Carvana’s in-house financing division plays a critical role in its business model, processing the vast majority of its vehicle sales. This captive lending arm allows the company to streamline transactions and potentially accelerate its ambitious annual sales targets. By controlling financing internally, Carvana reduces reliance on third-party lenders, giving it greater flexibility in pricing and customer offerings. The strategy underscores how financing operations can drive growth in the retail auto market.
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.
