Carvana took the online car buying experience by storm, particularly during the pandemic. However, as major legal troubles and other company issues arise, Carvana’s problems take a front seat as their struggles are showcased. Here’s a look at the issues that led Carvana to the situation they find themselves stuck in.
Things were looking up during the pandemic
During the pandemic, Carvana was huge. The idea that they would deliver a vehicle to you and then take your old one away with minimal contact was almost too good to be true. Between quarantines and working from home for many, it was the best option for those who needed a car immediately.
Commercials for Carvana flooded everyone’s television screen, and even a few dealerships opened up once lockdowns began to ease up.
Other factors which helped the company grow so rapidly were when Carvana began offering loans with low-interest rates and the occurrence of the chip shortage. In fact, things were so great in 2021 that the Wall Street Journal reported that the stocks for Carvana jumped over 1,000%.
However, all that has begun to change. Now there are rumors that Carvana may be about to go out of business. So how did it all go so wrong?