Carvana Sees Stronger Profit on Used-Car and Loan Sales (2)

Online used-car retailer Carvana Co. doubled its profits in the first quarter with record vehicle volume and a substantial gain in loan sales.

Carvana reported a 46% increase in vehicle sales as consumers went on a buying spree of new and used cars to avoid higher costs due to President Donald Trump’s tariffs. That and the company’s continued push for retail growth led to doubling its earnings before interest, taxes, depreciation and amortization to $488 million, beating a consensus estimate of $437.4 million.

At the same time, the company’s $373 million net income came chiefly from loan sales, which ...