Chanos Warns About 'Lots of Red Flags' at Carvana

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00:00I want to talk about Carvana as well because you've been bearish on that for a couple of years

00:03and in part because of its reliance on the sale of subprime loans. Given the problems we've seen

00:08with PrimaLend and Tricolor, subprime auto loans just doesn't sound like a good business idea right

00:14now. It is for them. So they're still booking hefty gains on their sale of loans. But look,

00:23there's just lots of red flags at Carvana. It's not new news. But what really would worry me if I was

00:31new to the story is the fact that a Carvana affiliate services the loans, BridgeCrest. And again,

00:39we just don't have complete transparency as to what's going on. And given the news in the subprime

00:46auto space of defaults, bankruptcies, rising delinquencies, the fact that Carvana seems to be

00:52sailing through it without with nary a scratch stretches credulity, in my opinion.