Ally Financial Inc. in Detroit has announced it is providing up to $2.3 billion in financing commitments over the next 12 months to support retail contracts and inventory needs of Phoenix’s Carvana, an e-commerce platform for buying, financing, and selling used cars.
In its third year of financing agreements with Carvana, Ally will provide up to $1.25 billion available for bulk purchases, in addition to providing a $350-million warehouse credit facility. The $650-million floorplan credit line includes a two-year commitment and represents an increase of $300 million over the existing credit line.
“This latest agreement builds on the strong relationship we’ve established with Carvana and speaks to our commitment to supporting auto retailers as they develop innovative, digital financing experiences for their customers,” says Doug Timmerman, president of auto finance at Ally.
“Our extensive experience in the auto business enables us to tailor financing agreements that make it possible for our customers to reach their goals, and in Carvana’s case, change the way people buy cars.”
In the first two years, Ally had agreements to provide up to $2 billion in financing commitments for retail contracts from Carvana.
The latest agreement also includes an increased floorplan credit line and continued vehicle sourcing through Ally’s SmartAuction platform.
“We’re on a mission to change the way people buy cars,” says Ernie Garcia, founder and CEO of Carvana. “This newest commitment from Ally gives us increased flexibility in investing in the growth of our company and ability to continue to deliver exceptional customer experiences every day.”
Carvana.com offers more than 10,000 vehicles, and customers can finance, purchase, and sell vehicles to Carvana in as little as 10 minutes via a mobile device. Carvana offers as-soon-as-next-day delivery in 81 cities across the U.S. and has car vending machines in 14 cities.
Ally Financial had assets of $173.1 billion as of Sept. 30.