Carvana Puts the Brakes on Car Purchases
Download Quantifying the Health of Used Car Resellers Using Web Data for more on Carvana.
Carvana slowed its car purchases to historic lows in the current fiscal quarter according to Earnest’s Auto Sellers web data. The dramatic decrease follows a sequentially slower-than-average purchasing growth in the same period during the year prior. Carvana is already facing soaring inventory average age and days to sell as new cars become more available after pandemic era scarcity, and high rates suppress demand. Still, Carvana’s days to sell grew significantly faster than rival CarMax towards the end of 2022.
The Earnest data on inventory purchases by inspection reconditioning centers suggests that Carvana management is pulling back on new inventory additions. Less buying for inspection centers, a leading indicator of future inventory levels, could lead to increasingly old and less desirable auto stock.
Download Quantifying the Health of Used Car Resellers Using Web Data for more on Carvana.
