How An Ex-Con Became A Billionaire From Used Cars #FACTS DEC. 19, 2017. In April, Ernest Garcia II, a 60-year-old convicted felon, stood next to his son as #ErnestGarciaIII rang the bell of #theNewYorkStockExchange For decades, Garcia had been careful to stay out of the public eye, but with the initial public offering of #Carvana he was ready to openly celebrate a crowning achievement.
Garcia’s #business career has included personal and #corporate bankruptcies, overseeing a #stockmarket debacle, and many years of selling #usedcars and making #subprime #autoloans His 1990 criminal fraud conviction stemmed from the small role he played in the #CharlesKeating #scandal involving Lincoln Savings & Loan.
Today, Garcia operates #DriveTime Automotive, the fourth-biggest used car #retailer in the country, and he is separately the biggest shareholder of Carvana, a used car #ecommerce company with a hot stock. He borrows big money from the nation’s largest banks, owns an apartment in #TrumpTower and has struck relationships with the likes of former U.S. Vice President Dan Quayle and #MarkWalter one of the most powerful billionaires on #WallStreet
Incredibly, Garcia himself is now a billionaire. #Forbes estimates his net worth at $2.5 billion. DriveTime, which sells used cars and is in the sometimes-controversial business of making auto loans to low-income consumers, has seen its business grow 19% annually in the last decade. With shares of Carvana up 46% since its April IPO, Garcia’s stake in Carvana alone is worth $1.5 billion.
With Garcia’s son, Garcia III, as CEO, Carvana has been promoted as the “ #Amazon of cars,” a Phoenix-based technology platform for buying and selling used cars. Consumers can use its web site or app to buy used cars, obtain financing and arrange for vehicle delivery. Carvana also has eight glass tower vending machines that are as high as eight stories located in cities like #Atlanta and #Houston, where customers can inspect and pick up purchased used cars. #NINFONETWORK #VEHICLENINFO #FOODNINFO #ENTERTAINMENTNIFO #BUZZFEED #HUFFPOSTGRAM #DAILYMAIL #BITCOIN