Carvana: 2023 Auto Loan Review

• 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.

• 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.

The site also enables direct vehicle purchases for new or used vehicles in your area. If you are just beginning your vehicle buying journey, Carvana 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 6.85 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 6.85 percent, with terms from 12 to 72 months.

Carvana now offers the ability to add a co-signer 

Carvana recently unveiled the option for buyers to sign off on vehicle financing with a co-signer in 36 of the states where it operates, with the hope to expand further. An auto loan co-signer holds equal legal responsibility for paying off the vehicle without full ownership and can serve to achieve more competitive rates. 

It is an especially great option for younger drivers who are still working to build their credit, says Matt Dundas, Carvana’s director of finance. With both interest rates and vehicle prices steeper than usual, adding a co-signer can dramatically help costs. 

Dundas shares that, “It’s not uncommon to see the addition of a co-signer reduce monthly payments by over $100 per month, or down payments by over $1,000.” This can make it easier to afford a more expensive vehicle. But, co-signing is a big commitment, so before signing off consider the responsibility that comes with it.

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. 

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.