Carvana Auto Receivables Trust 2021-P3 Annual Report - How They Did This Year

I’m putting together a simple guide to help you understand how the Carvana Auto Receivables Trust 2021-P3 performed this past year.

First, a quick reminder: this isn't a typical company. It’s a "securitization trust"—a financial bucket holding a specific pool of car loans. When you invest here, you aren't buying Carvana stock. You are buying into the monthly payments made by people who financed their used cars through Carvana back in 2021.

1. What is this trust and how did it perform?

This trust acts as a pass-through for loan payments. For the year ending December 31, 2025, the trust collected payments from borrowers and passed them on to investors. The trust started with about $500 million in car loans. Today, that pool has shrunk significantly, with about $48.5 million remaining. Because these loans are from 2021, the trust is in the "paydown" phase. The total debt in the bucket is steadily shrinking as borrowers finish their payments or default.

2. Financial health and the "Servicer" check-up

We have the official "Officer’s Certificate" for 2025, signed by the CFO of Bridgecrest Credit Company, the firm responsible for collecting payments on these loans.

The CFO reviewed the 2025 activities and confirmed the company fulfilled its obligations under the original agreement. The "plumbing" of this trust—collecting interest and principal and paying it out to investors—is verified as healthy and compliant.

3. Key risks

The main risk remains the borrowers. Your investment relies entirely on these specific people continuing to pay their car notes. The 2021-P3 pool consists of subprime loans, which historically have higher default rates than standard loans. By the end of 2025, about 14.2% of the original loan value had been lost to defaults. If the economy struggles and more borrowers stop paying, the cash flow into your bucket will decrease, which could impact lower-rated investors first.

This trust does not use "hedges" or financial insurance to protect against losses; you are directly exposed to how these borrowers perform. The reserve account, which started at about $7.5 million, is now being used to cover shortfalls as the pool shrinks, providing a final layer of protection for remaining investors.

4. Future outlook

The trust is operating exactly as intended. With the 2025 audit signed off, the focus remains on collecting payments. For you, the story is stability. There are no major changes to the business that would impact this trust. It is simply a matter of watching the remaining loans get paid off. As the pool shrinks toward zero, the main concern is "tail risk"—the possibility that the final loans perform worse than average, which could drain the remaining protection faster than expected.

Decision Checklist for Investors:

• Understand the Phase: This is a maturing asset. You are looking at a shrinking pool of loans, not a growing business.
• Assess Your Risk Tolerance: Because these are subprime loans, ensure you are comfortable with the historical default rate of 14.2%.
• Monitor the Reserve: Keep an eye on the remaining reserve account balance, as this is your primary buffer against future loan defaults.