Carvana Review for 2024

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Last Updated: March 12, 2023

Pros and Cons of Carvana Car Sales

Carvana Overview

Carvana is a well-reputed online dealership delivering excellent services nationwide. The platform was founded in 2012, but now it has become one of the significant parts of the online car-buying and selling sector. Carvana is suitable for avoiding haggling over price or driving to multiple dealerships. The online listing of Carvana makes the car-selling process much simple and more manageable. In addition, the platform offers fantastic financing, trade-in options, and pick-up and vehicle deliveries.

Carvana aims to deliver well-maintained used vehicles at affordable prices. As the marketplace functions virtually, it does not require you to drive to a traditional dealership to start your car-buying or selling process. Instead, it lets you buy or sell cars without leaving the comfort of your home. In addition, Carvana does not involve any price haggling in its approach because it offers non-negotiable quotes. 

If you're buying a used vehicle through Carvana, it will deliver the car to your doorstep. It also lets you pick up your deliveries using vehicle vending machines nationwide. Carvana has an extensive library of used cars to choose from. As of 2021, the platform claimed it had 20,000+ used cars in its inventory. Carvana's vehicles pass through a 150-point inspection, ensuring the quality and best performance of the cars delivered by Carvana. Along with competitive rates, Carvana offers a 7-day money-back guarantee, a powertrain warranty, and a bumper-to-bumper warranty on its used vehicles.

Car Selling Process

Carvana's fast and convenient "Sell My Car" process makes it one of the best automobile markets available in the online car-buying sector. Carvana's simple and intuitive interface is designed to help users quickly navigate the whole process and generate a genuine offer. When it comes to selling your used cars to Carvana, the platform has specific requirements, such as:

• The vehicle can be safely test driven 
• It must have a working odometer 
• The car must have a model newer than 1992
• The vehicle is not a wrecked title 

Here is a quick guide on selling your car to Carvana:

Provide your Vehicle's Details

Carvana's car-selling process starts by entering your vehicle's necessary details. First, you must enter your car's license plate number or vehicle identification number. This will help Carvana find the basic information about your car, like make, model, and age. Next, the platform will ask you to provide details about your vehicle's premium features, loan status, general conditions, exterior damage, mechanical issues, accident history, and color.

Answer a Few Questions

At this stage, Carvana will ask specific questions about your vehicles. For example, the company may ask about the mileage on your car's odometer, what type of aftermarket equipment has been installed on your vehicle, and which option it has.

Decide Between Trade-in and a Cash Offer

Once you've provided all the information about your Vehicle, Carvana will ask you to choose between a trade-in and a cash offer. The platform offers fantastic financing and trade-in opportunities. Carvana gives you seven days to accept its offer and decide whether you want to trade in value toward a new car or get total cash for your used car.

Sell Your Car

If you sell your Vehicle to Carvana, the rest of the process can be completed online. First, the platform will send an agent to your place to inspect the car you want to sell. If your vehicle passes the 150 inspections, the representative will collect the keys and pay you instantly. In addition, Carvana will handle the registration, title, and loan pay-off process if you've debt on the car. 

Car Buying Process

Search for a Vehicle

Carvana has an extensive inventory of used cars to choose from. You can search for a vehicle based on several criteria, such as price range, year, model, and make. You can also streamline your search by using filters. These filters include drive type, transmission, cylinders, color, fuel efficiency, fuel type, body type, price, features, and millage.

View Details Of The Vehicle

Find your favorite car and check its detailed photos. You can also check its mechanical features, condition, and specs.

Get Financing

You can quickly get pre-approval for a loan with Carvana. The platform lets you apply for financing online and get an offer within minutes.

Purchase the Vehicle

Once you've selected a car and secured financing, you can purchase your selected vehicle online. Carvana delivers your order to your doorstep. You can also pick up the delivery using a car vending machine.

Financing Process of Carvana

the screenshot above is from the e-mail that Carvana sent me after I applied for their financing for testing purposes. The company does a soft credit check and give you results. Only after doing this step, you are allowed to see the payments that you would have to pay for each car and can play around with their financing calculator.

Carvana offers third-party financing, but most customers use its financing. The platform provides a used car loan with only a 3.90 to 27.90% interest rate between $1,000 and $100,000. The financing rate Carvana has a minimum credit score of 450, which is less than the FICO score of 630. 

It would help if you were not bankrupt to get Carvana financing. Carvana will also conduct a soft credit inquiry, so your credit score will not be affected. 

You can use the following instructions to apply for financing through Carvana:

1. Visit the official website of Carvana and browse the available vehicles.
2. Click on the "Financing" button after finding your favorite vehicle.
3. Fill out an online application with your financial and personal information, such as your name, phone number, and address. 
4. Review and submit the financial application. 
5. After reviewing your application, Carvana will email you documents to sign and return.
6. Once you have signed and returned the documents, Carvana will finalize the financing, and the purchase will begin. 
   

Carvana Reviews

Overall, Carvana has positive ratings from its users. It also maintains a good rating at Trustpilot. Most of Carvana's positive reviews discuss the streamlined and simplest car-buying and selling process. Only a few users review the company negatively for offering a less reliable return policy. When I say positive reviews, I mean to say that they are positive when compared to other online car dealerships.

Carvana on Trustpilot: The company has a very solid 4.0/5.0 star rating on Trustpilot, has replied to 50% of negative reviews in the past 12 months, and have done so in under 1 week period. Trustpilot shows 24% of all of Carvana's 7K+ reviews to be 1-star and over 58% as 5-star reviews. I feel more comfortable seeing 5-star reviews towering over 1-star reviews.

