Carvana has revived a deal to sell $4 billion in used-car loan receivables to Ally Financial.
The yearlong arrangement, announced Monday (Jan. 6), comes days after a report by short seller Hindenburg Research claiming that Ally was stepping back from its partnership with the online vehicle marketplace.
A report by Bloomberg News noted that this deal upholds a key relationship for Carvana, which sells used cars, originating loans to its buyers before selling the receivables to other lenders. The report, citing data from BNP Paribas, said that Ally has typically purchased enough receivables to fund half of Carvana’s new originations.
Hindenburg said last week that it had taken a short position in shares of Carvana, alleging a
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