Carvana lets customers choose from more than 19,000 cars and complete purchases in as little as 10 minutes, according to its website.
Buyers have the option of picking up their car at more than a dozen vending machines located around the country, using a giant coin. Its revenue doubled to $US3.9 billion last year as it sold about 200,000 cars. It now sees a path to 2 million sales a year.
Garcia II is worth more than $US15 billion and his son $US6.4 billion, according to Bloomberg’s Index, which tracks the daily fortunes of the world’s richest 500 people.
Carvana has been the target of sceptics and short sellers in the past, and its shares have been volatile since it went public. It has rallied more than 670 per cent since a March low and has a $US36.2 billion market valuation.
Roughly a quarter of the company’s float is sold short and the short interest ratio — a gauge of how many days it would take for short sellers to cover their positions — was near a record for this year at the end of August, according to data compiled by Bloomberg.
The company said Tuesday it will sell $US1 billion of new debt, seizing on the boom in demand for its vehicles and low yields in the corporate bond market. Around $US600 million of the proceeds will be used to refinance existing debt, with the rest held as cash on the balance sheet.