{"version":"1.0.0","episode":{"title":"Carvana and CarMax AUTO INDUSTRY DISASTER | Episode 937","url":"http://getcarcurious.com/episodes/carvana-and-carmax-auto-industry-disaster-episode-937","audioUrl":"https://pscrb.fm/rss/p/mgln.ai/e/1385/pdrl.fm/3359a6/injector.simplecastaudio.com/14b42e71-1f9c-41b2-944f-bc8f2b3a3cb9/episodes/c29f653b-98f5-4e01-96df-a3864ecb7814/audio/128/default.mp3?aid=rss_feed&awCollectionId=14b42e71-1f9c-41b2-944f-bc8f2b3a3cb9&awEpisodeId=c29f653b-98f5-4e01-96df-a3864ecb7814&feed=gkrQ6WSC","description":"Today on CarEdge Live, Ray and Zach discuss the latest news from Carvana and CarMax. Tune in to learn more! Hosted by Simplecast, an AdsWizz company. See https://pcm.adswizz.com\nfor information about our collection and use of personal data for\nadvertising.\n"},"annotations":[{"startTime":0.0,"endTime":30.0,"type":"car","title":"Chevrolet Blazers","url":"/cars/chevrolet/blazer","image":"https://upload.wikimedia.org/wikipedia/commons/1/1d/1988_Chevrolet_Blazer_C10_Hardtop.jpg","quote":"...arden and the Clippers take on the Portland Trail Blazers. If you're not a Prime member, just sign up for a...","canonicalId":"car:chevrolet:blazer","priority":0.5,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"imageAttribution":"ArildV (CC BY-SA 4.0)"}},{"startTime":0.0,"endTime":30.0,"type":"car","title":"American Pacers","quote":"...e Celtics go toe-to-toe with Pascal Siacum in the Pacers. Then, James Harden and the Clippers take on the ...","canonicalId":"car:american-pacers","priority":0.5,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"The AMC Pacer, produced from 1975 to 1980, is a compact car known for its distinctive design and wide body. It has gained a cult following due to its unique aesthetic and representation of 1970s automotive culture, often discussed for its quirky style and the impact it had on the automotive landscape.","simplifiedExplanation":"The AMC Pacer is a small car that looks quite different from most cars because of its round shape and big windows. It was made in the 1970s and is often talked about because it stands out and has a fun, retro vibe."}},{"startTime":215.0,"endTime":228.0,"type":"term","title":"auto lending","url":"/glossary/auto-lending","quote":"Yes, it's been a whole week of this is that auto lending and auto finance is screwing the car market and Carvana's car taxes auto loan performance is deteriorating indicating potential disaster.","canonicalId":"term:auto-lending","priority":0.9,"confidence":0.9,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"Auto lending refers to the process of providing loans to consumers for the purchase of vehicles. It plays a crucial role in the automotive market, affecting car sales and financing options available to buyers.","simplifiedExplanation":"Auto lending is when banks or financial companies give money to people so they can buy cars. This is important because it helps people afford vehicles and affects how many cars are sold."}},{"startTime":243.0,"endTime":262.0,"type":"term","title":"loan to value ratio","url":"/glossary/loan-to-value-ratio","quote":"...when it comes to who we're lending money to and at the what loan to value ratios. But this just this just indicates that the issues that we're seeing...","canonicalId":"term:loan-to-value-ratio","priority":0.9,"confidence":0.9,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"The loan to value (LTV) ratio is a financial term used to express the ratio of a loan to the value of an asset purchased. In auto financing, it indicates how much of the car's value is being financed through a loan.","simplifiedExplanation":"Loan to value ratio is a way to show how much money you borrow compared to how much the car is worth. A higher ratio means you're borrowing more money compared to the car's value, which can be risky."}},{"startTime":288.0,"endTime":307.0,"type":"term","title":"loan delinquencies","url":"/glossary/loan-delinquencies","quote":"...if we see loan delinquencies increasing at a dramatic rate at car max where the average credit score for their borrowers is 714 that's troubling now there are many who would suggest...","canonicalId":"term:loan-delinquencies","priority":0.5,"confidence":0.9,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"Loan delinquencies refer to the failure to make required payments on a loan. In the context of auto loans, increasing delinquencies can indicate financial distress among borrowers and potential issues in the auto market.","simplifiedExplanation":"Loan delinquencies happen when people don't pay back the money they borrowed for their cars. If more people are missing payments, it can be a sign that they are having money problems."