You heard it here first:

Demand at used car auctions has started slowing down.

This will be in the news in 30-60 days.
The largest used-car auction in North American runs weekly on Fridays.

Will share what I see with you all tomorrow afternoon.
BTW don't get screwed when you buy your next car:

Visit for all of my car buying and selling content.

100% free.
Look mom! My tweet made it to the news. ;)

• • •

Missing some Tweet in this thread? You can try to force a refresh

Keep Current with CarDealershipGuy

CarDealershipGuy Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!


Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @GuyDealership

14 Jan

Carvana grossly overpays for cars.

But most people have no idea how it does it (including most car dealers)!

Here's a simple breakdown of Carvana’s operations:

🧵 (1/n)
First, let's understand how Carvana operates.

The company was built on the backbone of DriveTime:

A nationwide, vertically-integrated, traditional dealer group.

Similar to DriveTime, Carvana was built as a vertically-integrated auto retailer.

Let's define vertical integration in normal-people terms:

Carvana does a sh*t load of stuff in-house, as opposed to outsourcing.

This enables them to maximize the value they capture across the value chain.

But why does this all matter?

Read 13 tweets
6 Jan
Car dealerships are money-printing machines.

Or are they?

Let's quickly dig in:

Average margin on a used car used to be around 6-8%.

But 2021 was bonkers.

Some dealers got as high as 10-12%.

And that doesn't include any ancillary product sales.

Now let's put some real numbers to that:

Assume a dealer's average vehicle sales price is $25K.

8% of that is $2,000.

Let's also assume that this dealer does sells some ancillary products:

Read 7 tweets
5 Jan
The most burning question at the moment:

Should you buy a new car now,

or wait for the market to cool a bit?

Here is my response:

I’m no economist, but it’s highly unlikely the market will cool anytime soon.


The supply/demand imbalance is just too extreme at the moment.

No one predicted used car prices rising 32% in 2021,

And surely, no one knows what will happen to prices in the coming year.

What we do know, is that OEMs are still struggling with chip shortages,

And new car dealers don't have any new cars.

Read 5 tweets
28 Dec 21
How to get a great deal at a car dealership (without getting lucky)

A thread (inspired by Naval):

First, context: I have been a car dealer for over a decade. I've been a part of many negotiations.

Important to remember that markets are dynamic, dealers can be emotional, and life is nuanced.

With that said, I hope you enjoy this thread!

1. Start online. Research the car you want.

Edmunds, Cargurus, TrueCar, etc. There is a never-ending amount of information available online.

Most customers come into the dealership knowing more about a specific car than the salespeople do.

Read 13 tweets
27 Dec 21
Great question. This is a heavily-debated topic in the car dealer world.

The short answer is dealers absolutely *hate* them.

Reasons: (1/n)
1. Marketplaces have the worst pricing algorithms. They are inefficient and don't reflect reality. This causes a race-to-the-bottom which hurts everyone.
2. Unethical dealers intentionally misprice vehicles in order to appear at the top. This hurts the consumer who is misled, the dealer who damages their own reputation, and the honest dealer who advertises the true, all-in price.
Read 5 tweets

Did Thread Reader help you today?

Support us! We are indie developers!

This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal

Or Donate anonymously using crypto!


0xfe58350B80634f60Fa6Dc149a72b4DFbc17D341E copy


3ATGMxNzCUFzxpMCHL5sWSt4DVtS8UqXpi copy

Thank you for your support!

Follow Us on Twitter!