Structured Finance: ABS | New Issue Report

Carvana Auto Receivables

Trust 2021-P2
$802.430 Million Asset Backed Securities

Analytical Contacts

Alla Mikhalevsky, CFA, Director Pritam Patel, Associate

+1 (646) 731-3356 +1 (646) 731-3374
[email protected] [email protected]

Eric Neglia, Senior Managing Director Zara Shirazi, Senior Director

+1 (646) 731-2405 +1 (646) 731-3326
[email protected] [email protected]

Carvana Auto Receivables Trust 2021-P2 1 June 24, 2021

Table of Contents

Executive Summary ....................................................................................................................................... 3

Transaction Summary ..................................................................................................................................... 9
Key Changes from Carvana Auto Receivables Trust 2021-P1 ........................................................................... 10
Performance Summary of Prior Transactions..................................................................................................... 10
KBRA Process ............................................................................................................................................... 11
Originator and Servicer Review ....................................................................................................................... 11
Management & Ownership .......................................................................................................................... 12
Board of Directors...................................................................................................................................... 13
Financial Condition & Liquidity ..................................................................................................................... 13
Relationship with DriveTime ........................................................................................................................ 14
Originations .............................................................................................................................................. 15
Underwriting & Risk Management ................................................................................................................ 16
Verifications .............................................................................................................................................. 16
Inspection Centers ..................................................................................................................................... 17
Vending Machines/Delivery ......................................................................................................................... 17
Servicing .................................................................................................................................................. 17
Backup Servicer ........................................................................................................................................ 18
Historical Performance ................................................................................................................................... 18
Collateral Analysis ......................................................................................................................................... 19
KBRA Comparative Analytic Tool (“KCAT”) ........................................................................................................ 21
KBRA Loss Expectation .................................................................................................................................. 22
Cash Flow Modeling ....................................................................................................................................... 22
Rating Sensitivity Analysis.............................................................................................................................. 22
ESG Considerations ....................................................................................................................................... 24
Transaction Structure .................................................................................................................................... 26

Carvana Auto Receivables Trust 2021-P2 2 June 24, 2021

Executive Summary
This new issue report summarizes Kroll Bond Rating Agency’s (KBRA) analysis of Carvana Auto Receivables Trust 2021-
P2 (“CRVNA 2021-P2”), an auto loan ABS transaction. This report is based on information as of June 24, 2021. This
report does not constitute a recommendation to buy, hold, or sell securities.

Rated Notes
Initial Credit
Initial Amount Interest Legal Final
Class Enhancement KBRA Rating
($) Rate Maturity Date
(%)
Class A-1 $112,000,000 0.12908% Jul 11, 2022 9.70% K1+ (sf)
Class A-2 $231,850,000 0.30% Jul 10, 2024 9.70% AAA (sf)
Class A-3 $235,810,000 0.49% Mar 10, 2026 9.70% AAA (sf)
Class A-4 $124,040,000 0.80% Jan 11, 2027 9.70% AAA (sf)
Class B $25,580,000 1.27% Mar 10, 2027 6.40% AA+ (sf)
Class C $29,060,000 1.60% Jun 10, 2027 2.65% A+ (sf)
Class D $16,660,000 2.02% May 10, 2028 0.50% BBB+ (sf)
Class N* $27,430,000 1.88% May 10, 2028 0.05% BB+ (sf)
Total $802,430,000
*Net Interest Margin Security; Derives C ashflow from Excess Spread

Carvana, LLC (“Carvana” or the “Company”) was founded in 2012 as an eCommerce platform for buying used vehicles.
Carvana, through its website (www.Carvana.com), offers a unique used vehicle buying experience that enables
customers to purchase vehicles online through an efficient and transparent process. Carvana’s target customer
demographic is not specific to credit and is geared to attract a broader credit spectrum and income classification than
that of DriveTime Automotive Group Inc. (“DriveTime”). Initially launched in Atlanta, Georgia, Carvana has expanded
nationally and is now operating in 298 markets. Carvana’s business and operations fully integrate all steps of the vehicle
purchase process including vehicle acquisition, trade-in, financing, and delivery. The Company is led by founder and
CEO Ernie Garcia III who currently owns approximately 10%. The Company completed its IPO in April 2017, and the
stock trades on the New York Stock Exchange under the symbol “CVNA”.

This transaction, CRVNA 2021-P2, represents the fourth term ABS securitization for the Company in 2021, the third
under its prime shelf, and the tenth overall. CRVNA 2021-P2 will issue eight classes of notes rated ‘K1+ (sf)’ though
‘BB+ (sf)’ totaling $802.43 million. The transaction is collateralized by approximately $775 million of automobile loans
to primarily prime obligors as defined by the Company (obligors with Deal Scores ranging from 50 to 100). The
automobile loans are fixed rate installment loans with a weighted average non-zero FICO score of 706. In addition, as
of the cutoff date, the loans have an average current principal balance of $21,650, weighted average interest rate of
7.97%, and weighted average original term and remaining term of 71 and 69 months, respectively. The collateral is
comprised solely of used vehicles. Carvana will use the net proceeds from the issuance of the notes to pay down existing
debt and for general operating purposes.

The transaction has initial credit enhancement levels of 9.70% for the Class A Notes, 6.40% for the Class B Notes,
2.65% for the Class C Notes, and 0.50% for the Class D Notes. Initial credit enhancement consists of excess spread,
subordination (except for the Class D Notes) and a reserve account funded at closing. The transaction includes a Class
N reserve account equal to 0.05% of the initial collateral pool balance which can be used to pay any Class N interest
shortfalls. Bridgecrest Credit Company (“Bridgecrest”), is an affiliate of DriveTime and will be the primary servicer of
the securitization.

Carvana Auto Receivables Trust 2021-P2 3 June 24, 2021

The transaction parties are listed below:

Transaction Parties
Issuer Carvana Auto Receivables Trust 2021-P2 (“CRVNA 2021-P2”)
Sponsor, Originator and Administrator Carvana, LLC
Depositor Carvana Receivables Depositor LLC
Grantor Trust Carvana Auto Receivables Grantor Trust 2021-P2
Servicer Bridgecrest Credit Company, LLC
Indenture Trustee and Custodian Wells Fargo Bank, National Association
Owner Trustee and Grantor Trust Trustee BNY Mellon Trust of Delaware
Backup Servicer Vervent Inc.
Asset Representations Reviewer Clayton Fixed Income Services, LLC

Key Credit Considerations

Experienced Originator and Management Team
KBRA has met with Carvana’s management team at their Tempe, AZ headquarters on multiple
occasions, and had virtual diligence sessions and corporate updates. KBRA believes Carvana has a
capable management team that has extensive experience in the auto finance industry. The +
Company’s President, CEO & Chairman has held various positions at DriveTime Automotive from
2007-2013. The management team has experience in auto finance, servicing and collections, and
capital markets.
Transaction Structure
The transaction has initial hard credit enhancement levels ranging from 9.70% for the Class A notes
to 0.50% for the Class D notes. Initial credit enhancement is comprised of subordination of junior
note classes (except for Class D), a cash reserve account and excess spread.

Cash Flow Priority: CRVNA 2021-P2 utilizes a sequential pay structure where the Class A-1 notes
receive principal payments prior to all subordinate notes. Once each of the Class A notes are paid
in full, Class B receives principal payments until paid in full followed by Class C, and then Class D.
Interest is paid sequentially prior to principal payments; however, the Class A-1 through Class A-4
notes receive interest payments pro rata. Any excess spread after paying fees, interest and principal
on the notes in order to maintain the overcollateralization requirement is used to pay interest and
principal payments to the Class N until it is paid in full.

Overcollateralization: Initial OC is 0.00% but will build to 1.40% of the initial collateral pool balance.
+
Subordination: Subordination is 9.20%, 5.90%, and 2.15% for the Class A, Class B, and Class C
notes respectively.

Cash Reserve Account: A cash reserve account for the Class A through Class D notes will be funded at
closing and will equal approximately 0.50% of the initial collateral pool balance. The Class N has a
reserve account funded at 0.05% of the initial collateral pool balance and can be used to pay interest
while the overcollateralization is building to its target or to cover any interest shortfalls on the Class N.

Excess Spread: Excess spread is approximately 6.16%, based on a weighted average interest rate
of 7.97% less 1.03% fees and 0.78% estimated bond coupon.

The credit enhancement levels for each class are sufficient to cover Kroll Bond Rating Agency’s
corresponding stressed cash flow scenarios for each rated note class.
Unpredictability of Class N Payments
The Class N is a NIM security where the noteholder has claim on the transaction’s residual cashflow. As
a result, principal and interest payments on the NIM are derived from excess spread that the transaction -
generates. If there is significantly less excess spread due to higher losses or faster prepayments on the
underlying loans than projected, the Class N noteholders may experience losses.

Carvana Auto Receivables Trust 2021-P2 4 June 24, 2021

 Generally, voluntary prepayments are less volatile and independent of interest rate movements as
most borrowers do not refinance their auto loans. Prepay speeds may also slow during a weak
economy as borrowers defer their purchase of new vehicles. In order to stress NIM cashflows, KBRA
ran higher default and faster prepayment scenarios to ensure that the NIM has sufficient cash flow
to support the rating.

The transaction includes a Class N reserve account which can be used to cover interest shortfalls
on the Class N Notes in periods where there is no excess spread. Uncapped transaction party fees
are paid after interest and principal payments to Class N noteholders. If the servicer utilizes the 2%
clean-up call option and the Class N is still outstanding, the issuer must pay the Class N in full
before the clean-up call can occur.
Underwriting and Risk Analytics
Carvana has developed multiple proprietary risk models to support various aspects of their vertically
integrated business. The Company uses market-based pricing methods, loan structuring algorithms
and external data sources to underwrite loans and predict loan performance. Over the past several
years, the Company has introduced and continued to develop their proprietary credit risk models,
CarvanaScore, Deal Score and Fraud Score.

All proprietary risk models are regularly monitored, tested and updated from time to time to adjust
for new performance data, changes in customer and economic trends, and additional sources of
third-party data. +

Additionally, Carvana has partnered with Ally Bank as a forward flow party purchasing loans. Ally
performs periodic reviews, quality control, and quality assurance tests on loan-level underwriting
procedures. The Company has leveraged Ally’s experience in underwriting auto loans and is
continuously improving their credit philosophy from Ally’s feedback and learnings.

