Carvana used car financing review June 2019 | finder.com

Carvana used car financing review

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Carvana Financing

Used car financing for all credit types.

Carvana is moves the whole car-buying process online — you can even have your car delivered to your door. Just be sure you check for imperfections — and take advantage of the return policy if you find any.
Product NameCarvana Financing
Interest Rate TypeFixed
RequirementsAge 18 years or older, annual income of $10,000+ and no active bankruptcies
  • 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:

  • Annual income of at least $10,000
  • No active bankruptcies
  • At least 18 years old

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.

How does Carvana financing work?

Carvana offers car loans for its own inventory. These work just like a loan you’d get from a bank or dealership but provide a convenient way to keep your whole purchase on one website. The exact amount you can borrow depends on your finances, credit and the car you want to purchase. Loan terms last from 36 to 72 months.

When you apply, Carvana gives you your estimated down payment amount under the car’s price, and show you how taxes and registration will affect the total price. You can also trade in your car — which can cut a huge chunk out of the final cost of your car.

You can’t use Carvana financing to buy a car 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 options don’t meet your needs.

What will my rate 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 borrowers have to say about Carvana?

Carvana has mixed online reviews. It’s accredited by the Better Business Bureau (BBB) and has an A+ rating as of June 2019. But just over 150 customer reviewers give it an average of about 2 out of 5 stars. It fairs slightly better on Trustpilot, earning a 7.4 out of 10 from over 550 reviews.

What reviewers liked

The few positive reviewers were grateful for the quick experience and had no problems with their vehicle.

What reviewers didn’t like

Several customers complained about Carvana’s lack of communication, how it changed pickup dates and that their vehicle was poor quality. Some also complained about Carvana changing down payments during the financing process or faulty cars.

What are the benefits of Carvana used car financing?

  • Most credit types welcome. While you still have to meet its minimum eligibility criteria, you can still get approved if you’re building or rebuilding your credit.
  • 45-day preapproval. You have up to 45 days to choose the car you want from Carvana’s large selection — most lenders that only offer 30 days, if they have preapproval at all.
  • Seven-day guarantee. Test drive your new car for up to seven calendar days with Carvana’s trial period.

How Carvana’s seven-day guarantee works

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. ET 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.

The seven days start on the day you receive your car. The delivery fee is also nonrefundable and you’ll have to pay for any excess mileage.

What to watch out for

  • Financing only for Carvana. While you can use a loan from a different lender to finance your purchase at Carvana, you won’t be able to use Carvana financing at a different dealership.
  • Free delivery limited by location. Markets are mostly limited to the East coast, South and Midwest. Customers outside of the free delivery range can choose to fly Carvana will cover $200 of your airfare, and you can drive home from there. Or you can have it delivered at an additional cost.
  • Imperfections may not 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.

Case study: Kellye’s experience

profile pic

Kellye Guinan
Writer/Editor

After a year and a half writing about car loans, I’d come to one conclusion: It’s a complex process that shouldn’t be taken lightly. Carvana offered easy, step-by-step instructions and a decent rate for someone without much credit history.

Securing my financing took maybe 30 minutes, and after scanning in some documents, I was approved. A Carvana representative gave me a quick call, verified my info, then confirmed my car drop-off date. During the seven-day return period, I had it looked over by a trusted mechanic and was good to go.

Overall, my experience with Carvana was positive. My monthly repayment is affordable, my car drives well and I feel like I was treated fairly during the buying and financing process. I would recommend Carvana to younger borrowers without a solid credit history, especially if you want to avoid a salesman.

However, you give up your ability to negotiate your price and APR that you’re quoted. If you want to get the best deal possible, it may be worth finding financing ahead of time and stopping by a dealership to whittle down the sticker price.

