Carvana is an online-only used-car retailer that started in 2012 in Tempe, AZ. It operates as both a dealer and a lender, working closely with Bridgecrest for financing options. Buyers can explore a vast selection of over 25,000 used vehicles, prequalify for financing, handle all the paperwork, and even have their car delivered or ready for pickup—all from the comfort of their own home.
Loan Basics And Eligibility
Looking for financing options for a used vehicle? Here’s what you need to know: Unfortunately, there are no options for new cars, private-party purchases, or refinancing. When it comes to loan amounts, you can borrow anywhere from a minimum of $1,000 to a maximum of around $125,000. As for the term lengths, they typically range from 12 to 72 months, with some options extending up to 78 months if you have a higher credit score. Now, regarding credit and income requirements, there’s no minimum credit score needed. Just make sure you’re at least 18 years old, have an annual income of $5,100 or more, and don’t have any active bankruptcies.
Interest Rates And Costs
Looking at the APR range, it varies from 3.9% to 27.9%. You can find this info on traceloans.com, bankrate.com, finder.com, and more. Typically, starting rates hover around 7.9% to 8% for those with good credit, as noted by consumervoice.org, bestmoney.com, and lendingtree.com. For borrowers with excellent credit, rates can be in the high single digits or even low teens, while subprime borrowers might face rates between 20% and 23%, according to bankrate.com. As for fees, there are no origination or application fees, but there is a $5 late fee if you’re 15 days past due. If you set up auto-pay, you can snag a $10 discount on your monthly payment, as mentioned on nerdwallet.com. Also, keep in mind that CarvanaCare add-ons, like warranties and gap insurance, are offered separately.
Application Process
Looking to get prequalified? It’s a breeze! Just a quick soft pull that takes about 2 minutes, and you’ll get your rate and payment estimate, which is good for 30 to 45 days. You can check it out on lendingtree.com, nerdwallet.com, and a few other sites. When you’re ready to shop for a vehicle, you can browse prequalified payments for each car. Plus, you have the option to either have it delivered or pick it up at one of those cool Car Vending Machines from carvana.com. Once you’ve picked your car, it’s time to finalize everything with a hard pull. You’ll submit a formal application and go through a hard credit check. Funding is managed by Bridgecrest, and you can usually expect the funds to be available within 1 to 2 days. And don’t worry about buyer’s remorse! There’s a 7-day/400-mile “test-drive” return policy, so if you need to return it, you’ll get a full refund. You can find more details on carvana.com, bankrate.com, and other sites.
Advantages
Experience everything online: Forget about those dealership trips; you can handle everything from prequalification to delivery digitally. Soft pull prequalification: Check out rates without affecting your credit score. Inclusivity: We welcome buyers no matter their credit score. Quick access to terms: Get immediate rates with a 30–45 day lock. Peace of mind: Enjoy a 7-day test drive and thorough 150-point inspections. Co-signer allowed: This can boost your loan eligibility and improve your rate. No prepayment penalty: You can pay off your loan early without any fees.
Drawbacks And Customer Complaints
Rates Aren’t Always Competitive Borrowers with solid credit scores have shared that they’re seeing APRs between 6% and 9%, while Carvana is offering rates that range from 20% to 23%. Users often find themselves refinancing shortly after to dodge those steep rates. B. Service & Title Issues Delays in documentation, mismanagement of titles, and registration problems have resulted in lawsuits and fines from states like Maryland. Customer service and delivery concerns have been highlighted in BBB reports and various reviews. C. Financing Only Through Carvana To take advantage of their financing, you must buy a car directly from Carvana; it doesn’t work with vehicles purchased elsewhere.
Real Customer Insights
Detect AI-generated content and transform it into something that feels more human with our AI Content Detector. Just paste your text, and you’ll receive accurate, relatable results in no time! Here’s the text we’re looking at: Convenience, but Watch Rates “We got pre-approved… Carvana offered us a 9.9% interest rate (with an 820 credit score). Bank of America came in at 6.72%, so we went with them.” reddit.com +3 reddit.com +3 reddit.com +3 “I have a credit score over 800, and they still hit me with 9.99%—I refinanced right away.” reddit.com ★ Worst Ratings for High APRs “23% interest on a Raptor with a 730 score… that’s not a good deal anymore.” reddit.com “Carvana’s APR is higher than anyone else’s… they profit more with those elevated rates.” reddit.com ★ Title & Delivery Problems Maryland is suing over issues with missing or delayed titles the-sun.com +1 en.wikipedia.org +1
Smart Tips If You Use Carvana Loans
When you’re prequalifying, don’t forget to shop around: Always take a look at other lenders like credit unions and banks. Keep an eye on the hard pull results: The final APR might be different from what you got during prequalification. Have a backup plan: Be prepared to walk away or refinance if the rate is too steep. Make use of the return policy: Take the car for a thorough test drive within the first 7 days. Stay on top of title and registration: Make sure the state paperwork comes through on time. Think about refinancing: If your APR goes above around 8-9%, it might be worth considering refinancing with a credit union. Keep a record of your interactions: Save all communications in case any issues pop up. And don’t forget to check for late-payment fees: There’s usually a $5 late fee with a 15-day grace period.
Carvana vs Other
