Skip to Main Content

Carvana: 2022 Auto Loan Review

2022-05-25 07:00:00

At a glance

4.2

Bankrate Score

  • Availability
  • Affordability
  • Customer Experience
  • Transparency
Compare auto loan rates
See Rates

About Carvana

  • Moneybag

    Loan amount

    Not specified

  • Credit Good

    Min. credit score

    Not specified

  • Rates

    APR from

    3.9%

  • Funds available in

    As soon as one day

Carvana features

Here’s a quick breakdown of what Carvana offers.  

PROS

  • Checkmark

    Good credit not required

  • Checkmark

    Money-back guarantee

  • Checkmark

    One-stop-shop

CONS

  • Close X

    Limited inventory

  • Close X

    Down payment

  • Close X

    Not available in all states

Carvana offers auto loans for all types of borrowers. It’s available to consumers looking to purchase a vehicle on Carvana’s website and have it delivered to their doorstep or using a “car vending machine” in their local area. You don’t need perfect credit to qualify for financing, and you can view potential loan offers with no impact on your credit score.

Pros and cons of Carvana auto loans

Pros

  • Good credit not required. You could be eligible for financing if you earn at least $4,000 annually and do not have any active bankruptcies — even if your credit score is low.
  • Money-back guarantee. You’ll have seven days to return the vehicle and walk away from the loan agreement without facing negative consequences.
  • One-stop shop. Carvana simplifies the process from start to finish by letting you shop for a ride, arrange financing and have your car delivered, all in one place.

Cons

  • Limited to Carvana inventory. Carvana auto loans can only be used for vehicles available for sale on Carvana’s website.
  • Down payment. You may have to make a non-negotiable down payment to purchase a new vehicle.
  • Not available in all states. Carvana does not provide auto loans to customers in Alaska or Hawaii.

Who is Carvana best for?

Carvana is a suitable option if you want to shop for your next car from the comfort of your home and handle the financing online. It’s also best for individuals who may not have good or excellent credit but need an auto loan with a competitive interest rate and affordable monthly payment.

The site also enables direct vehicle purchases for new or used vehicles in your area. If you are just beginning your vehicle buying journey, CarsDirect can be a good place to start.  

Types of auto loans offered

You can use a bank or credit union to finance your new or used car purchase — or streamline the process with financing from Carvana.

Auto loans for car purchases

Carvana features auto loan financing for new and used vehicles purchased on their platform. It’s available to borrowers with all credit types with interest rates as low as 3.9 percent. Even better, the loan terms are flexible, and you could get approved for financing and finalize your loan the same day.

Interest rates and terms

Carvana evaluates your credit history, income and vehicle purchase price to determine your interest rate and the loan term you’re eligible for. Its starting rate is 3.9 percent, with terms from 36 to 72 months.

How to apply for a loan with Carvana

You can get prequalified for an auto loan with Carvana on its website. It only takes two minutes of your time and won’t impact your credit score. If there’s a match, you will be able to view actual loan terms and monthly payments for the vehicles available for sale on the platform.

To prequalify you will need to enter your:

  • Name and contact details.
  • Residential address.
  • Birthdate.
  • Employment details.
  • Annual income.

Auto loan refinancing requirements

Carvana only lists the following qualification requirements:

  • Be at least 18 years old.
  • Have no active bankruptcies.
  • Make a minimum of $4,000 a year.

You’ll need to provide documentation, like a recent utility bill, loan statement or lease agreement, for address verification purposes. Carvana will also verify your income through your two most recent consecutive pay stubs, three most recent bank statements or Plaid.

Customer service

Carvana provides extensive customer support that goes beyond normal business hours to make your purchase as painless as possible. Support is available online and by phone from 8 a.m. to 10 p.m. ET. You can also text with a live advocate from 9 a.m. to 8 p.m. ET seven days a week.

How Bankrate rates Carvana

Overall Score 4.2  
Availability 3.8 Carvana requires you use its marketplace if you want to use its financing option. It also doesn’t offer more than new and used car loans.
Affordability 3.6 The minimum APR of 3.9 percent is fairly middle of the road, and it charges standard NSF and late fees. But its acceptance criteria is more flexible than other lenders.
Customer Experience 4.8 Carvana offers support seven days a week. It also has a large shopping window — 45 days — and full online access.
Transparency 4.5 While it allows prequalification and clearly lists all fees, Carvana doesn’t specify the maximum APR offered.
Editorial disclosure: All reviews are prepared by Bankrate.com staff. Opinions expressed therein are solely those of the reviewer and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in the review is accurate as of the date of the review. Check the data at the top of this page and the lender’s website for the most current information.
Written by
Allison Martin

Allison Martin’s work began over 10 years ago as a digital content strategist, and she’s since been published in several leading financial outlets, including The Wall Street Journal, MSN Money, MoneyTalksNews, Investopedia, Experian and Credit.com.