Insider’s experts choose the best products and services to help make smart decisions with your money (here’s how). In some cases, we receive a commission from our our partners, however, our opinions are our own. Terms apply to offers listed on this page.
Carvana; Insider
The bottom line: Carvana Auto Loan lets you return your car within the first seven days of having it, for any reason. This makes it a good choice if you aren’t 100% sold on the car you’re purchasing. However, the company has been involved in several recent controversies and only offers financing for used cars.
Pros and cons of Carvana auto loans
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 $4,000 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.
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.
How Carvana auto loans compare
Chase and PNC have undisclosed minimum credit scores to apply, while Carvana has no set minimum score it considers. It may still be worth applying with Carvana even if your score is low.
PNC allows you to finance new and used cars, refinancing your loan, or buy out your lease. You can’t buy out your lease or refinance with Chase, and you’re only able to get a used car with Carvana.
See our ratings methodology for auto loans »
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.