Carvana is a one-stop-shop car dealer that offers a wide selection of high-quality used cars and financing options for car shoppers. However, what sets Carvana apart is its hassle-free return policy.
On top of that, you can get a 100-day warranty included when you purchase. There are countless features that make buying a car online with Carvana unique.
Carvana is an online car dealership that allows customers to shop for, finance, and purchase vehicles entirely online. The company offers a wide selection of high-quality used vehicles, as well as financing options to help customers afford the vehicle they want.
Carvana also has a car vending machine (see image below.) Customers can pick up their purchased vehicles in person at one of the company’s vending machine locations. Additionally, Carvana offers car delivery to customers in certain areas and a seven-day return policy for added convenience and peace of mind.
How does Carvana work?
Carvana is an online platform that allows people to buy and sell cars entirely online. The car buying process through Carvana begins with searching for a car on the website. You can search for a specific make and model, or browse through the available inventory using filters such as price, body style, and location.
Once you’ve found a car that you’re interested in, you can view detailed information about the car. This includes photos and a description of its features and condition. You can also get a trade-in estimate for your current vehicle and apply for financing on the website.
The process of buying a car from Carvana is entirely online. Once you’ve found the car you want, you can complete the purchase online. After that, you can either schedule a time to pick up the car at one of Carvana’s unique car vending machines or have it delivered to your home. If you’re not satisfied with the car, Carvana offers a seven-day return policy and will even come and pick the car up from you.
Carvana offers financing options through its own financing arm. They also have partnerships with other lenders.
Carvana Application Requirements
You can finance through Carvana or you can utilize third-party financing. However, if you choose to finance through Carvana, the car buying experience goes by much more smoothly and quickly. But, of course, there are a few requirements and conditions you’ll have to meet:
- You’ll need an annual income that is at least $10,000 or more. If you’re paying alimony, child support, or a separate maintenance income, you don’t have to list them if you don’t want to.
- You have to be at least 18 years old.
- You cannot have any active bankruptcies.
- No cosigners. Carvana only offers single-buyer car loans.
- Credit cards cannot be used for down payments. They can be made either through an ACH withdrawal, cashier’s check, or a money order.
If you want to cosign for a car loan with your bank or credit union, that is possible. Carvana works with most third-party lenders but will not work with Capital One, Road Loans, or Car Finance Capital.
Carvana Application Process
The Carvana buying process is done entirely online and doesn’t take long to complete. First, you’ll enter your full legal name, income, address, and date of birth. From there, you’ll give them your email and phone number and agree to a few conditions. The conditions you’ll have to agree to include:
- Continuing with e-sign as a basis for consent (meaning the car buying process can occur online from there on out).
- Agreeing to let Carvana call and text you about information related to your account (no worries, you can opt out of this).
The best thing about the pre-qualification process is that there is no hit to your credit score. So if you’re merely curious about the company, you can go fairly deep into the purchase process before there are any hard credit checks, which hurt your credit score just a bit.
After you fill out the application, you’ll see personalized financing terms under the picture of each Carvana vehicle listed. Monthly payment, minimum down payment, and APR will show up under each vehicle.
Again, you’ll be able to see all of these auto loan terms without there being any hit to your credit score, and all terms are good for 45 days. They could, however, stay the same after 45 days provided your personal information hasn’t changed.
Types of Auto Loans Available at Carvana
Carvana offers used car loans for all credit types. Carvana doesn’t have a minimum credit score requirement. Low income, low credit, and no credit borrowers are all encouraged to apply. There’s no reason not to since pre-qualification is only a soft credit check.
As with all auto lenders, Carvana does use the tier process to determine what kind of rate you’ll receive should you decide to finance through them. To see what kind of tier you’ll be placed in, you’ll need to know your auto industry credit score first, ranging from 250 to 900.
The tier ranges are broken down as follows:
- Tier 5/ F Tier: (250 to 520)
- Tier 4/ D Tier: (520 to 580)
- Tier 3/ C Tier: (581 to 659)
- Tier 2/ B Tier: (660 to 699)
- Tier 1/ A Tier: (700 to 739)
- Tier 0/ A+ Tier: (740 to 877)
The goal for every borrower is to be in the lowest tier possible. Borrowers in tier one and zero often don’t need a down payment because they are not considered a financial risk. However, borrowers in higher tiers may need one. They may also have higher interest rates and monthly payments.
Advantages of Using Carvana
- One of the major advantages of using Carvana is the convenience of being able to buy a car entirely online. With Carvana, you can shop for and purchase a car from the comfort of your own home. There’s no need to visit car dealerships or haggle with a salesperson.
- Carvana has a wide selection of vehicles available. They have a large inventory of both new and used vehicles, so you can find the make and model you’re looking for.
- Carvana also offers transparent pricing, meaning the price you see is the price you pay. There’s no need to worry about negotiating or haggling, as the price is fixed.
Disadvantages of Using Carvana
- Carvana prides itself on offering transparent pricing, which means that the price you see for a car is the final price. However, this means that there are no negotiations over Carvana prices or trade-in offers.
- Another potential drawback is the limited ability to test drive a vehicle before purchasing. While Carvana does offer a seven-day return policy, it’s not the same as taking a car for a spin before committing to the purchase.
- There is a potential for issues with the vehicle purchased, just like with any used car purchase. Carvana does offer a 100-day warranty and inspects all of their vehicles before listing them for sale. However, there is still a risk of issues arising after the purchase.
Can I qualify for Carvana financing if I have bad credit?
Carvana states that as long as you are 18 years or older, make at least $4k per year, and have no active bankruptcies, you can finance your purchase through Carvana. However, in the state of Georgia, you are required to be 19 years old.
