Here's a story that should make your blood boil.
A short seller report by Gotham City Research just exposed something ugly about Carvana—the company that revolutionized car buying with vending machines and slick marketing. Turns out, behind the scenes, they're running a lending operation that charges people 22% interest on car loans.
Let me say that again: twenty-two percent. On a depreciating asset. For five years.
The lender is called Bridgecrest, and most people have never heard of it. That's by design.
How the Scam Works
Here's the setup: you go to Carvana to buy a used car. Their whole pitch is convenience—no dealers, no haggling, cars delivered to your door. It's a great experience.
Then comes the financing. If you've got good credit, you get a loan from a normal bank at a normal rate. But if your credit is damaged—maybe you missed some payments, maybe you had a medical debt, maybe you just got unlucky—Carvana steers you to Bridgecrest.
Bridgecrest approves you. You're thrilled. You get the car. Life is good.
Then you look at the loan terms. 22% APR. On a $25,000 car. Over five years, you'll pay more than $40,000 total. You're paying nearly double the price of the car just in interest.
And if the car is used—which it is, because this is Carvana—it's going to depreciate. Fast. Which means you'll be underwater on the loan almost immediately.
The Real Kicker
A former car dealer posted on Reddit about the one time they encountered a Bridgecrest customer. The guy was driving a 2012 Chevy Impala with 150,000 miles and three accidents on the Carfax. A car that's worth maybe $4,000 on a good day.
He owed $15,800 to Bridgecrest.
Let that sink in. Nearly $16,000 owed on a $4,000 car. That's not a loan. That's a trap.
The dealer tried to help the guy refinance. He called Bridgecrest to get a payoff quote—standard procedure. Bridgecrest confirmed the amount verbally, but . They wouldn't email it. They wouldn't fax it. Nothing.
