Carvana Auto Receivables Trust 2021-P4 Annual Performance Review

This guide helps you understand how your investment performed. Think of this as a cheat sheet to cut through complicated financial filings.

1. What does this trust do and how did it perform?

Carvana Auto Receivables Trust 2021-P4 is a financial vehicle created in October 2021. It holds a pool of subprime and near-prime auto loans. When you invest, you buy a slice of the cash collected from roughly $500 million in original car loans.

In 2025, the trust continued its main job: collecting monthly payments from car buyers and passing them to investors. The trust is now in its "pay-down" phase, meaning the pool of loans is shrinking as people pay off their cars or default.

2. Financial performance

We measure performance by how many borrowers fall behind on payments or default. Throughout 2025, the trust paid all interest and principal to Class A, B, C, and D investors on time. The trust holds extra collateral—the difference between the loan values and your notes—to cover these defaults. This cushion remains strong enough to handle the losses seen in this 2021 group of loans.

3. Major wins and challenges

The biggest win is stability. The trust collected cash consistently, even as the loan pool aged. Regarding administrative operations, there was a one-day delay in an SEC filing in early 2025. This did not affect your money; you received your payments correctly and on time.

4. Financial health

The trust is in good shape. Because the pool includes thousands of individual loans, no single borrower’s behavior can sink the investment. The trust also keeps a reserve account—funded at about 1% of the original pool—to protect your investment. There are no complex derivatives or outside companies involved, which keeps the cash flow simple and predictable.

5. Key risks

The main risk is whether borrowers keep making payments. As the pool ages, the remaining loans are more sensitive to economic trouble. If total losses exceed original 2021 projections, the lower-rated classes (C and D) could lose some principal. There are no legal or government actions against the trust or Carvana that threaten its operations.

6. Strategy updates

Carvana has implemented new internal rules to ensure future administrative efficiency:

• Enhanced Reviews: Added extra verification steps for all data before submitting it to the SEC.
• Centralized Records: Created a single digital library so all teams use the same documents.
• Stricter Timelines: Set a new policy to finish all quality checks five days before the deadline.

Investor Takeaway: This trust is currently performing as expected, with a consistent track record of payments to investors. Because the trust is in the "pay-down" phase, your primary focus should be monitoring the remaining collateral cushion and the ongoing payment performance of the underlying borrowers.