The expert started his career at CarMax where he spent 11 years in various operational roles: He managed monthly purchasing and pricing of an average of $15 million in inventory, led the buying departments for the three Dallas locations with a staff of over 30 employees, and created and instituted new purchasing strategies to optimize revenues, staff performance, and to ensure compliance with company directives. He then joined Drivetime for nearly 3 years as the head of the company’s inspection centers before moving to Carvana for the past 8 years. As a Director of inspection and reconditioning centers at Carvana, the expert led all aspects of the facilities from inception to 500+ team members, from zero to 1,000+ weekly production units, multiple shifts and production lines while overseeing construction of a 60+ acre facility.
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Yes, the MMR is the average price. However, this can be misleading. If someone pays over 100%, it's not necessarily wrong. The average might include cars in poor condition or with significant damage. If you're focusing on cars in good condition without damage, paying over 100% isn't necessarily wrong.
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Dealers are less likely to sell a car through an auction if its price is below the market value. On the other hand, consumers are more likely to sell because they prefer not to deal with the hassle of selling it on their own or meeting potential buyers. Essentially, they're paying for the convenience of not having to advertise, sell, and take calls from other people, effectively acting as a retailer.
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Each auction, regionally, may have a different fee schedule. Auction fees for cars increase. However, for the purpose of this project, Carvana and CarMax, being large buyers, have negotiated a flat fee, regardless of the car's location or price. Carvana's auction fees are probably around $300. I would imagine CarMax's fees are less, but I wouldn't be surprised if they change. CarMax buys hundreds of thousands of cars from Manheim auctions every month, and Carvana's volume is also high.
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The expert started his career at CarMax where he spent 11 years in various operational roles: He managed monthly purchasing and pricing of an average of $15 million in inventory, led the buying departments for the three Dallas locations with a staff of over 30 employees, and created and instituted new purchasing strategies to optimize revenues, staff performance, and to ensure compliance with company directives. He then joined Drivetime for nearly 3 years as the head of the company’s inspection centers before moving to Carvana for the past 8 years. As a Director of inspection and reconditioning centers at Carvana, the expert led all aspects of the facilities from inception to 500+ team members, from zero to 1,000+ weekly production units, multiple shifts and production lines while overseeing construction of a 60+ acre facility.