Carvana VP of finance talks rate cuts, profitability, sales growth 

Carvana has lowered its interest rates as its profitability, sales and finance volume improve.

The Tempe, Ariz.-based retailer in the past year has focused on expanding inventory to meet consumers’ needs as car prices rise, improving customer experience and using AI to streamline transactions, Matt Dundas, vice president of finance, tells Auto Finance News during a special episode of “The Roadmap” podcast.

The efforts, he says, are in line with the retailer’s goal to sell 3 million units per year in the next five to 10 years at a 13.5% adjusted EBITDA margin.

“On that profitability piece, we're relatively close to that midterm goal that we've set for that four-to nine-year horizon,” he says. “That's allowed us, as we continue to make fundamental gains across both finance and the rest of the business, to return some of that back to consumers to drive more value in the Carvana platform.”

The retailer reduced interest rates by about 100 basis points in the fourth quarter, Chief Executive Ernie Garcia said on the company’s earnings call in February. Rate cuts have contributed to improved financing penetration, Dundas said.

“About four out of five customers historically have financed with Carvana,” he said. “We’ve seen that ratio start to improve over the last year as we get more competitive with our rates.”

As of the first quarter, Carvana’s originations totaled $4.3 billion, up 59.3% YoY . Sales climbed 40% YoY to 187,393 units in Q1. Carvana’s portfolio also rose 38.5% YoY to $22.4 billion at yearend 2025, according to the latest Big Wheels ranking data.

“As Carvana grows, we grow as the lending business,” Dundas says on the podcast.

In this episode of “The Roadmap,” Auto Finance News Editor Amanda Harris and Dundas dive into the retailer’s growth and innovation strategy in 2025 and the rest of 2026.