Used car financing for all credit types.
|Product Name||Carvana Financing|
|Interest Rate Type||Fixed|
|Requirements||Age 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
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
How do I apply?
To get prequalified for a used car loan from Carvana, follow these steps:
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.
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.