For more information on Carvana’s underwriting process, please read the Underwriting & Risk
Management section of this report.
Experienced Third-Party Servicer
Carvana loans are serviced by Bridgecrest, an affiliate of DriveTime, which services a $10.0+ billion
portfolio consisting of loans originated by Carvana and DriveTime. Bridgecrest services Carvana and
DriveTime loans on behalf of Ally Financial, Ally Bank, and a number of other public and private
securitization trusts and financing facilities. Bridgecrest has a dedicated team of employees devoted +
to servicing Carvana accounts and maintains redundant call center facilities located in Mesa, AZ and
Dallas, TX. Bridgecrest is equipped for the unique needs of Carvana’s technology-focused customer
base, with integration into Carvana’s smartphone app, a Bridgecrest online account services portal,
and ability for agents to engage with customers via text message.
Relationship with DriveTime
Carvana maintains several business relationships with DriveTime that provide the benefits of a
larger-scale organization, including ability to access a broad range of industry expertise. Carvana
has a shared services agreement with DriveTime where DriveTime provides certain information
technology and telecommunications services.

Separate from the shared services, Carvana has separate contracts for services with DriveTime and
its affiliates, including subleases of office space in DriveTime’s buildings for certain market hubs
and leases for four of Carvana’s 12 inspection and reconditioning centers. Carvana engages +
Bridgecrest, an affiliate of DriveTime, to service loans that Carvana holds on its balance sheet.

Carvana may also sell and receive commission on vehicle service contracts (“VSCs”) and GAP waiver
agreements sold to customers purchasing a vehicle from the Company. Some ancillary products are
underwritten and/or administered by SilverRock, another DriveTime affiliate. Carvana pays
DriveTime market rates for all services provided by DriveTime and reports all operating costs in
their financial statements.
Limited Historical Performance Data
Carvana was formed in 2012 and although the Company began originating loans in February 2013,
they did not originate sizable volumes for KBRA to perform representative static pool analysis until -
2016. KBRA reviewed static pool gross and net loss data, aggregated into quarterly vintages and

Carvana Auto Receivables Trust 2021-P2 5 June 24, 2021

 segmented by Deal Score (10-point increments). Since these vintages did not provide the full
amortization or loss profile of the loans, KBRA analyzed publicly available static pool loss data for
comparable auto loan originators to serve as proxy data to help complete, derive, and validate the
base case loss assumptions for each segmentation.

Historical data is considered the best indicator of future performance; therefore, the limited
performance history and reliance on proxy data is a key risk relating to this transaction; however,
KBRA has noted improvements in Carvana’s static pool loss performance as further data is collected
and Carvana’s credit models are refined.
Financial Condition and Liquidity
Carvana is a public company focused on growth. As a result, the Company has incurred significant
operating losses and negative cash flow since inception; however, the Company had its first quarter
of positive EBITDA in Q3 2020. For FY 2019, FY 2020 and Q1 2021, the company reported net losses
of $365 million, $462 million, and $82 million, respectively. Carvana expects to incur additional
losses in the future as the Company expands into new markets and develops their presence in
existing markets, invests in their infrastructure (website, inspection centers, and distribution
channels, among others) and builds additional car vending machines (locations customers can pick-
up their vehicle).
-/+
Carvana currently has multiple sources of liquidity including senior unsecured notes, the ability to
issue common stock, and multiple revolving credit facilities with certain lenders that have an
aggregate commitment of $1.5 billion. In addition, Ally Bank and Ally Financial currently provide
Carvana with (i) a $4.0 billion forward flow commitment and (ii) a $1.25 billion floor plan for the
purchase of vehicles.

For more details on Carvana’s financial position, please read the Financial Condition & Liquidity
section of this report.
Integrated Business Model
Since Carvana does not have many of the fixed overhead costs that traditional retail dealers do,
Carvana is generally able to benefit from the integration of its retail, delivery and finance business
that helps lower their cost structure and better control all critical aspects of the transaction process.
Carvana controls the algorithms that help determine the vehicles they make available to customers,
the prices of those vehicles, the financing terms, GAP waiver coverage and VSC options available
to their customers and the trade-in values they offer. Additionally, the Company controls the
logistics infrastructure that enables fast, specific, and reliable delivery times.

▪ Carvana provides financing for the used vehicles it sells through their eCommerce platform.
Carvana’s website allows borrowers to select an exact down payment, monthly payment and
loan term and quickly obtain a financing decision. Financing decisions and terms are determined
by the Company’s proprietary scoring and loan structuring model. +
▪ Carvana acquires their used vehicle inventory through the national used-car market and purchasing
directly from their retail customers. Carvana assesses vehicles based on quality, inventory fit,
consumer desirability, relative value, expected reconditioning costs and vehicle location. Vehicle
prices are determined by a centralized pricing model and the Company does not negotiate the
vehicle sales price with its customers. The performance of Carvana’s loans also benefit from a
detailed vehicle inspection and reconditioning process prior to sale which helps to minimize
mechanical break-down (a common reason for delinquencies and charge-offs).
▪ Carvana’s credit scoring model determines each customer’s loan offer, which includes the
minimum down payment, maximum loan term, and monthly payment.
▪ Carvana maintains a team of in-house customer advocates that are available to answer
customer questions and assist in loan verification to establish proof of identity, income, and
insurance coverage.
Geographic Diversity
The Company opened its first market in Atlanta, Georgia as a way to utilize one of DriveTime’s large
inspection and reconditioning centers with excess capacity. This allowed the Company to recondition
vehicles, sell them over the internet and deliver them in the region. Carvana later opened a +
reconditioning facility in Blue Mound, TX. These two regions are Carvana’s largest and most mature
markets. As a result, these two states make up some of the larger concentrations in the pool;
however, the pool is geographically diversified. As of the cutoff date, the three largest state

Carvana Auto Receivables Trust 2021-P2 6 June 24, 2021

 concentrations represent one-quarter of the pool balance (25.1%), and include CA (9.1%), TX
(9.0%) and FL (7.1%), while the top 5 states represent 37.4%.

Carvana has continuously expanded their geographic footprint by opening new markets since 2014.
Markets are defined as cities where Carvana delivers vehicles. When the Company opens a new
market, it focuses on advertising spend in proportion to the market’s population and has allowed
increased market penetration over time following the opening of a new market. As the Company
continues to grow, it has increased its national television advertising spend as well. The Company
is operating in 298 total markets nationwide.
Low LTV and Higher Recovery Values
Carvana’s online sales channels and low cost “vending machine” distribution method provides lower
operating costs compared to traditional retail auto finance companies. As a result, Carvana is
generally able to sell vehicles below Kelley Blue Book value. Coupled with required customer down
payments, this has resulted in relatively lower loan-to-value (“LTV”) and higher recovery amounts.
The weighted average LTV of the CRVNA 2021-P2 pool is 89.06%. Given the lower LTV of the pool +
and historic recovery rates, KBRA assumed a 45% recovery rate for the transaction.

The LTV for Carvana’s prime pool has trended lower recently primarily due to higher down payments
and higher trade-in activity. Generally, customers who trade-in their prior vehicle to purchase a
new vehicle will make higher down payments, resulting in a lower LTV.
Vehicle Return Policy
Customers in Carvana’s local delivery markets have the option to return their vehicle within seven
days of delivery, and all amounts paid are refunded. The period starts on the day the customer
receives the vehicle and ends at 5 p.m. EST on the seventh calendar day after receiving the vehicle.
The vehicle can be driven up to 400 miles during the seven-day period, however every additional +
mile driven after the 400-mile limit is charged a fee of $1.00 per mile. Cars that are modified or
damaged cannot be returned. Each of the receivables in the CRVNA 2021-P2 pool have passed this
seven-day return period.
Internet Fraud Risk
Carvana’s unique business model is largely predicated on delivering vehicles to a customer’s home and
much of the vehicle purchasing and financing process is conducted virtually. Internet-based lending is
inherently riskier than in-person lending as there is a greater potential for falsification of information
and borrower fraud. For all financing requests, Carvana runs an identity questionnaire from Experian for
identity authentication and fraud prevention. Interactive challenge-response questions are used to
authenticate the applicant’s identity. The questionnaire complies with both the Gramm-Leach-Bliley Act
and the Fair Credit Reporting Act and is used for non-face-to-face transactions, such as internet and call -/+
center applications. Additionally, each application is designated a FraudScore which is used to identify
loans with a high potential for fraud. Most sales are fulfilled by a Carvana employee who checks the
customer’s driver’s license to confirm identity at delivery.

KBRA believes Carvana has established adequate procedures for information verification and fraud
detection.
Backup Servicer
Bridgecrest, as the primary Servicer, is responsible for all collections and payment processing
activities as well as repossession and remarketing of vehicles. If Bridgecrest is terminated as
Servicer, loan performance may be negatively impacted while servicing responsibilities are
transferred to the Back-Up Servicer (as defined below). This may result in a disruption in collections
and modifications in how loans are serviced, and payments are processed.

Vervent Inc. (“Vervent” or “Back-up Servicer”) is obligated to become the successor servicer if +
Bridgecrest is terminated as Servicer. Vervent will perform the following functions: i) on a monthly
basis receive data files from Bridgecrest and perform a reconciliation to carry out the servicing
related activities, ii) store the file in a secure location until superseded by the next monthly file, iii)
and confirm certain data on the monthly servicer reports.

Vervent’s ongoing involvement and preparedness as the Back-up Servicer should minimize the
impact of a servicing disruption in the event servicing must be transferred.

Carvana Auto Receivables Trust 2021-P2 7 June 24, 2021

 Regulatory Scrutiny
The non-prime auto lending industry has experienced scrutiny from various government agencies
including the Department of Justice (“DOJ”), the Consumer Financial Protection Bureau (“CFPB”)
and the Federal Trade Commission (“FTC”).
-
The CFPB has supervisory authority over large nonbank auto finance companies that make, acquire
or refinance 10,000 or more loans or leases per year. Both federal and state regulators may pursue
regulatory action, which could expose lenders to a variety of requirements.
COVID-19: Potential Implications and Company Response
As a result of the COVID-19 related economic disruption, unemployment is elevated relative to
prepandemic levels. Despite current unemployment, credit performance has been better than
expected. KBRA believes this is attributable to four rounds of stimulus measures taken by the
government, which included both direct cash payments to eligible adults as well as enhanced
unemployment benefits. Additionally, assistance programs offered by other lenders allowed some
borrowers to defer monthly obligations on student loans and mortgages which has freed up funds
to pay other consumer debt. Potential factors that may impact future delinquency rates include the
potential expiration of previously granted assistance by other lenders, effectiveness of the vaccine
rollout and pace of the economic recovery including job creation. KBRA considered the
macroeconomic risks related to COVID and the impact on credit performance through its historical
portfolio analysis and review of the issuer’s origination practices performed with this transaction.

In response to COVID-19, Carvana took steps to manage their business including: -/+
▪ adjusting and tightening underwriting criteria for certain subsets of borrowers, particularly for
subprime consumers who have been impacted by lost wages and employment,
▪ offering one-month hardship extensions with a maximum of six one-month extensions allowed
for the life of the loan, and a maximum of three one-month extensions allowed within a 12-
month period,
▪ adjusting their operations to offer a “touchless” delivery experience for consumers, which is
preferable for customers complying with social distancing recommendations.

