Allied financial once again added $ 1 billion to CarvanaThe line of credit, bringing the two companies’ purchase agreement to a total of $ 3 billion to fund loans since March 2020, Carvana announced yesterday.
Ally also increased the used car retailer’s line of credit to $ 1.25 billion, from $ 950 million, and extended the facility for three years until March 2023. The facility was originally scheduled to expire in October. .
“The strong relationship we have built is a testament to Carvana’s unique digital platform and our concentrated dedication and expertise in automotive retail,” said Doug Timmerman, President of Auto Finance for Ally, in a statement. communicated.
Ally double Carvana’s line of credit fell to $ 2 billion in March. Carvana has since tightened its underwriting standards, but remains on a growth path for fixtures, which reached $ 782.8 million in the second quarter, according to a Auto finance news analysis in August, bringing total fixtures to $ 1.6 billion in the first half of the year, an increase of 32.4% year-on-year.
Tempe, Ariz.-Based Carvana had a $ 3.3 billion managed auto portfolio at the end of 2019, according to Big Wheels auto finance data. Carvana shares were trading at $ 220.87 at 12:45 p.m. ET, down 2.3% since market opened. The share climbed nearly $ 50 per share on September 22 in response to Carvana’s “record performance” expected in terms of retail units sold, gross profit per unit, revenue and EBITDA margin.
Auto Finance Summit, the industry’s premier event, returns October 20-22, 2020 as a virtual experience. The virtual experience will provide quality networking and education from past events, all through an online platform. To learn more about the 2020 event and to register, visit www.AutoFinanceSummit.com.