Carvana Review

When looking to buy a new car, one wants the process to be efficient yet thorough. Many folks hope for a quick and convenient experience these days. However, speed must not outweigh caution, especially for a sizable purchase. Enter Carvana and its novel approach aiming to satisfy both desires. This automated retailer sells used vehicles online, replacing traditional dealerships.

Customers choose their car remotely, and the company delivers it directly. While easing specific tasks, it naturally raises doubts about thoroughly inspecting a purchase without seeing it in person beforehand. Let’s explore how Carvana handles this balancing act in our Carvana review:

About Carvana

Carvana allows customers to browse their inventory, finance, purchase, and schedule vehicle delivery entirely online or via their mobile app. They aim to simplify the car buying process. Once a vehicle is purchased, Carvana delivers it directly to the customer’s home or designated delivery area. Customers can also opt for a seven-day return period to further ease the vehicle purchasing process.

Large selection of used vehicles

Carvana has an extensive selection of over 55,000+ vehicles available online at any given time. They offer a diverse range of makes and models, from economy cars to SUVs to trucks, with model years starting from 1992. Customers can search inventory by make, model, price, mileage, color, and other filters. Vehicles are acquired from both individuals and automobile auctions to build their selection.

Customers have the option to pay a fee for an optional extended warranty if desired as well. Carvana aims to provide consumers assurance through their vehicle certification process and return window. This allows customers to inspect vehicles in their driveway and replace them if anything is amiss.

Online virtual vehicle tours

Carvana utilizes high-quality photos and videos on its website to view vehicles safely without needing to physically visit a dealership during the ongoing pandemic. Customers can take in-depth virtual 360-degree tours of vehicles from all angles, both inside and out, using the photos and videos on the individual vehicle pages. This allows customers to inspect vehicles and see detailed images of any small blemishes, damages, or other identifying vehicle features before purchasing remotely.

Pros & Cons of Using Carvana:

What Do Customer Review Platforms Say About Carvana?

Any online review is incomplete if you don’t get to see a birdseye view of its customers’ experiences. So, we went ahead and accumulated the reviews about Carvana and compiled the overall consensus about them on different platforms. Let’s have a look:

The overall consensus about Carvana is average in all areas. Whether it’s buying, selling, trade-in, or their overall customer service, it’s not that great and not the worst either.

The average rating of the 5 platforms mentioned above is 2.944 out of 5, so you can imagine the level of value expected from Carvana.

How Does Carvana Work? - Buying & Selling

Selling Your Car Through Carvana:

Enter Vehicle Information

To sell your car, input your vehicle details on Carvana’s website or mobile app and receive an instant cash offer without negotiating or dealing with pushy salespeople face-to-face. You must provide:

• The car’s 17-digit VIN or license plate number
• Mileage
• Vehicle options
• Loan or lease details, if applicable
• Pickup ZIP code
• Email address

You’ll also have to complete a brief online condition questionnaire.

Schedule Pickup

If you accept Carvana’s cash offer for your vehicle, you can then schedule a convenient pickup date either at your home or at one of Carvana’s vehicle vending machines, which resemble large glass cubes.

This contactless process allows you to easily sell your car without having to drive it to a dealership lot.

Vehicle Inspection

After they’ve picked up the car, Carvana conducts a thorough physical examination to verify the details provided by the seller.

The technicians inspect the exterior and undercarriage for any damage, check engine components and fluid levels, and take the car for a test drive to assess its mechanical operation and overall roadworthiness.

Payment

Provided the car meets the described condition, Carvana promptly issues reimbursement within 24 hours via direct bank deposit or check. This assures fast and certain compensation for vehicles approved during the inspection step.

Buying a Car Through Carvana:

Browse Inventory

Carvana maintains an ample online car catalog that can be filtered by make, model, year, price, color, mileage range, and location to find the precise vehicle that fulfills your needs.

All autos in their stock have passed a rigorous multi-point inspection and undergone any necessary repairs by certified technicians.

Virtual Tour

Each vehicle listing on the Carvana website features detailed specifications, a condition report, and history documentation like Carfax.

More significantly, they provide high-definition 360-degree interior and exterior rotational views so customers can examine the exact car without physically being there.

Financing Options

Carvana collaborates with various lending institutions to facilitate affordable financing choices for qualified applicants. You essentially have three payment options:

• Finance with Carvana (chosen by about 80% of customers).
• Pay with cash using funds from your bank account.
• Self-arrange financing with another lender.

Test Drive

To actually experience the car, Carvana allows arranging a virtual test drive where a brand representative joins an online video call and virtually hands you the keys. They will guide you through the cabin and controls from afar so you become acquainted with all the features before deciding to buy.

Purchase

If satisfied after the virtual test drive, you finalize the buy online with Carvana’s transparent procedure devoid of any negotiations–the initially stipulated price is the final cost. The whole transaction, from browsing to delivery, is completed digitally.

Delivery

Upon a successful purchase, Carvana coordinates contactless delivery of the vehicle to anywhere within their operating vicinity, typically arriving within a few days. This circumvents the hassle of traveling to a dealership while maintaining social distancing during the ongoing pandemic.