Extension rates for Carvana’s managed portfolio peaked in April 2020 at approximately 5% of the
managed portfolio and have been steadily declining since. The CRVNA 2021-P2 collateral pool has
a weighted average seasoning of one month and approximately 0.02% of the collateral pool has
ever received an extension.

Carvana Auto Receivables Trust 2021-P2 8 June 24, 2021

Transaction Summary
The chart below displays the characteristics of the collateral pool and credit enhancement structure of CRVNA 2021-P2
compared to two previously issued prime Carvana transactions.

Deal Name Carvana Auto Receviables Trust 2021-P2 Carvana Auto Receviables Trust 2021-P1 Carvana Auto Receviables Trust 2020-P1

Transaction Date 6/24/2021* 3/18/20211 12/10/20201

Collateral Stratification
Pool Balance (as of cutoff date) $775,000,002 $415,000,001 $405,000,000
Avg Loan Balance $21,650 $19,208 $19,901
Wtd Avg Coupon 7.97% 8.19% 8.20%
Wtd Avg FICO 706 707 710
Wtd Avg Loan-To-Value 89.06% 95.45% 93.88%
Wtd Avg Original Term (mths) 71 70 70
Wtd Avg Remaining Term (mths) 69 69 68
Wtd Avg Seasoning (mths) 1 1 1
% New Vehicles 0.00% 0.00% 0.00%
% Used Vehicles 100.00% 100.00% 100.00%
FICO Distribution
No FICO 0.68% 0.62% 0.48%
500 and lower 0.00% 0.00% 0.00%
501-550 0.00% 0.00% 0.00%
551-600 2.57% 0.93% 1.51%
601-650 22.47% 23.86% 21.46%
651-700 26.79% 26.71% 26.98%
701-750 20.30% 20.41% 20.56%
751 and higher 27.19% 27.47% 29.00%
Geographic Concentration
State 1 CA: 9.07% CA: 10.27% CA: 10.97%
State 2 TX: 8.97% TX: 7.94% TX: 7.92%
State 3 FL: 7.08% GA: 7.16% GA: 5.73%
Note Balance
Class A-1 $112,000,000 $50,000,000 $56,000,000
Class A-2 $231,850,000 $130,000,000 $120,000,000
Class A-3 $235,810,000 $130,000,000 $115,000,000
Class A-4 $124,040,000 $68,000,000 $75,930,000
Class B $25,580,000 $14,000,000 $13,365,000
Class C $29,060,000 $16,000,000 $17,212,000
Class D $16,660,000 $7,000,000 $7,493,000
Class N** $27,430,000 $17,000,000 $15,000,000
Total $802,430,000 $432,000,000 $420,000,000
% Credit Enhancement
Initial O/C 0.00% 0.00% 0.00%
Target O/C 1.40%*** 1.10% 1.50%
O/C Floor N/A N/A N/A
Reserve Account 0.50% 0.50% 0.50%
Class N Reserve Account 0.05% 0.05% 0.05%
Annual Excess Spread 6.16% 6.38% 6.52%
Total Initial Credit Enhancement
K1+ Class 9.70% 9.42% 9.90%
AAA Class 9.70% 9.42% 9.90%
AA+ Class 6.40% 6.04% 6.60%
A+ Class 2.65% 2.19% 2.35%
BBB+ Class 0.50% 0.50% 0.50%
BB+ Class 0.05% --
BB Class -- 0.05% 0.05%
KBRA Base Case Cumulative Net Loss Expectation
KBRA Base Case Loss Range 1.05% - 3.05% 1.10% - 3.10% 1.10% - 3.10%
Source: KBRA, transaction documents.
*C ollateral stratification is based on June 3, 2021 data.
**The C lass N is not supported by each respective collateral pool but receives payments through excess spread.
***% of Original Balance
1
C ollateral stratification is based on each respective transactions' statistical cutoff date.

Carvana Auto Receivables Trust 2021-P2 9 June 24, 2021

Key Changes from Carvana Auto Receivables Trust 2021-P1
This section summarizes collateral changes since CRVNA 2021-P1.

Collateral
CRVNA 2021-P2 is the third ABS transaction under Carvana’s prime shelf, which consists of
Carvana loans with Deal Scores ranging from 50 to 100. Below is a chart that shows the pool
distribution of CRVNA 2021-P2 and CRVNA 2021-P1, segmented by Deal Score. KBRA determined
a loss expectation for each deal score cohort and used these assumptions, as well as the collateral
pool mix, to determine a base case loss expectation.

Deal Score Distribution

30.00%

25.00%
Pool Composition
20.00%

15.00%

10.00%

5.00%

0.00%
50-59 60-69 70-79 80-89 90-100

CRVNA 2021-P2 CRVNA 2021-P1

LTV for CRVNA 2021-P2 is 89.06%, 6.39% lower than the 95.45% LTV for CRVNA 2021-P1. The
lower LTV is due to higher down payments and higher trade-in activity. Generally, customers who
Lower LTV
trade-in their prior vehicle to purchase a new vehicle will make higher down payments, resulting
in a lower LTV.

Performance Summary of Prior Transactions

Carvana has closed nine other securitizations. The seven most seasoned transactions have reached their target
overcollateralization percentages and CRVNA 2021-N1 is building towards its target. CRVNA 2021-N2 will make its first
payment in July 2021. The data used in the performance summary below is as of the May 2021 payment date.

KBRA completed a portfolio review of its CRVNA rated transactions in June 2021. To view the report, click here.

Most
Initial Current KBRA Last
Month Delinquency Extension Current Senior Initial Class Current Class Current
Deal Pool Factor Target OC KBRA Base Case Loss Reviewed
Seasoned Rate % Rate % CNL Class Enhancement Enhancement OC
Base Case Range(1) Date
Remaining
CRVNA 2019-1 25 43.51% 6.46% 0.53% 4.36% B 35.40% 86.99% 5.65% 5.65% 10.90% 9.00% June-21
CRVNA 2019-2 22 49.35% 7.21% 0.53% 3.77% B 33.80% 74.07% 5.50% 5.50% 11.00% 9.00% June-21
CRVNA 2019-3 19 54.59% 6.24% 0.36% 3.16% A-3 48.70% 94.15% 5.50% 5.50% 10.80% 10.00% June-21
CRVNA 2019-4 16 61.25% 5.36% 0.35% 2.38% A-3 48.85% 84.24% 5.20% 5.20% 10.25% 9.75% June-21
CRVNA 2020-N1 13 69.23% 7.63% 0.57% 2.97% A 56.10% 86.80% 10.10% 10.10% 17.00% 16.00% June-21
CRVNA 2020-P1 5 83.93% 0.29% 0.06% 0.16% A-2 9.90% 69.76% 1.50% 1.50% 2.10% 2.10% --
CRVNA 2021-P1 2 93.05% 0.17% 0.02% 0.00% A-1 9.42% 11.31% 1.10% 1.10% 2.15% 2.15% --
CRVNA 2021-N1 1 96.20% 1.70% 0.11% 0.11% A 54.90% 59.27% 4.00% 2.20% 15.50% 15.50% --
(1)
KBRA's base case loss range is +/- 1.00%

Carvana Auto Receivables Trust 2021-P2 10 June 24, 2021

 CRVNA Cumulative Net Losses CRVNA Aggregate Delinquency Percentage
5.00% 12.00%
4.50%

4.00% 10.00%

3.50%
8.00%
3.00%

2.50% 6.00%
2.00%

1.50% 4.00%

1.00%
2.00%
0.50%

0.00% 0.00%
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
CRVNA 2019-1 CRVNA 2019-2 CRVNA 2019-3 CRVNA 2019-1 CRVNA 2019-2 CRVNA 2019-3
CRVNA 2019-4 CRVNA 2020-N1 CRVNA 2020-P1 CRVNA 2019-4 CRVNA 2020-N1 CRVNA 2020-P1

KBRA Process
KBRA analyzed the transaction using the Auto Loan ABS Global Rating Methodology and Global Structured Finance
Counterparty Methodology. KBRA’s auto loan methodology incorporates an analysis of: (1) the underlying collateral
pool, (2) the originator’s historical static pool data, segmented by characteristics including credit quality and product
type, (3) the proposed capital structure for the transaction, (4) KBRA’s operational assessment of the originator and
servicer and (5) the legal structure, transaction documents, and legal opinions.

In applying the methodologies, KBRA analyzed Carvana’s static pool data, the underlying collateral pool and static pool
loss data for comparable automobile finance companies using stressed cash flow assumptions. KBRA considered its
operational review of Carvana, which was conducted at its Tempe, AZ headquarters in February 2019, as well several
updates with the Company since that time. Operative agreements and legal opinions will be reviewed prior to closing.

Originator and Servicer Review

The following overview is based on information provided by Carvana.

In 2012, DriveTime Automotive Group Inc. (“DriveTime”) launched Carvana LLC (“Carvana”), a concept that developed
into a leading eCommerce platform for buying used cars. Carvana’s website (www.Carvana.com) offers a used car
buying experience that enables customers to purchase used vehicles online through an efficient and transparent process.
The Company can sell and finance a car online in as little as 10 minutes. Carvana's target customer demographic is not
specific to credit and is geared to attract a broader credit spectrum and income classification than that of DriveTime.
Initially launched in Georgia, Carvana has expanded nationally and is now operating in 298 markets. Carvana’s business
and operations fully integrate all steps of the vehicle purchase process, including:

(i) Vehicle Search: Cars are inspected, reconditioned and photographed at one of Carvana’s 12 inspections centers.
Carvana’s high quality website offers transparency and simple filtering capabilities for customers to find vehicles
that meet their specifications.
(ii) Vehicle Tour and Detail: High resolution photos allow customers to inspect vehicles. Vehicle tours highlight the
vehicle features and any imperfections.
(iii) Credit scoring: CarvanaScore was built on Experian and TransUnion credit data and alternative data from
LexisNexis and validated on Carvana originated loans. CarvanaScore is used in underwriting and deal structuring.
Carvana also utilizes their Deal Score and FraudScore in its origination process. Deal Score combines a customer’s
CarvanaScore with deal-specific attributes, such as down payment and monthly payment amounts, to further
enhance their predictive loan performance. The proprietary FraudScore combines credit data, alternative data,
and other proprietary data to score orders based on the risk of fraud.
(iv) Customer financing: Carvana.com has interactive dials that allow fast and transparent payment options based
on APR, down payment, monthly payment and term. APR is set to competitive market rates. Customers have the
ability to trade in their vehicle during the purchase process.
(v) E-Contracting: All contracts are completed electronically through E-Original and DocuSign. These companies
capture legally binding electronic signatures and store the electronic contract.
(vi) Verification of customer data: Carvana’s underwriting process includes verification of identification, income,
down payment as well as authentication metrics to minimize fraud risk.
(vii) Electronic down payment: Down payments are made electronically through ACH payments, cashier’s checks or wire.
(viii) Vehicle delivery: Vehicles can either be picked up at a Carvana “vending machine” or delivered to the customer’s
home. The customer has the option to return the vehicle within seven days of delivery for a full refund of all
amounts paid. Each of the loans in the pool have passed this seven day mark.

