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> The problem seems to be that they sold too many cars with a negative margin. I've heard stories of people selling their cars sight unseen to Carvana for above
by MuffinFlavored 4y ago
> The problem seems to be that they sold too many cars with a negative margin. I've heard stories of people selling their cars sight unseen to Carvana for above market value and it seems they were left holding too many cars as the second hand car market normalized and prices decreased.
How did a bunch of paid professionals in their leadership not see this coming/account for this happening?
- treeman79 4y agoGuessing their bonuses and KPIs were based on volume. Not profit. Same reasons selling pet food online at a loss drive the crash of 2000. Capitalism rewards efficiency of resources. Idiots are punished harshly.
- SturgeonsLaw 4y agoJust because someone is in a leadership position, doesn't mean they're competent. Not a commentary on Carvana in particular, I know nothing about them, just an observation I've made over the years.