Richest of Arizona: Ernest Garcia II and Ernest Garcia III – The Power Duo Behind Carvana and DriveTime

Ernest Garcia II: The Patriarch and Major Shareholder

At the age of 67, Ernest Garcia II is the principal shareholder of Carvana, an online marketplace for selling used cars and offering auto loans, which launched its IPO in 2017. Carvana was initially established by his son, Ernest Garcia III, as a subsidiary of DriveTime Automotive before becoming an independent entity. Garcia II is also the owner and operator of DriveTime Automotive, the fourth-largest used car retailer in the United States.

In 1990, at the age of 33, Garcia pleaded guilty to bank fraud in connection with his activities at Lincoln Savings & Loan. Garcia’s background is rooted in modest beginnings; he is the son of a liquor store owner who also served as the mayor of Gallup, New Mexico, for a period. A former member of the University of Arizona golf team, Garcia left school before completing his degree. He began his career as a stockbroker and later moved into real estate development in Phoenix.

Ernest Garcia III: CEO and Co-founder of Carvana

Ernest Garcia III, aged 42, is the CEO and co-founder of Carvana, an e-commerce platform for buying and selling used cars. He launched Carvana in 2012 as a subsidiary of DriveTime, a traditional used car business with 126 dealerships across 25 states. Carvana was created to facilitate direct sales of used cars, bypass middlemen, and also offer financing services.

In 2017, Garcia II spun Carvana out from DriveTime through an IPO, raising $225 million. Garcia II played a crucial role in funding Carvana’s initial development and remains its largest shareholder. To celebrate the sale of Carvana’s 100,000th car in 2018, Garcia III gifted $35 million worth of his personal stock to company employees.

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