INTRODUCTION TO CARVANA

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INTRODUCTIONTO CARVANAJune 2017

IMPORTANT NOTICEForward-Looking StatementsForward-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 importantfactors that could cause actual outcomes or results to differ materially from those indicated in these statements. Among these factors are risks related to: (1) our history of losses and ability to maintainprofitability in the future, (2) our ability to effectively manage our rapid growth, (3) our limited operating history, (4) the seasonal and other fluctuations in our quarterly operating results, (5) ourrelationship with DriveTime Automotive Group, Inc.,(6) our management’s accounting judgments and estimates, as well as changes to accounting policies, (7) our ability to compete in the highlycompetitive industry in which we participate, (8) the changes in prices of new and used vehicles, (9) our ability to acquire desirable inventory, (10) our ability to sell our inventory expeditiously, (11) ourability to sell and generate gains on the sale of automotive finance receivables, (12) our dependence on the sale of automotive finance receivables for a substantial portion of our gross profits, (13) ourreliance on potentially fraudulent credit data for the automotive finance receivables we sell, (14) our ability to successfully market and brand our business; (15) our reliance on Internet searches to drivetraffic to our website, (16) our ability to comply with the laws and regulations to which we are subject, (17) the changes in the laws and regulations to which we are subject, (18) our ability to comply withthe Telephone Consumer Protection Act of 1991;(19) the evolution of regulation of the Internet and eCommerce, (20) our ability to maintain reputational integrity and enhance our brand, (21) ourability to grow complementary product and service offerings, (22) our ability to address the shift to mobile device technology by our customers, (23) risks related to the larger automotive ecosystem,(24) the geographic concentration where we provide services, (25) our ability to raise additional capital, (26) our ability to maintain adequate relationships with the third parties that finance our vehicleinventory purchases, (27) the representations we make in our finance receivables we sell, (28) our reliance on our proprietary credit scoring model in the forecasting of loss rates, (29) our reliance oninternal and external logistics to transport our vehicle inventory, (30) the risks associated with the construction and operation of our inspection and reconditioning centers, fulfillment centers andvending machines, including our dependence on one supplier for construction and maintenance for our vending machines, (31) our ability to protect the personal information and other data that wecollect, process and store, (32) disruptions in availability and functionality of our website, (33) our ability to protect our intellectual property, technology and confidential information, (34) our ability todefend against claims that our employees, consultants or advisors have wrongfully used or disclosed trade secrets or intellectual property, (35) our ability to defend against intellectual property disputes,(36) our ability to comply with the terms of open source licenses, (37) conditions affecting automotive manufacturers, including manufacturer recalls, (38) our reliance on third party technology tocomplete critical business functions, (39) our dependence on key personnel to operate our business, (40) the costs associated with becoming a public company, (41) the diversion of management’sattention and other disruptions associated with potential future acquisitions, (42) the legal proceedings to which we may be subject in the ordinary course of business, (43) potential errors in our retailinstallment contracts with our customers that could render them unenforceable and (44) risks relating to our corporate structure and tax receivable agreements.No OfferThere 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 thisdate. 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.2

IMPORTANT NOTICENon-GAAP Financial MeasuresThis presentation contains the financial measure EBITDA margin, adjusted net loss and adjusted net loss per share which are not recognized under U.S. Generally Accepted Accounting Principles(“GAAP”). They should not be considered substitutes for other measures of financial performance reported in accordance with GAAP. In addition, the Company’s definitions may not be comparable tosimilarly 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 isamong 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 frequentlyused 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. The Companybelieves that adjusted net loss and adjusted net loss per share supplement GAAP measures and enable us to more effectively evaluate our performance period-over-period.These non-GAAP measures have limitations as analytical tools, and you should not consider these measures either in isolation or as a substitute for GAAP measures or other methods of analyzing theCompany’s results as reported under GAAP. A reconciliation of the non-GAAP measures to the most directly comparable GAAP financial measure can be found at the end of this presentation.Market and Industry DataThis 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 releasedby 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 independentindustry 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.3

