Ray Shefska pointing

Find the perfect car for you!

Select a car to get started.

3 Reasons Why You Should NOT Buy From Carvana

May 6, 2023

Carvana, the nation’s 10th largest car dealer, has become increasingly popular as an online car dealership. However, despite its growing reputation, there are three key reasons why you should avoid buying your next vehicle from Carvana. Plus, we’ll take a look at the many examples of Carvana selling ‘broken cars’ to customers. 

Reason #1: Skyrocketing Profit Per Vehicle

Carvana’s gross profit per vehicle has seen a significant increase, as revealed in their latest earnings report. In Q1 2023, their profits per car sold rose by an astounding 61%. Meanwhile, other online car dealers like CarMax and Vroom haven’t experienced the same success.

While Carvana’s total revenue dropped by 25% to $2.6 billion, their gross profit per unit increased. How did they achieve this? By inflating their car prices. Carvana’s financial success is relying on uninformed buyers to make purchases without realizing they’re being overcharged.

Reason #2: Ridiculously High Prices

Carvana’s prices are just too high. Unfortunately, car buyers should expect to pay a premium for the no-hassle, non-negotiable prices at Carvana. The company obviously tosses a few thousand dollars onto the price tag as an unofficial ‘convenience fee’ of sorts. In some cases, they’re selling used cars at nearly the same price as new ones. 

Take a look at this example. Here’s a 2022 Ram 1500 Crew Cab with 12,667 miles on it, and Carvana is asking $45,990. This isn’t 2021, folks. Truck prices have gone down. In fact, our Car Coaches are regularly negotiating over 10% off of MSRP for brand-new trucks. 

Carvana truck prices

On CarEdge Car Search, we can see that Carvana has been trying to sell this truck for well over a month, and has already dropped the price by $3,000. 

CarEdge Car Search

The new 2023 Ram 1500, same trim and all, is within range of the USED Ram truck once current market negotiability is taken into account. And this truck, even if it’s a few thousand dollars more, comes with a full warranty, and is without the mechanical unknowns that come with every used vehicle at Carvana.

Ram 1500 price negotiability

Simply put, Carvana’s prices are just too high, but not all buyers will notice. Be sure to check CarEdge Dealer Reviews to see what others have experienced near you.

Reason #3: Serious Quality Issues

Carvana has a concerning track record of selling vehicles with serious quality issues. While not every car they sell has problems, it’s a recurring theme that cannot be ignored. Poorly reconditioned cars, or worse, are all too common in their inventory.

These are just a few of the real, horrific issues that Carvana’s customers have had to deal with:

Remember, if you can’t get an independent pre-purchase inspection (PPI), it’s not recommended to buy from that dealer. With Carvana, this is often the case.

Learn more about why getting a pre-purchase inspection is SO important.

A Word of Caution

In most instances, you’d be better off negotiating a deal on a new car rather than overpaying for the convenience of avoiding negotiations with Carvana. Do your research, compare prices, and make sure to prioritize quality when purchasing your next vehicle. Don’t be lured by the seemingly hassle-free car buying experience Carvana offers, as it could end up costing you more in the long run. Don’t forget to check the latest Carvana reviews at CarEdge Dealer Reviews!

COVERAGE YOU CAN TRUST

CarEdge Extended Warranty

Peace of mind without the markup.
Flexible terms & pricing.
Coverage details

 

Discover the right insurance for you

Compare different providers with no spam phone calls:

Call us 855.786.1144

M-F: 8AM – 9PM EST
Sat: 10AM – 6PM EST

Email newsletter

Get instant access to members-only resources.

We'll email you updates
Or, we can text you
Hidden
Subscribe to receive:

CarEdge
Data

Get informed

Unlock insights and data.

Coach Mario

CarEdge
Coach

Help at every step

Plus Premium Resources

Coach Ashley

$9.99

Monthly subscription

3 CarEdge Reports monthly

20% off additional reports

Black Book Valuations

CarEdge Recommendation

Car Coach Live Chat

Deal School

Premium Resources

$99.99

3-month access

9 CarEdge Reports total

20% off additional reports

Black Book Valuations

CarEdge Recommendation

Car Coach Live Chat

Deal School

Premium Resources

CarEdge
Data

Get informed

Unlock insights and data.

Coach Mario

$9.99

Monthly subscription

3 CarEdge Reports monthly

20% off additional reports

Black Book Valuations

Suggested Offer

Negotiability Score

CarEdge Recommendation

Car Coach Live Chat

Deal School

Premium Resources

CarEdge
Coach

Get informed

Unlock insights and data.

Coach Ashley

$99.99

3-month access

9 CarEdge Reports total

20% off additional reports

Black Book Valuations

Suggested Offer

Negotiability Score

CarEdge Recommendation

Car Coach Live Chat

Deal School

Premium Resources

Auto insights. Right in your inbox.

We'll email you updates
Or, we can text you
Hidden
Subscribe to receive:

Get the latest trends and money-saving strategies, once a week.

We'll email you updates
Or, we can text you
Hidden
Subscribe to receive:

Related articles

0 Comments

Submit a Comment

Your email address will not be published. Required fields are marked *

Share This