How Carvana’s Stock Crashed | WSJ What Went Wrong 

I agree, Carvana has a huge backlog of unprocessed titles to their cars.

Something tells me they are either saving money on not acquiring the titles or maybe even borrowing money from the titles that they own. I'm sure it's all linked to money.

Correct

Many?

Can't get a title to a car they don't own. Half are stolen and Carvan buys them anyway. Craziest place, never buy a car from them

Anecdotes are not evidence.

@@miniena7774 Single ones, sure. But when those data points add up it can tell a good story.

@@miniena7774 theres plenty of them that paint a picture. Lots of people reported waiting up to 2 years for their title. Some even reported that the car was stolen when sold to them.

Did you think they'd send out a team of NASA engineers to do a full tear down? It seems like that might undercut their margins. Instead they'll just buy everything at low ball prices and write off the lemons as a tax credit.

@@williamrori1274 yea there's a ton of horror stories with them when I did research before buying from them. From waiting 2 years for title, to receiving a stolen car. So your story fits with what I read

I’m not shocked but wow. You’d think they’d track vins and pay more for a vehicle they previously owned.

I'll suggest you find a mentor or someone with experience guide you especially in this recession.

@@davidnewbury1721

@@sheliaswelttk2535 I've been thinking of going that route, been holding on to a bunch of stocks that keeps tanking and I don't know if to keep holding or just dump them, think your inv-coach could guide me with portfolio-restructuring?

@@tomjason2495 Sure, the inv-coach that guides me is Amy Priscilla Raskin , she popular and has quite a following, so it shouldn't be a hassle to find her, just look her up

@@gabriellewilson5625 Just copied and pasted her name and her website popped up immediately, interesting stuff so far, about to book a call with her, I'll keep you updated on how it goes. Thanks

Truth

you should invest in those companies then. you might be on a gold mine

@@bannaboy89 I’m investing in myself right now actually. Already ahead of ya

What?

@@I_WANT_MY_SLAW He's criticizing WSJ (and others NYT etc) for puff pieces on founders/businesses up until the disaster has happened/is obvious.

@@danielwalker6653 They're like a bunch of weathermen reporting to you live -- from the aftermath of the hurricane they failed to warn you about.

your grammar teacher

Yeah really. I feel buying a car is a big purchase and a vending machine doesn’t put confidence in my purchase.

"We lose $5 on every sale but make it up in volume." Said every failed business manager.

They are no doubt overpaying but so are their buyers and they also profit from finance and stuff like warranties.

During the pandemic everyone was buying used cares for more than they are worth.. People were literally buying new cars Driving them off lots then turning around and selling them back to dealers for more than the sticker price

Unless you also own a bunch of lending companies and make your real money in subprime car loans. A lot of people used their stimulus money to put down payments ignoring double-digit interest rates (as high as 25%) for long terms. $20,000 at 25% for 84 months means you would pay $23,000 in interest. They can lose 2K and come out 21K ahead.

That’s what I was going to do too, but couldn’t because I was afraid that it might go down even more. Got some at 20s tho and sold at 39

Darn pyramid schemes. You really have to be on the rail at the beginning or pay a low cost for each stock.

@@robertagren9360 Yep!

It was insane. I work at a dealership and you don’t know how many cars we didn’t take in on trade because Carvana offered a ridiculous amount to the customer. Then they realized they overbought and we started beating every offer they gave out.

Hope you got in while the gettin’s good

its the wheel of time, that gives you a flat tire

They seem to know nothing about cars.

looks like they are offering lower and lower prices. they only offered 20k for a 2017 impala top trim where private party sales can get 25K+

Look into Drivetime their bread and butter company. Selling some questionable cars

It seems like their idea of fixing it is to put a band aid on it and hope the new owners dont notice until if ur the one buying then u see how bad the car is and what a poor job they did fixing it.

It's actually most equity securities. Not numbers, facts, etc. But "feels" i.e. sentiment.

