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 could further solidify Carvana’s dominance in the direct-to-consumer auto market. The approach raises questions about how it balances risk and customer access in a competitive industry.
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.