7-Day Return Policy

For complete peace of mind, Carvana bestows a one-week return window. If the car is not up to your expectations following receipt, you can return it for a full refund within seven days of delivery. This novel approach redefines the traditional car-buying experience.

Warranty and Support

All Carvana vehicles include a powder-coat limited warranty to shield against any factory defects, covering certain repairs for up to 100 days. An assistance team is available to address any post-purchase issues or answer queries regarding ownership.

Additional Notes

Carvana Vending Machine Locations

Carvana has 39 locations ranging from major metro areas to smaller cities across the United States. This allows over 90% of the population to easily access their services. The company intends to continue broadening its national presence, with reports of 5 to 10 additional facilities opening each year. Their goal is to make the Carvana car buying experience readily available to even more customers nationwide.

These machines function similarly to regular vending machines, and numerous clients express satisfaction with this aspect of the Carvana car-buying journey. You will receive a unique coin to insert into a slot in order to retrieve your car. Subsequently, a customer service agent will present the vehicle to you and guide you through the entire procedure.

Carvana Payment Process and Financing

A brief overview of Carvana’s payment and financing options.

No Origination Fee

Carvana does not charge an origination fee when applying for financing. However, other purchase fees like tax, title, and registration may apply depending on your location.

Application Requirements

The initial application requires basic information like your address, email, birthdate, employment details, and income. After receiving a pre-qualification offer, your social security number will be needed to finalize the application process.

Pre-Qualification and Soft Credit Check:

Carvana allows potential buyers to pre-qualify for financing in about two minutes through a soft credit check. Any pre-approval is then valid for 45 days as an offer while the customer continues their vehicle search.

100% Online Application and Document Upload

The complete financing process, from approval application, can be handled completely online. You’ll need to digitally upload the required documents, like your driver’s license, proof of income, and proof of residence, through the Carvana website.

Rapid Loan Approval Times

On average, Carvana can provide a final loan approval within 2-3 minutes once the full application has been submitted, along with all necessary documents - much faster than the traditional dealership process.

Minimal Credit Requirements

Carvana aims to be inclusive with financing and does not have rigid credit scores or history guidelines like many lenders. They will still inspect each applicant’s full financial profile during underwriting.

Minimum Income and Debt-To-Income Requirements

To qualify, your gross monthly income should be at least $4,500. Carvana does not disclose specific debt-to-income ratio limits, focusing more on your overall ability to repay based on income, debts, and requested loan terms.

Vehicle Eligibility

You can get an auto loan through Carvana to purchase a vehicle from their inventory that is up to 10 years old and has less than 100,000 miles. This opens up more possibilities than other lenders that have stricter age or mileage filters.

Flexible Loan Terms

Loan lengths range from 12 to 72 months, with a minimum financing amount of $1,000 and a maximum of $100,000. Shorter terms lower monthly costs, while longer ones make high-priced cars more attainable.

No Penalty for an Early Payoff

Unlike many auto loans, there is no prepayment penalty fee if you pay off the loan balance in full ahead of the contracted maturity date. This provides you with some room for flexibility if your financial situation changes.

Discounted Monthly Payments with Auto-Pay

Setting up automatic payments on a monthly basis via your bank account or debit card saves you $10 on your loan payment each month. It’s a worthwhile perk for on-time payments.

Co-Signers Welcomed

If your credit is not quite strong enough on its own, Carvana will allow co-signers to help you qualify for a loan. This shares the responsibility and risks between the borrower and co-signer.

Reasonable Late Payment Policy

Payments are due every month on the same date. You receive a 16-day grace period before a $5 late fee is assessed. This provides a buffer compared to many lenders that charge fees much sooner.

Weekly or Bi-Weekly Payment Options

In addition to standard monthly payments, Carvana offers the flexibility to pay your loan balance weekly or every other week. This helps structure payments to your expected pay schedule.

Servicing by Bridgecrest After Closing

While Carvana handles the application process, the servicing (payments, customer support) is transferred to Bridgecrest Auto Loan upon loan approval. Carvana still provides some support as the original lender.

Extensive Availability for Applications

Whether you want to start the process very early in the morning or late at night, Carvana’s application portal is available daily from 7:00 am through midnight. This wide window accommodates varying schedules.

Multiple Servicing Contact Options

After closing, Bridgecrest provides support through phone, email, and your online loan account portal. Between various channels, you have several easy ways to make payments, check balances, and get answers to questions as needed.

Carvana’s Pickup and Delivery Process:

Pre-Appointment Communication

Before the big day, a Carvana Advocate will call to review logistics and handle any preliminary questions.

During this brief phone conversation, customers are asked to send over a selfie holding their driver’s license to further verify their identity. This simple step adds an extra security layer.

When You Arrive

When customers arrive at the designated meeting spot, the Carvana team is ready to get the ball rolling.

The Advocate will provide a walkthrough of the vehicle’s features and give customers time to do their own visual _inspect_ion of both the interior and exterior.

They can check for any imperfections or issues. The vehicle is guaranteed to have at least half a tank of fuel or be half charged for an electric car.

