Ally Financial in Detroit has agreed to provide up to $600 million in financial backing for Carvana's online auto sales.

The $157 billion-asset Ally's financing arrangement will help Carvana, in Phoenix, expand its origination volume, according to a Thursday news release. Ally will make the funds available to Carvana over a 12-month period through financing and the bulk purchase of retail contracts.

Ally and Carvana already have collaborated on other financing arrangements. In February, Ally expanded Carvana's floorplan credit line to $125 million, representing financing for about 7,100 vehicles.

Ally and Carvana plan to explore additional ways to expand their partnership, the companies said in a Wednesday news release.

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