Carvana Auto Receivables Trust 2021-P2 11 June 24, 2021

Carvana’s physical operations include the following:

▪ Inspection and reconditioning centers: The Company operates “regions” that are centered around inspection
centers (e.g. Atlanta or Blue Mound, TX).
▪ Hubs: Within a region, the Company operates markets (e.g. Atlanta, Charlotte or Dallas).
▪ Vending Machines/Delivery: Vehicles are delivered through Carvana Vending Machines or delivered directly to
the customer. Carvana allows their customers to pick up their vehicle using a confirmation code generated during
the sales process.

Carvana’s value proposition is based on performing the following functions:

▪ Acquire, inspect, recondition, and photograph pre-owned cars: Inventory sourced through auctions and
customer trade-ins is available on-line and photographed in high quality rotating images.
▪ Merchandise, sell, and finance car buying 100% online: Entire process can be completed in as little as 10 minutes.
▪ Cost savings/car vs. dealerships: Cost savings are achieved by having the lower cost infrastructures compared
to other competitors operating physical dealerships. They use this advantage to drive market share and improve
customer satisfaction which translates into better loan fundamentals. Carvana sells vehicles at lower prices which
translates to lower PTIs and better affordability for customers as well as lower LTVs which result in higher recoveries.

Management & Ownership

Ernie Garcia III – President, Chief Executive Officer & Chairman
Mr. Garcia co-founded Carvana and has been the Company’s President, CEO and Chairman since 2012. Mr. Garcia held
various positions at DriveTime including Treasurer, financial strategist, managing director of corporate finance, and
Director of Quantitative Analytics. He was responsible for DriveTime’s ongoing development of consumer credit scoring
models and the utilization of these models to help make vehicle sales decisions, assist with deal structuring and optimize
vehicle price. Mr. Garcia was also an associate at RBS Greenwich Capital in the Principal Transactions Group. He holds
a B.S. in Management Science and Engineering from Stanford University.

Ben Huston – Chief Operating Officer

Mr. Huston co-founded Carvana and has been the Company’s COO since 2012. Prior to Carvana, Mr. Huston co-founded
Looterang, a card-linking platform that enabled personalized deals to be automatically administered through consumer
credit or debit cards. He served as CEO of Looterang from 2011 to 2012. Prior to that time, he was an attorney at
Latham and Watkins from 2008 to 2011. Mr. Huston holds a J.D. from Harvard Law School and a B.A. in American
Studies from Stanford University.

Ryan Keeton – Chief Brand Officer

Mr. Keeton co-founded Carvana and has been the Company’s Chief Brand Officer since 2012. Prior to Carvana, Mr.
Keeton was a principal at the Montero Group, a strategic consultancy firm, from 2010 to 2012. Prior, he was the Director
of Strategic Marketing of George P. Johnson, a global marketing agency, from 2008 to 2010. Mr. Keeton holds a B.A. in
English and American Literature and Language from Harvard University.

Mark Jenkins – Chief Financial Officer

Mr. Jenkins has been the Company’s CFO since 2014. Prior to Carvana, Mr. Jenkins was a finance professor at The
Wharton School of Business at the University of Pennsylvania, focusing on consumer and corporate credit markets from
2009 to 2014. Mr. Jenkins also worked at The Brattle Group, an economic consulting firm, from 2001 to 2004. Mr.
Jenkins received a Ph.D. in economics from Stanford University and a B.S.E from Duke University in Mathematics and
Civil Engineering.

Dan Gill – Chief Product Officer

Mr. Gill has been the Company’s Chief Product Officer since 2015. He oversees all technology functions as well as
strategic partnerships for the business. Mr. Gill has served as Head of Strategy and Business Development for Inflection
from 2014 to 2015. He also co-founded and served as CEO of Huddler from 2007 until its acquisition by Wikia in 2014.
Mr. Gill holds a degree in Biology from Stanford University.

Paul Breaux – Vice President, General Counsel & Secretary

Mr. Breaux has served as Carvana’s General Counsel since 2015. Before this position, Mr. Breaux was an attorney at
Andrews Kurth Kenyon LLP from 2008 to 2015. He holds a J.D. from Harvard Law School as well as a B.A. in Plan II
Honors and a B.B.A. in Finance from The University of Texas at Austin.

Carvana Auto Receivables Trust 2021-P2 12 June 24, 2021

Board of Directors
In addition to a strong management team, Carvana’s Board of Directors includes Carvana’s CEO Ernie Garcia III as well
as the following members:

Michael Maroone – Director

Mr. Maroone has served on the board of AutoNation, Inc., an automotive retailer, from 2005 to 2015. He was
AutoNation’s President and COO from 1999 until his retirement in 2015. Before AutoNation, Mr. Maroone was President
and CEO of Maroone Automotive Group from 1977 to 1997. He also serves on the board of Cox Automotive, Inc., a
privately held combination of global automotive wholesale and servicer businesses. He is the Co-Chairman of the Florida
Leadership Board of the Cleveland Clinic. Mr. Maroone holds a B.S. degree in Small Business Management from the
University of Colorado Boulder.

Ira Platt – Director

Mr. Platt has been the President of Georgiana Ventures, LLC, a firm that provides equity and debt capital to specialty
finance companies, since 2009. From 2009 to 2013, Mr. Platt served as the President of 221 Capital Partners, LLC. In
addition, Mr. Platt was a Managing Director and Head of the Principal & Distressed Capital Business for RBS Greenwich
Capital from 1997 to 2009. He earned a B.A. degree from Emory University and an M.B.A from The Fuqua School of
Business at Duke University.

Dan Quayle – Director

Mr. Quayle has served the United States Federal Government in various capacities, including as the 44th Vice President
of the United States of America from 1989 to 1993. Since 1999, Mr. Quayle has been the Chairman of Cerberus Global
Investments, LLC, a private investment firm. Mr. Quayle earned a B.A. degree in Political Science from DePauw
University and a J.D. from the Indiana University Robert H. McKinney School of Law.

Greg Sullivan – Director

Mr. Sullivan is the CEO of AFAR Media, a travel media company he co-founded in 2007. From 1995 to 2007, Mr. Sullivan
served DriveTime in various capacities, including as President from 1995 to 2004, CEO from 1999 to 2004, and Vice
Chairman from 2004 to 2007. He earned a B.B.A. degree in Finance from the University of Notre Dame and a J.D. from
the University of Virginia School of Law.

Neha Parikh – Director

Ms. Parikh is the President of Hotwire, a travel website that offers various vacation packages and is a member of the
Expedia Group. She has served in the position since August 2017. Ms. Parikh holds a bachelors of business degree from
the University of Texas at Austin and an MBA from Northwestern University’s Kellogg School of Management.

Financial Condition & Liquidity

Carvana is a relatively new company that has been selling used vehicles and originating automobile loans since 2012.
Carvana benefits from the expertise and infrastructure of DriveTime through a shared services agreement. Total revenue
has increased about 42% for full year (“FY”) 2020 from FY 2019. Approximately $4.7 billion of revenue is attributable
to the sales of used vehicles, while the rest are from wholesale and other sales. For FY 2020, the Company recorded a
gross profit of $793.8 million and a net loss of $462.2 million. This loss is due to costs related to expansion into new
markets, funding construction of vending machines and enhancements in technology and software development efforts.
Below is a summary of the Company’s income statement over the past three years.

The Company’s cash has increased from $301 million to $370 million from 12/31/2020 to 3/31/2021. Vehicle inventory
has also increased from $1.0 billion to $1.4 billion.

Carvana currently has multiple sources of liquidity including $1.7 billion of senior unsecured notes, the ability to issue
common stock, and multiple revolving credit facilities with certain lenders that have an aggregate commitment of $1.5
billion. Ally Bank and Ally Financial currently provide Carvana with (i) a $4.0 billion forward flow commitment and (ii) a
$1.25 billion floorplan facility for the purchase of vehicles.

Carvana Auto Receivables Trust 2021-P2 13 June 24, 2021

 Balance Sheet (in millions) 3/31/2021 12/31/2020

Assets
Cash and cash equivalents 370 301
Restricted cash 45 28
Accounts Receivable, net 118 79
Finance Reivables held for sale, net 384 275
Vehicle Inventory 1,439 1,036
Beneficial Interests in Securitizations 177 131
Other Current Assets 95 73
Total Current Assets 2,628 1,923
PP&E, net 982 909
Operating Lease Right-Of-Use Assets 156 156
Intangible Assets, net 5 6
Goodwill 9 9
Other Asses 39 32
Total Assets 3,819 3,035
Liabilities & Stockholders' Equity
Accounts Payable & Accrued Liabilites 484 342
Short-term revolving facilities 122 40
Current portion of long-term debt 69 65
Other Current Liabilities 21 20
Total Current Liabilities 696 467
Long-term Debt 2,254 1,617
Operating Lease Liabilities 147 148
Other Liabilities 1 1
Total Liabilities 3,098 2,233
Total Stockholder's Equity 721 802
Total Liabilities & Stockholders' Equity 3,819 3,035

Three Months Ended March 31,

Income Statement (in millions) 2021 2020

Revenues
Used Vehicle Sales, net 1,800 964
Wholesale Vehicle Sales 240 80
Other Revenues 205 54
Total Revenues 2,245 1,098
Cost of Sales 1,907 960
Gross Profit 338 138
Selling, General & Admin. Expenses 397 276
Interest Expense 30 29
Other Expense (7) 17
Net Loss before Tax (82) (184)
Income Tax Provision - -
Net Loss (82) (184)

Relationship with DriveTime

In 2013, Carvana launched their first market in Atlanta and was a wholly-owned subsidiary of DriveTime Automotive
Group (“DTAG”). On November 1, 2014, DTAG distributed its membership interests in Carvana to DriveTime’s
shareholders (Mr. Garcia II 97.86%; Mr. Fidel 2.14%) and Carvana became a sister company to DTAG and DriveTime
Acceptance Corp (“DTAC”) and started operating independently at the time.

