used car dealers there was no sales pressure. No sales person to interact. Just find the car you want, order it and it arrives. Now Bad management or bad press. Can anyone honestly say the current high pressure, hidden fee, unexplainable markup model is better? I suspect the system hates Carvana like organizations because they challenge the current system, a system no sane person can belive works in the buyers interest. Sometimes you cannot win against the giant.

[@slouischarlesYT]

"You just fired us in a zoom meeting and said 'have a good day' at the end," one Twitter user posted. "I am so disgusted by how this was handled." Another user posted that an email preceding the Zoom call had caused "mass hysteria at 7:30 a.m." because it didn't indicate who would be affected by the layoff.

[@tiaz.3464]

"Diamond Dave"has been "all over" Carvana: It's structure, its (real) income sources, etc.- for a LONG time! Perhaps CNBC should hire Dave W. Williams as an (honest) consultant!

[@TheALEXiSounds]

Lol these guys offered me 7k for my 2017 Nissan with a busted transmission. No wonder they're going out of business.

[@awilhammer]

They often me 10,500 for my 16 Chevy with 53,000 miles and minor body damage that I never fixed. Paid off my loan, snd 1,500 down payment

[@DementedDistraction]

I have a Carvana vending machine tower that was erected close to my neighborhood a few months back, and it's just sat empty for the better part of a year - just a huge hollow glass tower sitting idle on a busy intersection.

[@richricogranada9647]

As I despise going to the car dealership and be tricked to hell by those vultures who work there, dealing with Carvana was a breeze. It took a while for the registration and title to arrive but they came in a timer manner.

[@quitaquita79]

I bought a Acura MDX from carvana and the buying experience was an ease compared to the dealership, I only had one issue with my car which I looked online how to fix and haven't had an issue with my SUV knock on wood. I am looking to trade mine in because I want a bigger SUV with bigger trunk space but I've been hearing they've been having issues. Crazy smh

[@mdsk4]

Illuminati (KZbinr) has a Corporate Casket episode about Carvana. If you wanted a little more of a deep dive into the owners and business practices.

[@chrisguillen1495]

I had a decent experience, they delayed our delivery but it was a good experience. Spent maybe a total of 5 min at their office to sign paperwork

[@beautyofgrace3915]

Caravana will survive. They’ll have to make some business changes, but they will probably make it.

[@AngelWingzzz]

I bought a car via Carvana. I was happy with my car as I had totalled mine and broke my spine. I wasn't able to look here there and everywhere. Delivered. Now - they gave me a lowball offer for same car and would pick it up..but no longer deliver to my area.

[@Ken-vl4wk]

I have only great things to say about Carvana.

[@cormaro13]

Too bad the company wasn't great 🤣

[@Ken-vl4wk]

@@cormaro13 It does not give me any pleasure to see a company struggling because people can lose their jobs.

[@HighestIQ]

They were once valued at over $50 Billion despite not being profitable. They overpay for used cars and as interest rates rise the value of their inventory plummets to below the cost of it. So not profitable, needs to scale up BIG TIME to be profitable with the current outlook of the industry = Chapter 11 soon. Just look at their cash burn.

[@Bluefoxx3]

So here in Colorado they had finished building a new Vending Machine, but because of what's going on with Carvana that building has remained empty. Its construction was completed months ago and for reason it was built across the street from a Ford Dealership and sits two blocks from that Ford's Parts Warehouse and Service Center. And when I say across the street, I mean literally across the street. Carvana does have a smol service center closer to Aurora, but it sits in such a run down part of town and doesn't look like it sees much use as much of the parking lot is filled with their delivery trucks. Anyway, the vending machine seems to be available for Lease. Who knows, it'll probably get repurposed. For as long as it's been completed and the last time I had drove past it, it wasn't even furnished either.

[@justincoleman7856]

So I'll go ahead an share my mom's experience. So she decided to get a newer Toyota Prius, but not just ANY Prius. She wanted it to be black with a sunroof. Because of her requirements, only Carvana had such a car available. However, when she contacted them, they failed to do an inspection on the vehicle immediately. I want to say that she had to wait maybe 2-3 months before the car finally arrived. What sucks about this is the fact that because of the paperwork, she had to monthly payments for a vehicle that she didn't even have on her property. Even while CNBC was working on making this small video, I had been reading stories about other people who've had other bad stories in terms of similar experiences with Carvana and I believe that they're indeed trying to become the Amazon of used cars, but as we all know, even trying to get a car (whether new or used) is very similar to getting a route canal at the dentist. I honestly think that they're trying too hard too quickly and as a result, they're gonna crash and burn.

[@tamiibrock6176]

I was warning people about this market before but people never listed.

[@rexhenkle3377]

CarMax also has had titling issues. A friend sold his Ford Explorer to them and like 4 years down the road he gets a phone call saying he owes x amount for towing and storage of it. They never retitled it to the buyer.

[@doct0rnic]

7:32 a title registration late? Tons of people took them to court because they waited years for a title, the company just kept sending them temp plates. I wouldn't simply call that late.

[@Livewild779]

I just bought a car from Carvana. It’s scheduled to be deliver in a few days. Fingers crossed. Good thing they have a 7 day’s return policy.

[@Perennial1997]

How’d it go?

[@Livewild779]

@@Perennial1997 nothing but a big headache. I bought a car dec 26. Delivery date Jan 4th. Delayed til jan9th. Got a call Jan 9th. Car was damage during transport. They will need to put it in the shop until feb. 10th. I said nope pick a different car. New delivery date Jan 19. Got a text a day before delayed due to transportation issue. New delivery date Jan 24th which is in 2 days. We have a little snow storm tomorrow so I think I’m gonna get a text saying delay again. All this time I have to get rentals, Uber, walk. I hear so many stories of people getting there car in 3days to a week. Mine is going on a month but I also switch cars. So far it’s been frustrating. Are you also waiting?

[@Perennial1997]

@@Livewild779 wow, same thing. It was supposed to be ready Jan 22. They pushed it back last minute to Jan. 29. I’m just hoping we get the car in one piece and that there’s nothing wrong with it. And I’m a little worried about the titling issue that a lot of people are talking about.

[@Livewild779]

@@Perennial1997 today is the day. I got a call from the hub this morning. My car will be delivered today. I’m not too worried about the title because in Massachusetts the car have to be registered with plates before they can drop the car off. Title will be mailed in a week. What I heard from everybody that bought a car from them. Good luck with everything.

[@Perennial1997]

@@Livewild779 thanks! They’ve pushed back the appointment twice now so I’m a little worried. But seeing that the same thing happened to you and you still got the car gives me some hope lol. Seems a little fishy though.. they didn’t give a reason for the rescheduling.

[@fatherdaughterduo975]

Couple days ago I tried selling my car to them for a newer car, they tried to offer me way less than what my car is worth. Carmax offered me almost 4K more than them.

[@Benaam-original]

That blue thing looks cool.

[@babajinde]

The Giant carvana vending machine has been empty for 2 months on i-270 in Maryland! A car they offered me $13,000 for in October they now want to offer $4,500.

[@harisadu8998]

This is why you can't tax unrealised gains folks. What went up so high also fell down 98%