BaML Consumer Conference

CARVANA
March 14, 2018
 IMPORTANT NOTICE
Forward-Looking Statements
This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect
Carvana’s current expectations and projections with respect to, among other things, its financial condition, results of operations, plans, objectives, future performance, and
business. These statements may be preceded by, followed by or include the words "aim," "anticipate," "believe," "estimate," "expect," "forecast," "intend," "likely," "outlook,"
"plan," "potential," "project," "projection," "seek," "can," "could," "may," "should," "would," "will," the negatives thereof and other words and terms of similar meaning.

Forward-looking statements include all statements that are not historical facts. Such forward-looking statements are subject to various risks and uncertainties. Accordingly, there
are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. Among these factors are risks related to
the “Risk Factors” identified in our Annual Report on Form 10-K for the ended December 31, 2017.

There is no assurance that any forward-looking statements will materialize. You are cautioned not to place undue reliance on forward-looking statements, which reflect
expectations only as of this date. Carvana does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information,
future developments, or otherwise.

Non-GAAP Financial Measures

This presentation contains the financial measure EBITDA margin which is not recognized under U.S. Generally Accepted Accounting Principles (“GAAP”). EBITDA margin should
not be considered as a substitute for other measures of financial performance reported in accordance with GAAP. In addition, the Company’s definition of EBITDA margin may
not be comparable to similarly titled measures of other companies.
The Company believes that EBITDA margin provides useful information to investors about the Company and its financial condition and results of operations for the following
reasons: (i) EBITDA is among the measures used by the Company’s management team to evaluate its financial and operating performance and make day-to-day financial and
operating decisions; and (ii) EBITDA is frequently used by securities analysts, investors and other interested parties as common performance measures to compare results or
estimate valuations across companies in the Company’s industry.
EBITDA has limitations as an analytical tool, and you should not consider this measure either in isolation or as a substitute for gross margin or other methods of analyzing the
Company’s results as reported under GAAP. A reconciliation of EBITDA to the most directly comparable GAAP financial measure can be found at the end of this presentation.

Market and Industry Data

This presentation includes information concerning economic conditions, the Company’s industry, the Company’s markets and the Company’s competitive position that is based
on a variety of sources, including information from independent industry analysts and publications, as well as Carvana’s own estimates and research. Carvana’s estimates are
derived from publicly available information released by third party sources, as well as data from its internal research, and are based on such data and the Company’s knowledge
of its industry, which the Company believes to be reasonable. The independent industry publications used in this presentation were not prepared on the Company’s behalf. While
the Company is not aware of any misstatements regarding any information in this presentation, forecasts, assumptions, expectations, beliefs, estimates and projects involve risk
and uncertainties and are subject to change based on various factors. 2
 OUR MISSION IS
TO CHANGE THE WAY
PEOPLE BUY CARS.

5 5 3
 MASSIVE, FRAGMENTED MARKET

INDUSTRY OVERVIEW

Auto is… Massive Fragmented & Ripe for Disruption

43,000+
Used Car
Dealerships
(7)

$1.1 Tn $739 Bn 1.7% 81%

in 2015 U.S. Sales (1) in 2016 U.S. Used Car Sales (2) U.S. Market Share of Consumers Do Not Enjoy
Largest Dealer Brand (4) the Car Buying Process
(5)

20% 7.3% 7.0% 8%

of U.S. Retail Economy (1) 2015 – 2019 CAGR (3) Aggregate Market Share of Consumers Rated Car
Top 100 Used Auto Salespeople Highly
Retailers (4) Trustworthy (6)
(1) U.S. Census Bureau 2015 Retail Sales by Industry (2) Edmunds.com 2016 Used Vehicle Market report (3) Technavio 2015 U.S. Used Car Market report
(4) Publicly-listed dealership filings and Automotive News Top 100 Dealership Groups (5) DealerSocket 2016 Independent Dealership Action report – Represents North American consumers (6) 2015 Gallup Poll 4
(7) Borrell Associates
ANNUAL KEY METRICS

5
RAPID SECULAR GROWTH
$859 Multiple Revenue Streams (1

135% YoY
Retail Vehicle Sales
$265
$797M 2017
Revenues $209
$225 ($18.0k selling price/retail
($M) unit)
$365
$159
Wholesale Vehicle Sales
$29M Q2017
$130 $107 ($4.4k selling price/wholesale
$99
$87 unit)
$42 $73

$43
Other Sales & Revenues
$36

$6 $9 $12 $14
$24 $29 $33M 2017
($756 gross profit/retail
1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17
unit)
(1) All figures based on 2017 results, numbers may not match due to 6
 SUPERIOR CUSTOMER EXPERIENCE