▪ Shared Services Agreement: In November 2014, Carvana and DriveTime entered into a shared services
agreement where DriveTime provides certain information technology and telecommunications services to facilitate
the transition of these services to the Company on a standalone basis (the “Shared Services Agreement”). Carvana’s
reliance on DriveTime under the shared services agreements has lessened since the Company first began operations.
▪ Ancillary Products: In December 2016, the Company entered into a master dealer agreement with DriveTime’s
affiliate SilverRock Automotive (the "Master Dealer Agreement"), pursuant to which the Company may sell vehicle
service contracts ("VSCs") and GAP waiver coverage to customers purchasing a vehicle from the Company.
▪ Carvana sells and receives a commission on VSCs under a master dealer agreement with DriveTime.
DriveTime administers and is the obligor under the VSC. The Company recognizes commission revenue at
the time of sale, net of a reserve for estimated contract cancellations.
▪ In November 2018, the Company amended the Master Dealer Agreement to allow Carvana to receive
payments for excess reserves based on VSC performance.
▪ Lease Agreement: The Company and DriveTime (and a DriveTime affiliate) entered several lease agreements,
that govern the Company’s utilization of temporary storage, reconditioning, offices and parking space at various
DriveTime inspection and reconditioning centers ("IRCs") and retail facilities. Lease duration varies by location, with
initial terms expiring between 2021 and 2024. The Company has the ability to renew at up to 10 of the locations
and most recently amended the lease agreements in December 2018. Under the DriveTime Lease Agreements, the
Company pays a monthly rental fee related to its pro rata utilization of space at each facility plus a pro rata share
of each facility’s actual insurance costs and real estate taxes.
Carvana Auto Receivables Trust 2021-P2 14 June 24, 2021
Originations
Carvana’s credit application volume consists exclusively of customers seeking financing for the purchase of a vehicle
from Carvana’s website. Approximately 80% of Carvana’s retail unit sales are directly financed by Carvana. The other
20% of customers purchase the vehicle with cash or self-arranged third-party financing.

At any time during the shopping experience, customers may submit a pre-qualification application in order
to receive conditionally approved financing offers on all vehicles in available inventory. The application
captures basic customer identity, contact, and income information which enables the Company to obtain data about the customer
from credit data partners such as, Experian and LexisNexis. Within seconds of application submission, data partners provide
Carvana with “off-the-shelf” scores, such as FICO, as well as the raw credit data needed to calculate the proprietary
CarvanaScore credit risk model. The Company’s technology quickly iterates through each vehicle in inventory to calculate
personalized financing offers for the customer based on customer-specific attributes, such as CarvanaScore, income, and state
of residence, as well as vehicle-specific attributes, such as price, mileage, and model year.

After selecting a vehicle, customers begin a series of steps on Carvana’s website. During the Purchase Process, the customer will:

▪ Review and select ancillary product options, including VSCs and GAP Waiver.
▪ Decide whether to add a trade-in to the purchase.
▪ Upload images of his or her driver’s license.
▪ Provide bank account information for making the down payment and, if desired, enroll in auto-pay for the loan.
▪ Schedule the date, time, and location of the delivery of the purchased vehicle, including whether the vehicle is to
be picked-up at one of the Vending Machine locations or delivered to the customer’s home.

The Purchase Process culminates in the customer confirming his or her order and financing application.

Order confirmation triggers the generation of electronic contracts, that the customer can sign immediately and must
sign in advance of delivery, and also marks the beginning of Carvana’s Verification Process.

The charts below illustrate Carvana’s total originations of both prime and near-prime collateral since 2014. Total
originations in 2020 increased to $3.6 billion, up 36.7% from the prior year.

Total Originations
$4,000,000,000

$3,500,000,000

$3,000,000,000

$2,500,000,000

$2,000,000,000

$1,500,000,000

$1,000,000,000

$500,000,000

$0
2014 2015 2016 2017 2018 2019 2020 2021 Q1

The chart below shows originations segmented by Deal Score with higher Deal Score indicating higher credit quality. In
2020 Carvana increased the percent of originations with higher quality deal scores (60-100) and decreased the proportion
of lower quality deal scores (20-59).

Origination Mix (Deal Score)

30%

25%

20%

15%

10%

5%

0%
2014 2015 2016 2017 2018 2019 2020 2021 Q1

0-19 20-39 40-59 60-79 80-100

Carvana Auto Receivables Trust 2021-P2 15 June 24, 2021

Underwriting & Risk Management
Carvana has developed multiple proprietary risk models to support various aspects of their vertically integrated business.
The Company uses market based pricing methods described below and deal structuring algorithms along with external
data sources to underwrite loans and drive loan performance.

▪ CarvanaScore: CarvanaScore, currently in its fifth generation, was built from Experian and TransUnion credit data,
and alternative data from LexisNexis. CarvanaScore was developed and validated exclusively on Carvana loans.
CarvanaScore is used for setting minimum down payments and other deal constraints, and to determine pricing on
each loan.
▪ Deal Score: Deal Score combines a customer’s CarvanaScore with deal-specific attributes, such as down payment
and monthly payment amounts, to further enhance their predictive loan performance. The Deal Scores range from
0 to 100, with higher numbers predicting lower risk. Deal Score has been developed exclusively on Carvana loan
performance data. The Company is currently utilizing the third generation model which incorporates third-party
credit scores, deal structure characteristics, and financed vehicle attributes to determine an appropriate Deal Score
assignment for each loan. KBRA developed its loss assumptions based on Deal Score.
▪ FraudScore: The proprietary FraudScore combines credit data, alternative data, and other proprietary data to score
orders based on the risk of fraud. FraudScore highlights orders for additional review and diligence by specially-
trained members of the verifications team.

All proprietary risk models are regularly monitored and tested. They are updated from time to time to adjust for new
performance data, changes in customer and economic trends, and additional sources of third-party data.

Verifications
Carvana has established a centralized verifications process in which every order placed is verified by a team of
specialized employees at the Company’s headquarters in Tempe, Arizona. All orders must successfully pass verification
of identity, income, employment, insurance, and residency prior to delivery of the vehicle and origination of the loan.

Carvana verifies identity by checking a driver’s license against the DMV to ensure it is active and not suspended. The
verification process utilizes both manual and technology-enabled processes. Certain customers with lower perceived
credit risk may be eligible to pass income and employment verification based on information available from data partners
while other customers may be asked to provide paystubs, bank statements, or other information for manual verification.

The final piece of the Carvana purchase process is to validate that the customer has funds available to make the
minimum down payment. Available funds are verified based on the applicant’s credit and size of the down payment.

For all financing requests, Carvana runs an identity questionnaire from Experian for identity authentication and fraud
prevention. Interactive challenge-response questionnaires are used to authenticate the applicant’s identity. The
questionnaire complies with both the Gramm-Leach-Bliley Act and the Fair Credit Reporting Act and is used for non-
face-to-face transactions, such as internet and call center applications. Additionally, each application is designated a
FraudScore which is used to identify potential fraud.

Carvana Auto Receivables Trust 2021-P2 16 June 24, 2021

Inspection Centers
Carvana is currently utilizing 12 inspection centers. Each inspection center inspects, reconditions and photographs each
vehicle. The inspection centers have total potential production output over 615,000 vehicles annually.

Cars are photographed in a state of the art photo booth that has a 360 degree high-resolution camera. The Company’s
proprietary annotation software allows the Company to showcase the cars’ best features, as well as every imperfection. Each
vehicle goes through a 150-point inspection to ensure the quality and safety of each vehicle. Carvana does not sell cars that
have been in a reported accident, have frame or structural damage, or possess any sign of collision or metal work.

Vending Machines/Delivery
Customers have the choice to pick-up vehicles from any of the 28 Vending Machine
locations. Vending machines, which are multi-story glass towers that store purchased
vehicles, provide an attractive and unique experience for customers and develop brand
awareness while lowering vehicle fulfillment expenses. In its 298 markets, Carvana delivers
vehicles with a Carvana-uniformed employee in a branded, custom single-car hauler.
During the delivery, additional images of the customer’s driver’s license and proof of
insurance are captured and reviewed by a Carvana employee. The customer and delivery
advocate complete any outstanding paperwork, including execution of a title application
and other documents needed to perfect Carvana’s security interest in the vehicle, which
are then sent to Carvana’s headquarters for processing. If the customer has decided to
keep the vehicle, a team of Carvana employees initiate the title and registration process.
Details and documents pertaining to the loan are sent to the servicer for onboarding.

Servicing
Carvana loans are serviced by Bridgecrest, an affiliate of DriveTime, which services a $10.0
billion portfolio consisting of loans originated by Carvana and DriveTime. Bridgecrest
services Carvana and DriveTime loans on behalf of Ally Financial, Ally Bank, and a number other public and private
securitization trusts and financing facilities. Bridgecrest has a dedicated team of employees devoted to servicing Carvana
accounts. Redundant call center facilities are located in Mesa, AZ and Dallas, TX. Bridgecrest is equipped for unique
needs of Carvana’s customer base, with integration into Carvana’s smartphone app, a Bridgecrest online account
services portal, and ability for agents to engage with customers via text message.

The servicer maintains a website where obligors can access current and historical information about their accounts.
Payments may be made by check mailed to a third party lockbox, by “Paymentus” a comprehensive payment system
for processing credit or debit card transactions through the Bridgecrest.com portal, by a recurring or onetime ACH
payment processed by Wells Fargo, or by “CheckFree” or “Moneygram” services offered at many retailers allowing
obligors to make payments for a nominal fee.

Servicing Policies
Extensions may be granted to a current or delinquent borrower to cure a short-term cash flow
problem. Key components of the extension guidelines generally include:

▪ Accounts > 45 days past due with a qualifying hardship and adequate recent payment history
Extension Policy
are eligible
▪ Cannot extend final payment more than 6 months past the original final payment date
▪ Maximum of 6 months of extensions during the life of the loan
▪ Maximum of 3 months of extensions within a 12-month period
The servicing policy generally requires that a receivable be charged-off at the earlier of:
Charge-off Policy
▪ The liquidation date of the vehicle; or
▪ The receivable is more than 120 days past due at the end of a month
The servicer may make modifications that are ministerial in nature. Due date changes are
permitted so long as:
Due Date Changes
▪ The due date is not extended beyond 28 days from the existing due date; and
▪ No more than two due date extensions are granted over the life of the loan

Carvana Auto Receivables Trust 2021-P2 17 June 24, 2021

Bridgecrest also handles repossession and liquidation of vehicles. Accounts for which the servicer has made a
determination to repossess the vehicle may be referred to an outside repossession company or to a national provider.
Typically, once the vehicle is repossessed, a letter is sent to the obligor to inform them of the repossession, an affidavit
of repossession is produced, and title is obtained. The majority of repossessed vehicles are sold at Manheim and Adesa
auctions. During 2020, Bridgecrest started to leverage CarvanaACCESS, Carvana’s new wholesale auction platform, to
liquidate a significant portion of repossessed vehicles. Carvana has worked closely with Bridgecrest to optimize recovery
strategies for Carvana’s full credit spectrum book of business. Recovery timing continues to improve as evidenced in
the graph below, which shows historical recovery rates on defaulted loans with Deal Scores ranging from 50 to 100.

