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  "documentTitle": "Carvana Co. (CVNA)",
  "authorId": "54_Spruce_Point_Capital",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2019-03-01 00:00:00",
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  "notes": "The slide uses a bar chart to highlight Carvana (CVNA) against peers (SAH, GPI, AN, PAG, KMX, LAD) with a horizontal line indicating the industry average.",
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      "kind": "callout",
      "text": "Carvana’s GPU for retail used cars, ignoring the contribution of loan and VSC-related income, is just $1,127 – among the lowest of any major auto dealer.",
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      "kind": "chart",
      "text": "CY18 Q3 Retail Used Car GPU (Excluding Gains on Loans and VSC Sales)",
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      "text": "Retail Used Car GPU: $1,127",
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      "text": "While bulls may see this as an opportunity for Carvana to expand gross margins, we note that scale will have little if any impact on GPU, which therefore will not necessarily grow significantly as the Company expands. We wonder why Carvana cannot support more competitive GPUs after 5+ years in operation, and having benefitted from the guidance and scale of an experienced used car dealer in its early days. If Carvana generates substandard GPUs today, why should we expect this to be any different going forward?",
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      "text": "Looking more closely at the components of GPU, we observe that gross income from the sale of loans accounts for approximately half of Carvana’s per unit gross profit. Although loan sales account for just ~5% of Carvana revenue as of Q3 FY 18, these sales carry gross margins of 100%, and therefore contribute significantly to overall GPU. Carvana’s GPU for retail used cars, ignoring the contribution of loan and VSC-related income, is just $1,127 – among the lowest of any major auto dealer.",
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      "text": "Carvana GPU Relatively Low When Gain On Loan Sales Are Excluded",
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