}},{"startTime":374.0,"endTime":404.0,"type":"term","title":"auto receivables trust","url":"/glossary/auto-receivables-trust","quote":"...I'm ordering spars report on car vanes auto receivables trust twenty twenty four and three here we go folks were about thinking of the auto receivables trust is simply an asset back security that pays some returns...","canonicalId":"term:auto-receivables-trust","priority":0.5,"confidence":0.85,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"An auto receivables trust is a financial structure that pools auto loans and issues securities backed by those loans. This allows investors to earn returns based on the performance of the underlying auto loans.","simplifiedExplanation":"An auto receivables trust is like a big investment fund that collects car loans and sells pieces of it to investors. The money earned from the loans goes to the investors as returns."}},{"startTime":404.0,"endTime":433.0,"type":"term","title":"non-prime loans","url":"/glossary/non-prime-loans","quote":"...one is paid back by prime loans and one is and backed by non-prime loans. Look at the end the non prime tranches over the past year...","canonicalId":"term:non-prime-loans","priority":0.5,"confidence":0.9,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"Non-prime loans are loans issued to borrowers with lower credit scores, typically indicating a higher risk of default. These loans often come with higher interest rates to compensate for that risk.","simplifiedExplanation":"Non-prime loans are loans given to people who have lower credit scores, which means they might have trouble paying back the money. Because of this risk, these loans usually have higher interest rates."}},{"startTime":578.0,"endTime":594.0,"type":"term","title":"retail value","url":"/glossary/retail-value","quote":"They're basing it on the retail value of the vehicle which if I may help is higher than what it's real value is what do I mean by that the whole sale value is the real value.","canonicalId":"term:retail-value","priority":0.9,"confidence":0.9,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"Retail value refers to the price at which a vehicle is sold to consumers at dealerships or private sales. This value is typically higher than the wholesale value, which is the price dealers pay for vehicles at auctions or from manufacturers.","simplifiedExplanation":"Retail value is the price you see when buying a car from a dealership. It's usually more expensive than what dealers pay for the car before selling it."}},{"startTime":594.0,"endTime":612.0,"type":"term","title":"wholesale value","url":"/glossary/wholesale-value","quote":"And why is that the real value because if the vehicle gets repossessed it's going to be taken to an auction and sold there those are wholesale auctions they are nobody's paying retail price for them so just as a as a for instance.","canonicalId":"term:wholesale-value","priority":0.9,"confidence":0.9,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"Wholesale value is the price at which vehicles are sold at auctions, typically lower than retail value. This is the amount a dealer would pay for a vehicle before reselling it to consumers.","simplifiedExplanation":"Wholesale value is the price that dealers pay for cars when they buy them from auctions. It's usually cheaper than the price you would pay at a dealership."}},{"startTime":659.0,"endTime":677.0,"type":"term","title":"used car loan","url":"/glossary/used-car-loan","quote":"...that's significantly higher than average which is fourteen percent for use car loan right now twenty one percent over a seventy two month term is absolutely nuts to me...","canonicalId":"term:used-car-loan","priority":0.5,"confidence":0.85,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"A used car loan is a type of financing specifically for purchasing pre-owned vehicles. The terms and interest rates can vary based on the borrower's credit and the vehicle's value.","simplifiedExplanation":"A used car loan is money you borrow to buy a car that's been owned before. The rules and costs can change based on your credit score and how much the car is worth."}},{"startTime":659.0,"endTime":677.0,"type":"term","title":"interest rate","url":"/glossary/interest-rate","quote":"...that's significantly higher than average which is fourteen percent for use car loan right now twenty one percent over a seventy two month term is absolutely nuts to me...","canonicalId":"term:interest-rate","priority":0.5,"confidence":0.9,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"An interest rate is the percentage of a loan that is charged as interest to the borrower, typically expressed on an annual basis. It affects the total cost of financing a vehicle.","simplifiedExplanation":"The interest rate is the extra money you pay on top of the amount you borrow for a car. A higher interest rate means you'll pay more over time."}},{"startTime":728.7,"endTime":742.2,"type":"term","title":"monthly payment","url":"/glossary/monthly-payment","quote":"What do you think the payment is I got it loaded up over here I'm gonna flash on the screen you got a twenty three thousand dollar car you're financing it for seventy two months with twenty one percent interest...","canonicalId":"term:monthly-payment","priority":0.5,"confidence":0.9,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"A monthly payment is the amount of money that a borrower pays each month to repay a loan. This amount includes both principal and interest, and is determined by the loan amount, interest rate, and loan term.","simplifiedExplanation":"A monthly payment is the amount you pay every month when you borrow money to buy a car. It includes part of what you borrowed and the extra cost for borrowing it."