Dealers' #1 source for auto industry news, content, coaching & analysis

Carvana’s Q3 losses shed light on slowing used car demand

Carvana shares fell in extended trading after the company announced its third-quarter financial results were worse than expected and reflected a decline in nearly every aspect of the used car retailer’s business.

Carvana shares fell by more than 7% during after-hours trading following the announcement and have plunged nearly 50% this year – a result of a struggling used car market facing higher prices and interest rate hikes.

The company reported a gross profit of $359 for the third quarter, a 31% decrease from last year. Retail sales dropped 8% compared to the previous year, landing at 102,570 vehicles. Gross profit per unit also declined by more than $1,100 to $3,500. Revenues landed at $3.39 billion, missing expectations of $3,71 billion.

The company saw a loss per share of $2.67 versus the expected $1.94.

“This economic environment remains uncertain, but we are focused squarely on the goal of driving the business to profitability,” said Carvana CEO Ernie Garcia in a press release. “While progress is rarely linear, we remain on the path to becoming the largest and most profitable auto retailer.”

In a letter to shareholders, the used car retailer said the average monthly payment for a customer buying a typical car has jumped 22% in 2022 over last year, making it harder for the average buyer to afford a vehicle.

Earlier this year, the company laid off around 2,500 employees, representing 12% of its workforce, in an effort to cut costs.

Did you enjoy this article? Please share your thoughts, comments, or questions regarding this topic by connecting with us at

Be sure to follow us on Facebook, LinkedIn, and TikTok to stay up to date.

While you’re here, don’t forget to subscribe to our email newsletter for all the latest auto industry news from CBT News.

CBT News
CBT News
For over 11 years, CBT News has been informing and helping automotive retail professionals grow their businesses and thrive in their careers through an awarding-winning, on-demand streaming platform. With exclusive interviews featuring the biggest names in the industry, daily newscasts, up-to-date market data, and exclusive articles covering the latest trends, CBT News is your #1 source for auto industry news and content.

Related Articles

Manufacturers In This Article

More Manufacturer News

Latest Articles

From our Publishing Partners