Carvana used car financing review November 2018 | finder.com

Carvana used car financing review

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Finance your next car from the comfort of home.

Getting a car is an exciting but a time-consuming venture. Dealerships are often high-pressure environments with salespeople who are trained to push you into a purchase. And the sticker cost often won’t include the hundreds of dollars in extra fees that get tacked on once you’re ready to sign a contract.

Carvana is dedicated to making car shopping as easy as any other purchase and even provides financing for qualified applicants. Check out our guide for how to skip the sales pitches, what you need to qualify and what to look out for when comparing Carvana’s financing to other options.

Product NameCarvana Financing
Loan TermUp to 72 months
Loan SecuritySecured
  • Annual income of $10,000+
  • No active bankruptcies
  • Age 18 years or older

First, do I qualify?

Eligibility standards are straightforward, so you shouldn’t have much trouble determining if you meet prequalification standards. Here’s the basic eligibility criteria:

  • Be at least 18 years old. Depending on your state’s regulations on lending, you may need to be older.
  • Make at least $10,000 annually. You aren’t limited to strictly receiving income through employment, just be sure you can provide proof of income upon request.
  • No active bankruptcies. Past bankruptcies may be accepted.

What makes Carvana unique?

Carvana is trying to revolutionize car shopping. By providing a way to shop for a vehicle from the comfort of your home, it frees up time and effort that would otherwise be spent going from dealership to dealership weeding through sales talk.

Explore how car shopping on Carvana works

How does Carvana financing work?

Carvana offers car loans for its own inventory. Financing through Carvana isn’t offered for car purchases outside of its website. But if you find a car you’d like to buy on Carvana, you may be able to use another lender for financing if Carvana’s financing doesn’t meet your needs. Cash and most third-party financing are accepted in lieu of an in-house loan.

What are the benefits of Carvana used car financing?

Aside from the benefits of car shopping from home, there are some great advantages to financing through Carvana.

  • Financing available even if you don’t have the best of credit. Poor credit isn’t an immediate disqualification. Other standards must be met, but you won’t necessarily lose all hope of being funded if you’re building or rebuilding your credit.
  • Trade in for a down payment. Depending on the value of your current vehicle you could make a significant down payment simply by trading it in. You can also supplement a cash down payment with a trade in.
  • Determine financing based on your needs. Use Carvana’s financing tool to shape a deal based on the overall cost of financing, monthly payments or just how much you want to put towards a down payment.
  • Seven-day guarantee. Test drive your new car for up to seven calendar days with Carvana’s trial period. As long as you keep the car in the same condition it arrived in, don’t drive more than 400 miles and call by 5 p.m. Eastern time on the seventh day, you’ll be able to return the car. Racking up over 400 miles will cost you $1 for each mile over 400, but you can still return it.

What to watch out for

  • Limited time to accept loan offer. Any terms drawn up for you are only valid for 45 days. Credit offers change quickly, and this is a fairly common practice.
  • Free delivery is limited by location. Markets are mostly limited to the East coast, South and Midwest. Customers outside of the local markets can fly to one of the markets, have $200 of their airfare subsidized and drive home with their new vehicle. Or you can have it delivered at an additional cost.
  • Trade ins. It’s quite common to get less value when trading in your used car. You’re likely to get more bang for your buck by selling your car privately and taking that cash to use for a better down payment.
  • Not every imperfection on the car will be immediately visible. Carvana lists the top imperfections for each vehicle in its inventory and you get a 360 look at each car, but there are likely some dings that will go unlisted or unnoticed online. Thoroughly inspecting the car upon its arrival can potentially save you heartache down the line.