}},{"startTime":780.0,"endTime":780.0,"type":"term","title":"interest on a loan","url":"/glossary/interest-on-a-loan","quote":"...you're paying almost double the cost of the car with interest...","canonicalId":"term:interest-on-a-loan","priority":0.5,"confidence":0.8,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"Interest on a loan is the cost of borrowing money, expressed as a percentage of the loan amount. It is paid to the lender in addition to repaying the principal amount borrowed.","simplifiedExplanation":"Interest on a loan is the extra money you pay back to the bank or lender for borrowing money. It's usually a percentage of the total amount you borrowed."}},{"startTime":806.0,"endTime":806.0,"type":"term","title":"used car payment","url":"/glossary/used-car-payment","quote":"...that is the average used car payment today okay so so somebody is paying back five hundred sixty four dollars a month...","canonicalId":"term:used-car-payment","priority":0.5,"confidence":0.85,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"A used car payment refers to the monthly amount paid by a buyer for financing a pre-owned vehicle. This payment typically includes principal and interest on the loan taken to purchase the car.","simplifiedExplanation":"A used car payment is the monthly amount you pay when you buy a second-hand car. It's how you pay back the money you borrowed to buy the car."}},{"startTime":849.2,"endTime":849.2,"type":"car","title":"Chevrolet Trax","url":"/cars/chevrolet/trax","image":"https://upload.wikimedia.org/wikipedia/commons/d/d2/2021_Chevrolet_Trax_LT%2C_Windsor%2C_Ontario%2C_2025-07-01.jpg","quote":"...get us a relatively new but twenty twenty five used Chevrolet Trax with which I might add at twenty three nine ninety...","canonicalId":"car:chevrolet:trax","priority":0.9,"confidence":0.9,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"The Chevrolet Trax is a subcompact SUV that offers a balance of practicality and affordability. It's designed for urban driving with a compact size and efficient fuel economy.","simplifiedExplanation":"The Chevrolet Trax is a small SUV that's easy to drive around the city and is usually affordable. It's a good choice for people who need a bit more space than a regular car.","imageAttribution":"Crisco 1492 (CC BY-SA 4.0)"}},{"startTime":849.2,"endTime":849.2,"type":"term","title":"MSRP","url":"/glossary/msrp","quote":"...the M.S.R.P. of the car before it became a used car...","canonicalId":"term:msrp","priority":0.9,"confidence":0.9,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"MSRP stands for Manufacturer's Suggested Retail Price, which is the price that the manufacturer recommends that the dealer sell the vehicle for. It's often used as a reference point for negotiations in car buying.","simplifiedExplanation":"MSRP is the price that the car maker suggests the dealer should sell the car for. It helps buyers know what a fair price might be."}},{"startTime":912.2,"endTime":922.2,"type":"car","title":"Hyundai Elantra","url":"/cars/hyundai/elantra","image":"https://upload.wikimedia.org/wikipedia/commons/6/6d/2017_Hyundai_Elantra%2C_Windsor%2C_Ontario%2C_2025-07-01.jpg","quote":"Is it a smart financial decision by a twenty twenty two Hyundai launcher with ten thousand miles on it for five hundred and sixty four dollars a month for a six year card note.","canonicalId":"car:hyundai:elantra","priority":0.9,"confidence":0.9,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"The Hyundai Elantra is a compact car known for its affordability and fuel efficiency. The 2022 model features modern technology and safety features, making it a popular choice among budget-conscious buyers.","simplifiedExplanation":"The Hyundai Elantra is a small car that's easy on gas and has lots of features. The 2022 version is a newer model that many people like for its price and technology.","imageAttribution":"Crisco 1492 (CC BY-SA 4.0)"}},{"startTime":931.2,"endTime":944.2,"type":"company","title":"Carvana","url":"/glossary/carvana","quote":"Well we know it's not because the first decision was to go to to Carvana and over pay well this is this is very true.","canonicalId":"company:carvana","priority":0.9,"confidence":0.9,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"Carvana is an online used car retailer that allows customers to buy, sell, and trade cars through their website. They are known for their unique car vending machines and home delivery service, but they often charge higher prices than traditional dealerships.","simplifiedExplanation":"Carvana is a company where you can buy and sell used cars online. They have special machines that look like vending machines where you can pick up your car."