Carmax vs others

[Sue J]

What price did they pay ?

I'm wondering as we have a 25 yr old Camry with 105K miles, so just curious.



In 2015 I took a car to them years ago that was 12 yrs old with 130K miles, it was a Sonata, they offered me $500 , so I sold it privately in 2 days for $1,100 instead. It had been in an accident and was fixed and worked fine but an accident does drop the value.

They paid $2600 for the 2003 Camry. This was in March, 2021, just before the used car prices went so high.

 

[Midpack]

Used car prices have cratered. CarMax may get tested in the next 12-24 months, but they're in a better financial position than their online competition. I wouldn't risk buying from Carvana at the moment. Just one of many articles suggesting they'll go bankrupt and it may take a long time to resolve.

Will Carvana go bankrupt?

It’s not looking good. Forbes thinks Carvana stock will go to $0. Yahoo Finance calls it “one of the worst stocks to own.”

“Talk about a crash and burn,” writes Steven Cress in Seeking Alpha.

Even if Carvana survives 2022, 2023 will be way worse. Carvana paid too much for trade-ins during the pandemic, and now that the used car bubble has burst, it’ll be forced to sell a big chunk of its inventory at a loss.

And if Carvana’s business model couldn’t turn a profit at the absolute best of times, how is it going to weather the worst of times?

https://www.moneyunder30.com/carvana-is-it-worth-it

 

[REWahoo]

[-]When[/-] If Carvana does go belly up and dumps thousands of used cars on the market at liquidation prices, the ripple effect will be substantial. If anyone has a car they are planning on selling, better do it sooner rather than later.

 

[Texas Proud]

[-]When[/-] If Carvana does go belly up and dumps thousands of used cars on the market at liquidation prices, the ripple effect will be substantial. If anyone has a car they are planning on selling, better do it sooner rather than later.

Just me spitballing.... but I would bet that a number of the big guys would bid on huge lots of them for their inventory... so the savings might not get to the retail customer...

 

[Fermion]

having deposited the $32,000 bank draft from CarMax, I was just waiting around out of curiosity for them to list the van for sale and today they did.

$44,000. More power to them if they can get that much, I don't see it. We paid something around $31,500 back in early 2019 (it was a new 2018 that had been on the lot for a bit).

If they can get $44,000 for it though (how would one find out) then I am going to put the $32,000 in TIPS, cause inflation must be worse than I thought

 

[RetiredAndLovingIt]

having deposited the $32,000 bank draft from CarMax, I was just waiting around out of curiosity for them to list the van for sale and today they did.

$44,000. More power to them if they can get that much, I don't see it. We paid something around $31,500 back in early 2019 (it was a new 2018 that had been on the lot for a bit).

If they can get $44,000 for it though (how would one find out) then I am going to put the $32,000 in TIPS, cause inflation must be worse than I thought

I googled my VIN number from time to time and was able to find out what Carvana sold my car for. It took them a while to sell it, I can't remember what the website was that gave me the info though.

 

[Car-Guy]

[-]When[/-] If Carvana does go belly up and dumps thousands of used cars on the market at liquidation prices, the ripple effect will be substantial. If anyone has a car they are planning on selling, better do it sooner rather than later.

I saw/heard about this a day or so ago and was thinking similar things. But, what if they just are acquired by an existing major used car dealer... It might not change much of anything. Or maybe they will be selling off a lot of surplus inventory they don't want at bargain prices... Fire sale, tax breaks, etc... You just don't know how this will play out. That along with declining used car prices in general, will make this interesting to see and maybe a good time to watch for some buying opportunities. I know there are a couple of late model newer cars that I'd like to pickup for the right price.


This have been a really crazy time in the used car market in the past year or so.

 

[ERD50]

.... If they can get $44,000 for it though (how would one find out) then I am going to put the $32,000 in TIPS, cause inflation must be worse than I thought

Since they don't haggle, the listed price will be the sales price. You'll need to check every day, as they may lower the 'sticker' price if it doesn't sell (I'm guessing they have a standard price drop algorithm so they don't hold too much inventory).

44,000/32,000 is a bigger markup than I would have expected, but as you say, more power to them if they can get it.

-ERD50

 

[ExFlyBoy5]

[-]When[/-] If Carvana does go belly up and dumps thousands of used cars on the market at liquidation prices, the ripple effect will be substantial. If anyone has a car they are planning on selling, better do it sooner rather than later.

Or they will be bought up by their other companies (Drivetime) at deep discounts from the bankruptcy court and then they will sell them at a premium at their bad credit lots.

 

[Fermion]

Well it isn't listed on Carmax anymore so I think they sold it! If they got $44,000 for a 4 year old vehicle that originally sold for $31,900, then there is something a bit wrong with our economy.

Maybe it was the turbo V6 though. It was a very good engine and I didn't see a lot of the used vans with it.

 

[FiveDriver]

[-]When[/-] If Carvana does go belly up and dumps thousands of used cars on the market at liquidation prices, the ripple effect will be substantial. If anyone has a car they are planning on selling, better do it sooner rather than later.

In my opinion, the sun is about to set on Carvana. As I stated earlier in this thread -- there's too much overhead cost in their business model.

Their stock has plummeted from $239 to 8 bucks and change in less than a year. If you're getting a Carvana check for your car.....you better race to the back and hope that it clears.

 

[OldShooter]

... If you're getting a Carvana check for your car.....you better race to the back and hope that it clears.

I would also be making sure that I had solid title paperwork confirming the sale. In our state there is a tear-off coupon on the title certificate that the buyer signs and the seller retains. This was very useful for me one time when I sold a car to a guy who didn't get it retitled but went ahead collecting parking tickets. I was able to get them quashed because I had the coupon.

If/when Carvana goes belly-up or has big layoffs I would worried about title transfers at least getting delayed if not actually screwed up.

 

[REWahoo]

More info about Carvana. Check out the pedigree of the leadership team...

 

[Texas Proud]

Since they don't haggle, the listed price will be the sales price. You'll need to check every day, as they may lower the 'sticker' price if it doesn't sell (I'm guessing they have a standard price drop algorithm so they don't hold too much inventory).

44,000/32,000 is a bigger markup than I would have expected, but as you say, more power to them if they can get it.

-ERD50

I am with ERD on this... a bigger markup than expected...


But as you said, you got what you want so a win/win IMO...


I did not look that often but never did see the car I sold on their site.. they might have sold it quickly as it was a good car that was cheap...