Carvana’s in-house financing division plays a pivotal role in its business model, processing the vast majority of its vehicle sales—a strategy critical to its ambitious annual retail sales target. The company’s ability to quickly scale operations mirrors a similar approach that has driven recent success for another major automaker in expanding its most popular off-road model. With high-stakes growth plans at play, the efficiency of its captive finance arm could determine whether Carvana meets its aggressive sales projections. Analysts are closely watching how this model sustains under evolving market conditions.
Carvana's captive finance arm handles 85 percent of its sales and could be the key to its goal of selling 3 million retail vehicles a year. The rapid-fire launch cadence has helped Jeep boost Wrangler ...
