CVNA
Carvana Co.
Is CVNA Halal?
Online used car dealer with extensive auto lending and financing operations.
What You Should Know
Carvana sells used cars online but derives substantial revenue from auto financing with interest. The lending business violates Islamic principles. Its March 31, 2026 Form 10-Q reports $13,771 million of assets, $5,154 million of interest-bearing debt, $2,410 million of cash, $339 million of receivables and $6,432 million of quarterly revenue. Debt/assets is 37.43% and the disclosed $526 million finance-receivable revenue proxy keeps the overall screen failed.
⚠️ Concerns
- •Major revenue from interest-based auto loans
- •Core business model dependent on riba
- •Very high debt levels
- •Securitization exposure
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-15.
5,154 / 13,771
3,884 / 13,771
2,749 / 13,771
- Financial
- Fails
- Overall
- Fails
Debt/assets is 37.43%, liquidity/assets is 28.20% and receivables-plus-cash/assets is 19.96%; debt exceeds the examined 33.333% limit and the finance-receivable activity proxy fails. Income is unavailable.
- Financial
- Fails
- Overall
- Fails
Debt/assets is 37.43%, above the examined 33.33% total-assets limit; liquidity and receivables-plus-cash are below the examined limits, but the auto-finance activity screen fails.
- Financial
- Fails
- Overall
- Fails
Debt/assets is 37.43%, above the examined 33% limit; the disclosed finance-receivable proxy also fails the retained activity assessment.
- Financial
- Not calculated
- Overall
- Fails
A properly licensed and reproducible historical market-cap series is not stored; market-cap methods cannot cure the debt or activity failure.
Business-activity disclosure
Carvana sells used vehicles online but also originates, sells and services auto-finance receivables. The retained qualitative analysis treats interest-based auto lending and securitization as a core riba concern.
Limitation: The filing reports gains on finance-receivable sales and finance balances but does not provide a school-neutral prohibited-income taxonomy; $526 million is a disclosed proxy, not a claim that every other revenue dollar is impermissible.
Purification
Carvana does not separately quantify gross interest income in the quarter; purification is not inferred for finance-receivable gains or lending activity.
Inputs, assumptions and primary sources
- Amounts are USD millions from Carvana's March 31, 2026 Form 10-Q.
- Interest-bearing debt is $79 million of short-term revolving facilities, $229 million current long-term debt and $4,846 million long-term debt; operating leases and the tax receivable agreement liability are excluded.
- Cash is $2,410 million. Finance receivables held for sale of $982 million and beneficial interests in securitizations of $492 million are included in interest-bearing securities; accounts receivable is $339 million.
- Other sales and revenues of $526 million, primarily gains on finance-receivable sales and related products, are used as a conservative disclosed activity proxy. The filing does not separately disclose gross interest income.
This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.
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