Carvana Co. (CVNA) exceeded expectations in the third quarter, reporting revenue and earnings that surpassed analyst forecasts. The company attributed its success to its vertically integrated business model and its unique infrastructure, including the ADESA network. This strong performance sent Carvana’s stock soaring by 23.5%, with analysts raising their price targets on the stock.
Carvana, the online used car retailer, delivered impressive third-quarter results, exceeding both revenue and earnings estimates. The company’s strong performance was driven by robust sales growth, increased gross profit per unit, and a significant jump in net income. This news has sent Carvana’s stock soaring in after-hours trading.
Carvana (CVNA) has been a stock market darling in 2024, surging over 230%. But while lower interest rates could boost demand, analysts remain cautious, with some believing the stock’s gains are already priced in. Rising auto loan delinquencies and Carvana’s need to sell to riskier borrowers raise concerns about its future profitability.
Carvana, the online used car retailer, has experienced a remarkable turnaround, surging over 200% in 2024 after facing near bankruptcy just a year ago. Strategic restructuring and a focus on profitability have driven impressive financial results, exceeding analysts’ expectations and leading to a significant stock price increase.
Uxin Limited, China’s leading used car retailer, has formed a joint venture with Zhengzhou Airport Automobile Industry Co., Ltd. to establish a state-of-the-art used car superstore in Zhengzhou. This strategic alliance aims to bolster Uxin’s expansion strategy and advance the automotive aftermarket sector in Henan Province.
A new report reveals that the price of used electric vehicles is dropping more rapidly than gas cars, making them more accessible to a wider audience. This trend can be attributed to the increasing popularity of EVs, leading to a larger supply of used models and more competitive pricing. With more affordable options available, the shift towards electric transportation is becoming more feasible for many.
A popular used car expert, Adam Morris, has issued a warning to drivers about three seven-seat models they should avoid purchasing used. He highlights the Chevrolet Captiva, Peugeot 5008, and Volkswagen Tiguan as vehicles with reliability issues, high depreciation, and potential for costly maintenance. He advises potential buyers to explore alternative models due to the potential for headaches and financial burdens.
Automotive experts Adam Morris and Jim Hull of the YouTube channel ReDriven strongly advise against buying three specific used hatchbacks due to their history of unreliability and potential high maintenance costs. The models they identified as problematic are the Vauxhall Astra (Holden Astra in Australia), Ford models with EcoBoost engines (2011-2018), and the Chrysler 300C.
A recent analysis by AutoTrader has identified the slowest-selling used cars in the UK, with three fully electric vehicles making it into the top 10. The Fiat 500e, Volkswagen ID.3, and Volkswagen ID.5 were among the most challenging models to sell, taking an average of around three months to change hands. The data raises concerns about the transition to electric vehicles in the UK, as Plug-in hybrid vehicles also accounted for three positions in the top 10. In contrast, only one EV, the Jaguar I-Pace, made it onto AutoTrader’s list of the top 10 fastest-selling cars, ranking fifth. The BMW M2 Coupe emerged as the overall slowest-selling used car, with models up to one year old taking a staggering 104 days to find new owners. BMW had a second vehicle in the top 10 with the 2 Series Active Tourer Petrol Plug-In Hybrid, while the Volkswagen ID.5 SUV and Audi Q5 Petrol Plug-In Hybrid also faced sluggish sales. Land Rover’s Range Rover Sport, MG HS SUV Plug-In Hybrid, Ford Mondeo Hatchback, and Mercedes-Benz V-Class rounded out the top 10. The data suggests that petrol models are currently selling faster than any other fuel type in the used car market, while the average speed of sale for hybrids and diesel vehicles has declined. EVs have seen a slight improvement in their average sale time, but they still lag behind petrol models.
