Carvana: The $44 Billion House of Cards
A major investigation just exposed that Carvana may be artificially inflating car prices, approving risky loans, and funneling money through insider deals.
Let’s break this down into three major problems.
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Problem #1: Carvana Approves Almost Everyone for a Loan
Here’s the dirty secret: Carvana allegedly approves nearly 100% of loan applications.
This isn’t just bad business—it’s eerily similar to the 2008 housing bubble, when banks gave out loans to anyone with a pulse.
Carvana’s main buyer of these risky loans? Ally Financial. But now Ally is pulling back.
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Problem #2: Hidden Insider Deals & Accounting Tricks
You ever notice how Carvana’s stock price tanked 99%… then magically soared back up 284%?
That’s not because of a business turnaround—it’s because of insider manipulation. The CEO’s father, Ernest Garcia II, has been quietly dumping billions of dollars in stock while Carvana keeps posting “record earnings.”
“Carvana can move very large amounts of income around quarter to quarter by delaying loan sales.”
Translation? They can manipulate their numbers to make it look like they’re making money—when in reality, they’re just shifting debt.
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Problem #3: Keeping Used Car Prices Artificially High
Ever wonder why used car prices haven’t dropped as much as they should have?
One reason: Carvana is offloading cars to a related-party company at a premium instead of marking them down.
