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A.k.a. The Carvana model. This is what Carvana and other "no-haggle, no-test-drive" startups are doing with the whole used car market in many areas. They aggres
by bityard 5y ago
A.k.a. The Carvana model. This is what Carvana and other "no-haggle, no-test-drive" startups are doing with the whole used car market in many areas. They aggresively buy up all the used cars in an area (or at least as many as they can) from dealerships and private sellers in order to make themselves the only entity with used cars for sale. Which they happen to be selling at 20% above true market value. But hey, you can buy the car from an app on your phone without the burden of haggling with a salesman or even a test-drive!
- kami8845 5y agoIn which areas does Carvana own all the cars for sale?
- lotsofpulp 5y ago> Which they happen to be selling at 20% above true market value. If carvana is not providing that value, then there should exist plenty of sellers that want a piece of that 20%, such as car dealerships and individuals themselves. This is a market with plenty of buyers and sellers, and low transaction costs. I see no reason why Carvana would be able to corner it.
- JohnWhigham 5y agoMiddlemen leeching off of middlemen. Allow car manufacturers to sell directly to consumers and the problem will sort itself out.
- 1123581321 5y agoI shop for used vehicles fairly regularly and don’t see evidence of this. Prices are high right now but not because any one entity has a lot of inventory. Keep in mind that a healthy market for used cars encourages more owners to sell and get something new. Local and regional markets can only become tight to an extent because cars and buyers move around the country when it makes financial sense.