Carvana Takes Another Hit
Carvana is going to cut 1,500 jobs, which is about 8 percent of its workforce.
The cuts, along with the closing of some locations and the elimination of some work shifts, are all meant to save costs. A source told Bloomberg that it's because of the "challenging economic environment".
The cuts will affect operations, technology, and corporate roles. Those who are let go will get separation/severance pay through at least the new year, plus three months of healthcare coverage and unvested equity awards via cash payments.
Based in Tempe, Arizona, Carvana is struggling with a cratering stock price and cash outflow. That's because after seeing a surge of success in 2021 as the lack of new-car supply drove used-car prices up, the market has shifted. Used-car prices are falling while inflation is rising and that has negatively impacted consumer demand for pre-owned vehicles.
As of Thursday, Carvana stock had plummeted 96 percent during the year. The stock is just under $7 as I type this.
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Mike on Nov 21, 2022
Not only have I had a few friends making money buying out their leases to sell to Carvana...I have my own.
Now I know an RLX isn't for everyone, which is exaclty why it fits me, if that makes sense, I know they did not compete well in their segment and all and led to low resale which is why I have always had my eye on one due to the bang for the buck (literally you can get one for the price of a TLX)
So, at the end of 2017 I purchased a brand new Fusion SE for 7k off sticker. Literally it was a perfect car, not a single issue. Actually, one of the better cars I have owned! Only complaint was gas mileage not competitive for segment (Case in point my 3.5 v6 RLX gets only about 2-3 mpg less overall according to my calculations compared to the turbo 4)
However, Carvana offered me $2,900 more than I paid for my car NEW!!
I noticed many of Carvana's used cars were priced well above KBB Private Party Value
I find the PERFECT RLX from Flordia, late build 2016 with tech package. AND its priced RIGHT at KBB Private Party Value! Couldn't believe it. 1 owner, acura dealer records on the carfax, no accidents. I have driven it for 11 months and 10k miles and love it.
And I only had to pay about 5k out of pocket. For a car that stickered at 58k new vs my 27k sticker fusion.
Not for everyone, just how Carvana worked out for me