Carvana on BBB: On Better Business Bureau website, Carvana is showing quite a lower rating than Trustpilot. With a 1.93/5.0 star-rating, the company has done its best to answer to 100% of the complaints on BBB. Carvana is not a BBB Accredited company and has a rating of NR (Not Rated). There is currently a case going on against Carvana that originated out of Michigan. However, it's nowhere near as intense as the ones against Vroom that came out of Texas.

Carvana Vehicle Selection Comparison

I went ahead and put some numbers together to see the variety of vehicles that Vroom has to offer when compared to competitors such as CARMAX, Vroom or Shift. It was a quite surprising discovery to see that Carvana might have taken over CARMAX in its size.

Carvana Protection

Carvana offers coverage for your vehicle through CarvanaCare® and Gap Coverage. CarvanaCare® extends your car's original warranty and covers repair costs, while Gap Coverage covers the amount you still owe on the car in the event of theft or total loss.

CARVANACARE®

Carvana offers a unique extended warranty program called CarvanaCare® that provides coverage for your used car. CarvanaCare® extends your manufacturer's warranty so you can drive with peace of mind knowing your car is protected. With CarvanaCare®, you'll pay $0 at preferred repair facilities for covered repairs.

Carvana has a network of over 5,000 preferred repair facilities that offer trusted service at the best rates, allowing Carvana to kick back those savings to you. In addition, you can cancel CarvanaCare® anytime and receive a prorated refund, making it a hassle-free experience. CarvanaCare® offers affordable options for everyone, regardless of whether you're a first-time buyer, a repair expert, or on a strict budget. CarvanaCare® offers three levels of coverage: CarvanaCare® Essential, CarvanaCare® Plus, and CarvanaCare® Premier.

CarvanaCare® Essential provides basic mechanical coverage for your car's core engine and transmission components. CarvanaCare® Plus offers comprehensive coverage that covers mechanical and electrical components, such as air conditioning, power steering, fuel systems, and more. Finally, CarvanaCare® Premier provides the most extensive coverage, including everything covered by CarvanaCare® Essential and Plus, minor dings and dents, and tire and wheel protection.

Gap Coverage

Carvana Gap Coverage is a plan designed to provide financial protection to customers in case of a total loss or theft of their vehicle. Life is unpredictable, and accidents can happen anytime, so Carvana offers Gap Coverage to its customers. However, if your car is stolen or declared a total loss, the insurance payout might not cover the amount still owed on the vehicle. This is where Carvana Gap Coverage comes in, covering the gap between the insurance payout and the amount still owed on the car.

For instance, suppose you owed $15,000 on your car, but its insurance payout was $12,000. In that case, the remaining $3,000 would be covered by Carvana Gap Coverage. With this coverage, you can drive with peace of mind knowing you're protected from unexpected financial loss.

Carvana Guarantees and Warranties

All the vehicles delivered by Carvana come with a 7-day money-back guarantee, with a limit of 400 miles. So if you're not satisfied with the functionalities of Carvana's car, you can return it and get a full refund excluding delivery charges. In addition, Carvana offers a return policy, powertrain, and bumper-to-bumper warranties with its vehicles. 

Carvana Online Reputation vs CARMAX, Shift and Vroom?

Carvana, CARMAX, Vroom and Shift have received mixed reviews regarding their online reputation across various platforms. So let's take a closer look at how they stack up:

1. Trustpilot: On Trustpilot, all companies have received mixed reviews, with Shift holding a slightly higher rating of 4.1 out of 5 stars, compared to Carvana's 4.0, Vroom's 1.2, and CARMAX's 1.6.
2. Better Business Bureau (BBB): The BBB has not accredited any of the four companies, with Shift holding a D- rating, Carvana holding an NR rating, CARMAX holding an A+,  and Vroom holding an F rating. Shift has received by far less complaints than Carvana, CARMAX and Vroom, with Vroom having horrendous reviews with a note about a Government action against the business.
   

Final Verdict: Is Carvana Worth It?

Carvana is a well-reputed online car-buying platform. The platform aims to sell and buy well-maintained used cars at competitive rates. Carvana's simplest car-selling, car-buying, and financing options make it one of the best online platforms. Along with a 7-day return policy, Carvana lets you enjoy a powertrain and bumper-to-bumper warranty with its used vehicles.

The Car Data Review Methodology for Online Car Dealers

We have developed a comprehensive methodology for evaluating online car dealers at The Car Data. Our methodology involves a multi-step process that takes into account a variety of factors that are important to car buyers. Below is an overview of our methodology:

1. Online Reputation: We heavily weigh the online reputation of online car dealers by evaluating their presence on popular review websites and social media platforms. We examine the overall sentiment of customer reviews and the frequency of negative reviews.
2. Official Complaints: We evaluate official complaints against online car dealers with official agencies, such as the BBB (Better Business Bureau) or Attorney General's Office, and examine their resolution.
3. Car Availability: We assess the availability of cars the online dealer offers and their quality. This includes the selection of models, the variety of features available, and the number of cars in stock.
4. Ease of Use of Services: We evaluate the ease of use of the online dealer's services, including their website's navigation and user interface, and analysis of the convenience of their purchasing process.
5. Other Factors: We also consider other factors such as financing options, warranties, delivery options, and any additional services offered.

By taking into account these factors, we can objectively evaluate online car dealers, helping our readers make informed decisions when purchasing a car online.