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Ally Agrees to Finance up to $600 Million of Carvana's Retail Contracts

Under the terms of the agreement, Ally will provide financial arrangements to support the online retailer's operations, with an initial commitment of up to $600 million. The agreement expands Ally's existing relationship with Carvana, which also includes a floorplan credit line and vehicle sourcing through Ally's SmartAuction platform.

by Staff
January 4, 2017
2 min to read


DETROIT — Ally Financial today announced an agreement to provide financing to support retail contracts from online pre-owned retailer Carvana. Through the agreement, Ally will make up to $600 million available to Carvana over the next 12 months through financing and bulk purchases of contracts.

According to Ally officials, the agreement represents the finance source’s commitment to the online channel. They added that Ally and Carvana are exploring other opportunities to expand their relationship.

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"We are very pleased to be expanding our relationship with Carvana, and continuing to develop innovative financing solutions that help businesses succeed in the online channel," said Tim Russi, president of auto finance at Ally. "As the industry evolves, Ally is committed to providing products and services for new business models in the online channel, and also to applying key technology and learnings to help our dealers improve the ease and efficiency of their financing transactions with customers."

Under the terms of the agreement, Ally will provide financial arrangements to support Carvana's retail operations, with an initial commitment of up to $600 million. The agreement expands Ally's existing relationship with Carvana, which also includes a floorplan credit line and vehicle sourcing through Ally's SmartAuction platform.

"The agreement with Ally will provide Carvana reliable and consistent financing to support both our origination growth and future expansion plans," said Cavana founder and CEO Ernie Garcia. "As we look to enter new cities, this relationship will help us to easily accommodate more volume, while maintaining the seamless customer experience that we are known for."

Carvana offers “as-soon-as next-day” delivery to residents in 21 markets, including Atlanta, Austin, Birmingham, Charlotte, Cincinnati, Columbus, Dallas, Houston, Indianapolis, Jacksonville, Memphis, Miami, Nashville, Orlando, Pittsburgh, Raleigh, Richmond, San Antonio, Tampa, Washington D.C., and Cleveland. Officials said the firm is planning to expand into additional states over the next few years.

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