Ally Financial Doubles Floorplan Credit Line for Online Auto Retailer Carvana
OREANDA-NEWS. February 10, 2016. Ally Financial announced today that it has extended its financing relationship with online auto retailer Carvana, increasing its floorplan credit line from \\$60 million to \\$125 million, representing financing for approximately 7,100 vehicles, up from 3,400 vehicles. The credit line is to support floorplan financing as Carvana pursues expansion plans this year.
"The way consumers shop, buy and finance vehicles continues to evolve as the industry responds to consumer preferences toward a digital experience. As a leading finance provider in the industry, Ally is positioned to support this evolution and is pleased to expand our relationship with an innovative company like Carvana," said Ally President of Auto Finance Tim Russi.
Carvana, which launched in 2013, offers a unique online car buying experience that lets customers browse a large selection of used vehicles, secure financing and complete a car purchase, all from its easy-to-use website. After purchase, customers can opt for home delivery, or pick up their vehicle from one of the company's car vending machine locations in Atlanta or Nashville. Carvana was named No. 5 on the Forbes "America's Most Promising Companies" list in 2015.
"Our goal is to create a better way to buy a car by putting the consumer back in control of the buying process," says Ernie Garcia, Carvana founder and CEO. "We're using technology and transparency to revolutionize car buying and as we look to expand to new markets this year, our relationship with Ally will help to provide us with the resources and financial flexibility that we need to continue with our exciting, rapid growth."
Ally and Carvana are also exploring other opportunities to expand their relationship. Ally offers a full spectrum of financial products and services, such as retail financing, leasing, insurance and remarketing.
About Ally Financial Inc.
Ally Financial Inc. (NYSE: ALLY) is a leading automotive financial services company powered by a top direct banking franchise. Ally's automotive services business offers a full spectrum of financial products and services, including new and used vehicle inventory and consumer financing, leasing, vehicle service contracts, commercial loans and vehicle remarketing services, as well as a variety of insurance offerings, including inventory insurance, insurance consultative services for dealers and other ancillary products. Ally Bank, the company's direct banking subsidiary and member FDIC, offers an array of deposit products, including certificates of deposit, savings accounts, money market accounts, IRA deposit products and interest checking. Ally's Corporate Finance unit provides financing to middle-market companies across a broad range of industries.
With approximately \\$158.6 Billion in assets as of Dec. 31, 2015, Ally operates as a financial holding company. For more information, visit the Ally media site at http://media.ally.com or follow Ally on Twitter: @Ally.
Founded in 2013 and based in Phoenix, Ariz., Carvana is the first complete online auto retailer offering vehicle purchase in as little at 11 minutes, with an average savings of \\$1,681. Additionally, Carvana launched the world's first-ever, fully-automated, coin-operated car Vending Machine, in Nashville, Tenn. With Carvana, you can shop for, finance, purchase and trade-in a car entirely online, while also receiving as soon as next-day vehicle delivery or pick-up at the nation's first vehicle vending machine. Carvana cars come with an accident-free guarantee, undergo a rigorous 150-point inspection and come with a 100-day/4,189 mile bumper-to-bumper warranty, as well as a 7-Day Test Drive and No-Questions-Asked Return Policy. Carvana is revolutionizing the car buying process through technology, transparency and exceptional customer service.