Carvana Just Crushed Earnings, but Investors Should Be Careful
The used car market has been on a tear for the last 12 months, simply because consumers are struggling to get their hands on new cars, so they're forced to compromise. Really, nobody expects to buy a car and have it rise in value, but that's exactly what's happening for many used vehicle owners right now.
Consumers might recognize Carvana (NYSE: CVNA) for its giant car-filled vending machines. Once a novelty, the company has now become the second-largest used car dealer in America. It just delivered its first-ever quarter of positive net income, but there are signs the favorable market conditions buoying its results are heading in reverse.
Historically, long-term strength in used car prices is not a trend investors can bank on, so investors may want to tread carefully.
Source Fool.com
