Is Carvana Legit?

Nowadays, you can purchase almost anything online, from groceries and clothes to plane tickets and wedding rings. Why wouldn’t you try buying a car online?

You may think that a car is too big of an investment to buy online without seeing it in person. But Carvana is known to be one of the fastest-growing businesses in the used-car dealing industry. Selling used cars is nothing new, but selling them online is a bit of a novelty.

But is Carvana legit?

How Reliable Is Carvana?

Carvana is a legit company based in Arizona. If you’re worried about paying for a car in advance and then never getting it, that’s not going to happen. The delivery may get delayed, but once you sign a contract with Carvana, the car is yours, and the company will deliver it. You can also pick it up yourself in particular cities if you’re unsure about the delivery.

According to the customer reviews on websites such as Trustpilot, people usually have a pleasant experience with Carvana and are happy with the car they’ve bought. However, you may stumble upon some bad reviews coming from customers who received their vehicles damaged or dirty. The customer care team tries to reply to the negative comments and fix possible issues, although clients also complain about their lack of communication.

What Are Carvana’s Advantages?

Carvana provides car loan options for their customers. Many lenders require your credit report before they approve your application, so you may be worried about your credit score. However, Carvana’s financing options can accommodate even those who have bad credit.

Still, if you have a good credit score, it will affect your monthly payments and APR. You can check Carvana’s online calculator to get an idea about your monthly installments.

Also, no need to worry about hard credit pulls to be pre-approved. It’s only required for the final approval. After you apply, you will know if you’re pre-approved in a few minutes. As for the fees, you are only charged late fees – no prepayment or application fees are applied.

You can sell your old car to Carvana if you agree with the price they designate, even if you’re not purchasing a new one. Just be careful if you are – in case you’re still pay off the car to another lender, you need to close that loan before you trade the vehicle in.

Last but not least – there’s no negotiating. You may find it exhausting to go through this when buying a car the traditional way. With Carvana, you finish more than half of the process online, and you skip the endless talk to a salesperson. That also means that you can’t get the car for a lower price.

How Carvana Works

Say you’ve decided to buy a used car via Carvana. What does the process look like?

The basic requirements for you to qualify for Carvana car financing are the following:

You must be at least 18 years old.
Your annual income must be at least $10,000.
You mustn’t have any active bankruptcies.

After you browse through Carvana’s shop and find the car you like, you submit an online application. The value of the vehicle you can purchase will depend on your credit score, income, and down payment. Carvana will calculate the approximate amount of down payment you need for the desired car, as well as the taxes and registration costs, along with the interest rates.

When Carvana pre-approves your application, you have 45 days to choose a car if you haven’t already done so. Even after you officially buy it, you have the right to change your mind. There’s a seven-day trial period when you can test the car and determine if it’s a good fit or not.

To return the car, it must be in the same condition it was delivered in, and you can’t drive more than 400 miles. Also, you need to notify Carvana that you want to return the car by 5 PM on the seventh day at the latest. Note that you can return it if you exceed the 400-mile limit, but you have to pay $1 for each mile over the limit.

After you return the car, you receive a refund of your down payment, but the delivery fee is nonrefundable. Unless, of course, you live in the free delivery range.

You can choose another lender to finance your Carvana purchase, but you can’t use Carvana’s financing options to buy a car elsewhere.

Be Careful

Carvana is legit, but you should still be careful and read the fine print. Pay attention to all the details of your contract and make sure everything’s clear before you sign. Use the trial period to test your car and see if that’s what you’ve been looking for.

Have you been planning to buy a used car via Carvana? Do you already have experience with them? Let us know in the comments section below.