US-based bank holding company Ally Financial is offering $2.3bn in financing commitments to online used car retailer Carvana to support its retail contracts and inventory needs.
The total financing includes around $1.25bn for bulk purchases, a $350m warehouse credit facility and $650m floorplan credit line representing a two-year commitment and an increase of $300m over the existing credit line.
Ally Auto Finance president Doug Timmerman said: “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.
“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.”
The latest agreement covers an increased floorplan credit line and continued vehicle sourcing through Ally’s SmartAuction platform.
Last year, Ally Financial signed an agreement to provide financing commitments of up to $2bn for retail contracts from Carvana. The funding assisted the company to grow its business.
Carvana founder and CEO Ernie Garcia said: “We’re on a mission to change the way people buy cars. This newest commitment from Ally gives us increased flexibility in investing in the growth of our company and the ability to continue to deliver exceptional customer experiences every day.”