Online used car seller Carvana added over 51k cars to its inventory in 2023 Q1, ended March 31, the smallest increase since 2019 Q3 excluding the start of the pandemic according to Earnest Auto Sellers web data. This, as Carvana’s existing inventory is taking upwards of three months to sell. Caravana reduced new car purchases nearly 60% YoY in the quarter in the face of tighter auto lending conditions, higher rates, and inflation squeezing consumer budgets.
In a positive development for Carvana, the cohort of 2023 Q1 cars added to inventory have sold better than then historical average. Around 89% of cars in the cohort had sold in the first 60 days, the highest rate ever for the company. The only other comparable high sell through rate belonged to the historically small 2020 Q2 cohort (not pictured). The high sell through suggests that demand may be higher than first anticipated for the quarter.
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