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 approach also allows Carvana to tailor loan terms directly to customers, reinforcing its end-to-end retail strategy. The move underscores how non-traditional automakers leverage technology and financing to reshape the car-buying experience.
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.
