Capital One vs Bridgecrest: Servicing Carvana and DriveTime Subprime Loans
Former Executive at Bridgecrest
inpractise.com/articles/bridgecrest-vs-capital-one-servicing-carvana-drivetime-and-other-subprime-auto-loans
Capital One vs Bridgecrest: Servicing Carvana and DriveTime Subprime Loans(February 24, 2025)
Former Executive at Bridgecrest
Interview Transcript
This is a snippet of the transcript, sign up to read more.
Can you elaborate on that for me? Could you provide an illustrated history of Carvana's loan servicing from before you joined, through your tenure, and how you envisioned its evolution? What were the key areas they focused on and aimed to develop?
A great example that might illustrate this is the DriveTime portfolio. At the time of sale, every vehicle had a GPS unit installed, which Carvana wasn't interested in due to reputation concerns. They wanted to operate more broadly in the credit spectrum, even though they still leaned subprime. Repo policies are affected by having or not having a functional GPS device on the vehicle. DriveTime's policies assumed most vehicles had GPS. As Carvana's portfolio grew, and during my two years there, we redesigned more repo-specific policies to account for the fact that Carvana's portfolio, with 0% GPS, had different recovery curves. I think that's an example of what we were working through.
This is a snippet of the transcript, sign up to read more.
Related Content
Carvana, DriveTime, Bridgecrest: Repossessing Subprime Vehicles
Former Executive at Bridgecrest
Credit Acceptance, Capital One, Westlake: Competing for Subprime Auto Loans
Former Manager of Originations at Westlake
Credit Acceptance, Westlake, Carvana, & US Auto Subprime Lending
Buy-Here-Pay-Here Subprime Auto Dealers: Underwriting & Servicing Loans
Former Buy-Here-Pay-Here Car Dealer
Copyright Notice
This document may not be reproduced, distributed, or transmitted in any form or by any means including resale of any part, unauthorised distribution to a third party or other electronic methods, without the prior written permission of IP 1 Ltd.
IP 1 Ltd, trading as In Practise (herein referred to as "IP") is a company registered in England and Wales and is not a registered investment advisor or broker-dealer, and is not licensed nor qualified to provide investment advice.
In Practise reserves all copyright, intellectual and other property rights in the Content. The information published in this transcript (“Content”) is for information purposes only and should not be used as the sole basis for making any investment decision. Information provided by IP is to be used as an educational tool and nothing in this Content shall be construed as an offer, recommendation or solicitation regarding any financial product, service or management of investments or securities. The views of the executive expressed in the Content are those of the expert and they are not endorsed by, nor do they represent the opinion of In Practise. In Practise makes no representations and accepts no liability for the Content or for any errors, omissions, or inaccuracies will in no way be held liable for any potential or actual violations of laws, including without limitation any securities laws, based on Information sent to you by In Practise.
© 2025 IP 1 Ltd. All rights reserved.