Is the Carvana business model truly the future...

[Purerock105]

...of buying cars? Eliminating the dealership aspect. What about the hard sell on service & warranties?

 

[kgrencer]

Its always going to come back to parts and service. The biggest profit at a dealership happens after the car is sold as you know. Carvana will never take the dealeship out.. but it might challenge private party used car sales. IMHO

 

[Hellcatcfp]

Its always going to come back to parts and service. The biggest profit at a dealership happens after the car is sold as you know. Carvana will never take the dealeship out.. but it might challenge private party used car sales. IMHO

That was my understanding as well...ongoing service, etc. Is the real money maker for dealerships. Good thread.

 

[Purerock105]

Carvana is also just "used", but I'm sure the Bigs are monitoring the model.

 

[NoCoHC]

I think Carvana and Vroom are losing massive amounts of money. Their cars are overpriced and they have inflated finance rates. I think we all like the no hassle concept, but to make money they can’t compete on price in my opinion.

 

[Purerock105]

Oh yea. Not making any money and I get that, it's a start up and in its infancy. The vending machine gimmick is a neat marketing tool, I just wonder in the long run, no matter how much we despise the dealer driven point of sale, if it will materialize to a long term sustainability.

 

[Stormtrooper1320]

I've looked through their listings, and the prices seem high. I don't know how they compare on financing. I'm sure that this type of service is fine for some people, but I like to actually look at a car when I'm buying it and have a chance to check it out before I pay for it. I have freinds that have bought cars through services similar to this and they see, to think it's ok. I guess I'm old school and want to see it first.