Bloomberg Billionaires Index

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# 272 Ernie Garcia $6.48B

Random fact: DriveTime was previously called Ugly Duckling.

Overview

Ernie Garcia is the largest shareholder of Carvana, an online marketplace for used cars purchases that's run by his son and had revenue of $2 billion in 2018. The elder Garcia is also the founder and chairman of DriveTime Automotive Group, the Phoenix-based operator of used car dealerships that had revenue of $3.3 billion in 2018.

As of :
Last change +$22.2M ( +0.3%)
YTD change +$3.50B ( +117.2%)
Industry Consumer
Biggest asset CVNA US Equity
Citizenship United States
Age 62
Wealth Self-made
View net worth over:   Max 1 year 1 quarter 1 month 1 week

Relative Value

Ernie Garcia's net worth of $6.48B can buy ...

0
troy ounces of gold
0
barrels of crude oil

... and is equivalent to ...

0%
of the GDP of the United States
0%
of the total wealth of the 500 richest people in the world
0%
of the top 100 U.S. college endowments
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of the top 200 U.S. executives’ total awarded compensation
0%
of U.S. existing home sales
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times the median U.S. household income

Latest News

Net Worth Summary

Cash
Private asset
Public asset
Misc. liabilities
Confidence rating:

Garcia is calculated to own about a 40% economic stake in Carvana, according to a June 2019 stock exchange filing. This excludes the shares he controls for the sole benefit of his son, worth about $1.9 billion on Nov. 7, 2019.

He's calculated to own 98% of closely held DriveTime Automotive Group, based on the ownership detailed in its 2013 annual report. The company had $3.3 billion of revenue in 2018, according to Inc. magazine. It's valued using the enterprise value-to-sales and price-to-earnings multiples of three publicly traded peers: America's Car-Mart, Carmax, Sonic Automotive.

The cost of his investment in Carvana is included as a liability less proceeds from his share sales.

Garcia declined to comment on his net worth on Oct. 4, 2018.

Biography

Birthdate: 5/1/1957
Family: Married, 1 child

Ernie Garcia II was born in May 1957 and became a real estate developer in Arizona.

Garcia pleaded guilty to bank fraud in 1990 for his bit roles in the demise of California thrift Lincoln Savings and Loan Association, which sparked a national political scandal. Garcia avoided prison time by testifying for federal prosecutors. He received three years of probation and was fined $50, the minimum fine the court could assess. He has since had his civil rights restored, according to DriveTime filings.

He laid the groundwork for DriveTime in the 1990s, when he bought a rental-car company called Ugly Duckling out of bankruptcy. Merging that operation with a financing company, he built a financier of used cars for subprime borrowers.

Garcia’s son, Ernie III, joined DriveTime in 2007 after earning an engineering degree from Stanford. He helped the company develop tools to assess consumer credit, set vehicle prices and structure deals, a Carvana biography says. He named CEO at Carvana’s founding in 2012. The company went public in 2017.

Milestones
  • 1957 Ernie Garcia II is born.
  • 1996 Ugly Duckling completes an initial public offering.
  • 2002 Takes Ugly Duckling private.
  • 2002 Ugly Duckling changes its name to DriveTime Automotive Group.
  • 2007 Son Ernie Garcia III joins DriveTime.
  • 2017 Carvana completes its initial public offering.