The route of Carvana, the “Amazon of used cars”, has no end

Concerns are growing around Carvana, the “Amazon of used goods”.

The company was an investor darling during the pandemic. They hailed the new economy that wanted consumers to buy everything online: groceries, office equipment, travel tickets, meals, clothing, homes and cars.

Carvana (CVNA extension) – Get a free report pioneered the new way of buying and selling vehicles with its model of automotive vending machines.

The group has also benefited from disruptions in vehicle manufacturers’ supply chains, which have caused a major imbalance between supply and demand for cars to the detriment of supply. As a result, car prices had risen sharply, so that the prices of used vehicles were competitive with those of new vehicles. Interest rates were also close to zero, which had a double benefit for Carvana. It was easy to finance a vehicle purchase for consumers, and Carvana could also tap into the debt market to finance its expansion. The company thus went into debt five times during the pandemic.

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