Carvana is an online used car retailer providing financing options tailored to shoppers across all credit profiles. Competitive loan rates and flexible terms accompany the innovative online car buying experience.
Introduction to Carvana
Founded in 2012 and headquartered in Arizona, Carvana pioneered online used vehicle sales coupled with home delivery or instant pickup. The company eliminates the traditional dealership experience by allowing customers to purchase quality used cars completely online.
Along with used vehicle inventory of over 20,000 vehicles nationwide, Carvana also connects approved shoppers with lending partners to finance purchases with loan offers matching their financial situation.
Carvana Auto Loan Options
Carvana finances used car purchases through lending partnerships focused on near-prime and non-prime borrowers. Loan details include:
Used Car Loans
- Undisclosed maximum amounts
- Terms from 12 to 72 months
- Interest rates start at 6.85% APR
By considering more than just credit scores, Carvana helps expand auto financing access. Loan terms as low as 12 months better match budget realities as well.
Qualifications for Carvana Auto Financing
Carvana offers auto loans to shoppers across all credit profiles. The published eligibility standards require:
- Minimum age of 18 years old
- Minimum $4,500 gross annual income
- 6+ months of credit history
- No active bankruptcies
While minimum credit scores aren’t disclosed, the focus on total financial profile allows more flexibility than traditional prime lenders. You start the process by getting pre-qualified online with no credit score impact.
READ ALSO: Overview of PenFed Auto Loans
The Carvana Online Financing Application Process
The Carvana auto loan application process is simple:
- Select vehicle and customize preferences
- Provide personal details for customized loan terms
- Finalize purchase and financing details
Carvana offers loan pre-qualification and decisions quickly through their online platform. Once approved, loans can fund and vehicles ship as soon as the next day.
Additional Perks of Carvana Auto Financing
Along with easy online applications, Carvana auto loans offer:
- Discounted rates when enrolled in autopay
- 7-day/400 mile money back guarantee
- Free limited warranty for first 4,189 miles
So not only is purchasing easy, but financing through Carvana provides flexibility and protection after driving the vehicle home.
How Carvana Compares to Other Lenders
CarMax – CarMax provides similar online buying experience combined with special financing offers. But less flexibility for borrowers through max terms of 72 months and vehicle return policy differences.
Shift – Another online used retailer with home delivery but fewer vehicle protections included versus Carvana. However, Shift discloses more details on available financing caps and estimated rates.
Pros and Cons of Carvana Auto Loans
Pros
- Pre-qualification without credit score impact
- Extended purchase trial period
- Comprehensive purchase to financing process
Cons
- Requires Carvana used inventory
- Some key financing details undisclosed
- No option to complete process at physical locations
Contacting Carvana’s Customer Experience Team
As an online-only retailer, Carvana provides extensive purchasing and financing support through:
- Phone, email, chat and text messaging
- Hours from 7am to 1am EST daily
- Option to schedule delivery or arrange pickup
To Recap on Carvana Auto Financing
For customers looking to purchase used vehicles completely online while securing financing tailored to their financial situation, Carvana delivers exceptional availability and affordability. With exceptional customer service availability before and after purchase, Carvana earns 4.4 out of 5 stars overall from Bankrate on the strength of its specialized used auto loan options and process transparency.
Frequently Asked Questions About Carvana Auto Loans
What is the minimum credit score for approval from Carvana?
While specific scores aren’t published, Carvana advertises approvals for all credit types by looking at full financial profiles beyond just credit reports. Minimum score thresholds likely apply based on different rate tier offers.
Does a hard credit check happen when pre-qualifying for Carvana financing?
No. Carvana allows customers to get pre-qualified for auto financing on their website with only a soft credit inquiry. Soft checks do not negatively impact credit scores. Formal application requires a hard check.
Can I get pre-approved for Carvana used car financing?
Carvana does not formally pre-approve customers for financing the way some banks do with locked rates/terms. But the pre-qualification process effectively provides the same loan details preview without commitment.
What loan terms are available from Carvana lenders?
Carvana provides financing loan terms ranging from 12 months up to 72 months (6 years). By starting at 12 months, they cater well to borrowers who may only qualify for smaller loans or need shorter repayment periods.
Does Carvana offer warranties and protections with used car financing?
Yes. All Carvana vehicle purchases include a limited warranty providing repair coverage for mechanical breakdowns and powertrain issues for the first 4,189 miles or 100 days. Extended protection plans are also available at additional cost. Financing terms also back purchases with a 7-day/400 mile money back guarantee.
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