Ernest Garcia II

Garcia II’s father owned a liquor store and was for a time mayor of Gallup, New Mexico. Garcia II played on the University of Arizona golf team, left school before graduating to become a stockbroker, and later moved into real estate development in Phoenix.⁠[1]

Before founding his company in 1990, he was involved in various real estate, securities and banking ventures.⁠[2]

In March 1987 Garcia obtained $20 million in financing from Lincoln Savings and Loan Association to buy back stock in his real estate development company held by a corporate investor; he then agreed to facilitate the purchase of land from a Lincoln subsidiary, and the two transactions closed at the same time.⁠[2]

Lincoln was later placed into receivership, and the Resolution Trust Corporation (RTC) and other federal regulators investigated its transactions. The RTC asserted that the two transactions, though documented separately, were linked and caused Lincoln to record a gain improperly. In October 1990 the United States, on behalf of the RTC, informed Garcia that it intended to charge him with bank fraud; he was never indicted and agreed to plead guilty to one count of bank fraud.⁠[2][2]

In December 1991 Garcia was described as expected to testify against Charles Keating.⁠[3]

Before his sentencing in December 1993, the RTC wrote to the U.S. District Court for the Central District of California asking it to take account of Garcia’s relative responsibility and his cooperation, and stating that Charles H. Keating Jr., chief executive of Lincoln’s parent company, had devised the transaction. The court sentenced Garcia to three years of probation and a $50 fine; while on probation he could not affiliate with any federally insured banking institution without approval.⁠[2]

The RTC’s civil suit against him was settled after he agreed to cooperate fully, and the RTC released him from civil liability. The Securities and Exchange Commission also brought civil and administrative actions; without admitting or denying the allegations, Garcia consented to a court order permanently enjoining him from violating the federal securities laws and to an order barring him, with a right to reapply after his probation ended, from associating with any broker, dealer, investment adviser or investment company.⁠[2]

In April 1990 a real estate investment company controlled by Garcia and several limited partnerships it had organized filed for Chapter 11 reorganization, proceedings that were concluded by 1993; because he had personally guaranteed many of their obligations, he filed under Chapter 7 in June 1990 and was discharged in 1991.⁠[2][2]

In 1990 Garcia founded Duck Ventures, Inc. to buy the assets of the Ugly Duckling Rent-A-Car franchise system. In 1992 a holding company was formed in Arizona to acquire Duck Ventures and other subsidiaries — the later Ugly Duckling Corporation — and Garcia served as its chairman and CEO from its founding and as president from 1992 to 1996.⁠[2][2]

The company ran used-car dealerships and made auto loans to buyers with weak credit; as of June 15, 1996, it had developed or acquired seven company dealerships in Arizona and, since 1994, opened fourteen branch offices in seven states.⁠[2]

From 1991 Garcia was president of Verde Investments, a real estate investment company of which he was sole stockholder and which leased property to and financed Ugly Duckling.⁠[2][2]

In June 1996 Ugly Duckling Corporation sold 2,300,000 shares in its initial public offering at $6.75 a share and listed on the Nasdaq National Market under the symbol “UGLY.” After the offering Garcia, then 39, held 55.7 percent of the common stock.⁠[2][2]

From November 1998 Garcia was managing director of Verde Reinsurance Company, Ltd. In July 1999 he stepped down as CEO of Ugly Duckling while remaining chairman, and in December 1999 he formed Cygnet Capital Corporation.⁠[4]

In January 2001 Garcia proposed to acquire the rest of Ugly Duckling’s outstanding shares; at the time he beneficially owned about 40 percent of its common stock. Ugly Duckling Corporation was later renamed DriveTime Automotive Group, Inc.⁠[4][5]

In January 2013 DriveTime launched Carvana, a sales channel through which customers could buy a car online from click to delivery. Garcia’s son, Ernest Garcia III, founded Carvana as a DriveTime subsidiary.⁠[5][1]

As of December 31, 2013, DriveTime operated dealerships in 20 states and described itself as the nation’s largest integrated used-car retailer and subprime finance company. Garcia was executive chairman, and he and the Garcia family trusts owned 98.3 percent of each of DriveTime Automotive Group and DT Acceptance Corporation.⁠[5][5]

On November 1, 2014, DriveTime distributed the units of Carvana, LLC pro rata to its unitholders, spinning Carvana off from DriveTime.⁠[6]

Carvana held its IPO in 2017; Garcia II is its biggest shareholder.⁠[1]

As of March 10, 2026, Garcia II held 42,442,317 shares of Carvana Class B common stock directly and through ECG II SPE, LLC, which he wholly owns — 56 percent of the Class B shares and 50 percent of total voting power; Carvana describes him as its controlling stockholder. DriveTime is controlled by Garcia II.⁠[6][6]

Under Carvana’s certificate of incorporation, Garcia II, his son Ernest Garcia III and entities controlled by either of them (the “Garcia Parties”) are entitled to ten votes per Class B share for as long as they maintain a specified level of ownership.⁠[6]

As of November 4, 2026, ForbesForbesForbes is an American business media brand that began with Forbes magazine, founded by B.C. Forbes in 1917. It is known for rankings such as the Forbes 400, the World’s Billionaires list and 30 Under 30, and operates Forbes.com, ForbesLive events and licensed editions in 81 countries. Since 2014 a majority stake has been held by the Hong Kong investment group Integrated Whale Media; a 2021 plan to list on the New York Stock Exchange through a special purpose acquisition company was terminated in 2022. It is headquartered in Jersey City, New Jersey.Open the full entry’s real-time estimate put Garcia II’s net worth at $23.6 billion, with used cars (self-made) listed as the source.⁠[1]

DriveTime: Official website: https://www.drivetime.com/ (opens in a new window).⁠[5]

Carvana: Official website: https://www.carvana.com/ (opens in a new window).⁠[5]