Carvana review: Our take – Although Carvana doesn’t disclose any rates or fees, it’s worth getting prequalified if you plan to buy through the platform. Even borrowers with bad credit are likely to get approved. However, we recommend also checking out our picks for the best auto loans to see whether they can beat Carvana’s rates and terms.
Auto Loans
- Available to borrowers with bad credit
- Prequalification without credit score impact
- Wide selection of used vehicles, with delivery to your home
- Generous return policy and warranty
- Optional maintenance plans and gap coverage
- Cosigner for better rates
- No published rates, terms, fees, or loan amounts
- Only available if purchasing through Carvana
- No service in Hawaii or Alaska
- Mixed customer reviews
| Rates (APR) | Not disclosed |
| Loan amounts | Not disclosed |
| Repayment terms | Not disclosed |
| Credit requirements | Bad credit permitted |
| Income requirements | $10,000/year |
Is a Carvana loan worth it?
It’s hard to say whether a Carvana loan is worth it because the online-only car retailer doesn’t publicly share any details about rates, fees, loan terms, or loan amounts. The best way to determine this for yourself is to prequalify (no impact on your credit score) and see what loan details you’re offered.
That said, Carvana is available to borrowers with bad credit, and the online platform is super easy to use. If you have fair or worse credit (FICO below 670) and plan to car-shop online, Carvana is worth considering.
Carvana fees, rates, terms, and more
Carvana does not publicly disclose its rates, loan terms, loan amounts, or fees, and has not responded to our request for more information. This can be frustrating if you’re trying to compare Carvana against some of the other best car loans for bad credit.
That said, we do know a few details:
- Rates: Carvana offers a discount for enrolling in automatic payments.
- Terms: Carvana’s auto loan calculator shows terms of 36 to 72 months, but does not confirm whether those terms are available through its service.
- Fees: Carvana charges a delivery fee but doesn’t disclose the cost. Even if you pick up a vehicle at a Carvana location, you may still pay a shipping fee to have the car delivered there. However, Carvana doesn’t share any info about loan fees, such as origination fees.
Is Carvana legit?
Carvana is a legitimate online used-car retailer, known for its “vending machine” format for purchasing used cars. The company was founded in 2012 and sold its first car in 2013.
Carvana customer experience
Because buying a car online can feel a little risky, Carvana offers some protections for buyers, including a seven-day return policy and a limited warranty (100 days or 4,189 miles).
You can also inspect the vehicle and take it for a test drive before signing on the dotted line upon pickup or delivery.
Carvana complaints
Carvana is not accredited with the Better Business Bureau and is not rated on the website. However, it has mixed reviews and ratings on other customer review sites:
| Review site | Rating | Number of reviews |
|---|---|---|
| Trustpilot | 4.1/5 | 14K |
| ConsumerAffairs | 3.0/5 | 5K |
Currently, 1-star reviews account for roughly 20% of all reviews on Trustpilot and 36% of all reviews on ConsumerAffairs. These negative reviews overwhelmingly focus on:
- Inaccurate 150-point vehicle inspections
- Undocumented/undisclosed damage
- Issues with warranty
- Issues with the seven-day return policy
- Poor customer service
Notably, customers don’t seem to take issue with Carvana’s car loans, but rather with the actual vehicles themselves.
How do car loans from Carvana work?
You can get prequalified for a Carvana loan in less than two minutes to see potential rates and terms. However, once you select a car, you’ll need to approve a true hard credit inquiry to be approved for a loan. Depending on the credit check and review of other documents, the rate and terms may change.
When you’re prequalified, you can customize your shopping experience with Carvana, setting a max budget or monthly payment to help narrow your focus to the right car.
Carvana auto loans aren’t actually through Carvana, however; the loans are serviced by a third party, Bridgecrest Credit Company. You’ll manage your loan repayment through Bridgecrest, rather than Carvana.
You pay for the convenience! Car prices at Carvana tend to be a little higher than what you’d pay for a comparable vehicle at a dealership or with a private seller.
Who’s eligible for Carvana auto loans?
According to Carvana, 80% of its customers use its in-house financing, though you can also pay cash or use external financing. The reason so many buyers go with Carvana auto loans is that they’re available to nearly everyone. Carvana boasts a 99% approval rate and works with borrowers who have bad or limited credit.
Here’s a look at Carvana’s eligibility requirements:
| Credit requirements | Bad credit accepted |
| Income requirements | $10K/year |
| Age | 18+ (19+ in Georgia and Alabama) |
| Bankruptcies | No active bankruptcies |
| State | Not available in Hawaii or Alaska |
Carvana car delivery
While you can pick up your car from a local Carvana site, you can also arrange to have the vehicle delivered to your home. At this time, you’ll be able to inspect the vehicle and take a quick test drive before signing off on the purchase.
