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Who is Carvana Best For?
Carvana is best for borrowers who want to find a used vehicle from the comfort of their home. The company offers an easy to navigate tool to find the car you're looking for, at the price point you can afford. Additionally, borrowers won't need to hit a minimum credit score to qualify.
However, if you want financing for anything but a used car, you won't be able to get it from Carvana. You can find other top companies in our best auto loans guide. You'll also only be able to use the loan offer you receive for a car from Carvana.
Carvana Auto Loans Details
Carvana offer auto loans in every US state except Alaska and Hawaii. You can qualify for a loan if you're 18 years or older, make $4,500 or more per year, and have no active bankruptcies. But you can only get a loan for a used car you purchase through the company. However, if you decide you don't like the car, you can get a refund for the price you paid for it, excluding any shipping or delivery charges.
Carvana Auto Loans Pros and Cons
Pros
- Seven-day money back guarantee. If you figure out that you don't like the car during the first seven days you have it, contact Carvana. You will be refunded the price you paid for the vehicle, excluding any shipping or delivery charges. You are allowed to drive the car up to 400 miles and can return it for any reason.
- Excellent customer support. Carvana offers customer support seven days a week, from 8 a.m. to 9 p.m. ET. To contact the company, call or chat with them on their website.
- No required minimum credit score. Instead of a minimum credit score requirement, Carvana has a different set of eligibility requirements. You must be 18 years or older (19 in Georgia), make $4,500 or more per year, and have no active bankruptcies.
- Can prequalify for a loan. You'll be able to see your rates before you confirm you want a loan. This makes it easier to shop around for various offers.
- Co-borrowers allowed in most states. Carvana currently allows coborrowers in AL, AZ, CA, CT, DE, FL, GA, IA, IN, KS, KY, MA, MD, ME, MI, MN, NC, NH, NJ, NM, NY, OH, OK, OR, PA, RI, SC, TN, TX, UT, VA, VT, WA, WI, and WV.
Cons
- Unavailable in Hawaii and Alaska. If you live in one of these two states, you won't be able to purchase a vehicle through Carvana.
- Only finances vehicles sold through Carvana. Unlike other lenders who allow you to use their financing at a variety of locations, you're only able to get a Carvana loan for one of its vehicles.
- Only used car financing available. If you want to get a new car, refinance a loan, or buy out a lease, you're out of luck. Carvana only offers financing for used cars.
How to Apply for a Carvana loan
Get prequalified. Go to Carvana's website and fill out the application to get prequalified for a loan. Information required will include your name, address, as well as details about your employment and income. There is no impact on your credit score at this point.
- Create a Carvana account if you don't already have one.
- Select a used car that you want from Carvana's inventory. If you prequalify for a loan, choose a car you're interested in that is priced in a range you can afford based on Carvana's offered loan terms.
- Submit a full loan application. Once you've selected a vehicle for purchase, Carvana will run a hard check of your credit, which will is likely to reduce your credit score temporarily, and finalize your loan offer terms. You also will probably need to provide documentation to verify your identity and income, such as paystubs or W-2 forms.
Carvana Frequently Asked Questions
Is Carvana Trustworthy?
Carvana currently doesn't have a grade from the Better Business Bureau as it updates its business profile. The BBB is a nonprofit organization focused on consumer protection and trust. It evaluates companies by looking at their response to consumer complaints, honesty in advertising, and openness about business practices.
The company was at the center of a controversy in which it allegedly sold customers cars without giving them the titles to the vehicles. A lawsuit filed against the Carvana claimed it failed to register cars in a timely fashion, sometimes for over two years. At points in time, the lender has had its license suspended in multiple states, including Michigan and Illinois.
Carvana's murky history and lack of a rating from the BBB may cause you to reconsider the lender. There are other lenders without a track record of controversy you may want to think about instead.
Is it Hard to Get Financed Through Carvana?
Carvana may actually be a lender that is slightly easier to qualify for than most. That's because it doesn't require a minimum credit score to apply — many other lenders do.
Does Carvana Have High Interest Rates?
Carvana's highest rate is pretty high compared to other auto loan lenders. However, if you have excellent credit, you may be able to qualify for its lowest rates, which are very competitive.
Carvana Competitors
Carvana vs. Chase Auto Loan - Product Name Only
Carvana has no set minimum credit score it considers when making loan decisions, while Chase has an undisclosed minimum credit score to qualify for its auto loans. It may be worth applying with Carvana even if your score is low. Chase offers loans for new and used cars, while Carvana only finances used cars in its inventory.
Carvana vs. PNC Auto Loans - Product Name Only
PNC doesn't disclose the minimum credit score it will consider for an auto loan, which Carvana doesn't have a minimum credit score to qualify for financing. PNC allows you to finance new and used cars, refinance your existing car loan, or buy out your lease. Carvana is limited to loans for the used cars in its inventory.
How We Rated Carvana
We rate all personal loan products in our reviews and guides on a 1-5 scale. The overall rating is a weighted average that takes into account seven different categories, some of which are judged more heavily than others. They are:
- Interest rate (20% of rating)
- Fees (20% of rating)
- Term lengths and loan amounts (15% of rating)
- Funding speed (15% of rating)
- Borrower accessibility (15% of rating)
- Customer support (7.5% of rating)
- Ethics (7.5% of rating)
Each category's weighting is based on its importance to your borrowing experience. Rates and fees have the most direct impact on the overall cost of your loan, so we weigh those the most heavily. Customer support and ethics are still very important parts of the borrowing experience, but do not directly tie to a personal loan's terms, so they have less of an impact on the overall rating.