Carvana Auto Finance Review

Customers today are huge fans of one-stop-shops, where they can finish all they want in a single venue. Carvana is a company that offers just that. It's an online auto dealer that offers not only an array of used vehicles but also in-house financing.

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    Besides, you may get qualified without a hard inquiry, and there's a generous seven-day return policy. So, if you're considering getting a used car, consider Carvana. Let's take a look at what it has to offer.

    Carvana Financing Offers 

    If you're considering getting an auto loan from Carvana, start by completing a prequalification process. It is short and won't affect your credit scores. All you need to do is fill out a form, and you'll see the estimated financing terms.

    Prequalification lasts for 45 days. After you fill out the form, you have a month and a half to browse through cars and find one that meets your needs.

    Credit Score

    All credit types are welcome at Carvana. There isn't a minimum credit score requirement, although you need to meet their age and income minimums. Also, their maximum loan term is 72 months.

    Sell or Trade Old Cars

    There's also an option of selling or trading in your car. There's a form to fill with the information about your vehicle, and the site will give you an estimate. If they accept your car, you may trade it for any of the models mentioned above.

    Carvana Overview

    APR
    3.90%-27.90%
    Minimum requirements
    Min Income $10,000 / year
    Soft Credit Check
    Yes
    Availability
    48 States
    Late Fees
    Yes

    How Much Can You Borrow

    You can apply for a loan ranging from $1,000 and up to $1,000.

    What Type of Vehicles Are Eligible for Financing Loan?

    Remember that this company doesn't offer a lot of flexibility. It will only provide loans from its inventory of used cars. If you're looking for more flexibility, consider going elsewhere.

    The company boasts an inventory of over 10,000 vehicles. All you need to do is select one, choose financing terms, and fill out the paperwork - everything on a single website.

    he used vehicles sold by Carvana tend to be with low mileage. They also get inspected and come to the market with a history report. All cars are in a decent state, but you can't negotiate the prices.

    Carvana's selection of cars is broad, all the models being under five years old. You may buy:

    • Sedans
    • SUVs
    • Trucks
    • Minivans
    • Hatchbacks
    • Convertibles
    • Coupes
    • Wagons

    How Do I Qualify?

    Fill out the form on their site to check if you qualify or not. It's simple and won't take long.

    There are also several restrictions when it comes to buying at this company. First of all, they don't allow co-buyers. If you have a bankruptcy at the moment of an annual income of under $10.000, you can't qualify.

    What Personal Criteria Should I Meet to Get a Loan?

    You will need to prove residency in the country, earn at least $10,000 a year, be at least 18 years old, and have no existing bankruptcy.

    What Documents Should I Provide?

    You'll need to provide a few documents, including employment and income, as well as identification.

    Carvana Fees

    1. Late Fee: Yes. Keep up to date with payments to avoid this.
    2. Prepayment Fee: No. If you want to pay a larger sum one month, it's possible with no extra fees.
    3. Other Fees: There might be other costs depending on each individual case.

    What Is the Estimated Time for Pre-qualification and Loan Sanction?

    As mentioned, prequalification is straightforward, lasts for mere minutes, and doesn't affect your credit scores. All you need to share is your necessary information, and they will present you with a range of options to choose from.

    When you know the amount available for borrowing, use that information to browse the cars on the network. There are several helpful search filters to help you find the make, age, and model to your preference.

    Once you choose the car, apply for financing, and the keys to your new vehicle will be in your hands in a matter of days. However, remember that you need to submit a loan application once you choose your car, which triggers a hard inquiry.

    How to Apply for a Loan?

    The application process follows five simple steps.

    1. Visit the site, and you'll find the financing menu on the home page. From there, select 'Get Prequalified'.
    2. Fill out the form with the requested info - your name, annual income, date of birth, and full mailing address.
    3. Create an account with an email, phone number, and a password.
    4. Agree with the terms and conditions, which generates a soft inquiry.
    5. The estimated amounts, rates, and all other information will show on the screen.

    What Payment Methods Are Supported?

    A great feature is that, while the most common way of financing is through the company itself, you may also pay with funding from an outside lender or even cash.

    Can I View Loans Online?

    Yes, you should always be able to see the status of your loan. This means checking in to see when a payment is due and which have already been paid.

    Pros and Cons

    Pros

    • Worry-free protection. Carvana partnered with Experian AutoCheck to guarantee full transparency of the history of your car.
    • Competitive pricing. If you're shopping on a budget, this company is the way to go. Their prices go well below typical price ranges, even for used cars.
    • Return policy. If your car arrives and it doesn't meet your expectations, you may return it completely free of charge. Remember that this option is available for a week only.
    • Flexible financing. There are multiple loan options for financing your new car.
    • Bad credit-friendly. This company doesn't discriminate against those with poor credit scores, making it possible for almost everybody to get approved.
    • Wide delivery range. Carvana will deliver your car to 48 states, and even to Alaska and Hawaii if you pay the delivery.

    Cons

    • Quality concerns. This concern is common for buying a used car. Although the company will inspect all merchandise, damages can slip their mind, causing you to return the vehicle.
    • No professional assistance. In most dealerships, you'll find an expert who'll help you choose a vehicle in your best interest. In Carvana, you browse alone.

    Is Carvana Right for You?

    The company aims to cater to customers with a broad range of credit scores. So, if you had trouble getting loans from conventional dealerships, this lender is a good way to go.

    Those shopping for rates will enjoy the fact that the company performs only a soft inquiry, not lowering the credit scores.

    Get Financed

    At the moment, Carvana is one of the very few services that allow you to buy a car and have it delivered to your home. Its offers are generous, and the website straightforward. The guarantees are also trustworthy.

    So, if you're looking for convenience, go for the service. However, if you're feeling insecure, it may be best to visit your local dealership for a sounder deal.