Ally Financial said Tuesday it is increasing the amount it is providing Carvana to finance retail contracts by $1.4 billion.
Back in January, Ally had initially committed to provide $600 million for retail financing for the online car-buying platform; over the next 12 months, that figure will increase to $2 billion.
With the agreement, Ally provides Carvana funding for financing and bulk purchasing of contracts.
This deal is on top of the floorplan credit and vehicle sourcing that Ally provides Carvana via SmartAuction, its online remarketing platform.
“The increase is a testament to the strength of the relationship and shows how well we are working together to provide Carvana customers with an innovative digital financing experience,” said Tim Russi, president of auto finance at Ally, in a news release.
“We’ve worked closely with Carvana to provide a number of customized services including floorplan credit, vehicle sourcing and consumer financing solutions, and are extremely proud to be able to collaborate with a company that is successfully delivering on its mission to change the way people buy cars,” Russi said.
In the news release, Carvana founder and chief executive Ernie Garcia said: “We are proud to upsize our financing arrangement with Ally and to continue to strengthen our relationship, as working with Ally enables us to expand financing offerings to our customers as our business grows.
“Partnering with Ally allows us to provide customers with a convenient way to finance their purchase on terms that work best for them,” Garcia said.
It has been a busy fall for the online retailer. In October, Carvana added Las Vegas and Albuquerque, N.M., to its market roster, after launching its latest vending machine in Florida.
It added an insepction in Phoenix in late September, following its launch in Los Angeles earlier in the month.
Carvana was scheduled to release its latest quarterly results Tuesday and is hosting its quarterly earnings call at 5 p.m. (ET).
Ally reported its third-quarter earnings late last month. Among its results was $8.1 billion in consumer auto originations.