Should you sell your car to Calvana? This is why used cars are more valuable in the coming months.
Carbana comes to Louisville by car “vending machine”
Online retailer Carbana opened its store on Wednesday with its car “vending machine”
Jeff Foilender, Louisville Courier Journal
- Carvana is sending emails to drivers to buy used cars.
- Cash-bound Americans could jump on the opportunity and miss out on the rise in demand.
- This is where you can find yourself across the second-hand car market and how you can use it as an American car owner.
You may have recently received an email from Carvana. Theme of the email: “We want your car!”
Here’s why Carvana wants to buy your car and why customs make used cars hot items.
Carvana is preparing for changes in the customs market
There are very few automotive businesses that are not affected by customs duties. Even used car sellers experience market changes as car manufacturers and consumers try to find a foothold. The Trump administration has issued serious car rates, leaving some car manufacturers and car dealers to scramble.
https://www.youtube.com/watch?v=r03b_s4kybi
According to Yahoo Finance, Calvana (NYSE: CVNA) was promoted by a whopping 19.8% in the morning session after President Donald Trump announced all US import duties set at a minimum of 10%. Carvana reported auto news in April that it was “prepared to meet the supply and demand changes for second-hand vehicles, including those arising from tariffs,” implying that the company is changing its strategy to adapt to car rates.
So why does Carvana promote its car buying service to consumers via email? Also, how does buying a car fit into your customs strategy?
How does Calvana make money?
Carvana makes money by selling second-hand cars via its online platform. We source used cars from a variety of channels, including the average American looking to sell their vehicles. So, if you want to offload your second-hand car to quick cash, Carvana might be the answer. The platform is entirely intended to profit from the final sale of the vehicle, so the offers you receive are conditional on the company selling it at a higher price. Check out Carvana’s differentiated business model (presented for investors).
The company is extremely successful, with a market capitalization of $34.54 billion in accordance with Yahoo Finance. Therefore, it is extremely efficient to assess the fair market value of used cars and sell them for profit. Companies like Carmax and Carvana are effectively transforming the way Americans buy cars and avoiding traditional dealership experience.
Why does Calvana want your used car now?
Carmax is boosting new used car inventory to take advantage of the evolving used car market. Customs duties can cause a surge in used cars as new cars become more expensive. Carvana regularly buys used cars, but it is important for the company to strengthen its inventory if the company expects an increase in demand, such as Carmax.
So the question is, should you sell your used car now? The answer depends on what Carvana offers compared to the fair market value of the vehicle. If you are interested in the fair market value of a vehicle, the Kelly Blue Book has a car value section that allows you to give a solid estimate.
Note that the greater the demand for used cars, the more sellers can raise the price. Therefore, your used car may actually be more valuable in the used car market in a few months, based on the impact of tariffs on the new car market.
Things to consider before selling your car to Calvana
Caredge, a car shopping and research website started by the father and son duo, recommends selling to private parties where you can earn more money for your used car. This means selling directly to buyers without third-party intermediaries like the dealer or business involved. This includes details, services and cleaning, which are also part of our News & World Report recommendations.
In a video of the car selling online, Ray and Zach Schevska said that Calvana is for those trying to make the transaction “as convenient as possible.”
Ultimately, Carvana, Carmax and similar reputable platforms are a substitute for private sales if they can get a fair deal on used cars. The best way to get a good offer is through market research.