At a glance
- Availability
- Affordability
- Customer Experience
- Transparency
About Carvana
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Loan amount
Starting at $1,000
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Min. credit score
No minimum
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APR from
7.95%-27.95%
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Funds available in
As soon as one day
Carvana: 2024 auto loan review
Published 2024-07-23 13:00:00
Written by
Edited by
Carvana auto loans are best for shopping from home
Carvana lets you skip the car lot and hours of paperwork at the dealership. Instead, you can take advantage of a seamless shopping and application process from your couch. Carvana may also be a good fit for people who lack good credit or a strong income but need an auto loan.
Types of car loans that Carvana offers
You can finance your used car purchase through a bank or credit union, or you can streamline the process with financing from Carvana.
| Used auto loans | |
|---|---|
| APR | 7.95%-27.95% |
| Loan amounts | From $1,000 |
| Loan terms | 12-72 months |
Used auto loans
Carvana features auto loan financing from Bridgecrest for used vehicles purchased on its platform. Many details about its loans are not spelled out on its website. In an email, a Carvana rep stated the maximum funding amount and loan term is based on each customer's credit. Customers with "higher credit" could receive terms up to 78 months.
Carvana's starting annual percentage rate (APR) of nearly 8 percent is unimpressive compared to top lenders. If you have excellent credit, you might find better rates elsewhere. However, since Carvana accepts outside financing, you can prequalify with other lenders and see whether they or Carvana offer you a better rate.
Where Carvana stands out
- Money-back guarantee: Like many car-selling websites, Carvana has a return policy. You can return the car within seven days after driving it up to 400 miles and get your money back, minus shipping charges. It also offers a free limited warranty for the first 100 days or 4,189 miles, whichever comes first.
- Range of credit accepted: Carvana does not have a minimum credit score requirement. While this does not always mean bad-credit borrowers can receive acceptance. In this case, a range of borrowers can qualify. You could be eligible for financing if you earn at least $5,100 annually and do not have any active bankruptcies.
- One-stop shop: Rather than having to navigate the vehicle shopping process and secure financing, Carvana streamlines the two. Borrowers can shop for a ride, arrange financing and have their car delivered all in one place.
Where Carvana falls short
- Limited inventory: Unlike traditional auto loan lenders, where your loan can be used almost anywhere, Carvana only offers financing for vehicles for sale on its site.
- Down payment: Although adding a down payment can dramatically reduce your auto loan costs, it rarely is a qualification. Carvana, though, requires borrowers to make a nonnegotiable down payment to purchase a vehicle.
- Potentially high fees: Shipping and delivery fees apply when you choose to purchase and finance with Carvana. However, you can avoid the latter by choosing to have the vehicle delivered to a Carvana location or vending machine where you can pick it up.
Carvana customer experience
Customer support
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 7 a.m. to 1 a.m. ET. You can also text with a live advocate from 9 a.m. to 10 p.m. ET, seven days a week.
Digital experience
One of Carvana’s most stand-out features is its online presence. Buyers can easily shop vehicles by make, model or keyword. The site also highlights popular vehicle styles on the front page, which can make it easy to shop for in-demand cars all in one place.
Finally, the chat function on the site allows customers to ask questions or sign up for personalized recommendations on price changes and new arrivals.
What people are saying about Carvana
Carvana, as a whole, boasts a fairly high score on Trustpilot, 4.3 out of 5 stars as of July 17, 2024. Many reviewers share how the ease touted by the company seemed too good to be true, but the experience was truly seamless.
Here’s what one pleased driver shared:
“I will never, ever deal with a traditional dealership again. In addition to Carvana, I explored a dealership to sell my vehicle and it was an awful experience ending in an insulting offer and waste of my time. Carvana on the other hand provided a fair offer supported by KBB, an easy process to make the transaction and timely payoff of my existing loan and payment directly to my bank account. What a truly remarkable experience. Thank you!”
Several negative comments center on delays and deposits. There are reports of deliveries and appointments being late or missed, and some users expressed frustration over the process for putting down a deposit.
Outlinked content may contain views and opinions that do not reflect the views and opinions of Bankrate. Please see the issuer’s website for updated terms and conditions.
How this lender compares
While Carvana is a good fit for borrowers who know the vehicle they want and prefer solo shopping, it’s best to compare other auto loan rates with more variety in their products.
Carvana vs. CarsDirect
While CarsDirect, an online car shopping platform and online broker, won’t deliver your car to your doorstep, it’s a comparable option. The platform has an extensive lender network, which makes it a solid choice for those with bad and fair credit. However, Carvana is more seamless for those who prefer a fully online experience.
Carvana vs. CarMax
CarMax offers a convenient online shopping and financing experience similar to Carvana's. Both feature options for people of all credit backgrounds, and you can get prequalified with no impact on your credit score. The two offer similar limited warranties — CarMax’s lasts 90 days, while Carvana’s stretches to 100 days.
But there are some key differences to be aware of. CarMax offers brick-and-mortar locations if you prefer an in-person shopping experience. Plus, CarMax’s 30 day/1,500 miles money-back guarantee is much longer than the seven days/400 miles Carvana provides. If you want more time to fall in or out of love with your car, Carmax might be a better choice.
Do you qualify for a Carvana auto loan?
You must live in the contiguous U.S. to shop through Carvana — it doesn’t operate in Alaska or Hawaii. Carvana only lists the following qualification requirements:
- Be at least 18 years old.
- Have six months of credit history.
- Have no active bankruptcies.
- Make a minimum of $5,100 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 and three most recent bank statements or Plaid.
How to get a Carvana auto loan
Borrowers can secure loan prequalification with Carvana directly on its website. It should only take two minutes, and because it is a soft credit pull your credit score will not be affected. If there’s a match you will then be able to view actual loan terms and monthly payments for the vehicles available for sale on the platform.
If you plan to apply with the help of a co-signer, simply input their information on the first application page. Your co-signer must also be present for vehicle pick up or delivery.
How Bankrate rates Carvana
| Overall score | 4.3 | |
|---|---|---|
| Availability | 4.0 | Carvana requires you to use its marketplace if you want to use its financing option. |
| Affordability | 3.6 | Carvana has unimpressive APRs. But its acceptance criteria is more flexible than other lenders. |
| Customer experience | 5 | Carvana offers support seven days a week. It also has a large shopping window — 45 days — and full online access. |
| Transparency | 4.5 | Carvana allows prequalification and clearly lists almost all of its rates and fees. |
Methodology
Bankrate's trusted augo loans industry expertise
57
years in business
37
lenders reviewed
18
loan features weighed
666
data points collected
The Bankrate team assessed more than 35 auto lenders to find the best. Bankrate considered 18 criteria, such as acceptance criteria, loan amounts and APR range. These scores are broken into four categories.
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
Rebecca Betterton
Writer, Auto Loans and Personal Loans
Rebecca Betterton, a Certified Financial Education Instructor℠, is a writer for Bankrate who has been reporting on auto loans since 2021.