OUR MISSION ISTO CHANGE THE WAYPEOPLE BUY CARS.554

WE HAVE ACHIEVEDRAPID GROWTH AND SCALEDebut ofFounded as aCarvana.comsubsidiary ofand launch inDriveTime, the4th largest used Atlanta as firstcar dealer in themarketUnited Statesbased on 2015unit retail sales (1)CarvanaopensNashville as2nd market100cars soldCarvana spinoff fromDriveTimeCarvana opensTexas Inspection& ReconditioningCenter100,000avg. MUV ( 2 )markets(1) Based on 2015 DriveTime annual report and 2016 Automotive News Top 100 Dealership Group rankings by 2015 Used Vehicle Sales(2) Monthly Unique Visitors365M 2016 Revenue180% YoY GrowthCarvana launchesworld’s first coinoperated carvending machine inNashville, TNCarvana launches“Cardian Angel”,an intelligent carvaluation tool10,000cars soldmarketsCarvanalaunches 8story tallvendingmachine inHouston, TX350,000 avg. MUV ( 2 )27,500cars soldmarkets5

KEY INVESTMENT HIGHLIGHTSMASSIVE, FRAGMENTED MARKETExceptionally large and inefficient used car marketSUPERIOR CUSTOMER EXPERIENCESimple, seamless and differentiated used car buying experiencePROVEN GO-TO-MARKET STRATEGYDemonstrated, capital-light market expansion playbookVERTICAL INTEGRATION & FULFILLMENTPurpose-built vertically integrated platformROBUST FINANCIAL MODELRobust financial model supports growth and margin expansion6

MASSIVE, FRAGMENTED MARKETINDUSTRY OVERVIEWAuto is MassiveFragmented& Ripe for Disruption63,000 Used CarDealerships 1.1 Tn 710 Bn1.6%in 2015 U.S. Sales (1)in 2015 U.S. Used Car Sales (2)U.S. Market Share ofLargest Dealer Brand (4)20%7.3%7.0%of U.S. Retail Economy (1)2015 – 2019 CAGR (3)Aggregate Market Share ofTop 100 Used Auto Retailers (4)81%Consumers Do Not Enjoythe Car Buying Process (5)8%Consumers Rated Car SalespeopleHighly Trustworthy (6)(1) U.S. Census Bureau 2015 Retail Sales by Industry(2) Edmunds.com 2015 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 Poll7

MASSIVE, FRAGMENTED MARKETDIGITAL ECONOMY ISTRANSFORMING CAR BUYINGof customerpurchasesinvolve onlineresearch (1)(1) Capgemini 2014 Cars Online report%(2) Accenture 2015 Automotive Digital Survey%wouldconsiderpurchasinga car online (2)(3) AutoTrader 2016 Car Buyer Journey report%test driveonly onevehicle (3)8

SUPERIOR CUSTOMER EXPERIENCECARVANA'S VISION IS FOCUSEDON PROVIDING OUR CUSTOMERS WITH:BestExperienceBestValue10 minutes – time inwhich purchase can becompleted after vehicleselectionAs soon as Next Daycar deliveries in selectmarketsBestSelection 1,430 in averagesavings per vehiclecompared to KBBSuggested Retail Valuein 20167,300 cars availableNote: 7,300 vehicles available as of December 31, 20169

SUPERIOR CUSTOMER EXPERIENCEA SIMPLE AND SEAMLESSCAR BUYING EXPERIENCEVehicle Search &Discovery from Any DeviceIntuitive vehicle search with7,300 vehicles available onlineTrade or Sell – All OnlineNearly instantaneous, firm,fully-automated trade-in offersReal-Time, PersonalizedFinancingMajority of customers havechosen to finance with CarvanaSeamless TransactionTechnologyBuy a car withoutleaving your deviceNote: 7,300 vehicles available as of December 31, 201610

SUPERIOR CUSTOMER EXPERIENCECREATING DIFFERENTIATEDFULFILLMENT EXPERIENCESCarvana Delivery Scheduled appointments withdelivery as soon as the next dayin our markets Delivered by Carvana-uniformedemployee in a branded, customsingle-car hauler, in our marketsVending Machine Operational efficiencies combinedwith strong branding 5 vending machines currently operational (1) 2x growth in Nashville market penetration withinıtwo quarters after vending machine launch Creates a unique video of the experience forcustomers to share via social media(1) As of June 7, 201611

SUPERIOR CUSTOMER EXPERIENCEDELIVERING SUPERIORCUSTOMER EXPERIENCES4.8Rating(1)4,250 CustomerReviews onCarvana.com (1)95%Would RecommendTo A Friend (1)“ ” “ ”“ ”Carvana willchange the waycars are sold.(1) Through December 31, 2016Carvanais the bomb!I neverthought carbuying couldbe enjoyable.12