Come on. Nobody believed it was ever worth $100. People bought it for the sole reason that they thought someone else would pay a higher price for it in a month or so. When that stopped being the case (when the stock stopped increasing in price, and even began decreasing) everyone who owned it was incentivized to sell their stock as soon as possible, when the price was still higher than the intrinsic value. When everyone does that at once, the stock collapses. Classic bubble mechanics at work.

@@johnpuri1024 exactly. In 2005 at a bbq, these guys were talking about buying 2nd and 3rd houses as investments. I said this whole thing is going to blow up. When the price is going up for the reason the price is going up, it will sooner of later go kablooey.

It's not worth anything only debt

Right..this was probably the usual Market Makers coordinated "bull squeeze" short. The bulls got squeezed and they had to sale FAST (thus driving down the price) to get out of their position. It's really a supply and demand of available shares function and happens all the time.

🎶 ... Check that price sticker and listen to your heart beat quicker; look at that mileage rating; what's the sense in waiting? Chevy Chevette, it'll *drive you happy*, Chevy Chevette, it'll *drive you happy*... 🎶

People wanted "no haggle" not knowing that means you opt-in to paying market rate for these cars..

Basic problem was it was a ponzi fron the start.

It's a terrible company....simple

Price was not actually that bad, but likely that was causing them to lose money.

@@Pizzonia295 I shopped for two different cars at two different times and they always came up around $2k more than dealers here in California. I bought private party and dealer. The additional title hassles did not help.

It was mentioned at 4:50

@@9regorio just felt like it was an "oh and also" part of the video. In reality it's part of the core for the stock devaluation.

@@CannabisTechLife at least one dude waited 2 years

I knew I remember the name Carvana from some where. There was a news report story that was on Carvana.

Hope they went to jail for this

I worked for FedEx express for 7 years. I can confirm this. Everytime i got a Carvana envelope it had a car in the driveway with an expired tag.

@@brucew3693 not siding with any but why should they go to jail? Legitimately cashing out on your own hard-built enterprise may sound unethical because it may degrade the trust but not that it’s illegal..

@@ondreiii Theft through deception because they cannot deliver a vehicle in proper condition that can be legally titled in the new owner's name. Not much different than buying a stolen vehicle without knowing and not being able to use it. One would expect a dealership not to sell them a vehicle that can't be legally owned. That's criminal, not civil.

They updated tags on time duh. And people buying on Carvana markup will not sell the vehicle locally at a steep loss.

That’s excellent and that should be the experience across the board but the fact that it’s not is the problem that they have to alleviate going forward.

@@davidpachecogarcia I agree!

Yeah true, I guess dealing with them was kind of the luck at a vending machine, maybe its a good one

Isn’t that the case though with all dealers? I’ve had several bad experiences at local brick and mortar car dealers swindling us into bad situations over the years- and partly I suppose I was to blame for not doing my own research beforehand but my point is that all venues of obtaining new cars or used cars can be a good or bad thing.

No response because all these are daily speculations. Lol. Isn't there a more direct approach to all this random videos? Can't there be a direct video explaining how we all can make big gains from this once and for all?

@@YTDataAnalyst Thἰs whole thἰng ἰs a zero-sum game, and you could potentἰally lose all. If there were a particular approach, then ἰt would be too easy. Quἰck tἰps: diversἰfy your portfolἰo (locally and Internatἰonally); Study the charts thoroughly; Get & work with an experἰenced specἰalἰst whose platform has dἰverse ἰnvesting choἰces. That way, you gἰve lἰttle room for error and perhaps gaἰn more.

@higson Funny enough, I can honestly relate. It's really difficult to find someone whose platform has diverse investing choices. I don't know if I am permitted to drop this here, but her name is "Sandra Yvonne Webster". You can check her out for more.

@@YTDataAnalyst Don't chase fast money that's not typically how it works BTW, great tips from the guy up there.

