6 ms·
They are also falling for the User Experience, much similar to what car max started with "no haggle" pricing, no needing to wait fir F&I from the dealer, etc.
by rootsudo 5y ago
They are also falling for the User Experience, much similar to what car max started with "no haggle" pricing, no needing to wait fir F&I from the dealer, etc.
That's it - same old processes, but they have the UX to make it "nice."
And people are paying a premium for that.
- jjeaff 5y agoIt's an amazingly high premium. I just looked up the same car I just bought last week from a used car dealer for $13.5k. Same model, year, trim and pretty close mileage are on Caravana, listed at $19k and $21k. So a 50% premium.
- rootsudo 5y agoThey're using the same idealogy of overpricing stuff and listing it in Amazon, so they have the first exposure, even if most expensive, it's most convinient. I, value 50% of the car's price and don't mind spending 3-6 hours to save $10,000~ but many people, simply have an old car, the mechanic says it needs a new engine, they have a shift working minimum wage-esque and go with the first option of visibility thinking it's a good deal. Financially poor, financially ignorant and time poor. The perfect American customer.
- jjeaff 5y agoI think it is more likely they are targeting budget conscious people that are busy with a high paying white collar job and who don't have the time to visit dealers and haggle and want the luxury of just coming home and having the car delivered.
- anchpop 5y agoI agree with all that except financially poor. Most sellers I imagine would prefer their clients be wealthy (because wealthy people on average value a marginal dollar less)
- subpixel 5y agoThe Carvana UX is smart and coercive. You get a (possibly artificial) time block to buy the car, which I’m sure drives conversions.