One way to frame Carvana (CVNA) is that of a loan originator that sells cars. Over 50% of CVNA’s gross profit is from finance and other income, of which the majority is driven by the accounting gains from selling the loans originated.

Source: In Practise, CVNA 10-KSource: In Practise, CVNA 10-K

Source: In Practise, CVNA 10-KSource: In Practise, CVNA 10-K

We’ve been studying CVNA’s finance model to understand the potential durability of finance GPU and specifically the gain on loan sales. Over the last few weeks, we've published various pieces of content on CVNA covering different aspects of the business:

  1. CVNA Finance GPU Analysis
  2. In Practise Investor Dialogue: CVNA Liquidity and Finance GPU
  3. CVNA Operations: IRC’s, Trade-ins, and Last Mile Delivery
  4. Carvana, ADESA, and US Auto Wholesale Auctions
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