Carvana Doesn't Need My Business

I was trying to hold out until April, but I can’t do it any longer. I’m finally jumping in with two feet and will probably buy a car on Friday. I currently have a 2009 Nissan Maxima. My has over 200k miles on it and based on my last two Nissan’s I was hoping to get 250k out of this one. However, the last two Summers, I have had no AC, I have a leak in my tie rod system that controls the power steering, but the nail in the head is my car is starting to vibrate now.

In the newer Maximas, talking 2009 and beyond the engines use CVT technology. A continuously variable transmission (CVT) is an automatic transmission that can change seamlessly through a continuous range of gear ratios. The longevity of a CVT is dependent on many factors. A CVT in a late model vehicle should easily surpass 100,000 miles with regular maintenance but older CVTs may not last as long. I’m pushing 200k+. Reported issues include loss of power, transmission jerking, transmission slipping, etc. Also my spark plugs are shot, this could be causing the issue as well. However, I’m not sure and it’s about that time.

A couple of months ago, I started to passively look, but last week I went HAM. Call me old school, I just love the Maximas, thus I’m looking for just a newer model. In my search I have come across just a few because I’m particular in the color I’m looking for. Silver and/or gray Maximas w/sport premium package are out there, I would just have to travel for it. Then I thought about using Carvana.

Carvana Co., together with its subsidiaries, operates an e-commerce platform for buying used cars in the United States. The company purchases, reconditions, sells, and delivers vehicles. The company's direct to consumer business model, bypasses the traditional dealership ecosystem to reduced costs and pass the savings on to the consumer with the use of their car vending machines.

With coronavirus showing no signs of abatement anytime soon, many people are opting not to take public transportation. People also don’t want to interact with car sale people either. Carvana’s sales increasing 20% to 30% into May, but the stock price exploded after announcing earnings yesterday, making a father-son duel even richer in the process.

Carvana Co. has yet to post a quarterly profit since going public in 2017, but it’s made Ernie Garcia II and his son Ernest Garcia III two of the richest people in America.

The elder Garcia is the largest shareholder of Phoenix-based Carvana, the online retailer that sells cars out of massive vending machines. His son, Garcia III, is the company’s chief executive officer. Together they’re worth $21.4 billion, according to the Bloomberg Billionaires Index.

Shares of the company surged 31% in New York on Tuesday after it projected record revenue and profit margins. It has rallied more than 670% since a March low and has a $36.2 billion market valuation.

Source

I was about to head to Maryland because I found one that looked just sick, but lucky for me, a car became available just 7 miles away from my house. It doesn't my spoiler in the back, which at first was a deal breaker, but I can put one on after I purchase the car.

So Carvana ended up not getting my business. I'm sure they don't care as the stock price is now over $200.

This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.

Posted Using LeoFinance