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0:00 - 1:57 Intro
1:58 - 2:54 moomoo
2:55 - 4:30 What is Carvana?
4:31 - 5:02 Rapid growth
5:03 - 7:50 How Carvana makes money
7:51 - 9:01 Lack of profitability
9:02 - 10:45 Brink of bankruptcy
10:46 - 11:47 Legal troubles
11:48 Structurally unprofitable
In this video we go over the rise and fall of online automobile retailer Carvana.
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All materials in these videos are used for educational purposes and fall within the guidelines of fair use. No copyright infringement intended. If you are or represent the copyright owner of materials used in this video and have a problem with the use of said material, please send me an email, wallstreetmillennial.com, and we can sort it out.
#Wallstreetmillennial #carvana #marketcrash
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Buddha by Kontekst https://soundcloud.com/kontekstmusic
Creative Commons — Attribution-ShareAlike 3.0 Unported — CC BY-SA 3.0
Free Download / Stream: http://bit.ly/2Pe7mBN
Music promoted by Audio Library https://youtu.be/b6jK2t3lcRs
––––––––––––––––––––––––––––––
0:00 - 1:57 Intro
1:58 - 2:54 moomoo
2:55 - 4:30 What is Carvana?
4:31 - 5:02 Rapid growth
5:03 - 7:50 How Carvana makes money
7:51 - 9:01 Lack of profitability
9:02 - 10:45 Brink of bankruptcy
10:46 - 11:47 Legal troubles
11:48 Structurally unprofitable
In this video we go over the rise and fall of online automobile retailer Carvana.
Sign up to our daily newsletter for free: https://wallstreetmillennial.com/newsletter
Email us: Wallstreetmillennial @gmail.com
Support us on Patreon: https://www.patreon.com/WallStreetMillennial?fan_landing=true
Check out our new podcast on Spotify: https://open.spotify.com/show/4UZL13dUPYW1s4XtvHcEwt?si=08579cc0424d4999&nd=1
All materials in these videos are used for educational purposes and fall within the guidelines of fair use. No copyright infringement intended. If you are or represent the copyright owner of materials used in this video and have a problem with the use of said material, please send me an email, wallstreetmillennial.com, and we can sort it out.
#Wallstreetmillennial #carvana #marketcrash
––––––––––––––––––––––––––––––
Buddha by Kontekst https://soundcloud.com/kontekstmusic
Creative Commons — Attribution-ShareAlike 3.0 Unported — CC BY-SA 3.0
Free Download / Stream: http://bit.ly/2Pe7mBN
Music promoted by Audio Library https://youtu.be/b6jK2t3lcRs
––––––––––––––––––––––––––––––
if this was 2020:
CARVANA STOCK TO THE MOOOOON
Caravana is the perfect example of trying to scale up something that just isnt scaleable. A classic car dealer has vast knowledge of 100s or 1000s of models and has to be aware of local oddities in the market. If you don’t have that human expertise you will be a lot less efficient. They think they can overcome that inneficiency by taking on massive debt with really low intrest rate, this can actually work in boom times but is an illusion.
We have to stop conflating companies that operate mainly via app, or “technology “, versus actual tech company, you know, that make technologies.
It used to be that in order to be a CEO, you had to have proven that you know how to run a business. Over the last 25 years though, through the emergence and growing dominance of the tech industry and venture capital-funded businesses, people get to be CEO just by having an idea and access to capital. There's no need to prove you know how to run a business anymore.
It was pretty obvious that this model would fail. It sounds like their cost of doing business is much higher than a traditional dealership, meaning that the “low overhead” actually didn’t exist. And as the narrator said, they needed to spend tons of money on marketing, since an internet model is National, not merely local. That’s all without mentioning the shady fine print costs of return if there is a problem with the vehicle.
I sold a car to Carvana. Pulled in, someone was right there to greet me by name. Walked in, confirmed my payoff details, residual was wired to my account. Took all of ten minutes. Even got one of the giant vending machine tokens!
Most importantly, they overpaid for the car by several grand 😂
I pay for YouTube premium to AVOID ads. Why waste my time with sponsor bs?
literally everyone with half a brain knew for a fact this was coming, Im astonished by how irrational the market was… so i guess not everyone
I wonder how that 6.7B debt is treating them with the higher interest rates
How does CarMax fare compared to Carvana?
Selling used lemons is never sustainable LOL
I love how one of Carvana's biggest selling points is the 'feature' of denying customers the ability to negotiate on the price.
Really bad idea to start with then managed by idiots – shocked they not bankrupt yet. You called them a really well established company – what? 10 years and never a sniff of profit? Losses of nearly $500m? Established maybe, but not as Company, financial blackhole seems more likely. No, they cant pull it back, it was gimmicky little spin with no real underlying need for it to fulfill
If your searching for a good deal on a car just looking at carvana looks expensive
I love how big banks throw money to any "disruptive"new useless technology companies,then this companies go bankrupt because the ceo only concern its share price manipulation so he can dump his stock while its high and cash out, the banks declare it as a lost gets tax brake and at the end the tax payers foots the bill
At a base level, they probably only make about $5k profit off of a trade in, then have to build transport etc into the price. Even with the loans etc, they're going to need to move more cars a year.
It’s ok to sell at a loss, they can make it up on volume.
Wsb will buy when they go bankrupt lol itll run a bit then dump like redbox or revlon
I've been looking for a 2nd gen Scion tC since Feb. I swear Carvanna bought all of them in the country. And they are so ridiculously expensive for what is essentially a econobox with a cheap build. I'm comparing them to my 2013 Camry I bought a few years ago. Both cars share the same engine and transmission and many parts. But because the tC looks sporty and all I guess car dealers want to charge sport car prices?
Sold them a car years ago and there is no way they made money. They basically gave me private sale retail. Easiest car sale of my life. It was clear their focus was revenue not profit.
Carvana is a scam
…well done…
a used car company worth 60B sounds like terrible investment in every way. it just takes understanding the market and cars to understand this doesn't make sense. i might as well IPO my asshole at this rate.
I don't think you needed graphics and a detailed explanation to tell viewers of this channel that rising sale prices translates into a higher financing profit 😂