If you have a trade-in, the delivery employee will evaluate your vehicle to confirm it meets the description you provided.
Then you’ll sign the paperwork, make any necessary payments, and officially take delivery of your new vehicle.
Depending on your delivery location, you might pay a fee, but Carvana doesn’t disclose how much those fees are or when they’re assessed.
Carvana return policy
One of the most important aspects of buying and financing a vehicle through Carvana is the seven-day return policy. Make sure you review the fine print to understand how the return policy works:
- The full money-back guarantee is available only for the first 400 miles driven. For any miles beyond that, you’ll pay a fee of $1 per mile.
- Vehicles aren’t eligible for return if they’ve been altered or in an accident.
- Shipping charges are not refundable.
Pros and cons of Carvana car loans
Pros
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Available to borrowers with bad credit
Carvana has a 99% approval rate, meaning most borrowers, even those with poor or limited credit history, can get a loan.
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Prequalification without credit score impact
Although Carvana doesn’t publicly disclose loan details, you can get a decent idea of the rates, fees, and amounts you’ll be offered by getting prequalified in less than two minutes, with no impact on your credit score.
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Wide selection of used vehicles, with delivery to your home
Carvana has more than 30,000 used vehicles, and you can narrow your search by location, budget, and other factors.
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Generous return policy and warranty
Carvana offers a 7-day money-back guarantee (though some customers have reported issues getting Carvana to honor it) and a great warranty (100 days or 4,189 miles).
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Optional maintenance plans and gap coverage
Though youmust pay extra for these perks, you can enroll in CarvanaCare for maintenance and gap coverage to make your car insurance more robust.
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Cosigner for better rates
While you can get approved with bad credit, adding a cosigner with a better credit score can help you secure a lower rate.
Cons
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No published rates, terms, fees, or loan amounts
Carvana doesn’t publicly disclose any loan details, which makes it difficult to compare with other options.
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Only available if purchasing through Carvana
You can’t get Carvana financing for every vehicle purchase; it’s only for buying a car through Carvana.
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No service in Hawaii or Alaska
Carvana is only available within the contiguous United States.
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Mixed customer reviews
Carvana reviews are lukewarm at best. While the used-car e-commerce company has plenty of positive reviews, customers have left a noticeable number of 1-star reviews, criticizing Carvana’s customer service and regularly citing undisclosed vehicle damage.
Carvana alternatives
Here’s how Carvana stacks up against other auto loans.
Carvana vs. myAutoLoan
MyAutoLoan is a great Carvana alternative if you have a FICO credit score of 600 or better and want to see a handful of options for your new or used car loan. You input some basic information, and the online car loan marketplace will show you up to four offers based on your credit profile. We like that the company is much more transparent about its rates, terms, and loan amounts than Carvana.
Our recommendation: Unless you have your heart set on buying a vehicle with Carvana, we think myAutoLoan offers a much better experience.
Carvana vs. CarMax
Carvana and CarMax are quite comparable when it comes to car loans:
- Both let you prequalify without a credit check.
- Both accept borrowers with bad credit.
- Both allow cosigners.
CarMax, however, does disclose something about APRs: The minimum APR (for the most qualified borrowers) is 5.49%.
The crucial difference between the two is that CarMax lets you physically browse inventory and take test drives, while Carvana is an entirely online experience until delivery or pickup.
Our recommendation: Choose CarMax if you’d rather shop locally and test drive before committing; choose Carvana if you want a more extensive online inventory.
Carvana vs. CarsDirect
CarsDirect is another way to purchase a vehicle online. Rather than its own inventory, however, CarsDirect lets you choose from cars available through its network of dealerships. Those dealerships also offer financing options to customers; some dealers within CarsDirect’s network are willing to work with borrowers who had bad or limited credit or prior bankruptcies.
Whereas Carvana’s loans are all serviced by Bridgecrest, each CarsDirect loan is different because it depends on which dealership you purchase from. It’s worth noting: CarsDirect customer reviews are overwhelmingly negative (far more than those for Carvana).
Our recommendation: Choose Carvana for financing over CarsDirect; CarsDirect’s negative customer reviews are reason enough not to use this service.
Article sources
At LendEDU, our writers and editors rely on primary sources, such as government data and websites, industry reports and whitepapers, and interviews with experts and company representatives. We also reference reputable company websites and research from established publishers. This approach allows us to produce content that is accurate, unbiased, and supported by reliable evidence. Read more about our editorial standards.
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About our contributors
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Written by Timothy Moore, CFEI®Timothy Moore is a Certified Financial Education Instructor (CFEI®) specializing in bank accounts, student loans, taxes, and insurance. His passion is helping readers navigate life on a tight budget.
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Edited by Kristen Barrett, MATKristen Barrett is a managing editor at LendEDU. She lives in Cincinnati, Ohio, with her wife and their three senior rescue dogs. She has edited and written personal finance content since 2015.