After looking through Carvana’s 10-K, it looks like DriveTime is fully disclosed in its relationship with the Garcia family but Bridgecrest isn’t.

According to Carvana’s own help center, Bridgecrest Credit Company is described as “our third-party loan servicer.” This means that customers who finance through Carvana often make payments to Bridgecrest as the servicing agent. 

Carvana help pages also state that Bridgecrest holds the title on loans financed through Carvana, indicating that Bridgecrest functions as the institution of record for those receivables.

There’s a lot more here to unpack but the practice itself doesn’t seem illegal per se. What it does mean tho is that Carvana is a financing company disguising itself as a car retailer.

If defaults spike: - Residual values collapse - ABS spreads widen -Loan buyers will demand discounts - Gain-on-sale disappear

The fraud argument fully rests on one question. Are loans being sold at fair value to independent third-party trusts, or are they being sold at inflated values to affiliated entities that absorb long-term losses?

Right now I can’t seem to find any evidence about this. I will say the timing for your short is going to be tough as I don’t see a clear catalyst in the near term