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Carvana shares soar after huge auto loan purchase deal comes through

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Posted at 9:34 AM, Mar 25, 2020
and last updated 2020-03-25 12:34:54-04

Already buoyed by a Wall Street rebound, Carvana Co. shares soared Tuesday after the online automobile retailer received a major financial boost from a key lender, Ally Financial.

Tempe-based Carvana said in a regulatory filing that Detroit-based Ally Financial will provide up to $2 billion for the purchase of finance receivables over the next 12 months and widen the set of customers covered by the agreement.

As a result, Carvana shares gained $15.41, or 43 percent, to close Tuesday at $51.21 in heavy trading volume.

The amended agreement upsizes Ally's purchase commitment by approximately $1.6 billion and extends it to March 23, 2021.

Read more from the Phoenix Business Journal.