![]() I started out wanting to get something 3 years old with 36,000 miles for $18k. Adding in saving on capitalization expense and personal property tax makes it a wash. Half of new for half the life of the car, albeit the half with no warranty, lower reliability and higher maintenance costs. Sigfried on Nov 05, As a cash deal that's workable. It might be the time to stretch the life on that jalopy a bit longer, much to Carvana’s chagrin. But that means used car shoppers are looking at inflated prices across the board. With the national supply of used cars at a low point, dealers are eager for that trade-in and will pay top dollar. At the start of 2020, the company’s stock was worth $93.81 a share, but at market close on October 30th shares stood at $185.26. Spurned by the growth operational scale, investors are also focused on Carvana’s promising increases in profitability. That figure was considerably better than the pre-pandemic time (remember that?) of Q3 2019 when there was a net loss of $92.2 million. ![]() Overall though, the company still experienced a net loss of $17.7 million. Revenue was also up 41 percent, to $1.54 billion. In its latest shareholder call, the company reported a 39 percent increase in Q3 sales over Q2, to 64,414 cars. In Q3 of 2020, Carvana sourced more cars than it sold, but it still wasn’t enough to fill the lots.Ĭarvana has grown retail sales and revenue this year but is still losing money overall. The company has a total of 10 such centers nationally, and by end of the year, there should be 11 in operation. New additions to the Carvana portfolio include inspection/reconditioning centers outside Columbus, Ohio, and Orlando, Florida. It’s created a problem for Carvana, which needs a lot of used cars to make its business function properly – especially as it’s been growing rapidly. Hey, those used rides are fine if they largely sit in the garage. Consumers work from home, cancel or curtail time away and vacations, and spend money on their homes instead of that shiny new whip. ![]() The 2020 pandemic has restricted the supply of used cars. As other used car retail outfits like Shift go public in an attempt to grow their number of stores and break into the (lucrative?) used-only dealership market, established player Carvana has a different issue on its hands: There just aren’t enough used cars to buy these days. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |