Carvana Extends Loan Sale Deal With Ally, Refuting Short Report

Carvana Co. said it has reestablished an agreement with Ally Financial Inc. to sell the lender up to $4 billion in used-vehicle loan receivables over the next year, a move that counters one claim by short seller Hindenburg Research that the financier was pulling back on their relationship.

The deal, announced in a filing Monday, will preserve a relationship that is core to Carvana’s business. The company sells used cars online, originates loans to its customers and sells the receivables to other lenders. Ally has historically bought enough receivables to fund 50% of Carvana’s new originations, according to a report ...