}},{"startTime":969.2,"endTime":982.2,"type":"term","title":"loan originator","url":"/glossary/loan-originator","quote":"Carvana the only reason they're in the car business is so that they can be loan originators and then they can then turn around and sell those car launches of loans to buyers of of security asset back securities like that.","canonicalId":"term:loan-originator","priority":0.5,"confidence":0.8,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"A loan originator is a person or company that helps borrowers apply for loans and connects them with lenders. In the context of car sales, companies like Carvana may act as loan originators to facilitate financing for customers purchasing vehicles.","simplifiedExplanation":"A loan originator is someone who helps you get a loan, like for buying a car. They work with banks to help you borrow money to pay for it."}},{"startTime":1067.2,"endTime":1077.2,"type":"car","title":"Ford Explorer","url":"/cars/ford/explorer","image":"https://upload.wikimedia.org/wikipedia/commons/8/8e/Ford_Explorer_EV_Auto_Zuerich_2023_1X7A1325.jpg","quote":"...s. That's why they offer a tool called auto quote explorer that allows you to compare your progressive car i...","canonicalId":"car:ford:explorer","priority":0.5,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"The Ford Explorer is a mid-size SUV that has been a staple in the American automotive market since its introduction in 1990. Known for its spacious interior, versatility, and family-friendly features, the Explorer is often discussed for its role in popularizing the SUV segment and its ongoing evolution to meet consumer demands.","simplifiedExplanation":"The Ford Explorer is a large family vehicle that can carry several passengers and their belongings. It's popular because it's roomy and can handle different types of driving, making it a good choice for families or anyone needing extra space.","imageAttribution":"Alexander-93 (CC BY-SA 4.0)"}},{"startTime":1492.2,"endTime":1495.2,"type":"term","title":"used car market","url":"/glossary/used-car-market","quote":"...the inventory situation we have seen used car inventories increase their higher right now than they were a year ago. And I think for all of us that are thinking about buying used cars...","canonicalId":"term:used-car-market","priority":0.9,"confidence":0.9,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"The used car market refers to the buying and selling of pre-owned vehicles. It can fluctuate based on inventory levels, demand, and economic conditions, affecting prices and availability for consumers.","simplifiedExplanation":"The used car market is where people buy and sell cars that have been owned by someone else before. Changes in how many cars are available can affect how much they cost."}},{"startTime":1510.2,"endTime":1513.2,"type":"term","title":"repossession","url":"/glossary/repossession","quote":"...if there were more more these vehicles being repossessed like there are vehicles out there right now that should be repossessed today...","canonicalId":"term:repossession","priority":0.5,"confidence":0.9,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"Repossession is the process by which a lender takes back an asset, such as a vehicle, when the borrower fails to make required payments. This often happens with auto loans when payments are missed.","simplifiedExplanation":"Repossession is when a bank or lender takes back a car because the owner hasn't been able to make the payments. It usually happens after several missed payments."}},{"startTime":1597.8,"endTime":1600.8,"type":"term","title":"automobile insurance","url":"/glossary/automobile-insurance","quote":"...we know that automobile insurance rates keep going up we know that the cost to maintain and do repairs to your vehicle keep going up...","canonicalId":"term:automobile-insurance","priority":0.5,"confidence":0.9,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"Automobile insurance is a type of insurance policy that protects vehicle owners against financial loss in the event of an accident, theft, or damage. It typically covers liability, collision, and comprehensive damages.","simplifiedExplanation":"Automobile insurance is a policy that helps pay for costs if your car gets damaged or if you cause an accident. It protects you from big financial losses."}},{"startTime":1597.8,"endTime":1600.8,"type":"term","title":"replacement parts","url":"/glossary/replacement-parts","quote":"...the cost of the replacement parts keep going up the cost for the labor to install those costly parts keeps going up...","canonicalId":"term:replacement-parts","priority":0.5,"confidence":0.85,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"Replacement parts are components used to replace damaged or worn-out parts in a vehicle. The cost of these parts can vary significantly based on the make and model of the car, as well as the type of part needed.","simplifiedExplanation":"Replacement parts are new pieces that you buy to fix or replace broken parts in a car. The price can change depending on what kind of car you have and what part you need."