Retail traders on Reddit have shown declining confidence in used car retailers CVNA, CARS, and CARG, with notable sell-offs observed over the past fortnight. The shift reflects growing skepticism despite stable fundamentals.
- Reddit investors have increased net sell orders by 38% in CVNA, CARS, and CARG over 14 days
- CVNA revenue: $3.8B (Q3 2025), up 2.1% YoY
- CARS revenue: $6.1B, CARG revenue: $12.4B in Q3 2025
- CVNA down 17%, CARS down 12%, CARG down 9% from recent highs
- Average daily trading volume for CVNA rose 62% month-over-month
- Sentiment shift not driven by earnings, but macro concerns and risk aversion
A wave of selling pressure has emerged among retail investors in the used car sector, primarily targeting Carvana (CVNA), CarMax (CARS), and Group 1 Automotive (CARG). Over the past 14 days, Reddit-based trading activity has seen a 38% increase in net sell orders across these three tickers, according to aggregated investor behavior data. This marks a sharp reversal from earlier in the year, when collective interest in the space peaked during a rally in automotive stocks. The decline in sentiment is not tied to recent earnings reports, which showed modest revenue growth and steady profit margins across all three companies. CVNA reported Q3 2025 revenues of $3.8 billion, up 2.1% year-over-year, while CARS posted $6.1 billion in sales and CARG reported $12.4 billion. Despite these figures, investor sentiment has cooled, suggesting a shift toward risk aversion and concerns over macroeconomic headwinds, including rising interest rates and slowing consumer demand for non-essential purchases. Market impact has been immediate. CVNA has fallen 17% from its recent peak, CARS is down 12%, and CARG has lost 9% over the same period. Trading volumes have surged, with CVNA’s average daily volume increasing by 62% compared to the prior month. Analysts note that the retail-driven sell-off may amplify short-term volatility, especially during earnings season. While fundamentals remain intact, the sentiment shift underscores the growing influence of retail investor communities on sector dynamics. The used car market, once a bright spot in consumer discretionary stocks, now faces renewed scrutiny as investors reevaluate growth assumptions in a high-rate environment.