PROVEN GO-TO-MARKET STRATEGYPROVEN GO-TO-MARKET STRATEGYActivate Team ofExpansion AdvocatesConnect toLogistics NetworkMarket Launch CapEx SpendTurn on MarketingProgram 500k for initial delivery only program 4.5-5.5M for vending machine launchTotal Operating Markets21Proven by Success in Existing MarketsNashville VendingMachine LaunchMarket PenetrationRepeatable Market Entry Playbook93201420152016Quarters in OperationNote: As of December 31, 201613

PROVEN GO-TO-MARKET STRATEGYSIGNIFICANT UPSIDEIN THE CURRENT MODELGrow Current Markets2016 Revenue ( M) 365.1Add New Markets19.7%1.07%Increase PenetrationQ4 2016 YoY naCarvana2016 Market PenetrationQ4 2016Across CurrentAtlanta / NashvilleMarket Penetration (2)21 Markets (1)(1) Market penetration for year ended December 31, 2016(2) Average market penetration of Atlanta and Nashville for quarter ended December 31, 20163.1%CarvanaTotal U.S. Population Coverageby YearCarvanaAtlanta / Nashville Market PenetrationFrom 1st Quarter Launched to Q4 201614

VERTICAL INTEGRATION & FULFILLMENTSUPPORTED BY PROPRIETARY VEHICLEACQUISITION InVehicle Inventory AcquisitionAuctions &Other SourcesQualityScreening Manheim, Adesa, Smart Auction Enterprise, Hertz Customers7,300 Online cars available in all marketsvs. 11-100 at typical dealers (1) Year, Mileage, No Accidents Vehicle reportingApply Data Market data Carvana dataOptimization(clickstream, historical sales) Expected pricing, recon, and transport Fit with existing inventory(1) 2016 NIADA Used Car Industry report based on 2015 dataNote: 7,300 vehicles available as of December 31, 201615

VERTICAL INTEGRATION & FULFILLMENTIN-HOUSE INSPECTION,RECONDITIONING & MERCHANDIZINGInspection and ReconditioningPhotography and Annotation Ability to buy all car types and reconditionthem to a consistent car quality 360-degree, interactive exterior andinterior virtual tour of each vehicle 150k existing annual IRC capacity at full utilization Proprietary imaging technology Robust processes and internal expertiseto set up future IRCs as needed Transparency to the customer throughannotation of material defects16

VERTICAL INTEGRATION & FULFILLMENTLEVERAGING SELF-OPERATEDFULFILLMENT NETWORKPremiumFulfillmentCapabilitiesControl over deliverytimes enables seamlesscustomer experienceDelanco, NJSpeed of deliverydrives conversionCarvanaLogisticsNetworkNashville Inspection & reconditioning centers Delivery hubs Vending machines / Fulfillment centersConnected through the hub-and-spokeCarvana Logistics NetworkInspection CentersNote: As of June 6, 2017Centralizedinventory powersbroad selectionWinder, GADallasBlue Mound, TXAustinSan AntonioExisting MarketsEnables vehiclecost arbitrageacross geographiesHoustonVending MachineHeadquarters2017 New MarketsLower cost than usingthird party shipping17

SIGNIFICANT GROWTHOPPORTUNITIESDevelop NewProductsImprove BrandAwarenessDrive RevenueGrowth in ExistingMarketsEnter New KeyGeographicalMarketsInnovate andExtend TechnologyLeadership18

FOUNDER-LED, DEEP & EXPERIENCED TEAMErnie GarciaCo-founder & Chief Executive OfficerRyan KeetonCo-founder &Chief Brand OfficereCommerce & TechnologyMark JenkinsChief Financial OfficerBen HustonCo-founder &Chief Operating OfficerData & AnalyticsDan GillChief ProductOfficerAutomotive & LogisticsPaul BreauxGeneral CounselBrand & Customer ExperienceJosh DollisonDirector ofEngineeringCem VardarPrincipal OptimizationEngineerRichard BallSr. Director of IRCs &Process EngineeringPaul KeisterChief CreativeOfficerJon SeitelProductLeadJeff McClellanHead of PredictiveAnalyticsMike RennieDirector of IRCExecutionTeresa AragonDirector ofCustomer OperationsAlex DevkarDirector ofAnalyticsMichael GranthamVP of QuantitativeMarketingScott WoodDirector of WholesaleOperationsJenni StanfordDirector of MarketOperations & ExpansionImran KaziDirector of TechnologyServicesBrian BoydDirector of InventoryStrategyJeff MillerVP of Strategic Partnerships &Vehicle MerchandisingJessica QuerinDirector of PostSales OperationsChristina KeiserDirector of PartnershipGrowthStella Wenxing LiuDataScientistJohn PiatakDirector ofLogisticsBret SassenbergSr. Director of RealEstate & Development19

