Jan. 15 at 4:46 AM
$CVNA is a used car company. It sells used, sometimes worn, warrantyless automobiles mostly to the portion of the population that do not qualify to buy or lease a new vehicle with a built in warranty. Plain and simple.
Unlike
$F or
$GM whose market cap are only in the teens,
$CVNA doesnt create or build anything or devise creative, efficient solutions for the betterment of the general consumer.
Instead, it created an attractive website citing low down payment - and 99% approval rates. This drives buyers with nowhere else to go or shop to their doors... begging for a set of keys in exchange for signing any paperwork requested... it's all toilet paper anyway... there is no bank in the universe that has a denial rate of less then 50%.
In order for a bank or finance company to be sustainable, let alone profitable they need to weed out the probable delinquents.
$CVNA embraces them for the gravy they produce, on paper, when dumping those loans.
Not a question of IF but when.