CARVANA'S VISION IS FOCUSED

ON PROVIDING OUR CUSTOMERS WITH:

Best
Experience Best
10 minutes – time in Value
which purchase can Over $1k in average
be completed after savings per vehicle
vehicle selection compared to
As soon as Next traditional dealers
Day car deliveries in
select markets
Best
Selection
11,000+
cars available
Note: 11,000+ vehicles available as of March 12, 2018
7
 PROVEN GO-TO-MARKET STRATEGY

PROVEN GO-TO-MARKET STRATEGY

Repeatable Market Entry Playbook Proven by Success in Our Markets
Retail Units Sold
Activate Team of Connect to 13,517
Expansion Advocates Logistics Network
+141% 11,719

Market Launch CapEx Y/Y 10,682

Spend Turn on Marketing
$500k for initial delivery-only
program Program
Average of $5M for vending 8,334
machine launch

Total Operating Markets at Year End 5,600

44 5,023
4,355
3,783

21
2,192
9 1,776
3 775
1,212 1,343
436 579
315

1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17
2014 2015 2016 2017 8
 VERTICAL INTEGRATION & FULFILLMENT

EXPANDING AT INCREASING PACE

Premium
JANUARY Fulfillment
2017 Capabilitie
s
Control over delivery
times enables
Philadelphia
seamless customer
IRC experience

Speed of delivery
drives conversion
Carvana
Logistics Atlanta
Centralized
Network IRC
inventory powers
broad selection
• Inspection & reconditioning centers Dallas
IRC
• Delivery hubs
• Vending machines / Fulfillment centers Enables vehicle
Connected through the hub-and-spoke cost arbitrage
Carvana Logistics Network across
geographies

Lower cost than using

third party shipping
IRC Markets Market + Vending Machines Headquarters
Note: As of January 1, 2017. 9
 VERTICAL INTEGRATION & FULFILLMENT

EXPANDING AT INCREASING PACE

Premium
DECEMBE Fulfillment
R 2017 Capabilitie
s
Control over delivery
times enables
Philadelphia
seamless customer
IRC experience

Speed of delivery
drives conversion
Carvana
Logistics Phoenix
IRC
Atlanta
Centralized
Network IRC
inventory powers
broad selection
• Inspection & reconditioning centers Dallas
IRC
• Delivery hubs
• Vending machines / Fulfillment centers Enables vehicle
Connected through the hub-and-spoke cost arbitrage
Carvana Logistics Network across
geographies

Lower cost than using

third party shipping
IRC Markets Market + Vending Machines Headquarters
Note: As of December 31, 2017. 10
 MARKET PENETRATION & CAC BY
COHORT

Both charts as of 12/31/17 11

 SUPERIOR CUSTOMER EXPERIENCE

DELIVERING SUPERIOR
CUSTOMER EXPERIENCES

4.7 14,900+ 97% 84

Rating (1) Customer Would Net Promoter
Reviews on Recommend To A Score (NPS) (2)
Carvana.com (1) Friend (1)

“ ” “ ”“ ”
Carvana will I never
change the way Carvana thought car
cars are sold. is the bomb! buying could
be enjoyable.

(1) Through March 12, 2018 (2) Survey performed by Bazaarvoice, for the year 2017 12
 KEY INVESTMENT HIGHLIGHTS
MASSIVE, FRAGMENTED MARKET
Exceptionally large and inefficient used car market
$739B
2016 U.S.
1.7%
Largest dealer
Used Car Sales brand market
share in US

SUPERIOR CUSTOMER EXPERIENCE

Simple, seamless and differentiated used car buying experience
97%
Customers who
4.7/5.0
Customer
would recommend Rating
to friend

PROVEN GO-TO-MARKET STRATEGY 44

Markets
1.54%
4Q17 Market
Demonstrated, capital-light market expansion playbook Penetration
in Atlanta

VERTICAL INTEGRATION & FULFILLMENT 4

Existing
7
Existing
Purpose-built vertically integrated platform IRCs Vending Machines

ROBUST FINANCIAL MODEL

Robust financial model supports growth and margin
135% 79,100+
YoY 2017 Retail Units
Revenue Growth Sold Since
expansion Inception

Note: As of December 31, 2017 13

APPENDIX

14
Net Loss to EBITDA Reconciliation

Year Ended December 31,

2017 2016 2015
Net loss $ (164,316) $ (93,112) $ (36,780)
Depreciation and amortization expense 11,568 4,658 2,800
Interest expense 7,659 3,587 1,412
EBITDA $ (145,089) $ (84,867) $ (32,568)

Total revenues $ 858,870 $ 365,148 $ 130,392

EBITDA Margin (16.9 )% (23.2 )% (25.0 )%

15