Ernest Garcia II
Ernest García II | |
|---|---|
| Born | May 1, 1957 United States |
| Occupation | Entrepreneur |
| Known for | Proprietor of DriveTime, major shareholder in Carvana |
| Notable work | Founder of DriveTime (formerly UglyDuckling) |
Ernest García II (born May 1, 1957) is a prominent American billionaire entrepreneur specializing in the pre-owned automobile sector. He is the proprietor of DriveTime (previously known as UglyDuckling) and holds a substantial stake in Carvana. In 1990, he admitted guilt to felony bank fraud connected to the downfall of the Lincoln Savings and Loan Association. As of January 2025, his wealth was assessed at approximately US$20.7 billion.
Early life
García was born on May 1, 1957, and is the son of Ernest García, who once served as mayor of Gallup, New Mexico and co-owned a liquor store. Although he initially left school, he eventually completed a bachelor's degree at the University of Arizona.
Career
In October 1990, while working as a real estate developer based in Tucson, García pleaded guilty to felony bank fraud for his role as a straw borrower during the collapse of Charles Keating's Lincoln Savings and Loan Association. He secured a $30-million credit line that enabled Lincoln to conceal risky land holdings from regulatory authorities. Following this, García underwent three years of probation and declared bankruptcy.
In 1991, he purchased the bankrupt car rental company Ugly Duckling for less than $1 million. He combined it with his finance business to sell and finance used vehicles aimed at subprime customers with poor credit histories. The company went public on NASDAQ in 1996 under the symbol "UGLY". By 1999, García faced six lawsuits accusing him of improperly profiting from acquiring 17 company properties at discounted prices. In 2002, he and former CEO Gregory Sullivan took the firm private again and renamed it DriveTime.
By April 2021, García's net worth was valued at $15.9 billion. Later that year, in September 2021, he liquidated over $3.6 billion worth of Carvana shares—representing 16% of his ownership—thereby unlocking considerable cash from his investment.
Personal life
García is married and lives in Tempe, Arizona. His son, Ernest Garcia III, holds the position of CEO at Carvana. Additionally, García owns an apartment located in New York City's Trump Tower.