Carvana stock price was down on Thursday, trading at $18.74 as of 12:10 PM EDT.
As used car prices continued to tumble, Carvana (NYSE:CVNA) and CarMax (NYSE:KMX) were among the major decliners on Thursday. Except for clothes, electricity, and, obviously, used cars, price rises were seen in nearly every category in a hotter-than-expected CPI report.
The third consecutive month of reductions from a peak in June was reported in September, even though the latter category was still 7.2% over 2021 levels. Prices for pre-owned vehicles dropped by 4.2% from August on an unadjusted basis. The third consecutive month of reductions from the June peak was reported in September, despite the latter category being at 7.2% over 2021 levels. Used automobile and truck prices dropped 4.2% from August on an unadjusted basis.
The Manheim Used Vehicle Value Index dropped from 219.9 in June to 204.5 in September, according to a study on the CPI’s ongoing falls. According to the indicator, the reduction in September also represented a year-over-year decline.
According to Cox Automotive, demand for used cars has dramatically decreased along with pricing. According to a recent analysis, “we estimate that used retail sales decreased 8% in September from August, and that used retail sales were down 10% year over year, using a same-store set of dealerships selected to reflect the country from Dealertrack.”
Carvana stock price vs the market
Stocks of Carvana (NYSE:CVNA), Vroom, and CarMax all experienced steep declines in premarket trading, with the trading volume for the first two companies being especially high. Concerns about debt, particularly for Carvana, increase the negative effects of the hot CPI report, given its implications for Fed policy.
Premarket trading saw decreases for the auto dealers Lithia Motors (NYSE:LAD), Group 1 Automotive (NYSE:GPI), AutoNation (NYSE:AN), Asbury Automotive Group (NYSE:ABG), and Sonic Automotive (NYSE:SAH). However, compared to e-commerce possibilities, the volume for physical vehicle dealers was significantly lower.
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Author Jowi Kwasu 
