Carvana’s share price skyrocketed in 2021, but less than a year later it dropped by 95%. WSJ’s Ben Foldy explains the factors that helped drive the online car dealer’s growth and why investors are now questioning its future. Illustration: Preston JesseeOnline used-car dealer Carvana is taking a buy-now, pay-later approach to resolve a long-running standoff with its lenders and relieve a looming cash crisis. The company said Wednesday that it would exchange some of its outstanding bonds for new notes that would allow it to delay some of Carvana’s interest payments over the next two years. Unlike the old debt, the new notes will be secured by the company’s assets.

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Persons: WSJ’s Ben Foldy, Carvana Organizations: Jessee