Paperwork and Payment

With the vehicle looking good, it’s time to wrap things up with documentation.

Carvana strives for complete transparency throughout its pickup experience. A thorough walkthrough and inspection time make customers confident about their purchase.

Carvana’s Vehicle Backing:

The day of pickup kicks off a 7-day, 100% money-back option. This gives buyers a full week to truly test out their new car within the comfort of their own routine.

It’s features like this unique guarantee help establish Carvana as a trusted brand within the online used car industry.

Their commitment to customer satisfaction truly shines through every step of the pickup and delivery process.

Carvana Used Car Prices

As of 2024, these are the prices of different used vehicle models on Carvana. These listings may get taken down at a later date but this price table will give you a good idea of what kind of car prices to expect from Carvana:

Can You Negotiate Car Prices with Carvana?

No, they do not negotiate the price. However, they do drop the price, typically in the case that the car has been sitting for a long time. Here’s an example of a price drop:

They dropped $600 on each vehicle and may drop further if these vehicles sit for longer. But at the time of writing this, Carvana doesn’t negotiate with its customers.

Who Can Benefit From Carvana?

Anyone who doesn’t have time to visit dealerships, haggle with pricing, or handle every hassle that comes with buying or selling a car can try Carvana. Nevertheless, the reviews about them online are just average.

Plus, it’s not BBB-accredited, either. So we suggest you try talking to their support a few times and see their response. And compare prices with other online sellers and your local dealerships and see if it’s worth the effort.

Carvana Frequently Asked Questions:

Is Carvana a Good Place To Buy a Car?

Carvana allows potential buyers to inspect vehicles without sales pressure. Their online platform shows cars from various angles so you can get a good look before deciding. While the online car buying process may seem unusual, most who buy from Carvana say it is straightforward and convenient. Customers can test-drive vehicles risk-free for seven days before committing to a purchase. This review period gives buyers confidence they are choosing a car that suits their wants and needs. Overall, reviews suggest Carvana is a good option for those seeking an alternative to traditional dealerships willing to buy sight unseen with their certified and guaranteed vehicles.

Is Carvana a Good Place To Sell a Car?

Carvana may provide an easy process for those needing to sell their current car without the hassle of a lengthy private sale. They will inspect your vehicle, provide an offer within minutes, and schedule pickup online without you having to leave your home. Most Carvana reviews note the selling price as fair for their vehicles’ condition and mileage compared to trade-in values offered elsewhere. While you may be able to squeeze out a few more dollars selling privately, Carvana takes care of everything swiftly if speed and convenience are priorities over maximizing your sell price.

Does Carvana Give Good Offers?

Customer feedback on Carvana’s purchase offers is mixed. Some report getting competitive interest rates and affordable monthly payments. However, dissatisfied customers commonly voice Carvana financing rates are higher than average, and terms could be reconsidered. It’s wise to compare multiple loan options from lenders other than Carvana before deciding. As for sell offers, Carvana reviews generally agree appraisals are sensible for a vehicle given its inspection. Getting extra evaluation estimates is wise before finalizing a private or dealer sale to be certain of fair market value.

Should I Sell My Car to Carvana?

Carvana may be worthwhile for a speedy and simple sell process handled entirely online. Their policy to pick up vehicles promptly after purchase also avoids leaving sellers without transportation. Those with high-demand trucks or sports cars could likely make more money from a private party sale with some extra effort. The potential for a better price must be weighed against convenience. Based on Carvana’s review feedback, it’s a reasonable option for those needing to sell with haste that offsets a marginal difference in sell value.

Is Carvana legit?

Carvana has legitimized online used car sales since starting in 2012. Over the past several years, they have completed hundreds of thousands of purchases and continue growing each quarter. Customers generally agree the Carvana business model works smoothly for browsing, inspecting, purchasing, and financing vehicles without the stress of traditional dealers. The company is publicly traded and properly licensed to operate as an independent used vehicle retailer in most states across the U.S. Based on its many ongoing Carvana reviews from satisfied buyers and sellers, it seems to run a respectable and genuine business.

Why are Carvana financing rates so high?

Some Carvana reviews suggest their vehicle loan interest levels tend to be higher than rates offered by local credit unions or banks. As an independent car retailer, Carvana likely receives worse terms from lenders than franchised dealerships with established relationships. They may also factor more risk into subprime loans and charge slightly more to cover the processing costs of online vehicle transfers across state lines. However, rates are still competitive for those with fair or poor credit scores who have limited alternative financing options. Refinancing through local lenders after a period of on-time payments may save money in the long term.

Can you refinance a car with Carvana?

Yes, Carvana offers customers who purchase vehicles through them the ability to refinance their auto loans after establishing a good payment history, typically within 3 to 6 months. Refinancing can help lower the interest rate and monthly payments on the remaining car loan balance if the buyer’s credit score has improved. Many Carvana reviews say this led to meaningful long-term savings versus the original financing terms. It allows customers to explore better refinance deals without going elsewhere and transferring vehicle ownership, creating an overall convenient refinancing process through Carvana.