Ally Financial teams up with online auto retailer Carvana

Ally Financial has announced it is to extend 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. Founded in 2013 and based in Phoenix, Arizona, Carvana styles itself as ‘the first complete online auto retailer’, offering vehicle purchase in as little at 11 minutes, with an average savings of $1,681.

Car buyers can shop for, finance, purchase and trade-in a car entirely online via Carvana’s website, while also receiving as soon as next-day vehicle delivery or pick-up at the nation’s first vehicle vending machine. The latter is a fully-automated, coin-operated car Vending Machine, with two installed so far at its headquarters and in Nashville, Tennessee.

“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 was named No. 5 on the Forbes “America’s Most Promising Companies” list in 2015, and Ally said it was also exploring other opportunities to expand the relationship between the two companies.

“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.”