@@pizzaguy7998 This is the second time I am coming across that name Sandra Yvonne Webster last Tuesday, I saw a telecast on the economic bubble there were lots of testimonies from her clientele on how her strategies turned them into miIlionaires overnight. The testimonies were so impressive and sounded too good to be true. I am a bit skeptical, though she's one of the oldest around. Are you a client there? Thanks if you reply.

Not to mention all the stolen cars they resold. That never works out well for a car dealer.

Same as everything in the stock market nowadays. The stock market is totally disconnected from the economy.

Remember how Google never showed a profit for five years?

Well, one major reason is Carmax doesn’t have the operational problems that Carvana does. A major strength of Carmax is its supply chain and logistics, which when it is operating as it should, it’s seamless and bulletproof. The downside of that is when something doesn’t quite work as it should on the system, it can really come off the rails fast, which unfortunately management doesn’t seem to concerned about in the rare times it happens. For the most part, cars we MOSTLY good. The big horror stories you hear about of extreme ripoffs and completely taking advantage of customers almost never happened. People knew they were paying more, but for that piece of mind were willing to pay it. They took the sleaze factor out, and that reputation matters a lot. It sells A LOT of cars. That said, as the bean counters take over and with the reputation established, suddenly execs are thinking more about their bonuses and shareholders. The quality care declined, which is something they were kind of forced into doing. They have been busted in the past for not doing the inspections they claimed they were, or they weren’t fixing them. But overall, things were really good. However when all their online sales and deliveries were starting to roll out, they were getting sloppy. When buying from anyone, buy a car with a return policy, and immediately take it to a trusted, objective mechanic to do an examination of it. Pay the $100 for that. It is very well worth it and could save you thousands.

Hopefully they don’t and have to liquidate everything so I can buy a sports car 50% off

Talked to my millionaire uncle (been investing in Vanguard funds for 30 years) last night and asked what advice he would give investors in today's market: "If you're a long-term investor, you should be buying stocks now. Ignore the news, it doesn't matter over the long-term."

People are almost always focused on the short term and never the long term. Yeah, market is brutal at the moment and it sucks for everyone, but the market always rebounds higher than it ever hit before. Cheap investments today bring better returns in the future.

Market collapses are fantastic opportunities to amass significant riches. Nobody is able to predict the future of any market. I've put everything I have into this. I don't care how low we go because market timing and emotion are deadly. Even while I will continue to purchase, I will only invest what I can afford to lose. Currently, my diversified portfolio has a 24 percent gain. Long-term investing is usually profitable.

@@oneiljerry9460 This is a superb mindset to have towards the market. How are you able to navigate the volatility that comes with?

@@stephaniestella213 In order for us to prepare for the future we need to look into safer investment with good prospect . If you have the mindset of investing 5 years ahead and just keep DCA every time you get paid. My portfolio have accrued gains of about $130k under the guidance of my investment -Advisor "Eileen Ruth Sparks" whose skills in portfolio diversification are unmatched and client-centered

Yeah very suspicious they didn't mention how crooked the father is. Carvana is a carbon copy of DriveTime with different window dressing.

Wasn't an oversight, was totally intentional to rip people off. Dude should have assessets frozen and distributed to all the people ripped off. And he should be in jail

Their principal business focus was/is to sell subprime loans for their many finance companies: GO Financial, SilverRock Group, and Bridgecrest Acceptance Corporation, etc. That type of finance has more ups and downs than an elevator. "Buy Here Pay Here" on Steroids.

Yup DT definitely a shady business and questionable cars

You seen the Diablo Immortal critique comic? Because it sounds exactly like that and it's hilarious. i.redd.it/p1rd9910mi691.png

You have to get a financial-advisor/broker to aid you diversify your portfolios to include commodities, inflation-indexed bonds and stocks of companies with solid cash flows, as opposed to growth stocks where valuations were based on future potential earnings,

@@joshspring7686 Had a good run during my first year in the fin-market, I assumed I had a hang on it. However, things changed during the pandemic, and I needed to diversify into safe assets, so I approached a coach who devised a structure that matched my goals, and in my first year working with her, I made a whopping $695k, which I hope to scale to a million before the end of the third quarter.

