Chanos Sees ‘Red Flags’ at Carvana Amid Auto Loan Woes (1)

Carvana Co. raises “lots of red flags,” especially after the recent implosion of auto lender Tricolor Holdings, says famed short-seller Jim Chanos, who has singled out the online car retailer over the past several years.

“Given the news in the subprime auto space of defaults, bankruptcies, rising delinquencies, the fact that Carvana seems to be sailing through it with nary a scratch stretches credulity,” Chanos said during a Bloomberg Television interview on Wednesday.

Chanos, who turned his hedge fund into a family office in late 2023, pointed out that Carvana books hefty gains on the sale of auto loans. ...