As Carvana crashes, used car dealers, not buyers, stand to win big
The problem seems to be that they sold too many cars with a negative margin. I've heard stories of people selling their cars sight unseen to Carvana for above market value and it seems they were left holding too many cars as the second hand car market normalized and prices decreased. Like a lot of VC funded companies, they were blinded to market realities by the cash each funding round produced. If they'd had to purchase cars with profits of past sales and their stock as collateral, they might have seen the reality sooner.