@@chrisbluebird5037 that's impressive!, I could really use the expertise of this advisors , my portfolio has been down bad....who’s the person guiding you?

@@miawhitlock9140 credits to Jessica Meador Jones, one of the best portfolio manager;s out there. she;s well known, you should look her up.

@@chrisbluebird5037 I curiously looked Jessica Meador Jones online and researched her accreditation. She seem very proficient, I wrote her detailing my Fin-market goals.

Congrats, you won the lottery

Me too! I love carvana

Their car prices seemed to be _very_ high to me. Their vending machine buildings look cool though.

A lot of people there were treated so bad they should be given refunds

My experience was just the opposite although that was two and a half years ago.

@@robertd9850 I had great experience with carvana as well but that was also over a year ago

I've had two wonderful experiences with Carvana, hard to imagine better.

Got a car from carvana myself. Hopeing here nothing weird happens. What are you thoughts on this?

Car dealership salesmen are a nightmare. After being traumatized at my last car purchase I vowed to drive this one into the ground. I loathe dealerships with a passion now.

It is not smart to buy sight unseen. Any technician will tell you this. But they will refund you if you find issues but it’s still bad practice. Check a car out in person always

He's a convicted felon.

Technically the shareholders lost because they invested in hope that it would work but when you have inflation the costs increases and debts aren't what people want to make to buy cars because cars are debts and when it goes bad for the real estate it goes bad for the car industry.

Buying was a major issue

It makes perfect sense that you were able to sell easily, they were desperate for cars.

they paid twice the price offered by a dealership, thats why they wont get over it

I sold my used car to Carvana, terrible experience. They left the car blocking my driveway for 3 days before I had to threaten to have the car towed away.

@@2011blueman terrible 😢

@@timothy1949 dealerships are a bunch of scammers. If you think that they offer fair price, you’re probably one of those crooks.

@@timothy1949 lol people are so stupid. Sure 'we'll pay you twice as much for your car than anyone else. We have a magic wand.

I’m a Gen Z and I MUST test drive my car before a purchase. Private seller or dealership. I trust buying a used car without a test drive or scoping like I trust buying the right fitting shoe online from a reseller. Just too risky

Lose*

Yes sure, but they make it up on volume! /J

It seems they mark up the value of the used Vehicle somewhat above its Bluebook value including mileage, and eventually a creating a profit.

@@arasb3258 used to make through financing but not anymore due to raised federal interest

It’s a casino. It’s all about the hustle and momentary perception of what a stock will do, and not how good the company is.

It's determined by projected future earnings.

@@prism8289 The stock market is not a casino. For a start, it's not a zero sum game like a casino. It only gets into gambling territory if you invest in companies making outlandish predictions about future earnings

@@tomlxyz no. When you are no longer betting on what a company is or does, and instead on what the stock market will do say to day, it’s a casino. 70% of trades are high frequency. It has forced CEOs to play the game to bend the company to manipulate a share price and not build a strong company that endures. Even Buffett says so. Carvana is an excellent example. Anyone looking into Carvana for ten minutes saw problems. But they kept buying stock because they thought it would go up, not because it was a good company.

So you understand the stock market

Houses are unaffordable and soon used cars will be too

@@rogerfloyd852 It's because the new car inventory is almost non existing.

Nah it's because the world locked down for the sniffles

They outsource. We sold our car to them. A local tow company picked it up. Driver said he was taking it straight to auction.

