Would you believe it’s been a year and a half since we last discussed used convertibles? Much has changed during the interim: The economy, the used-car market, and life in general. While some of you were fairly convinced I’d purchase a car “on the rebound” after I’d dumped the quality control nightmare that was the Golf SportWagen in July of 2021, you were wrong. Let’s catch up a bit.
If you’d been hiding under a rock and just started reading the news in the last couple of months, it’d be easy to wonder how Carvana is a thing at all. The company’s troubles seem to grow by the day, though a recent story out of Michigan shows a few bright spots for the online auto retailer.
Carvana is in trouble.
The used-car company, known for its large "car vending machines" that can be seen along busy suburban freeways, is seeing its stock tank in the wake of a Bloomberg report that at least some of its creditors are making a pact that binds them to work together in negotiations with it.
Carvana – the used vehicle retailer with giant automotive vending machines – has reported that it suffered a $508 million net loss for the third quarter of 2022. Combined with the $945 million it bled through the first half of the year, the business is upside down for nearly $1.5 billion and we’ve still got three months left.
Given the constant hassles of Volkswagen Golf ownership lately, and how every media outlet is shouting “Highest Used Car Pricing Ever” as loudly as possible, I’ve been pondering selling the Golf to a dealer. No Facebook idiots, no trade-in for something else, just a sale.
Here in The Current Year, there are many companies that purport to give you both the best deal possible and make the car selling process seamless. I found out this week what five such companies are like in the early stages.
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.
Carvana, the company we previously razzed for its innocuous multistory automotive contrivances, has suddenly found itself facing some legitimate problems. The car dealer is now famous for two things: vehicular vending machines and a majority shareholder with criminal ties to a major savings and loan scandal — who also happens to be the father of the business’ CEO and co-founder.
The organization is also facing a share price that has dipped 40 percent since its April 27 IPO. However, that can likely be blamed on an over-saturated used car market. Secondhand cars are incredibly affordable at the moment so, if you wanted to support Carvana or any other used vehicle vendor, now would be a good time. You just have to be alright with doing business with Ernie Garcia II, the ex-con investors are likely going to blame if the share price doesn’t bounce back.
Online used-car dealer Carvana opened its second coin-operated car “vending machine” in Houston, Texas. The four-bay location allows customers either to pick up cars they’ve purchased through the company’s website, or to buy one of the 30 vehicles in stock at the location.
While customers can have their purchase delivered directly, Carvana must think there are enough interested rubes willing to make a pitstop in Houston on their pilgrimage to the world’s biggest ball of twine to make this gargantuan novelty worthwhile. Considering that Las Vegas has remained on the map, there might be something to that way of thinking.
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- Canam23 I moved to Los Angeles in 1968 and the air was barely breathable. Thanks to the mandating of pollution controls and the work of the Air Quality Management District, it's 100% better today. When the first pollution targets were set in the 70's, Detroit moaned that it would be impossible to achieve, meanwhile the Japanese sat down and figured out how to do it. As a result of the constant strengthening of the anti pollution laws, our air is much less dangerous for our children. Furthermore, engineering has now created very clean, powerful and efficient engines. So Stellantis, I'm not buying it.
- Random1 So several of the interboro crossings are cheap: Brooklyn bridge, Manhattan bridge, Madison Ave, Willis/3rd Ave. One or two others I think.$18 is weirdly cheap, but "early bird" all-day parking is easily under $25 at many, if not most, places. That garage is actually on 62nd St, so I might be able to still drive in post-congestion, but I can't imagine they won't jack up that rate when the time comes, they're gonna be over run.
- FreedMike Right, the fact that Jeep sales are down this year has nothing to do with it...nope. See FlyersFan's post above for the figures. They're ugly. Now, you'd think that a fact like this might be in this story, but a headline like "Jeep announces layoffs because its' sales are down" just doesn't have enought red meat to toss out. But toss "California" into the mix and voila! Political food fight. And given the political proclivities of a large bloc of Stellantis' U.S. customers, why not blame the big bad gubmint? And by the way, if Jeep has a beef with California, what's with this ad?https://www.youtube.com/watch?v=VegskIOcU7Y
- 3SpeedAutomatic Drove a rental Renegade in Florida. Tigershark engine vibrated like crazy at stoplights. Someone had bumped the plastic cladding and parts were ready to fly off at speed. If you could pick one up on the cheap, you would give to your kid for college or trade school. Once they were earning a steady paycheck, it would be traded in a flash!!🚗🚗🚗
- SCE to AUX I don't understand how BMW keeps this brand in business.