Ally Financial Inc. increased its floorplan credit line with online auto retailer Carvana to $125 million, up from $60 million, the company announced this morning.
The new credit line represents financing for 7,100 vehicles, up from 3,400 previously, according to a company press release.
“The way consumers shop, buy and finance vehicles continues to evolve as the industry responds to consumer preferences toward a digital experience,” Tim Russi, Ally’s president of auto finance, said in the release. “Ally is positioned to support this evolution and is pleased to expand our relationship with an innovative company like Carvana.”
The lender has seen increased competition on its floorplan front, according to Chief Executive Jeffrey Brown. “It’s a very low loss business and we see a lot of the big banks really competing for that business pretty aggressively from a pricing perspective,” he said during the company’s fourth quarter 2015 earnings call last week.
Through Carvana’s online platform, car-buyers can secure financing, complete the purchase, have the car delivered to their homes, or go pick it up from one of the company’s “vending machines” (remember those?).
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