Jim Cramer explains why he likes Carvana 'for the long-haul'

CNBC's Jim Cramer on Tuesday described why he s online used car dealer Carvana, telling investors they can start a small position and wait for a pullback to buy more. "I Carvana for the long-haul because I'm a true believer, but that doesn't mean the stock will charge endlessly higher without taking some detours," he said. "In fact, I hope it gives you a big pullback, because that will let you get back into the stock at a very nice discount. "watch now1:4201:42Carvana has had a huge run this year, says Jim CramerMad Money with Jim CramerCNBC's Jim Cramer on Tuesday described why he s online used car dealer Carvana, telling investors they can start a small position and wait for a pullback to buy more. "I Carvana for the long-haul because I'm a true believer, but that doesn't mean the stock will charge endlessly higher without taking some detours," he said. "In fact, I hope it gives you a big pullback, because that will let you get back into the stock at a very nice discount. "Cramer said the stock "tends to be a real wild trader," but it's been on an upswing over the past several years, performing especially well in recent months

Carvana has not yet surpassed its 2021 peak, but Cramer said s are apaching those levels, and it's only a matter of time before the stock starts hitting new all-time highs

Carvana's most recent earnings report comfortably topped Wall Street's expectations, and Cramer said he thinks the retailer is on the right track

The company doesn't usually vide detailed guidance, but Cramer said he was impressed with its new long-term financial targets and management's assertion that it expects a "sequential increase in both retail units sold and adjusted EBITDA. "Cramer said he thinks Carvana's sales methodology is very convenient — it allows customers to buy, sell, finance and trade cars on an online platform

He said the auto sales space is very fragmented, so Carvana has more room to take market

The company is also "riding a couple of other waves," he continued, saying investors who believe that interest rate cuts are imminent see the stock favorably, as lower rates make it easier to finance a car

Carvana's used cars start to look more enticing as President Donald Trump's new tariffs hit foreign automakers, he added

But the stock could pull back from here, Cramer said, suggesting that it's "apaching overbought territory. ""Carvana's built a best-in-class model, and management's on track to der both strong growth and rising fitability," he said. "If you don't own it already, you do have my blessing to put on a small position here

Then you got to wait for the opportunity to buy some more on weakness only. "Carvana did not immediately respond to request for

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