Historic Recoveries
70.00%

60.00%
Recovery Rate Net Liq.Exp.

50.00%

40.00%

30.00%

20.00%

10.00%

0.00%
0 6 12 18 24 30 36 42 48 54 60 66
Months Since Chargeoff

2015 2016 2017 2018 2019 2020

Backup Servicer
The transaction includes Vervent Inc. (“Vervent”) as a backup servicer. Pursuant to the Servicing Agreement, Vervent
will receive monthly pool data and confirm certain data on the monthly servicer reports. In the event of a servicer
termination event, Vervent would become the successor servicer; however, Vervent, may, if it is unwilling to act, or
will, if it is legally unable to act as successor servicer, appoint, or, at the expense of the Issuer, petition a court of
competent jurisdiction to appoint, an eligible servicer as the successor to the terminated Servicer under the Servicing
Agreement. Vervent will not be relieved of its duties as successor servicer until a newly appointed servicer shall have
assumed the obligations and duties of the terminated Servicer under the Servicing Agreement. KBRA views the inclusion
of Vervent as backup servicer as a positive element to this transaction.

Vervent is a Delaware limited liability company, with locations in San Diego, California and Tijuana, Mexico. The company
has been in business for 30 years. Vervent began servicing auto loans 8 years ago. Its backup servicing, primary
servicing, customer service and collections teams are staffed by dedicated personnel located primarily in its two main
locations. In July 2019, First Associates closed an investment with Stonepoint Capital. As a result, Portfolio Financial
Servicing Company (“PFSC”), an existing Stonepoint Capital portfolio company, combined their operations with those of
First Associates. In October 2019, the combination of First Associates and PFSC was rebranded as Vervent Inc.

Historical Performance
The chart below shows the cumulative net loss since origination of receivables originated by Carvana with a Deal Score
between 50 to 100 from 2015 through 2020. The three older vintages have lower loss levels at earlier points in time
when compared to new vintages; however, the older vintages also have much lower origination sizes. As the origination
sizes grew, the cumulative net loss has stabilized.

Carvana Auto Receivables Trust 2021-P2 18 June 24, 2021

 Cumulative Net Loss
1.80%
1.60%
1.40%
1.20%
1.00%
0.80%
0.60%
0.40%
0.20%
0.00%
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59 61 63 65

2015 2016 2017 2018 2019 2020

Collateral Analysis
The collateral in the CRVNA 2021-P2 transaction includes 35,797 loans with an aggregate outstanding balance of $775 million
as of the June 3, 2021 cutoff date. The weighted average FICO score is 706 and the weighted average Deal Score is 75.

Stratification by FICO
Number of Current Balance % of Current W.A. Original W.A. Remaining
FICO W.A. APR W.A. FICO W.A. LTV W.A. PTI W.A. Deal Score
Loans ('000s) Balance Term Term
No FICO 387 5,246 0.68% 17.39% 69 67 0 74.70% 10.75% 58
551 to 600 992 19,886 2.57% 14.30% 71 70 596 92.54% 9.37% 62
601 to 650 8,145 174,107 22.47% 11.42% 71 70 628 93.89% 9.29% 65
651 to 700 9,404 207,645 26.79% 8.29% 71 70 674 92.79% 8.88% 71
701 to 750 7,163 157,357 20.30% 6.55% 71 70 724 88.84% 8.23% 78
751 to 800 5,330 116,957 15.09% 5.37% 70 69 775 83.99% 7.38% 83
801 or greater 4,376 93,801 12.10% 4.59% 68 67 828 78.59% 6.60% 88
Total: 35,797 775,000 100.00% 7.97% 71 69 706 89.06% 8.37% 75

Approximately 93% of the pool consists of loans with a remaining term over 60 months. The collateral pool is
approximately 1 month seasoned.

Stratification by Remaining Term

Number of Current Balance % of Current W.A. Original W.A. Remaining
Remaining Term W.A. APR W.A. FICO W.A. LTV W.A. PTI W.A. Deal Score
Loans ('000s) Balance Term Term
0 to 12 50 312 0.04% 5.37% 22 11 749 48.89% 8.85% 90
13 to 24 154 1,325 0.17% 5.47% 30 22 764 56.08% 8.13% 87
25 to 36 495 6,010 0.78% 5.46% 39 34 774 60.90% 6.58% 88
37 to 48 822 12,195 1.57% 5.85% 49 46 761 69.66% 6.69% 85
49 to 60 1,685 31,336 4.04% 6.16% 60 58 755 76.18% 6.57% 84
61 to 72 29,337 641,194 82.73% 8.22% 71 70 701 90.73% 8.51% 74
greater than 72 3,254 82,628 10.66% 7.23% 75 74 713 86.56% 8.27% 77
Total: 35,797 775,000 100.00% 7.97% 71 69 706 89.06% 8.37% 75

The three largest state concentrations in the pool are California (9.1%), Texas (9.0%), and Florida (7.1%).

Carvana Auto Receivables Trust 2021-P2 19 June 24, 2021

 Stratification by State
Number of Current Balance % of Current W.A. Original W.A. Remaining
Borrower State W.A. APR W.A. FICO W.A. LTV W.A. PTI W.A. Deal Score
Loans ('000s) Balance Term Term
CA 3,078 70,254 9.07% 7.60% 71 69 706 89.20% 8.08% 74
TX 3,148 69,488 8.97% 8.44% 71 69 703 89.12% 8.50% 75
FL 2,489 54,855 7.08% 8.47% 71 70 704 87.95% 8.65% 75
GA 2,304 49,253 6.36% 8.40% 71 69 709 89.59% 8.64% 75
AZ 2,064 46,328 5.98% 6.96% 71 70 709 88.65% 8.43% 77
NC 1,718 36,412 4.70% 7.96% 71 69 713 88.52% 8.44% 76
PA 1,524 32,441 4.19% 7.59% 71 70 700 89.76% 8.49% 74
NY 1,359 28,901 3.73% 7.30% 70 69 708 86.48% 7.73% 72
OH 1,291 27,553 3.56% 7.90% 71 69 713 88.98% 8.50% 76
TN 1,297 27,507 3.55% 8.52% 70 69 708 88.56% 8.80% 76
IL 1,221 26,098 3.37% 8.05% 70 69 706 88.34% 8.25% 74
VA 1,138 25,196 3.25% 7.67% 71 70 708 89.11% 7.73% 77
NJ 1,128 24,904 3.21% 7.91% 71 69 706 87.11% 7.70% 76
MI 1,004 20,669 2.67% 7.88% 70 69 703 91.19% 8.77% 73
CO 894 19,297 2.49% 7.88% 71 69 709 89.89% 8.08% 75
SC 880 18,344 2.37% 8.23% 71 69 709 86.59% 8.34% 76
IN 786 16,562 2.14% 8.65% 70 69 710 90.39% 8.77% 74
MO 785 16,082 2.08% 7.69% 70 69 712 90.10% 8.02% 76
MD 659 14,413 1.86% 8.21% 71 70 701 92.54% 7.77% 74
AL 642 13,469 1.74% 8.94% 70 69 701 88.44% 8.75% 73
Other 6,388 136,972 1.77% 7.91% 71 69 702 89.77% 8.44% 74
Total: 35,797 775,000 84.09% 7.97% 71 69 706 89.06% 8.37% 75

Approximately 46% of the pool consists of borrowers with a current loan balance between $15,000 to $25,000. The
average loan balance is roughly $21,650.

Stratification by Current Loan Balance

Number of Current Balance % of Current W.A. Original W.A. Remaining
Current Loan Balance W.A. APR W.A. FICO W.A. LTV W.A. PTI W.A. Deal Score
Loans ('000s) Balance Term Term
5,000 or less 189 763 0.10% 6.16% 54 43 732 31.53% 3.74% 89
5,000.01 to 10,000 1,477 12,001 1.55% 7.68% 62 59 728 54.05% 5.46% 83
10,000.01 to 15,000.00 5,700 73,693 9.51% 8.90% 68 66 707 85.21% 7.56% 75
15,000.01 to 20,000.00 9,921 174,047 22.46% 8.72% 70 69 700 92.09% 8.36% 73
20,000.01 to 25,000.00 8,103 181,056 23.36% 8.18% 71 70 702 91.28% 8.63% 74
25,000.01 to 30,000.00 4,945 134,967 17.42% 7.68% 71 70 705 90.01% 8.56% 75
30,000.01 or greater 5,462 198,473 25.61% 7.00% 72 71 713 87.49% 8.49% 76
Total: 35,797 775,000 100.00% 7.97% 71 69 706 89.06% 8.37% 75

Loans with a Deal Score between 80 to 89 and 70 to 79 make up the two largest subgroup. Higher Deal Scores generally
have higher FICO, lower LTV, lower PTI and lower APR.

Stratification by Deal Score

Number of Current Balance % of Current W.A. Original W.A. Remaining
Deal Score W.A. APR W.A. FICO W.A. LTV W.A. PTI W.A. Deal Score
Loans ('000s) Balance Term Term
50 to 59 7,050 147,406 19.02% 11.91% 71 70 655 97.60% 10.58% 55
60 to 69 6,046 130,562 16.85% 9.90% 71 70 667 95.38% 9.87% 65
70 to 79 8,065 183,757 23.71% 7.66% 71 70 692 92.36% 8.78% 75
80 to 89 8,613 201,745 26.03% 5.83% 71 69 739 87.03% 7.17% 84
90 to 100 6,023 111,530 14.39% 4.87% 68 67 781 68.61% 5.15% 94
Total: 35,797 775,000 100.00% 7.97% 71 69 706 89.06% 8.37% 75

Carvana Auto Receivables Trust 2021-P2 20 June 24, 2021

KBRA Comparative Analytic Tool (“KCAT”)
The chart below compares the pool characteristics and transaction structure of the CRVNA 2021-P2 deal against recent
transactions completed by Carmax and Ally.

