Ally Financial is financing up to $600 million in contracts from the online car retailer Carvana, spread out over the next 12 months, the companies announced today in a joint press release.
The funds will expand Carvana’s ability to provide financing and its origination growth, the release stated.
“The agreement with Ally will provide Carvana reliable and consistent financing to support both our origination growth and future expansion plans,” said Ernie Garcia, Carvana founder and CEO. “As we look to enter new cities, this relationship will help us to easily accommodate more volume, while maintaining the seamless customer experience that we are known for.”
In August, Carvana closed its largest round of funding — $160 million in series C funding — to total $460 million, Auto Finance News previously reported.
Ally already has deep existing ties to Carvana including a floorplan credit line, and vehicle sourcing through Ally’s SmartAuction platform.
“We are very pleased to be expanding our relationship with Carvana, and continuing to develop innovative financing solutions that help businesses succeed in the online channel,” said Tim Russi, president of Auto Finance at Ally. “As the industry evolves, Ally is committed to providing products and services for new business models in the online channel, and also to applying key technology and learnings to help our dealers improve the ease and efficiency of their financing transactions with customers.”
