Carvana used car financing review January 2019 | finder.com

Carvana used car financing review

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Finance your next car from the comfort of home.

Carvana is dedicated to making car shopping as easy as any other purchase and even provides financing for qualified applicants. The whole process takes place online, and you can have your car delivered right to your doorstep when you’re finished. Just be sure you check for imperfections — and take advantage of the return policy if you find any.
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:

  • 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.
  • Be at least 18 years old. Depending on your state’s regulations on lending, you may need to be older.

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 to one website.

The exact amount you can borrow depends on your finances, credit and the vehicle you want to purchase. Loan terms last from 36 to 72 months. And when you apply, Carvana will not only give you your estimated down payment amount under the vehicle’s price, but also show you how taxes and registration will affect the total price.

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.

  • Accepts a variety of credit scores. 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.
  • 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.
  • Longer term to choose your vehicle. Once you’re preapproved for financing, you have up to 45 days to choose the car you want from Carvana’s large selection — better than most lenders that only offer 30 days.
  • 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. 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.

What to watch out for

  • Financing can only be used 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. This means you’re limited to Carvana’s selection when you want to buy.
  • 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.
  • 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.

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Rates last updated January 22nd, 2019

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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
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.
RateGenius Auto Loan Refinance
Connect with a network of over 150 lenders to refinance your car loan.
510
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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. As of January 2019, it has a little under 100 reviews that rate it at about two stars. There are over 150 complaints, but the details are hidden from view. However, the negative reviews mainly consisted of complaints about faulty cars and Carvana changing the price of down payments during the financing process.

It doesn’t fair much better on Trustpilot, earning only a 3.1 out of 10 from 30 reviews. Quite a few of the negative reviews were about Carvana’s lack of communication and changing pickup dates.

However, it’s still best to do your own research and reach out to Carvana yourself if you’re interested in borrowing. A few bad experiences don’t account for everyone, so take your time when determining if financing and buying from Carvana option is best option for you.

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 prequalified, follow these steps:

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

Explore how car shopping on Carvana works

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.

How do Carvana's vending machines work?

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.

And unsurprisingly, 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

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 28 to 30 days after you receive 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.

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 start on the day you receive your car, and you must call no later than 5 p.m. ET on the seventh day if you decide the car you purchased isn’t right for you.

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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2 Responses

  1. 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.

    • finder 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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