Deal Name Carvana Auto Receviables Trust 2021-P2 CarMax Auto Owner Trust 2021-1 Ally Auto Receivables Trust 2019-4
Transaction Date 6/24/2021* 1/20/2021 12/11/2019
Collateral Stratification
Pool Balance (as of cutoff date) $775,000,002 $1,505,270,561 $1,050,522,784
Avg Loan Balance $21,650 $16,746 $15,830
Wtd Avg Coupon 7.97% 8.25% 6.63%
Wtd Avg FICO 706 711 741
Wtd Avg Loan-To-Value 89.06% 92.22% 94.28%
Wtd Avg Original Term (mths) 71 67 67
Wtd Avg Remaining Term (mths) 69 62 53
Wtd Avg Seasoning (mths) 1 5 14
% New Vehicles 0.00% 0.26% 70.00%
% Used Vehicles 100.00% 99.74% 30.00%
FICO Distribution
No FICO 0.68% 1.26% 12.00%
500 and lower 0.00% -- 0.00%
501-550 0.00% -- 0.00%
551-600 2.57% 600 and lower: 5.59% 0.00%
601-650 22.47% 20.80% 0.00%
651-700 26.79% 22.07% 27.70%
701-750 20.30% 18.75% 24.64%
751 and higher 27.19% 31.53% 35.65%
Geographic Concentration
State 1 CA: 9.07% CA: 17.63% TX: 13.51%
State 2 TX: 8.97% TX: 10.59% CA: 9.50%
State 3 FL: 7.08% FL: 8.23% FL: 8.31%
Note Balance
K1+ Class $112,000,000 $255,000,000 $252,000,000
AAA Class $591,700,000 $1,150,950,000 $739,690,000
AA+ Class $25,580,000 $45,100,000 $22,060,000
AA Class -- -- $18,380,000
AA- Class -- -- $13,660,000
A+ Class $29,060,000 $28,600,000 --
BBB+ Class $16,660,000 $20,350,000 --
BB+ Class** $27,430,000 -- --
Total $802,430,000 $1,500,000,000 $1,045,790,000
% Credit Enhancement
Initial O/C 0.00% 0.35% 0.45%
Target O/C 1.40%*** 0.35% 1.30%
Reserve Account 0.50% 0.50% 0.25%
Total Initial Credit Enhancement
K1+ Class 9.70% 7.10% 6.70%
AAA Class 9.70% 7.10% 6.70%
AA+ Class 6.40% 4.10% 3.75%
AA Class -- -- 2.00%
AA- Class -- -- 0.70%
A+ Class 2.65% 2.20% --
BBB+ Class 0.50% 0.85% --
BB+ Class** 0.05% -- --
KBRA Base Case Cumulative Net Loss Expectation
KBRA Base Case Loss Range 1.05% - 3.05% Not Rated by KBRA Not Rated by KBRA
Source: KBRA, transaction documents.
*C ollateral stratification is based on June 3, 2021 data.
**The C lass N is not supported by each respective collateral pool but receives payments through excess spread.
***% of Original Balance

To download the KCAT please click here.

Carvana Auto Receivables Trust 2021-P2 21 June 24, 2021

KBRA Loss Expectation
KBRA reviewed static pool gross and net loss data, aggregated into quarterly vintages and segmented by Deal Scores
(10-point increments). Since these vintages did not provide the full amortization or loss profile of the loans, KBRA
analyzed publicly available static pool loss data for comparable auto loan originators. This proxy data was used to help
complete, derive, and validate the base case loss assumptions for each segmentation as per KBRA’s Auto Loan ABS
Global Rating Methodology.

The table below summarizes the characteristics of the loan pool broken out by Deal Score along with KBRA’s base case
expected gross loss percentage for each subgroup. KBRA’s weighted average base case cumulative gross loss range is
2.70%-4.70% with a mid-point of approximately 3.70% based on loans included as of the June 3, 2021 cutoff date.
Using a 45% recovery rate, KBRA’s base case CNL range is 1.05%-3.05% with a mid-point of approximately 2.05%.

KBRA Indicative CGL

Tier KBRA Base Case Current Balance ($'000)* % of Pool
Deal Score 50-59 8.00% $147,406 19.02%
Deal Score 60-69 5.00% $130,562 16.85%
Deal Score 70-79 3.00% $183,757 23.71%
Deal Score 80-89 2.00% $201,745 26.03%
Deal Score 90-100 0.75% $111,530 14.39%
Total 3.70% $775,000 100.00%
*As of 6/3/2021

Cash Flow Modeling

KBRA performed cash flow modeling on the CRVNA 2021-P2 transaction to determine whether the proposed
enhancement levels are sufficient to support the ratings for each class under KBRA’s stressed cash flow scenarios. Under
the assumptions described in this section, the breakeven gross and net loss rates are shown in the table below:

Base Case CNL 2.05%

Recovery Rate 45.00%
Recovery Lag 3 months
Voluntary ABS Prepayment Speed 1.00%

Cash Flow Modeling Results

Class Breakeven CGL Breakeven CNL Breakeven CNL Multiple

Class A 34.46% 18.96% 9.25x

Class B 29.22% 16.07% 7.84x
Class C 22.92% 12.60% 6.15x
Class D 17.99% 9.90% 4.83x
Class N 15.09% 8.30% 4.05x

The CRVNA 2021-P2 transaction is able to withstand a 9.25x multiple for the Class A notes, a 7.84x multiple for the
Class B notes, a 6.15multiple for the Class C notes, a 4.83x multiple for the Class D notes, and a 4.05x multiple for the
Class N notes based upon the base case loss timing curve.

Rating Sensitivity Analysis

The ratings assigned to CRVNA 2021-P2 will be monitored through the life of the transaction. If performance of the
transaction, including losses, differs meaningfully from the expected levels, KBRA may consider making a rating change.

The table below illustrates the potential for downgrade of each rated class if the expected cumulative net loss levels exceed
initial expectations based upon the leverage in the transaction currently. KBRA notes that this transaction is structured to
delever which may result in more stability in the ratings. ‘Stable’ means a downgrade is unlikely. ‘Moderate’ means a potential
downgrade of up to one rating category is possible. ‘Severe’ indicates a multi-category downgrade is possible.

In addition to providing insight into the risk of rating migration, the table also indicates which scenarios may cause
particular classes to default. Any scenario that indicates ‘Default’ for a class means that our cash flow projection indicated
a default in the payment of principal under that scenario.

Carvana Auto Receivables Trust 2021-P2 22 June 24, 2021

 Class and Rating Sensitivity
Classes A-1, A-2,
CNL Increase Resulting CNL Class B Class C Class D Class N
A-3, A-4
Current Base Case CNL 2.05% Stable Stable Stable Stable Stable
25% 2.56% Stable Stable Stable Stable Stable
50% 3.08% Stable Stable Stable Stable Moderate
75% 3.59% Stable Stable Stable Moderate Moderate
100% 4.10% Stable Stable Moderate Moderate Severe
125% 4.61% Stable Moderate Moderate Severe Severe
150% 5.13% Moderate Moderate Severe Severe Severe
175% 5.64% Moderate Severe Severe Severe Severe
200% 6.15% Severe Severe Severe Severe Severe
325% 8.71% Severe Severe Severe Severe Default

It should be noted that many factors, including economic stress, market conditions and servicing operations can impact
the performance of the loan pool and influence rating decisions, both positively and negatively.

Carvana Auto Receivables Trust 2021-P2 23 June 24, 2021

ESG Considerations
KBRA ratings incorporate relevant credit factors, including those that relate to Environmental Social Governance (ESG).
The following section highlights ESG considerations that are generally associated with ABS securitizations such as the
subject transaction.

Environmental Factors

Vehicle Fuel Efficiency

Government regulators may enact fuel efficiency standards on new model year vehicles to implement environmental
initiatives and increase investment in clean technologies. Such changes could influence the value of certain used
vehicles, and in turn, recovery values of defaulted collateral. Values may also be affected owing to changes in gasoline
prices. For example, prices of low efficiency SUVs may decrease if gas prices increase. Diversification of the collateral
pool across model year and vehicle type reduces exposure to these factors. See the Low LTV and Higher Recovery
Values Key Credit Consideration for further detail.

Geographic Risk
High state concentration leaves the collateral pool susceptible to adverse economic conditions, regional recessions and
natural disasters which may negatively affect loan performance or collections. Certain states are vulnerable to natural
disasters such as earthquakes, wildfires, and hurricanes. The occurrence of such an event may cause increased voluntary
or involuntary delinquencies for loans in the transaction. The collateral pool as of the initial cutoff is geographically
diverse and should mitigate this risk as described in the Geographic Diversity Key Credit Consideration.

Social Factors

Demographic Trends
Demographic trends drive consumer preferences and the overall direction of the economy, which influences the demand
for products and the performance of financial assets. Changes in demographic trends and consumer preferences impact
the long-term viability of the product and Company. KBRA considers changes in demographic trends, consumer
preferences and the long-term viability of the product and Company in its rating assessment. Products with low
customer satisfaction, that are inefficient or have not embraced technological developments have a greater likelihood
of being disintermediated or replaced by newer products that address these factors. Demand for financial products are
also affected by population growth and consumer age, demographic changes, employment rates, consumer behavior
and other secular trends.

Governance Factors

Experience of Management, Historical Performance

Historical performance data, which includes defaults, recoveries and prepayments, are important considerations used
to predict future performance of the underlying assets. The Company provided up to 60 months of historical data from
1Q2016 to 1Q2021. KBRA segmented this data by certain borrower or loan attributes and relied on more recent vintage
cohorts to establish assumptions for the collateral supporting this transaction.

The Company has an experienced and stable management team. The Company operates a traditional business model with
transparent business processes as further discussed in Experienced Originator Management Team Key Credit Consideration.

Loan Servicing and Collections

Servicing and collection efforts on consumer loans is a highly regulated process governed by applicable state and federal
laws such as the Fair Debt Collection Practices Act (“FDCPA”), among many others. Failure to collect fairly and protect
non-public personal information may result in fines, reputational harm and changes to business practices. The Company
has an operating history in loan servicing and has no meaningful regulatory violations regarding collection practices.
The Company maintains policies and procedures regarding collection practices, repossession of collateral upon default
and reporting to credit bureaus. The policies are regularly reviewed and updated as necessary.

Carvana Auto Receivables Trust 2021-P2 24 June 24, 2021

Transaction Structure
Transaction structure is an important governance factor in structured finance transactions as many structural aspects,
such as adherence to representations and warranties, compliance with origination standards and eligibility criteria,
reporting of collateral performance, and segregation and application of cashflows, require parties to act in good faith
and certify the accuracy of such information. Failure to do so could impact actual performance and KBRA’s ratings.
KBRA considers various aspects of the transaction structure in its analysis, including, but not limited to, the bankruptcy
remoteness of collateral, perfection of collateral security interests, how loans are underwritten and serviced, and the
transaction waterfall, as well as the operative documents and key parties involved in effectuating transaction functions.
KBRA holistically considers these structural features, credit enhancement, transaction documents, and the capabilities
of key parties during the course of our credit analysis and ratings assignment process. A summary of the transaction’s
structure can be found in the Transaction Structure section.

