Key Points Carvana ‘s (CVNA) stock soared from $4 to $392, riding meme stock mania and a CEO comeback tale. A recent Morningstar debt report reveals an alarming increase in delinquency rates in an old loan pool. CVNA has a built-in buffer at the moment, and Fed rate cuts could ease pressure, but declining used car values add risk. But this debt pool hints at hidden risks. The Federal Reserve’s recent rate cut might help by easing borrowing costs, potentially lowering auto loan rates for subprime buyers and boosting demand.