The Epic Collapse of Carvana
Once a behemoth, the company is now in major trouble
Carvana was finally the cool kid on the block. With their car vending machines, towering alongside highways across the United States, customers could get a unique car ordering experience.
In July 2021, Carvana (NYSE: CVNA) was trading around $340. A year and a half later, it’s at $8.
What the hell happened?
Why Carvana stock was so popular in the first place
Carvana’s appeal made sense.
Instead of wasting a day with annoying car salesmen and test drives, customers could simply go to Carvana’s website and look for their new ride.
Carvana has an inventory of 25,000 cars that go through a certification process to ensure no major damage from accidents, weather events, or otherwise.
After finding a car you love, Carvana will either ship it to your closest “vending machine” or allow you to go pick the car up yourself, should it be a city not too far away.
The company allows you to make purchases via cash or financing, either through Carvana itself or a third party.
While many of us like to drive a car before buying it, some don’t really care. If they…
