Carvana Stock is Down $40 Today… What is Bridgecrest and Why is It a Plague On Society

AI Summary

A 14-year car dealer and options trader argues Carvana is inflated because its affiliated lender Bridgecrest writes subprime auto loans at ~22% interest and carries undisclosed off-book debt, and he holds an open short against the stock.

CVNA — SHORT The author argues Carvana is supported by Bridgecrest, an 'off the books lender' he says is tied to Carvana through backdoor dealings and which, per a Gotham City Research short seller report, writes car loans at an average 22% interest rate. His own dealer experience with a Bridgecrest customer (owing $15,800 on a ~$4,000 2012 Impala, with no written payoff quote after a 28-minute hold) is offered as evidence of predatory, poorly documented lending that he believes investors do not understand. The cited catalyst is the recently published short seller report and the stock's drop from a $490 high to $369 by midday February 5, 2026; he states he has open short positions and intends to keep betting against the stock. No specific downside risk is stated beyond his disclaimer that he may open and close positions at any time.

How does this tie in the Carvana stock? Bridgecrest is the off the books lender for Carvana, owned through shady, backdoor dealings. And anyone who is invested in Carvana should know the truth about what they are really buying.

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Carvana stock has plummeted from its recent $490 high to just $369 as of midday February 5 2026

Many people have never heard Bridgecrest before, and don’t understand why they are the worst human beings on the planet, and how they are associated with Carvana. 

In a recent short seller report by Gotham city capital, Bridgecrest revealed that they write Car loans at an average interest rate of 22%

https://www.gothamcityresearch.com/post/carvana-bridgecrest-and-the-undisclosed-transactions-and-debts

If you have never heard of Bridgecrest before, that is why. Only the truly desperate would seek out a car loan that will charge them more then the total price of the car in interest over a five year period.

My personal experience with Bridgecrest is even worse. As a 14 year car dealer and a 15 year stock and option trader, I’ve only run into a Bridgecrest Customer one time. 

The custoner was driving a 2012 Impala with 150,000 miles and three accidents on the Carfax. 

And he owed $15,800 to Bridgecrest on a $4,000 car.

After a short conversation with him, I determined that we could pull his negative equity into a new vehicle that had huge rebates to cover the gap. 

All that was left was to call Bridgecrest and confirm the payoff amount.

After 28 minutes on hold with Bridgecrest, a Bridgecrest representative verbally confirmed the dollar amount of his payoff, but refused to give us any form of written or emailed payoff quote.

This is highly unusual for a bank, as most banks would want to receive the $15,800. They were owed in a timely manner and not have the amount mailed to the wrong address or the wrong account number.

How does this tie in the Carvana stock? Bridgecrest is the off the books lender for Carvana, owned through shady, backdoor dealings. And anyone who is invested in Carvana should know the truth about what they are really buying. 

Full disclosure. I am not a financial professional. This is not financial advice.

Position disclosure:  I have Current open short positions against Carvana. I intend to keep betting against Carvana stock, though it may open and close additional positions at any time.

Ideas

u/BFLO-Retail Reddit r/stocks

Short Carvana on hidden Bridgecrest subprime lending

The author argues Carvana is supported by Bridgecrest, an 'off the books lender' he says is tied to Carvana through backdoor dealings and which, per a Gotham City Research short seller report, writes car loans at an average 22% interest rate. His own dealer experience with a Bridgecrest customer (owing $15,800 on a ~$4,000 2012 Impala, with no written payoff quote after a 28-minute hold) is offered as evidence of predatory, poorly documented lending that he believes investors do not understand. The cited catalyst is the recently published short seller report and the stock's drop from a $490 high to $369 by midday February 5, 2026; he states he has open short positions and intends to keep betting against the stock. No specific downside risk is stated beyond his disclaimer that he may open and close positions at any time.

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