Fees and Rates
The rates borrowers receive are all contingent upon income and credit history. Once you apply for a Carvana auto loan, any rate you’re given is good for 45 days, provided the information you gave was correct.
This is 15 days longer than most lenders, whose offers expire after 30 days. This gives you more time to be as selective as you want when new car shopping.
Carvana doesn’t charge dealer fees, but there may be a delivery fee if you get your vehicle delivered.
Customer reviews of Carvana are generally positive, with many customers praising the convenience and transparency of the buying process. Many customers also appreciate the wide selection of vehicles available and the good value for money.
However, there are also some negative reviews from customers who had issues with their purchases, such as receiving a damaged or faulty vehicle. Overall, the majority of Carvana’s customer reviews are positive.
The Better Business Bureau (BBB) currently gives Carvana an A+. While they have quite a few complaints, they also serve lots of customers. You will find many 4- and 5-star reviews of Carvana at several other review sites as well.
Carvana’s special features are really what makes it stand out as a company. It’s the small details that push it into the limelight.
Know What Your Car Will Be Worth
One of the coolest things about Carvana is that they have a hassle-free sell or trade process. You can get an offer on your used car in less than two minutes. You don’t need to provide any pictures, nor do you even have to get it inspected. Better yet? They’ll even pick it up from you.
Go to the homepage and find the “Sell or Trade” section. Next, click the “Get Your instant Offer” button, and you’ll be asked for the following information:
- Vehicle identification number (VIN) or license plate number
- Vehicle details, such as mileage, transmission, and common interior and exterior features
- Condition of the car
- Whether the car has ever been in an accident
Once you enter the required information, they’ll give you a quote that you can either accept or walk away from. Going through the information process does not commit you in any way to selling or trading in your vehicle. However, the information can be invaluable to many borrowers who are in the planning stages of getting a new vehicle.
Browse by Monthly Payments
The Carvana website allows you to shop for a car based on your desired monthly payment, which is a convenient feature. They have thousands of cars in their inventory, and you can save yourself time by clicking on what kind of payment terms you want.
Once you enter your information, Carvana will send you tailored lists of cars that fit within your budget. You can also use their auto loan calculator to personalize your financing terms without impacting your credit score.
7 Day Test Own
Knowing whether you truly want to own a car takes longer than just a test drive. So, Carvana gives car buyers a 7-day window to return their car purchase should they decide they’ve made the wrong choice.
Carvana has a 150 point inspection process for every car they sell. As a result, none of their cars have ever had any reported accidents. Plus, they give you every piece of information they could possibly give on the car, including special features, safety recalls, and noticeable imperfections.
Combine this with the 360-degree virtual tour and the ability to buy a car from your couch. You can also get the car delivered right to your driveway, and you can return it if you’d like.
Carvana does everything it can to make you a happy buyer. With a seven-day money-back guarantee, excellent customer service, and a 100-day or 4,189-mile limited warranty, it’s obvious they want your business. The bottom line is that Carvana has a lot going for it and should be on your list for both purchasing and financing your next new car.
Who owns Carvana?
Carvana is a privately held company. It is not publicly traded and does not have shareholders in the traditional sense. According to publicly available information, the company was founded by Ernie Garcia II, Ryan Keeton, and Ben Huston in 2013.
Where is Carvana located?
Carvana is headquartered in Tempe, Arizona. It also operates in multiple locations throughout the United States.
If you’re interested in purchasing a car from Carvana but don’t live near one of their locations, the company offers delivery or will even cover part of your trip to pick up the car. You can use the company’s website to find the nearest location to you.
Where does Carvana get its cars?
Carvana gets its vehicles from a variety of sources, including auctions, trade-ins, dealer partners, and direct purchases from individuals. The company inspects all the vehicles before listing them for sale on its website to ensure that they meet its quality standards. Carvana also offers a 100-day warranty on its vehicles to give customers added peace of mind.
Does Carvana sell new cars?
No, Carvana only sells used cars. However, the majority of its inventory is late-model, low-mileage vehicles.
How does Carvana trade in work?
To trade in your car with Carvana, click the “Trade In” button at the checkout process. Enter your vehicle’s information to receive an initial trade-in offer. If you accept, Carvana will apply the trade-in value towards the purchase price of your new vehicle. You can also take your trade-in to a Carvana location for an in-person appraisal.
How long does it take Carvana to verify documents?
Carvana states that the process of verifying documents typically takes one to two days. However, according to some customer reviews, the verification process has taken longer than expected in some cases.
It’s worth noting that the length of time it takes to verify documents can vary depending on several factors, such as the complexity of the documents and the workload of the verification team.
Who does Carvana finance through?
Carvana offers financing options for its customers through various financial institutions. It works with several lenders to provide financing options to customers with a range of credit scores.
In addition to traditional financing, Carvana also offers its own financing options, such as its “As Soon As Next Day” program. This allows customers to take home a car the same day they apply for financing.
How long does Carvana take to deliver?
Carvana typically delivers cars within three to four days of the purchase date. In some cases, it may be possible to receive a car sooner. It depends on the customer’s location and the availability of delivery personnel.
How do Carvana vending machines work?
Carvana’s car vending machines are automated towers that dispense vehicles to customers who have purchased them online. To use a car vending machine, you first need to purchase a car through the Carvana website. Once the purchase is complete, you can schedule a time to pick up your car at a car vending machine location.
When it’s time to pick up the car, you enter their order number and a code provided by Carvana into a touch screen kiosk. The kiosk then dispenses a special coin, which you insert the coin into a slot. Then, the vending machine retrieves the car and presents it to you.
Check out our other auto loan reviews below to continue exploring your options.