FINANCIALHIGHLIGHTS20

KEY FINANCIAL HIGHLIGHTSRAPID REVENUE GROWTHPROVEN AND EXPANDING UNITECONOMICS ACROSS MULTIPLE PRODUCTSCOMPELLING MARKET ECONOMICSIMPROVING OPERATING EFFICIENCIESATTRACTIVE LONG-TERM FINANCIAL MODEL21

OUR REVENUE GROWTH 365 159180% YoY 107 99 87Revenues( M) 130 73213% YoY 42 24 29 36 43816% YoYQ1Q22014Q3Q4Q1Q22015Q3Q4Q1Q22016Q3Q4Q1201722

KEY OPERATING 1)Available(1)Markets96,5231,84232,1052014(1) As of December 312015201620146522015201620142015201623

IMPROVING COHORTS5,600Retail Units SoldBy CohortMarketPenetration5,0234,355Market Penetration3,7832,1922013 Cohort2014 Cohort1,7762015 Cohort2016 CohortNashville VendingMachine 1436Q2579Q32014775Q4Q1Q2Q3Q4Q12015Note: Non-Market retail units sold represent unit sales in markets not yet launchedQ2Q32016Q4Quarters in OperationNote: As of December 31, 201624

REVENUE STREAMS FROMMULTIPLE PRODUCTSRetailVehicleSales 342M( 18.2kselling price /retail unit)Note: Data for FY2016WholesaleVehicleSales 10M( 3.8kselling price /wholesale unit)OtherSales &Revenues 13M( 693gross profit /retail unit)25

UNIT ECONOMICSGross Profitper UnitKey Drivers of GrossProfit Expansion 1,023Increase number of markets /Sell more retail unitsReduce average days to saleIncrease conversionon existing products 20620142015Addition of new productsand services2016CarMax, Inc.Gross Profitper Unit(1) 3,889Scale provides cost of salesefficiencies( 201)(1) FY2016 Gross Profit plus CarMax Auto Finance net income divided by used vehicle units soldNote: CarMax Gross Profit per Unit is not presented to imply that Carvana will achieve comparable results26

ADVERTISING EXPENSE LEVERAGEAtlanta Advertising ExpenseAs % of Revenue20%Nashville Advertising ExpenseAs % of RevenueBrand Awareness40%33%10%Word of MouthReferrals20%8%5%12%3%0%4%0%201420152016Key Drivers201420152016Inventory SelectionProduct Enhancements27

UNIT LEVERAGERevenue Growth100.8%YoY GrowthImproving Unit Economics10.5% 154.35.5% 76.91.0% 27.15.3% Carvana TotalGross Margin3.2% ATL & NASHAdvertisingExpense as a % ofRevenue(1.0%)20142015ATL & NASH Revenue ( M)201620142015201628

COMPANY HIGHLIGHTSMASSIVE, FRAGMENTED MARKETExceptionally large and inefficient used car marketSUPERIOR CUSTOMER EXPERIENCESimple, seamless and differentiated used car buying experiencePROVEN GO-TO-MARKET STRATEGYDemonstrated, capital-light market expansion playbookVERTICAL INTEGRATION & FULFILLMENTPurpose-built vertically integrated platformROBUST FINANCIAL MODELRobust financial model supports growth and margin expansionNote: As of December 31, 2016 710B1.6%2015 U.S.Used Car SalesLargest dealer brandmarket share in US95%4.8/5.0211.1%Customers who wouldrecommend to friendCustomerRatingMarketsMarket Penetrationin Atlanta & Nashville33ExistingIRCsExistingVending Machines180%27,500 YoY 2016Revenue GrowthRetail UnitsSold Since Inception29

(1) U.S. Census Bureau 2015 Retail Sales by Industry (2) Edmunds.com 2015 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 – Represen

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