*Assets that can make you rich Crypto Stocks Real estate*

*I feel like the hole season is over, I'm trying to get into trading as a rookie, buh I've had so much losses trying to trade on my own, pls what strategies do I need to earn profits from the market?*

it's obvious. a lot of people remain poor due to ignorance, it's better to take risks and make sacrifices than to stay poor

The best strategy to use in trading is to trade a professional who understands the market quite well, that way maximum profit is guaranteed. Because I have learned along the way of my investment that research and analysis are important, note that experience is more needed, than luck when it comes to the financial market.

Yeah you're right, most times it amazes me greatly the way I moved fro an average lifestyle to earning over $62k per month, utter shock is the word. I have understood a lot in the past few years to doubt that opportunities abound in the financial markets, The only thing is to know where to focus.

The whole point of their experience is that there is no negotiation. The price you see is the price you pay!

I bought my car from them great experience, I paid all cash for the exact car I want. Plus I had 7 days to return, which dealership offers that ?

Outperformance is not possible without underperformance. Good days are not possible without bad days. Bull markets are not possible without bear markets. Multibaggers are not possible without drawdowns.

Now that's the reality of market, but everyone want bull run and no one wants bear market.. Guess what these are the people who trade with calls and not analysis.

Starting out with a with a professional that knows the ropes of the choppy but profitable market is the best way to achieve getting a well structured portfolio. That’s why I have been working with ‘ "Nicole Ann Sabin" ’ and that doesn’t make me daft because in financial dealings one have to be prudent. Most traders enter exit with a quick 10% profit which is not bad in a general opinion but why not aim higher, it doesn’t necessarily mean to be greedy.

@@marianparker7502 i am approaching retirement & i think this is the last window of opportunity for me to become a millionaire before retiring, as Recessions and downtrands are where millionaires are created. Currently i have some lump sum in a savings account and will like to work with a fiduciary financial advisor to achieve my goals. Please how can i reach Ms. Nicole?

@@wiebeplatt4749 You can look her up as she has an official webpage for consultations. According to Warren Buffet "I don’t think most people are in a position to pick single stocks. A few are, maybe, but on balance, I think people are much better off buying a cross-section of America and just forgetting about it" In Other words, you need expert hands to be able to outperform the index.

The US is too car dependent. If people had alternative transportation like metro subways, robot taxi, light rail, HSR, bikes, or buses, then a lot of major car company stocks would crash as well.

Bingo

Same here, It's strange how people talk about all the profits, they've been making through investing in cryptocurrency, while am here not making any profit at all. Please can someone put me through on the right path.

@@rosenaomi469 Most time have knowledge or insight about a particular activity can as well be a pleasing exercise. I can boldly say that crypto and Stock trading is one of the profitable money exchange services that elevates investors and their financial status.

@Danny Bozeman You actually need an expert trader assigned by a registered brokerage company to help you out. I currently trade with Mrs Ethel Arthur, She's the best when it comes to making huge in the market!..

@Roland Akpelu Speaking of experts, I have been seeing so many recommendations about Ethel Arthur on online and other trading platforms, I think she's good for people to talk about her

So nice to see others who trade with Ethel Arthur, currently I own a well diversified portfolio over 15K with the help of Ethel Arthur

You must live under a rock.

These strategies are quite rigorous for the regular-Joe. As a matter of fact, they are mostly successfully carried out by pros who have had a great deal of skillset/knowledge to pull such trades off.

I’ve been on both end of the spectrum, I was investing on my own for about 3years, did my own study and analysis before actually buying, things became rather difficult after the pandemic which was right about when I reached out to a portfoIio-advisor for guidance, It’s been over 2 years and I’ve scaled up a stagnant reserve of $280K to $700k in just about 24months.

This is massive, congrats! well my 401k lost everything it’s gained since early 2019. Sigh, wouldn’t mind looking into the advisor that guides you, I’d really love to grow my reserve seeing I should be retiring in 3years.

Theda Helene Jackson is my portfolio-coach, I found her on Bloomberg where she was featured and at once, looked up her name on the web.Thankfully, I came across her site and reached out to her.

She really seem to know her stuff, saw her educational background and qualifications on her website, thanks for sharing.