Regulatory and Compliance Policies

The Company has a compliance and legal department that manages legal and regulatory risks and compliance with
applicable laws. The Company maintains a compliance management system (CMS) for managing oversight of third-
party vendors, managing policies and procedure documents and for tracking, responding, analyzing and mitigating any
consumer complaints. The Company also maintains a compliance training program for staff that includes companywide
training for all employees and specialized training for certain business functions.

Carvana Auto Receivables Trust 2021-P2 25 June 24, 2021

Transaction Structure
Legal Structure
Transaction The Carvana Auto Receivables Trust 2021-P2 notes are newly issued asset-backed securities
Structure collateralized by a trust certificate backed by a pool of auto loan receivables. The following diagram
illustrates the basic securitization structure:

Carvana, LLC
Sponsor

Underwriters
Receivables
Cash Purchase Receivables
Agreement

Underwriting
Agreement

Carvana Receivables
Depositor LLC
Depositor Cash Notes

Receivables
Notes Transfer Receivables
Agreement Investors

Carvana Auto Receivables

Trust 2021-P2
Issuing Entity

Grantor Receivables
Trust Contribution Receivables
Certificate Agreement

Carvana Auto Receivables

Grantor Trust 2021-P2
Grantor Trust

Credit The credit enhancement provides protection for the notes against losses and delays in payment on
Enhancement the receivables or other shortfalls of cash flow. The initial credit enhancement for the notes will
consist of the reserve account, excess interest on the receivables and, subordination of certain
payments (except for the Class D notes), as described below. The Class N has a reserve account
equal to 0.05% of the initial collateral pool balance and will be used to pay any Class N interest
shortfalls. If the credit enhancement is not sufficient to cover all amounts payable on the notes,
notes having a later final scheduled payment date generally will bear a greater risk of loss than
notes having an earlier final scheduled payment date.

The credit enhancement for the notes will be as follows:

Rated Notes
Initial Amount % of Total Reserve Initial Hard Interest Legal Final WAL
Class O/C Subordination
('000s) Collateral Account CE Rate Maturity Date (1.30 ABS)

Class A-1 $112,000 14.45% 0.00% 9.20% 0.50% 9.70% 0.12908% Jul 11, 2022 0.22
Class A-2 $231,850 29.92% 0.00% 9.20% 0.50% 9.70% 0.30% Jul 10, 2024 1.01
Class A-3 $235,810 30.43% 0.00% 9.20% 0.50% 9.70% 0.49% Mar 10, 2026 2.30
Class A-4 $124,040 16.01% 0.00% 9.20% 0.50% 9.70% 0.80% Jan 11, 2027 3.61
Class B $25,580 3.30% 0.00% 5.90% 0.50% 6.40% 1.27% Mar 10, 2027 4.37
Class C $29,060 3.75% 0.00% 2.15% 0.50% 2.65% 1.60% Jun 10, 2027 4.75
Class D $16,660 2.15% 0.00% 0.00% 0.50% 0.50% 2.02% May 10, 2028 5.17
Class N* $27,430 N/A 0.00% 0.00% 0.05% 0.05% 1.88% May 10, 2028 0.61
O/C 0 0.00%
Total $802,430 100.00%
*Net Interest Margin Security; Derives C ashflow from Excess Spread

Carvana Auto Receivables Trust 2021-P2 26 June 24, 2021

 Credit Enhancement Summary
Initial OC 0.00%
Target OC 1.40%***
Reserve 0.50%
Class N Reserve 0.05%
*
% of current Collateral Balance
***
% of original Collateral Balance

Excess Spread Summary

Collateral Interest Rate 7.97%
Weighted Average Coupon 0.78%
Servicing Fees 1.00%
Other Fees 0.03%
Annual Excess Spread: 6.16%

Notes:

▪ The target overcollateralization in the transaction will be 1.40% of the original collateral principal
balance. The overcollateralization floor will be 1.40% of the original collateral principal balance.
▪ The reserve account will be 0.50% of the pool balance as of the initial cutoff date.
▪ The Class N reserve account equals 0.05% of the initial collateral pool balance and will be used
to pay any Class N interest shortfalls.
▪ Projected duration weighted excess spread per annum is estimated to be approximately 6.16%
based on the average collateral interest rate of 7.97% less 1.03% per annum fees and a WAL
weighted note rate of 0.78%.
Priority of On each payment date, available funds will be applied in the following order of priority:
Payments Pre-
Acceleration 1. Servicing Strip Amount;
2. Fees to the Transaction Parties, pro rata, if not previously paid expenses and indemnified
amounts, subject to annual caps;
3. To the Backup Servicer, the Backup Servicing Fee
4. Class A note interest;
5. Principal in the amount equal to the First Priority PDA;
6. Class B note interest;
7. Principal in the amount equal to the Second Priority PDA;
8. Class C note interest;
9. Principal in the amount equal to the Third Priority PDA;
10. Class D note interest;
11. Principal in the amount equal to the Fourth Priority PDA;
12. to the reserve account, an amount to fill the account to its requirement;
13. Principal in the amount equal to the Regular PDA;
14. Class N note interest;
15. to the Class N reserve account, any amount to fill the account to its requirement
16. Principal of the Class N notes, until fully paid
17. to pay the Transaction Parties, pro rata, any fees, expenses and indemnities not previously
paid and in excess of the related cap;
18. any funds remaining, to the certificateholders.
Principal Principal Payments on the Notes (other than the Class N Notes) will be made in the following order
Payments on of priority:
Notes
1. Principal on the Class A-1 notes until paid in full;
2. Principal on the Class A-2 notes until paid in full;
3. Principal on the Class A-3 notes until paid in full;
4. Principal on the Class A-4 notes until paid in full;
5. Principal on the Class B notes until paid in full;
6. Principal on the Class C notes until paid in full;
7. Principal on the Class D notes until paid in full.

Carvana Auto Receivables Trust 2021-P2 27 June 24, 2021

 Events of The occurrence of any one of the following events will be an “Event of Default” under the Indenture:
Default
1. Default in the payment of any interest on the most senior notes outstanding and this default
continues for 5 business days;
2. Default in the payment of principal and accrued but unpaid interest of any class of notes on
the related final scheduled distribution date;
3. Any other default in the payment due to the notes to the extent there are available funds that
continues for 5 business days;
4. A material default in the observance or performance by the issuing entity of any other covenant
or agreement made in the indenture that is not cured after 60 days of written notice;
5. A material default in the observance or performance by the issuing entity of any other
representation or warranty that is not cured after 60 days of written notice; or
6. Bankruptcy, insolvency, receivership or liquidation of the issuing entity or its property.
Priority of Following an Event of Default, available funds will be applied in the following order of priority:
Payments After
Acceleration of 1. Servicing Strip Amount;
the Notes 2. Fees to the Transaction Parties, pro rata, if not previously paid expenses and indemnified
amounts;
3. To the Backup Servicer, the Backup Servicing Fee
4. Class A note interest pro rata;
5. Principal until the Class A-1 notes have been paid in full;
6. Principal pro-rata to the Class A-2 notes, Class A-3 notes, and Class A-4 notes until they have
been paid in full;
7. Class B note interest;
8. Principal until the Class B notes have been paid in full;
9. Class C note interest;
10. Principal until the Class C notes have been paid in full;
11. Class D note interest;
12. Principal until the Class D notes have been paid in full;
13. Class N note interest;
14. Principal until the Class N notes have been paid in full;
15. any funds remaining, to the certificateholders
Servicer The occurrence of any one of the following events will be a “Servicer Termination Event” under the
Termination sale and servicing agreement:
Events
1. Failure by the servicer to make any required distribution, payment, transfer or deposit or to
direct the indenture trustee to make any required distribution and this failure continues for five
business days;
2. Failure by the servicer to observe or perform in any material respect any other covenant or
agreement in the servicing agreement which failure materially and adversely affects the rights
of the noteholders or the certificateholders and which continues unremedied for 60 days;
3. Any representation or warranty made by the servicer in the servicing agreement shall prove
to have been incorrect or false in any material respect as of the time when made, the breach
materially and adversely affects the rights of the noteholders or the certificateholders and that
breach continues unremedied for 60 days; and
4. Bankruptcy, insolvency or receivership of the servicer or actions by the servicer indicating its
insolvency, reorganization pursuant to bankruptcy proceedings, or inability to pay its obligations.
Transaction The transaction’s indenture may be amended without the consent of noteholders, provided such
Amendment amendment does not in any material respect adversely affect the interest of any noteholders.
Process
If an amendment to the indenture modifies or eliminates in any manner the rights of noteholders,
the consent of the majority senior noteholders is required. Certain limited amendments (such as
changes to the interest rate) require that the holders of all notes affected by the amendment
provide their consent. Any amendment requires prior notice to the rating agencies.
Representation & For more detailed information regarding the representations, warranties and enforcement
Warranties mechanisms available under the transaction documents, please see KBRA’s Carvana Auto
Receivables Trust 2021-P2 Representations and Warranties Disclosure. The Representations and
Warranties Disclosure is available at the following link: here.

Carvana Auto Receivables Trust 2021-P2 28 June 24, 2021

© Copyright 2021, Kroll Bond Rating Agency, LLC and/or its affiliates and licensors (together, “KBRA”). All rights reserved. All
information contained herein is proprietary to KBRA and is protected by copyright and other intellectual property law, and none of such
information may be copied or otherwise reproduced, further transmitted, redistributed, repackaged or resold, in whole or in part, by
any person, without KBRA’s prior express written consent. Information, including any ratings, is licensed by KBRA under these
conditions. Misappropriation or misuse of KBRA information may cause serious damage to KBRA for which money damages may not
constitute a sufficient remedy; KBRA shall have the right to obtain an injunction or other equitable relief in addition to any other
remedies. The statements contained herein are based solely upon the opinions of KBRA and the data and information available to the
authors at the time of publication. All information contained herein is obtained by KBRA from sources believed by it to be accurate and
reliable; however, all information, including any ratings, is provided “AS IS”. No warranty, express or implied, as to the accuracy,
timeliness, completeness, merchantability, or fitness for any particular purpose of any rating or other opinion or information is given
or made by KBRA. Under no circumstances shall KBRA have any liability resulting from the use of any such information, including
without limitation, for any indirect, special, consequential, incidental or compensatory damages whatsoever (including without
limitation, loss of profits, revenue or goodwill), even if KBRA is advised of the possibility of such damages. The credit ratings, if any,
and analysis constituting part of the information contained herein are, and must be construed solely as, statements of opinion and not
statements of fact or recommendations to purchase, sell or hold any securities. KBRA receives compensation for its rating activities
from issuers, insurers, guarantors and/or underwriters of debt securities for assigning ratings and from subscribers to its website.
Please read KBRA’s full disclaimers and terms of use at www.kbra.com.

Carvana Auto Receivables Trust 2021-P2 29 June 24, 2021