Carvana’s in-house financing division plays a pivotal role in its business model, underwriting the majority of its vehicle sales. With nearly all transactions processed internally, this captive arm is seen as critical to achieving ambitious annual sales targets. The reliance on this financing operation highlights how Carvana integrates credit services directly into its retail strategy. For companies in the auto industry, such a high concentration of in-house financing presents both opportunity and risk.
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.
