If you're in the market to buy a car then please wait because there's been some massive new developments.
Carvana was the company who promised to give you the car without the car salesman and during the pandemic when everyone was forced to stay inside.
Its stock price exploded to over 360 dollars per share. Carvana became the third fastest company to get inside of the SP 500 Index
But now the situation of Carvana has changed. On Wednesday this week Carvana's stock lost 43% of its value in a single day
The stock went from a peak of over $ 360 all the way down to 3 dollars and 80 cents that represents a value loss of 99%
Carvana’s biggest lenders including two of their biggest ones Apollo and Pimco which hold roughly 4 billion dollars’ worth of debt
Carvana's lenders companies are not dealerships, they would want to sell and dump everything on the market ASAP to get their money out fast
This would have a huge impact on car values because inventory would skyrocket and car values would drop
Things could get ugly really fast so if you're in the market to buy a used car maybe wait a little because you might get a much better deal really really soon..