Carvana again expands co-sign offering

Carvana is expanding the number of states in which borrowers can add a co-signer to their loan in an effort to increase credit access. The retailer now allows would-be borrowers in several cities across the country to add a co-signer to their car loan, potentially granting them better interest rates and, in turn, lower down payments and lower monthly payments, the company announced this week. The co-sign offering is now available to residents in several cities in Georgia: Augusta, Savannah and Atlanta; in multiple North Carolina cities: Charlotte, Durham, Greensboro and Raleigh; as well as for borrowers in Columbus, Ohio. The expansion comes on the heels of Phoenix-based Carvana launching co-sign financing in several areas across Florida, South Carolina and Texas earlier this month. [caption id="attachment_62343" align="alignnone" width="700"] Copyright: jasonleiva.com [/caption] Customers wishing to list a co-signer can include all relevant information on the loan application using Carvana’s website or app, according to a company release. Both individuals must present proper documentation and be present when the vehicle is delivered. Co-signers typically agree to be liable for the loan obligation without compensation and must be notified of the loan terms and what happens if the borrower defaults, according to the Federal Trade Commission . The co-sign offering comes as Carvana’s origination volume ticked up 6.1% year over year in the second quarter to $1.98 billion and retail sales grew 9% YoY to 117,564 units. However, as interest rates and vehicle sticker prices continue to rise, affordability concerns are starting to hamper car sales across the industry, prompting dealers and lenders to look for ways to lower consumers’ monthly payments. “As we continue our work to improve and modernize the automotive experience for people, this feature provides the opportunity to qualify for lower payments, lower interest rates, or less cash upfront which helps in this economy,” Carvana Chief Executive Ernie Garcia said. Auto Finance Summit, the premier industry event for auto lending and leasing , returns October 26-28 at the Wynn Las Vegas. To learn more about the 2022 event and register, visit www.AutoFinanceSummit.com .

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