Ally Financial Inc. has renewed and increased its financing deal with the online, delivery dealership Carvana on Tuesday, according to a press release.
The lender agreed to fund $2 billion worth of retail contracts through the dealer’s network for the next year. In January, Ally had committed to fund $600 million worth of retail contracts for a year, so this new agreement marks a $1.4 billion boost.
This credit line is separate from the $125 million floorplan agreement Ally extended to Carvana in February 2016.
“The increase is a testament to the strength of the relationship and shows how well we are working together to provide Carvana customers with an innovative digital financing experience,” said Tim Russi, president of auto finance at Ally. “We’ve worked closely with Carvana to provide a number of customized services including floorplan credit, vehicle sourcing, and consumer financing solutions, and are extremely proud to be able to collaborate with a company that is successfully delivering on its mission to change the way people buy cars.”
Ally has been more willing to partner with new dealership models like Carvana and Tred than it has with fintech competitors, Jeff Danford, Ally’s senior vice president of auto finance, said during a direct lending panel at the 2017 Auto Finance Summit last week. Rather, Ally went out and built its own multi-lender direct financing platform called ClearLane.
“From our perspective, we have been cautious,” Danford said during the panel. “From our perspective, we probably have the largest dealer network of any lender in the country, so we’re fiercely protective of those relationships and today we just haven’t wanted to expose them in that way. But we look at it and talk about it all the time.”
For more coverage from the 2017 Auto Finance Summit, click here.
