Gotham City Research alleges Carvana’s (NYSE:CVNA) loan-sale gains and lien records point to Bridgecrest as ultimate lienholder, raising questions about related-party financing mechanics.
- We have on-the-record evidence of Carvana stating that Bridgecrest, not itself, is the lienholder, on cars that Carvana sold.
- We have identified 34 new vehicles/VINs that Carvana sold, and where Bridgecrest is the ultimate lienholder.
- Detailed lienholder history records reveal that Bridgecrest, not CVNA, is the most recent lienholder, of the original 34 vehicles/VINs discussed in our previous report.
- CVNA sells cars without title, and issues temporary plates to customers from other states, while awaiting vehicle/title registration. This explains why there are chronic mismatches between the Obligor State field within ABS filings and title record state in Bumper.com or other vehicle history report aggregators like VinAudit.
Bridgecrest is lienholder to CVNA-tied cars: why it matter
CVNA sells cars, and Bridgecrest is somehow and eventually the lienholder
In our first report, we explained why we believe that: (1) Carvana’s related party dependence on DriveTime is more fragile (20x leverage) than previously understood, no matter how much CVNA’s earnings are dependent on DriveTime and (2) Carvana’s dependence is greater than disclosed, and a big part of this undisclosed dependence is that Carvana’s Gain on Loan Sales – over 100% of its earnings – is ultimately tied to DriveTime/Bridgecrest.
We have not seen anyone – including the Company – dispute (1). It is (2) that appears to be a matter of current dispute within the financial markets. The real question is not whether CVNA-tied loans end up with Bridgecrest. Rather, we believe the right questions are: (a) How? and (b) How Much? We provide the following new information that lead us to this view:
- Carvana actually says that Bridgecrest, not itself, is the lienholder, on cars that Carvana sold. We have on-the-record evidence Carvana saying so despite whatever CVNA CEO or investor relations may say.
- We have identified 34 new vehicles/VINs that Carvana sold, and where Bridgecrest is the ultimate lienholder.
- We have new evidence that shows that Bridgecrest, not CVNA, is the most recent lienholder, of the original 34 vehicles/VINs discussed in our previous report.
- CVNA sells cars without title, and issues temporary plates to customers from other states, while awaiting vehicle/title registration. This explains why there are chronic mismatches between the Obligor State field within ABS filings and title record state in Bumper.com or other vehicle history report aggregators like VinAudit.
Carvana sells used cars, initially finances them. and then soon after sells these loans most of the time. CVNA narrowly claims it hasn’t sold loans directly to DriveTime in many years, yet CVNA loans end up in DriveTime/Bridgecrest’s hands. How? Though the exact mechanism remains unexplained, what’s evident is: Carvana’s Gain on Loan Sales are ultimately tied to DriveTime/Bridgecrest. CVNA management should explain how this all works. Also, multiple different sources all confirm that Bridgecrest is the lienholder:
Carvana says Bridgecrest is the lienholder
Carvana claims it is the lienholder according to its website’s Support Center
The Carvana website’s Support Center identifies itself as the lienholder on title, and Bridgecrest as its “third-party loan servicer”:
- The CVNA website clearly states that Carvana, not Bridgecrest, is the lienholder.
- The CVNA website does not mention that Bridgecrest can be the lienholder on the title, or that it can be creditor or originator.
- Bridgecrest (fully consolidated under DriveTime) is a related party of Carvana, not a “third party”
Yet Carvana, on record in Better Business Bureau responses, refers to Bridgecrest as the lienholder, not Carvana.
Carvana representatives actually refer to Bridgecrest as the lienholder
The Better Business Bureau (“BBB”) is a private organization that provides the public with information on businesses and charities. BBB has a notable feature: the companies can actually respond to complaints or questions posted by its customers on BBB website. We have found records where Carvana responds to its customers’ complaints, and clearly refers to Bridgecrest as the lienholder. Here are the best examples:
Example 1
Business Response Date: 08/19/2025
Dear BBB, Thank you for providing further insight into this situation. Upon additional review of the account, our team has worked with the customer and provided a resolution. The vehicle has been titled in the state that is listed as his home and registration address on his contracts which is [REDACTED]. The customer desires to register to another state, and in order to do so, we have provided next steps to work with the [REDACTED] and his lienholder Bridgecrest to transfer the title or provide a temporary title to the state he desires. We understand the customer may have further questions regarding their concerns and encourage them to continue working with us. Should they require additional assistance, we ask that they give us a call or utilize the 24-hour chat and text feature found on our website. If the BBB has any questions regarding this process, please let us know, and we will be happy to assist. Thank you, The Carvana Team
See the full report here by Gotham City Research
