A key point in this interview that Ernie emphasizes is that their platform lowers the friction of buying and selling a used car.
In the US there are roughly 40 million used car transactions each year, and around 270 million functioning cars on the road. This implies that on average people swap cars every 6-7 years.
If we look out over the next 5-10 years, you could see a scenario where people change cars more frequently because of the ease of use of the Carvana model.
Not only would this drive share gains for Carvana but would also grow the size of the entire used car market.
As an aside, I have to say I love the quote he references in the video on how he deals with the haters.
"'Cause the players gonna play, play, play, play, play
And the haters gonna hate, hate, hate, hate, hate
Baby, I'm just gonna shake, shake, shake, shake, shake
I shake it off, I shake it off"
- Aristotle..... 🤣
2023 was an incredible year here at Carvana, and we ended strong. Listen to our CEO, Ernie Garcia, talk about our Q4 earnings with Caroline Hyde Bloomberg.
Carvana Surges as Used-Car Retailer’s Profit Tops Estimates
bloomberg.com