Carvana's originations skyrocket in 2Q | Auto Finance News | Auto Finance News

Carvana’s originations skyrocket in 2Q

Carvana’s second-quarter earnings were “the most successful quarter-to-date” for the finance platform, Chief Financial Officer Mark Jenkins said during the company’s earnings call yesterday.

Carvana’s originations shot up 124.7% year over year to $1.2 billion, compared with $525 million in the prior-year period.

In addition, finance gross profit per unit was a record $1,100 — an increase of $526 per unit — Jenkins said, noting that the company benefited from the recent decline in benchmark interest rates.

In all, the online used-car retailer sold 44,000 vehicles last quarter, a 95% year-over-year increase compared with 36,766 vehicles in the prior-year period.

Revenue jumped 108% year over year, to $986.2 million, Jenkins said, adding that the second quarter marked the 22nd consecutive quarter of triple-digit revenue growth.

Read more: Carvana Hits ABS Market With Second Transaction

In addition, Carvana opened in 28 markets, putting its total at 137. Looking forward, Chief Executive Ernie Garcia said the company expects to open in 55 to 60 markets by yearend. Yesterday, it opened its 19th car vending machine, in Greensboro, N.C., Garcia said.

Last quarter, Carvana issued $543.8 million worth of senior notes and equity offerings, and securitized $470 million of auto loan receivables.

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