Quote:
Originally Posted by rattlsnak
My family has bought 3 cars from Carvana within this last year with zero problems. LOVE the process.. Even sent one back and chose another model. All worked perfectly as advertised.. I hadn't heard that they were in financial array.
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Carvana is potentially just months, if not weeks, from bankruptcy. Gross margin is nearly zero, and at the bottom line it loses several cents for every dollar in revenue. Cash on hand is equivalent to only a few quarters of negative cash flow. The debt is 6X the stock value and that debt is selling at a deep discount. It will likely be a planned BK, the creditors get the company, stock is wiped out, the company keeps running or trying to.