Jul. 2 at 9:31 PM
$CVNA Carvana’s stock doesn’t move with interest rates because Carvana isn’t a rate‑sensitive lender. They originate loans and immediately sell them into securitizations, so the economics come from gain‑on‑sale, advance rates, and ABS investor demand, not the Fed. With roughly half their customers in subprime and deep subprime paying 20–28% APR, a Fed move of 25–50 bps is irrelevant. Majority of Carvana’s buyers are payment‑driven, not rate‑driven. Carvana’s real sensitivities are credit performance, used‑car margins, and liquidity in the securitization market. None of that tracks Fed Funds. So tying CVNA’s stock action to interest rates is just misunderstanding how the business actually works.
