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  "documentTitle": "Carvana Co. (CVNA)",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2019-03-01 00:00:00",
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  "pageNumber": 66,
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  "notes": "Uses a combination of a stylized line chart and a pie chart to illustrate a discrepancy in loan pricing and credit quality.",
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      "kind": "callout",
      "text": "How can Carvana get such attractive terms on subprime loans? Who is buying these loans on these terms?",
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      "kind": "callout",
      "text": "Why provide only a stylized graph? Why not provide a more comprehensive distribution, since the economics of Carvana's loan sales should depend on it?",
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      "text": "Given that it buys loans with an average FICO score of 680, the remaining loans purchased by the other buyer must have an average FICO score of ~550 - and, for Carvana to report loan sales at 104 par, the buyer must be paying more than Ally pays for superior loans!",
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      "text": "Total CVNA: 635 Avg FICO Score, 104 Par",
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      "text": "FICO score: 630-640",
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      "text": "Based on our market intelligence, we believe the weighted average FICO score... the buyer must be paying more than Ally pays for superior loans!",
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      "kind": "paragraph",
      "text": "In its recent investor day presentation, management provided slightly more detail... subprime borrowers are relatively over-represented among Carvana's customer base.",
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      "text": "So if you look at our used business, the FICO on our used business which represents about 52%, 53% of all the business that we originate today is coming on at an average FICO of 680.",
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      "text": "\"So if you look at our used business, the FICO on our used business which represents about 52%, 53% of all the business that we originate today is coming on at an average FICO of 680. Our new business is coming on an average FICO of 700. So it's very steady across the board. You don't see big barbells in our portfolio, which again gives us confidence when the environment does turn.\" — Jeffrey Jonathan Brown - CEO, Ally Financial",
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      "kind": "title",
      "text": "Questionable Subprime Lending Math",
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