}},{"startTime":1628.2,"endTime":1631.2,"type":"term","title":"auto loans","url":"/glossary/auto-loans","quote":"...that's why you see 72 month auto loans at 21% interest rate. On older use cars that's what keeps being the cycle...","canonicalId":"term:auto-loans","priority":0.5,"confidence":0.85,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"Auto loans are loans specifically taken out to purchase a vehicle. They typically come with interest rates and repayment terms that can vary widely based on the borrower's creditworthiness and the lender's policies.","simplifiedExplanation":"An auto loan is money borrowed to buy a car, which you pay back over time with interest. The terms of these loans can change based on how good your credit is."}},{"startTime":1657.4,"endTime":1660.4,"type":"term","title":"market collapse","url":"/glossary/market-collapse","quote":"...are we really looking at a buyer's market or are we looking at a collapse of the market because there is so few people that are financially in a position to participate...","canonicalId":"term:market-collapse","priority":0.5,"confidence":0.85,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"A market collapse refers to a sudden and severe decline in the value of a market, often leading to significant financial losses for investors and stakeholders. In the auto industry, this could mean a sharp drop in vehicle prices and sales.","simplifiedExplanation":"A market collapse is when the value of things, like cars, suddenly drops a lot, causing people to lose money. It can happen if too many people can't afford to buy cars anymore."}},{"startTime":1657.4,"endTime":1660.4,"type":"term","title":"financial leverage","url":"/glossary/financial-leverage","quote":"...everybody is so entirely over leveraged and...","canonicalId":"term:financial-leverage","priority":0.5,"confidence":0.8,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"Financial leverage refers to the use of borrowed funds to increase the potential return on investment. In the context of auto loans, it can lead to higher debt levels for consumers if they are over-leveraged.","simplifiedExplanation":"Financial leverage means using borrowed money to try to make more money. In car buying, it can lead to people having too much debt if they borrow more than they can afford."}},{"startTime":1832.0,"endTime":1833.0,"type":"car","title":"BMW M4","url":"/cars/bmw/m4","image":"https://upload.wikimedia.org/wikipedia/commons/9/96/BMW_M4%2C_EMS_2024%2C_Essen_%28P1032255%29.jpg","quote":"...the Porsche 718 GTS 50% more car than the M4 same coverage 20% less graduated out of who is on those...","canonicalId":"car:bmw:m4","priority":0.5,"confidence":0.9,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"The BMW M4 is a high-performance version of the BMW 4 Series, known for its powerful engine and sporty handling. It is designed for enthusiasts who seek a thrilling driving experience.","simplifiedExplanation":"The BMW M4 is a fast sports car made by BMW. It's known for its powerful engine and is designed for people who love to drive quickly and enjoyably.","imageAttribution":"Matti Blume (CC BY-SA)"}},{"startTime":1832.0,"endTime":1833.0,"type":"car","title":"Porsche 718 GTS","url":"/cars/porsche/boxster","image":"https://upload.wikimedia.org/wikipedia/commons/7/7a/Porsche_718_Boxster_GTS_4.0_1X7A0320.jpg","quote":"...the carbon and car max data so obviously important that we dug into it math you're going to get us off that track and then I wanted to talk Volkswagen for a moment...","canonicalId":"car:porsche:boxster","priority":0.9,"confidence":0.9,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"The Porsche 718 GTS is a high-performance variant of the 718 series, which includes the Boxster and Cayman models. It features a powerful engine and sport-tuned suspension, making it a popular choice among sports car enthusiasts.","simplifiedExplanation":"The Porsche 718 GTS is a sporty car that is known for its speed and handling. It's part of the 718 series, which includes both a convertible and a coupe version.","imageAttribution":"Alexander Migl (CC BY-SA 4.0)"}},{"startTime":1951.0,"endTime":1952.0,"type":"term","title":"EV sales","url":"/glossary/ev-sales","quote":"...their sales decline for this quarter would have been considerably worse had there not been the the car edge...","canonicalId":"term:ev-sales","priority":0.5,"confidence":0.8,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"EV sales refer to the sales of electric vehicles, which are cars powered entirely by electricity rather than gasoline or diesel. The growth of EV sales has been driven by increasing consumer interest and government incentives.","simplifiedExplanation":"EV sales are the number of electric cars sold. Electric cars run on electricity instead of gas, and more people are buying them because they are better for the environment."}}],"speakers":[{"id":"s1","name":"Ray","role":"host"},{"id":"s2","name":"Zach Shefska","role":"host"},{"id":"s3","name":"Bleav","role":"host"}],"transcripts":[{"url":"http://getcarcurious.com/episodes/carvana-and-carmax-auto-industry-disaster-episode-937/transcript.vtt","type":"text/vtt"}]}