Carvana: 2023 auto loan review

Do you qualify? 

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 $4,500 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.

Carvana versus Shift

Both online shopping platforms offer a seven-day money-back guarantee and coverage options to protect your investment. However, while Carvana's loan terms start at an unusually low 12 months, Shift’s minimum is a more conventional 36 months. 

Additionally, you can avoid delivery fees by picking up your vehicle from a Carvana car vending machine. That’s not an option Shift offers. But, while Carvana requires you to pay a down payment to buy a car, it may be optional with Shift. See our full Carvana vs. Shift comparison for more details.

Carvana versus CarMax 

Like Carvana, CarMax offers a convenient online shopping and financing experience. Both feature options for consumers with varying credit backgrounds, and you can get prequalified with no impact to 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 money-back guarantee (capped at 1,500 miles) 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.

What we like and what we don’t like

Carvana simplifies the car-buying process, but there are limitations to consider. 

Pros

• Good credit not required. You could be eligible for financing if you earn at least $4,500 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.
• APR ranges not disclosed. Prospective borrowers must get prequalified to view interest rates and terms. You can do that without hurting your credit score, but it’s still an added step.

How to contact Carvana

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.

Auto loan types offered 

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

Used car loans 

• Amounts: Not specified
• Terms: 12-72 months
• APR: Not specified

Carvana features auto loan financing for used vehicles purchased on their platform. While Carvana doesn’t list a funding amount range on its website, its chatbot stated Carvana’s loans can be used to finance any vehicle for sale on the site at any price.

Their loans are available to borrowers with all credit types as long as you make at least $4,500 per year, have six or more months of credit history and don't have active bankruptcies. Even better, the loan terms are flexible, and you could get approved for financing and finalize your loan the same day.

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.

If you plan to sign off on financing 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. 

Features and additional perks

Some borrowers who enroll in autopay are eligible for a discounted interest rate. Another key benefit is the accessibility of the customer support team — you don’t have to pick up the phone to get the assistance you need since it’s also available by chat or text.

Additionally, like many car-selling websites, Carvana has a return policy. You can return the car within seven day 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). 

Fees and penalties

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. Some cars also include free shipping, which is disclosed in the listing. 

You’ll also face fees for late payments or having insufficient funds in your account.

Carvana FAQs 

How Bankrate rates Carvana