Carvana’s in-house financing division plays a critical role in its business model, processing the vast majority of its vehicle sales. By controlling the lending process, the company streamlines transactions and removes traditional dealership barriers, potentially accelerating its ambitious annual sales targets. This captive finance strategy allows Carvana to maintain tighter margins and customer loyalty while expanding its reach in the retail auto market. The approach highlights how digital-first automakers are reshaping the industry by integrating financing directly into their sales pipeline.
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.
