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  "documentTitle": "Carvana Co. (CVNA)",
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  "notes": "Uses a quote from CarMax's 10-K to establish a market standard for subprime lending.",
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      "text": "KMX FY 2018 10-K",
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      "text": "It is worth emphasizing just how widely these returns on subprime auto loan sales would vary from peer standards. Consider the economics of CarMax's auto lending. If CarMax would rather pay other parties to originate loans for its subprime customers than engage in subprime auto loan origination itself, how does Carvana manage to turn a handsome profit on subprime auto loans?",
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      "text": "Generally, credit applications submitted by customers to CarMax are initially reviewed by CAF using our proprietary underwriting standards... We are willing to pay a fee to Tier 3 providers because we believe their participation provides us with incremental sales by enabling customers to secure financing that they may not otherwise be able to obtain.",
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