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Rates last updated November 13th, 2018

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Name Product Product Description Min. Credit Score Term of Loan Requirements
car.Loan.com Car Loans
Apply with a simple online application to get paired with a local auto lender. No credit and bad credit accepted.
300
Varies by lender
Must be a US citizen with a current US address and employed full-time or have guaranteed fixed income.
Auto Credit Express Car Loans
Get connected with an auto lender near you, even if you have bad credit.
300
Typically 3 to 6 years
Must be employed full-time or have guaranteed fixed income of at least $1,500/month and be a current resident of the US or Canada.
LightStream Auto Loans
Quick car loans from $5,000 to $100,000 with competitive rates for borrowers with strong credit.
Good to excellent credit
Flexible terms
Good or excellent credit, enough income or assets to afford a new loan, US citizen or permanent resident, 18+ years old
RateGenius Auto Loan Refinance
Connect with a network of over 150 lenders to refinance your car loan.
510
Varies
Income of $2,000+/month, vehicle has less than 150,000 miles, no older than 10 model years, loan balance is at least $10,000, debt-to-income ratio: less than 50%.
LendingClub Auto Refinancing
Lower your monthly car payments and save on interest through a fast and easy online application process.
Fair or better credit
Minimum of 2 years
Car must be less than 10 years old with fewer than 120,000 miles. Current loan must have a balance between $5,000 and $55,000 and at least 24 months left in its term.
MotoRefi Car Loan Refinancing
A car loan connection service for borrowers looking to refinance.
525
1–6 years
Must have an income of at least $2,000/month and have a vehicle with less than 100,000 miles.
LendingTree Auto Loans
Compare multiple financing options for auto refinance, new car purchase, used car purchase and lease buy out.
Good to excellent credit
Typically 1 to 7 years
Must be a US citizen and 18+ years old. Must have good to excellent credit.

Compare up to 4 providers

What will my interest rates be?

While the minimum and maximum APRs are not stated outright, you can use Carvana’s auto loan calculator to estimate your rates. Below we have two popular models with potential rates that vary by credit rating based on a fixed down payment and term.

What do customers have to say about Carvana?

Carvana, LLC is accredited by the Better Business Bureau (BBB), and has an A+ rating. Of the 23 customer reviews, 5 are positive, 2 are neutral, and 16 are negative. Each review has a response from a Carvana representative. Most complaints lodged have to do with delivery time and were taken care of shortly after the review was left.

Out of a possible 5 stars, Carvana received a composite score of 4.02. This is a weighted score, with the BBB Rating making up 67% while the Customer Review Rating makes up the remaining 33%.

How do I apply?

Remember that to successfully qualify for financing from Carvana you’ll need to make at least $10,000 annually, have no open bankruptcies and be at least 18 years old. To get pre-qualified, follow these steps:

Click Get My Terms! and within two minutes you should receive information about prequalification.

What documents do I need to apply?

The initial application only requires that you provide as accurate information as possible in the steps above. Once you’re ready to accept the terms and purchase a vehicle, you must provide several standard documents.

  • Driver’s license. Since you’re purchasing a car, you’ll need to provide a valid driver’s license under your name.
  • Proof of income. Documents such as pay stubs, bank statements or tax documents showing income are required as part of the underwriting process.
  • Bank account information. You can get this from your bank directly or from a check.
  • Title and registration of trade-in vehicle, if applicable. In order to process a vehicle trade you’ll need to provide proof that it is yours to trade.

I got Carvana used car financing. Now what?

You’ve got your car and you’re ready to hit the road, but there’s a few things to take care of. First off, you’ll need to make your down payment. ACH, cash, trade or a combination of the three can be used to settle the down payment, which is taken care of at the time of pickup or delivery.

GO Financial, which services the Carvana financing, will reach out around the 10th business day to make your monthly payments. You’ll need to make the first of your monthly payments 30 days after you receive your car.

Should you get your car and find that it’s not right for you, Carvana offers a seven-day money back guarantee. The seven days starts on the day you receive your car, and you must call no later than 5 p.m. Eastern time on the seventh day.

Bottom line

The days of facing scheduled dealership visits may be over. Online shopping has reached almost every part of our daily lives, and is stretching to the bigger, less frequent purchases. Carvana makes one of the logical leaps with car buying, and financing through them can be convenient and a time saver.

As with any financing decision, it’s important to compare your options before committing. Your local credit union, a bank you have an established relationship with or a separate online financing solution may provide you with a loan that better fits your needs, so don’t be afraid to look.

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