Quote:
Originally Posted by mcintyre1969
Thats $2k! Transport fees are going to eat into that big time. Employees, rent, insurance .... Yeah, I think it is a terrible business model.
|
Same thing I posted. They buy your car at an inflated price and sell it at an inflated price.
I have another theory to it too why they pay a lot to get a car and sell it for a few grand more than a dealer does but it's not enough to make up the cost like you said insurance, transport, payroll, etc.
Like the Camaro they're eating up the used market for these cars. With vroom buying all the cars up right now it gives dealers less inventory to work with. So basically Vroom, Carvana, etc. is buying up inventory and hogging it. So this gives them a bigger market share.
So they're offering more $$ than dealers to get your car in order to gain a bigger market share. Even if this cuts big time short term into their profits it still allows them to bulk their inventory up.
Right now vroom on auto trader has a ton of Camaros compared to my local dealers. Despite this the Vroom prices are about 3 grand higher and more miles than my local dealers.
basically they're trying to hog the inventory for used cars so you have to buy from them.