Viewing a single comment thread. View all comments

Far_Introduction527 t1_j9bvqhe wrote

Reply to comment by DYTTIGAF in Just want to get to the carvana earnings s*** show by rocket_man19

Try 22% they go high too. I bet you earnings will be better than expected

14

DYTTIGAF t1_j9bwq1l wrote

Consumers need to qualify for these cars. Carvana does not hold the notes. The notes are repackaged an sold to investors.

Institutional investors will not buy securities from Carvana with car loans from people who live paycheck to paycheck (paying 21% ).

They did this with subprime mortgages back in 2007. They won't do it again.

Carvana is finished.

8

jawn_blaze t1_j9bzg3y wrote

You have a lot of confidence but don’t really know what you’re talking about.

21% auto notes can absolutely be a good investment. Where in the capital structure? How much excess spread? What triggers?

All that said, Carvanas is a shady company and their losses will be worse than peers as most people who purchased from them way overpaid and the stated collateral value is too high. (So their stated LTV’s are artificially depressed)

Be careful dude, blind confidence can blow yourself up.

14

Pepepopowa t1_j9f94by wrote

I’m tempted to break your comment down but I doubt we want to waste more time here.

“Institutional investors will not buy securities from Carvana with car loans from people who live paycheck to paycheck (paying 21% ).”

You reply that 21% car loans CAN be good investments. Really? In what way? For who?

Do you believe saying excess spread and trigger is a winning argument? Is your argument that you know more than him and his attitude upset you?

1

DYTTIGAF t1_j9c1mqb wrote

That's why Carvana is done 90%. That's why billions in market capitalization has been lost. Where did those loses come from? Guys like you.

Carry on....

−8

jawn_blaze t1_j9c5ui4 wrote

I offered no one financial advice. You offered up emphatic truths to strangers in a subject you have a cursory knowledge of.

I’ll let others decide what’s better.

7

Pepepopowa t1_j9f8dbr wrote

Bro the vocab isn’t impressive and it’s a little pretentious to agree with him but nit-pick his response for not being completely nuanced.

−1

DYTTIGAF t1_j9c6ief wrote

The market will decide and test. It will approve. It has already spoken but you will not discern the feedback.

−8