Compare more car loan providers

Updated June 24th, 2019
Name Product Filter Values Minimum Credit Score Loan Term Requirements
300
Varies by lender
Must be a US citizen with a current US address and employed full-time or have guaranteed fixed income.
Apply with a simple online application to get paired with a local auto lender. No credit and bad credit accepted.
600
Varies by lender
Fair to excellent credit, an income source, US citizen or permanent resident, 18+ years old
Find an offer and get rates from competing lenders without affecting your credit score.
300
Varies by lender
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.
Get connected with an auto lender near you, even if you have bad credit.
Good to excellent credit
2 to 7 years
Good or excellent credit, enough income or assets to afford a new loan, US citizen or permanent resident, 18+ years old
Quick car loans from $5,000 to $100,000 with competitive rates for borrowers with strong credit.
Fair or better credit
From 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.
Lower your monthly car payments and save on interest through a fast and easy online application process.
510
Varies
Income of $2,000+/month, vehicle has less than 150,000 miles and is no older than 8 years, loan balance is between $10,000 and $100,000, debt-to-income ratio is less than 50%
Connect with a network of over 150 lenders to refinance your car loan.
Good to excellent credit
Varies by lender
18+ years old, good to excellent credit, US citizen
Compare multiple financing options for auto refinance, new car purchase, used car purchase and lease buy out.

Compare up to 4 providers

How do I apply?

To get prequalified for a used car loan from Carvana, follow these steps:

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

What documents do I need to apply?

Once you’re ready to accept the terms and purchase a vehicle, you must provide several standard documents:

  • Driver’s license
  • Proof of income
  • Bank account information
  • Title and registration of trade-in vehicle, if applicable

I got Carvana used car financing. Now what?

Once you’ve been approved for financing, you can buy the car you’ve been looking at or use Carvana’s 45 day preapproval term to browse its selection.

1. Pick your car

From there, you’ll start the buying process — typically just a few minutes — and get everything finalized with a call from a Carvana representative. Depending on the value of your current vehicle, you could make a significant down payment simply by trading it in. If you’re within a delivery area, a Carvana representative will inspect your trade-in on the delivery date.

2. Get your car

Carvana takes care of registration, so when your car is delivered, it will come with temporary plates. Your official plates will come in the mail about 30 days later.

How to pick up your car from a Carvana vending machine

Besides its online buying process and seven-day return policy, one of the biggest things that sets Carvana apart from traditional car-buying options is its car vending machine.

It works like just about any other vending machine. After you purchase your vehicle, you can schedule a pickup time and location that’s convenient for you. Once you arrive, you’ll receive an oversized coin for the vending machine, which will then bring your vehicle down to the delivery bay where you can finalize the process. It only takes a few minutes, but you’ll have to be within driving distance of one of Carvana’s 17 vending machines, located in:

  • Birmingham, AL
  • Tempe, AZ
  • Jacksonville, FL
  • Orlando, FL
  • Tampa, Fl
  • Atlanta, GA
  • Indianopolis, IN
  • Gaithersburg, MD
  • Charlotte, NC
  • Raleigh, NC
  • Warrensville Heights, OH
  • Philadelphia, PA
  • Nashville, TN
  • Austin, TX
  • Frisco, TX
  • Houston, TX
  • San Antonio, TX

3. Start repayments

Bridgecrest, 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 28 to 30 days after you receive your car.

If you have any questions, reach out to customer service at 800-333-4554. Or, log into your account to live chat between 8 a.m. and 9 p.m. ET for more personalized service.

Bottom line

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.

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4 Responses

  1. Default Gravatar
    AlishaMay 29, 2019

    Can I purchase with a state I.d or do it have to be a valid drivers license? Also can I use a prepaid card for purchase

    • Avatarfinder Customer Care
      BellaMay 30, 2019Staff

      Hi Alisha,

      Thanks for your inquiry.

      As I checked, if you’re purchasing a car, you’ll need to provide a valid driver’s license under your name. You may contact Carvana directly at 1.800.333.4554 to inquire for alternative ID’s that you may use in purchasing a vehicle. While I’m unsure what type of prepaid card you have, as per Carvana, credit cards can’t be used to make a down payment. Downpayment must be made all at once using cash, ACH, trade or a combination of the three.

      I hope this helps.

      Kind regards,
      Bella

  2. Default Gravatar
    MasoodNovember 24, 2018

    Does Carvanna finance for first time buyers who has no credit history but has a substantial annual income above 30000 and offer financing with zero down.

    • Avatarfinder Customer Care
      nikkiangcoNovember 30, 2018Staff

      Hi Masood,

      Thanks for getting in touch! As per our page, the eligibility standards of Carvana are:

      -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.

      As a friendly reminder, review the product disclosure statement of the product and contact the lender should you need any clarifications about the loan. Hope this was helpful. Don’t hesitate to message us back if you have more questions.

      Best,
      Nikki

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