Carvana

• 100 Percent Online Buying Experience
• High-Quality Inventory
• Return and Warranty Policies
• Sell or Trade-In Your Car
• Carvana Financing

100 Percent Online Buying Experience

With Carvana, a new car can be fully purchased online at your own pace through the site. The site offers an online showroom-type experience with a unique HD 360-degree photo experience for every vehicle — with interior and exterior images of the actual vehicle listed.

While shopping, each car profile includes a free CarFax vehicle history report. You can also compare it to other models in your area. With an account, you can save favorite vehicles or a search that you commonly run. This online-only experience will be a plus for anyone who wishes to avoid a high-pressure sales experience.

High Quality Inventory

Carvana is very selective about the cars they choose to sell. Less than 10 percent of cars appraised are selected for the site.

All of the site’s inventory are Certified Pre-Owned vehicles and are put through a 150 point mechanical inspection. Additionally, vehicles that have been in a reported accident or have had structural or frame damage are never accepted.

The inspection process includes an oil change and a new coat of paint, wax, and seal. The company even suggests that you take your car to a certified mechanic to check it out during your test own period if you want.

Return and Warranty Policies

7 Day Return Policy

Although you aren’t truly purchasing a car sight unseen because of the online 3D showroom experience, you can still get peace of mind from Carvana’s return policy. Whether you pick up your car at a Carvana Vending Machine or you have it delivered, everyone gets a seven-day probationary period, which they call a Test Own. If you aren’t satisfied for any reason, you can cancel the purchase. Just contact customer support before 5 PM EST on the seventh day from your pickup or delivery.

Carvana will contact you on the sixth day to check on your satisfaction. If you’re not happy, they will pick it up and issue a refund.

There are a couple of things that customers should know about this policy:

• 400-mile rule. Your test period comes with 400 free miles. If you go over that, you can still return the car, but there is a $1/mile fee.
• Non-refundable Delivery Charge. If you had direct delivery because you live outside the local market, the $399 delivery fee is the only thing that won’t be refunded.
• You can return or exchange the vehicle. You can even do up to two exchanges with week-long test drives. If you receive a third, then you forgo the chance to exchange it.
• If the car has any modifications or damage, it can’t be returned.

100 Day Limited Warranty

Each purchase comes with a 100 day/4,189 mile Worry Free Guarantee through SilverRock, which covers basic and powertrain components. Carvana found that most people drive 41.89 miles on average in a given day, so the warranty is meant to actually last the average driver the full 100 days.

You can also opt for an added Extended Carvana Care warranty for an additional fee, if it’s offered on your vehicle.

Both warranties include roadside assistance and customers can contact customer service to add the extended warranty during your seven-day test own.

Sell or Trade-In Your Car

If you live in a local area or can meet in one, you can trade-in or sell your car to Carvana. You can fill out a quick appraisal online to get a no-haggle offer.

The company even hangs on to your trade in for the 7-day guarantee period, in case your new car doesn’t work out. However, if you did drive over 400 miles, you will have to pay the mileage fee before getting your trade-in back.

No trade-ins if you live outside the local area and get direct delivery.

Trade-ins don’t have to be up to Carvana’s rigorous quality standards. They just have to be able to safely do a test drive during the appraisal appointment, have a working odometer, and be newer than 1992.

Carvana Financing

Carvana offers its own car loan financing, serviced by Bridgecrest. Users can set financing terms with interactive dials and upload a few documents to complete their financing offer. You can even sign online.

Minimum requirements for financing:

• At least 18
• Make at least $10,000 yearly
• No active bankruptcies

Although bad credit is accepted, approval is based on your credit history, annual income, and how much the vehicle costs. After you fill out a basic application for pre-approval, you will be able to see your personalized financing terms and monthly payment under each vehicle listing. Pre-approval is good for 45 days and only does a soft credit inquiry.

Once a customer chooses a car and selects to go forward with the buying process, then a hard credit check will be performed.

Check out our review of Carvana Car Loans.

• Delivery Fee
• Single-Buyer Financing
• Possible Delays
• No Negotiation Policy
• Third-Party Delivery

Delivery Fee

Carvana isn’t quite everywhere yet. If you live outside of a local delivery area (listed above), then you can choose to fly to pick it up and drive it back or pay for direct delivery, which costs $399.

While the fee is not a part of the actual car purchase itself, it can be included in your financing.

Regardless of how you take possession of the car, you are still eligible for the seven-day money back guarantee. The only catch is that if it was a direct delivery, the $399 fee is not refundable. Additionally, it can take 5-15 days for the car to be picked up. If you want to exchange for a different car, the first vehicle has to be confirmed as picked up before you can order another one, so you will be left waiting for a little while.

Single-Buyer Financing

While it is convenient that Carvana offers its own financing, it doesn’t allow anyone to co-sign with you. If you need to have a co-signed loan, then you can still shop with Carvana, but you will just have to finance through a third party option like a credit union or other lenders.

Possible Delays

If you live outside of the local area, it can take a bit to get your car due to unexpected delays like transportation or weather issues.

Additionally, before your car is loaded up to be delivered to you, a pre-delivery inspection is performed, including a test drive. If any cosmetic or mechanical issues are found, there may be a delay while they fix it.

If there are any delays, a customer service rep will contact you and you will get updates via email, phone, or text.

No-Negotiation Policy

Carvana is a haggle-free company. Cars are competitively priced and free of dealer or document fees, but also set prices are non-negotiable.

If you are the type who would like leeway to negotiate your trade-in, this is not the place for you. As part of the company’s effort to provide a hassle-free experience, after you fill out the online appraisal, that is your final offer. There is no price matching or haggling for a trade-in credit value.

Third-Party Delivery

While it is clearly great to deal with Carvana and its customer-first policies, it is hard to say what the delivery experience will be like with its local delivery partners across the country.