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Maybe things were so slow due to Covid, they were just trying to turn over inventory. We have done things like that in my business as well. Just trying to get cash flow going.

This reminds me of the novice businessman who bought a bunch of machines that allowed customers to exchange a dollar bill for 4 quarters.

He was doing his books one night, and found that he was not making any money.

Well, he says to his bride "I've got to get a lot more machines!" :-)

SIA

03: Which "them" was it? Carvana or Carmax?

The desirable business model in the stock market world, or in any other business, was "Buy low, sell high".

If some company's model is now "Buy high, sell low", I don't see profits for them in my crystal ball.

SIA

Word to the wise: if you find your desired truck at Carvana, DON'T DO IT. Carvana is a messed up place to buy a vehicle.

They have had their dealer licenses taken away by the states of Illinois and Michigan, maybe more states.

They have sold stolen vehicles.

The buying process seems easy, then they can't get you the title.

The Illinois Carvana stores would sell a car to an Illinois buyer, could not get the title, and gave the buyers ARIZONA paper tags. What a headache.
It's a heck of a way to run an airline. (old saying)

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Carmax has plenty of vehicles on their lots, if Denton Carmax is a representative store.

But they have made a corporate decision to keep their prices higher than perhaps the current market reflects.
It seems like they overpaid for inventory and now THEY may be upside down on their vehicles.

SIA