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Carvana just offered $68,300 for my 2021 MY LR!!!!!!
- Thread starter sarugby4life
- Start date
RoBoRaT
PoPeYeD'SaiLoRDuDe
Shot my foot by paying off the loan on my LR, now the paper Title is in process waiting to arrive in the mail...delaying me selling this used $55K LR MY for $67.9K.
The offer expires in 3 weeks so I hope Carvana does not rescind.
Northern Virginia VW dealer pretty much is a used Tesla dealer now with insane prices. This can't last forever, so if you can wait to buy, I strongly recommend it. History continues to repeat itself.
MYLR in higher demand because the price is lower and is the cheapest way to get a Model Y. Not because people would pay 5k more to get MYLR rather than MYP. What Carvana is offering now doesn’t make sense. They are paying high and selling low to lose money on every MYLR they are paying 68-69k for. The only way its making sense is if we are seeing 2021 MYLR selling for 72K+, which is not the case at all. Also try checking other dealers besides Carvana, like vroom or carmax, see if you can get an offer that’s any where near 68k. It’s pretty obvious something messed up with Carvana’s algorithm, almost like Zillow last year overpaying all the houses because they relied on AI too much. We all know how that turned out for Zillow.
Personally I think this is great and it’s awesome for people who are looking to sell. Right place at the right time, but I just want to point out that we should treat this as an anomaly and for those looking to sell make sure you lock up the price asap. Good luck.
It's not just that the MYLR is less expensive that makes it more popular. The MYP has some disadvantages: its suspension is lower and it has more fragile wheels (lower profile) for one. Great for the track but not good for people in rougher terrain or snow.
I actually came across this on another thread, and the logic makes perfect sense with respect to the market we are in:
Carvana allegedly has an algorithm that's very biased toward a specific ratio of Model S:3:X:Y, and if inventory falls outside of the optimum ratio, they will vastly overpay in order to balance it. Also, they allegedly own the bank that finances cars on their site, so the money they earn from financing is factored into their offer prices.
With that said, if you happen to have a Tesla that they don't need based on the algo, you'll likely see the far opposite of your experience (much lower offers). It's also extremely variable; if you check once a week, you may get wildly different prices. Most dealers and businesses that have offer programs are constantly calculating and recalculating offer prices.
Also, the market is a little crazy (depending upon what you're looking for of course). Model 3s are still a bit saturated. Y less so, S even less, X much less.
Carvana allegedly has an algorithm that's very biased toward a specific ratio of Model S:3:X:Y, and if inventory falls outside of the optimum ratio, they will vastly overpay in order to balance it. Also, they allegedly own the bank that finances cars on their site, so the money they earn from financing is factored into their offer prices.
With that said, if you happen to have a Tesla that they don't need based on the algo, you'll likely see the far opposite of your experience (much lower offers). It's also extremely variable; if you check once a week, you may get wildly different prices. Most dealers and businesses that have offer programs are constantly calculating and recalculating offer prices.
Also, the market is a little crazy (depending upon what you're looking for of course). Model 3s are still a bit saturated. Y less so, S even less, X much less.
I got a similar offer on my 5 month old MYLR. It’s intriguing to think I could sell it and make ~$12k. Then I think about what else I could drive for less and the whole theory falls apart.
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RoBoRaT
PoPeYeD'SaiLoRDuDe
I'm going back to M3, P this time around.
Traded my 104K mile M3LR for the 7 seater MYLR in September. 2nd car is 2020 MYP. The 7 seater MYLR is a great hauler but we rarely use the 3rd row seats (fam of 5 with 2/3 are young adults).
+$12K in 7 months is unheard-of. I'm jumping in.
Yea if you can handle the wait and are going for another Tesla that makes sense. I love having the 7 seats. Family of 5 here too but every time they want a friend over we use the 3rd row and it’s extremely convenient.
TheRealTVGuy
Member
Hi there, new owner and new to the forum. Carvana actually operates at a “loss” so to speak on the actual cars. Because so many of their customers utilize Carvana financing (which doesn’t have rock bottom interests rates) they make most of their money from financing.
Their business plan revolves around financing, not making max profit off the actual vehicle sale. So the more they move (and finance) the more they make. And boy howdy, do they move Teslas. Just doing a search of their site and Teslas seem to go into “Purchase Pending” mode almost as soon as they’re listed.
Their business plan revolves around financing, not making max profit off the actual vehicle sale. So the more they move (and finance) the more they make. And boy howdy, do they move Teslas. Just doing a search of their site and Teslas seem to go into “Purchase Pending” mode almost as soon as they’re listed.
'21 MY LR (19" geminis) with ~20k miles:
Carvana offered $67k
CarBuyerUSA offered $65k
Local Honda Dealership offered $66k + a tax benefit of around $2300 if I trade in with them but they didn't have the car(s) I was interested in available.
It's very tempting to pull the trigger on the Carvana (or higher online offer if I find one) and just figure something out for my transportation needs...
Carvana offered $67k
CarBuyerUSA offered $65k
Local Honda Dealership offered $66k + a tax benefit of around $2300 if I trade in with them but they didn't have the car(s) I was interested in available.
It's very tempting to pull the trigger on the Carvana (or higher online offer if I find one) and just figure something out for my transportation needs...
My thoughts as well. In my case I paid only 50k and they’re offering 68k, so 18k payout after driving for 8 months. But a new one is 63 now…
RoBoRaT
PoPeYeD'SaiLoRDuDe
The lucky stars lined up - I am picking up an M3P on the 18th. Was ready to let go of the MYLR to Driveway for $62.4K, now this.
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RoBoRaT
PoPeYeD'SaiLoRDuDe
Got an offer of $63,600 for a 2020 with 38k miles. With 5k miles the offer is $58,500
Glitch in the system no doubt.
They're selling a 2021LR with 14k miles near me for 61.5k
Glitch in the system no doubt.
They're selling a 2021LR with 14k miles near me for 61.5k
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BGOwner
Active Member
Yep, and we saw someone here who was upgrading from a 5 seat to 7 seat have his order cancelled as he was flagged as a reseller. He sold his 5 seat before delivery of the 7.
The fact that the local SC knew what he was doing didn’t help his case.
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