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Carvana Used Car Loans Review

Carvana is an online auto dealer that offers an array of used vehicles nationwide along with in-house financing. This means you can shop for a used car and find financing all in one place — online, and from the comfort of your home.

Carvana allows you to get pre-qualified for a car loan without a hard inquiry to your credit report. They also offer a seven-day return policy on their vehicles, which is generous for this industry.

If you’re thinking of getting a used vehicle and like the idea of a one-stop-shop, consider checking our Carvana. This review goes over all the relevant details you should know, including their loan terms, pros and cons, and who Carvana is best for.

Carvana Auto Loans: Key Takeaways

  • Get pre-qualified without a hard inquiry on your credit report.
  • Must be at least 18 years old, have an annual income of at least $10,000, and no active bankruptcies.
  • Cannot qualify with a co-signer.
  • Your used car comes with free delivery in some cases.
  • Interest rates range between 4.43% and 17.42% APR depending on your creditworthiness.
  • Financing offered for 36, 48, 60, and 72 months.

Check Your Personal Loan Rates

Answer a few questions to see which personal loans you pre-qualify for. The process is quick and easy, and it will not impact your credit score.

Carvana Review: Making Used Auto Loans (and Car Shopping) Easy

As we’ve already mentioned, Carvana is an online used car marketplace that also offers in-house financing. You can get pre-qualified online without a hard inquiry on your credit report, and your personalized loan offer is good for 45 days.

When you apply for financing through Carvana, you get to choose from over 19,000 used cars throughout the United States. In some cases, free delivery of your chosen vehicle may be available.

While Carvana does offer used car loans for consumers with bad credit, they do have some minimum requirements in place that limit who can qualify for their loans. For example, you have to be 18 years old to apply for a loan from Carvana, and you must have a minimum annual income of at least $10,000. It’s also important to note that, although bad credit is okay, Carvana doesn’t extend auto loans to consumers with an active bankruptcy on their record.

The main benefit of using Carvana is the fact that you can apply for financing and find a car in one place. You don’t even have to visit a car dealership, in fact, since any auto you choose from the Carvana website can be delivered to your home.

What to Watch Out For

The main downsides of Carvana are the limitations that dictate how you can use their loans. For example, you cannot use Carvana financing for a car purchased anywhere other than the Carvana website. You can use outside financing to purchase a car from Carvana, however, which is good to know if you find a car through the platform and want to buy it with financing from another bank.

Also note that Carvana doesn’t offer any new cars on their platform. They only offer used cars, which may not work for you if you were hoping for a new car. Another limitation to keep in mind is the fact that Carvana only offers loans for single borrowers, so you can’t apply with a co-signer.

Finally, remember that the best loan terms and interest rates will go to consumers with good or great credit. Carvana may accept you as a borrower if your credit is poor, but you can expect to pay an interest rate near the higher end of what they offer. You may also be limited in how much you can borrow depending on your income and other factors.

Who Carvana Auto Loans Are Best for:

  • Anyone who wants to complete the car buying process online.
  • Consumers who want to buy a used car and secure online financing.
  • Anyone who earns at least $10,000 per year with no active bankruptcies on their record.

How We Rate Carvana Auto Loans

At The Simple Dollar, we aim to provide a general overview of a lender’s products and services through a standard rating process. After a thorough research and discovery period, here’s how Carvana stacks up:

Carvana Used Car Loans at a Glance
Overall Rating
🌕🌕🌕🌕🌗
Affordability (interest rates, fees, and terms) 🌕🌕🌕🌕🌑
Availability (credit requirements, geographic reach) 🌕🌕🌕🌕🌕
Ease of Use 🌕🌕🌕🌕🌑
Transparency 🌕🌕🌕🌕🌕

How to Apply for an Auto Loan from Carvana

Getting pre-qualified for a car loan from Carvana is an easy feat, and you won’t have to worry about a hard inquiry hitting your credit report, either. All you are required to do is share basic information like your name, your date of birth, your annual income, and your home address. After you provide that information, you’ll be presented with a range of auto loan options to choose from.

Once you know how much you can borrow, you can use that information to browse used cars available on the Carvana network. Fortunately, they offer nearly every type of vehicle imaginable, including luxury cars, basic commuter cars, family vehicles, and more.

Carvana also lets you search their selection of vehicles based on specific details like the make of the car, the year of the car, the model, and more. Once you’re approved for a Carvana vehicle and you find a car you like, the platform lets you apply your financing and get the keys to your new car in a matter of days.

The Bottom Line

While some auto lenders provide financing options you can use at any dealership, Carvana provides in-house financing you can only use for one of the cars in their used car network. This makes them a good option for people who want to complete the entire auto purchase experience in one place.

With that being said, Carvana is not an ideal option for anyone who wants to visit physical dealerships and test drive a ton of different cars. This platform is also a non-starter for anyone who may want to look at new cars in addition to used vehicles.

Before you buy a car through Carvana or any other platform, make sure you understand the pros, cons, and any fees you’ll pay. The right car and auto loan is out there for everyone, but sometimes you have to do some digging to find it.

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