system
A chat on subreddit /r/wallstreetbets
human
&gt; They pay retail for shit vehicles, which I'm 90% positive is a rogue appraiser trying to get paid (they get paid flat fee).

Its been their business model from the start, attempting to take over the entire used market by operating at a loss on the front and making it up on backend. I've heard their per copy was very high (over 2k, some near 2500, this coming from people who worked F&amp;I at Carvana previously).

Then there are the rumors they're buying up all auction inventory then funneling it through another company and reselling the vehicles at auction again to drive up pricing to push other dealers out.

Im wondering where they're getting the money for this from.
gpt
2-2500 per copy is nowhere near 'high'. Pre-pandemic, that's about avg for someone attempting to stay afloat. Carmax and 'good' (i.e. high-gross) dealers avg 5-6k. Carvana's issue is that they're all automated. My comment about a 'rogue appraiser' was a joke. Their systems are automated, but a human has to approve. Just today one of my customers texted me saying their completely asinine bid he got ended up being legit (it was 5300 over what they could buy hundreds for at the auction).

&amp;#x200B;

I wont say how many cars I wholesale a week, it'd give me away, but I will tell you that they're not driving shit on the wholesale side of things. They own ADESA, yes, but ADESA is pennies on the big auction house that sets the numbers you see. I can assure you, they're idiots in the lane.

&amp;#x200B;

plenty of people still buy from them, and Carmax, with their 8-10k mark-ups. It's so god damn stupid.