At a Glance
Rating Breakdown
Performance Overview
Scores out of 5, based on our editorial analysis
About Carvana
Carvana (NYSE: CVNA) was founded in 2012 by Ernie Garcia III, whose father Ernie Garcia II was previously involved in the Lincoln Savings and Loan scandal. Despite this controversial origin, Carvana grew into the largest online used car retailer in the US, selling over 4 million vehicles. The company nearly collapsed in 2022-2023 when rising rates crushed used car demand and its debt load became unsustainable, but a dramatic debt restructuring in 2023 extended maturities and the company returned to profitability. This history matters because it reveals a company that has operated at the edge of financial viability, and the debt load still influences pricing and financing decisions. Carvana's integrated financing is provided through Bridgecrest, a wholly-owned subsidiary. This vertical integration means Carvana makes money on both the vehicle sale and the financing, creating an incentive to maximize the combined profit. Financing rates range from 6.89% to 27.90% APR, with the wide spread reflecting the fact that Carvana approves buyers with credit scores as low as 500, which banks and credit unions generally will not do. However, the rates offered by Bridgecrest are consistently higher than what the same borrower could get from a bank, credit union, or external auto lender. A buyer with a 720 FICO who accepts Carvana's in-house financing at 8.5% could likely get 5.5-6.5% from a credit union. The convenience of one-click financing comes with a significant rate premium that most buyers do not comparison-shop. The 7-day return policy is Carvana's most powerful feature and its best substitute for a physical test drive. If the car has issues you did not detect from online photos and the vehicle report, you can return it for a full refund within 7 days or 400 miles. The 150-point inspection is real but has limitations: multiple consumer reports document receiving vehicles with undisclosed mechanical issues, cosmetic damage, or cleaning standards below expectation. Title and registration processing has been a persistent problem, with some buyers waiting weeks for plates and registration in states with complex transfer requirements. Carvana is best for buyers who know exactly what car they want, plan to bring their own financing from a bank or credit union, and treat the 7-day window as a thorough inspection period.
Key Features
7-Day Return Policy
Every vehicle purchase comes with a no-questions-asked seven-day money-back guarantee.
Home Delivery
Vehicles delivered directly to your home or picked up at a Carvana vending machine location.
150-Point Inspection
Every vehicle goes through a 150-point inspection before it gets listed on the platform.
How It Works
Browse and Select
Search Carvana's inventory of thousands of vehicles with 360-degree photos and detailed reports.
Get Financing
Pre-qualify for auto financing in minutes with soft credit inquiry or bring your own lender.
Complete Purchase
Finalize your purchase, trade-in, and financing entirely online.
Take Delivery
Schedule home delivery or pick up from a local Carvana vending machine.
What They Do
- Used Car Sales
- Auto Financing
- Trade-In Valuations
- Auto Insurance
- Vehicle Protection Plans
Debt Types They Take On
- Auto Purchase Financing
- Trade-In Payoff
- Extended Warranty Financing
Fee & Cost Structure
Regulatory & Trust
Review Summary
Notable Case Studies
External Financing Saves $4,200
A buyer with a 710 FICO found a 2022 Toyota RAV4 on Carvana listed at $29,400. Carvana/Bridgecrest pre-qualified the buyer at 9.49% APR over 72 months with $2,000 down. Monthly payment: $507. Before accepting, the buyer checked rates at their credit union and a local bank.
7-Day Return After Hidden Issue
A buyer purchased a 2021 Honda Accord for $26,800 with Carvana financing. Vehicle looked clean in 360-degree photos and the Carfax showed no accidents. Upon delivery, the buyer's independent mechanic found evidence of repainted body panels on the passenger side and a misaligned hood gap consistent with minor collision repair not reported on Carfax.
Pros & Cons
Pros
- Fully online car-buying eliminates dealership negotiation, sales pressure, and the multi-hour in-person process, which matters for buyers who know what they want
- 7-day, 400-mile money-back return policy provides a real safety net that no traditional dealership offers, effectively turning delivery into an extended test drive and inspection period
- Large nationwide inventory with 360-degree photos, vehicle reports, and detailed condition descriptions allows browsing thousands of vehicles that may not be available locally
- Home delivery brings the vehicle to your door, which is particularly valuable for rural buyers, those without reliable transportation to dealerships, or buyers purchasing a specific model not available locally
- Accepts external financing from any bank, credit union, or lender, so savvy buyers can use Carvana for vehicle selection while obtaining a lower rate elsewhere
Cons
- Bridgecrest in-house financing rates are consistently 2-4% higher than what the same borrower could obtain from a credit union or bank, costing thousands in extra interest over the loan term
- Vehicle quality issues are a documented and persistent complaint: undisclosed cosmetic damage, incomplete detailing, mechanical issues missed by the 150-point inspection, and vehicles arriving in different condition than photos suggest
- Title and registration processing has been plagued by delays in multiple states, with some buyers reporting weeks of driving on temporary tags while waiting for permanent registration
- BBB rating of B- and 2,400 CFPB complaints over three years reflect systematic customer service issues that go beyond isolated incidents, particularly around post-purchase support and financing disputes
User Reviews (12)
bought my second car from Carvana, process is dialed in
Second Carvana purchase. First was in 2023 (Accord), this time a 2024 Hyundai Tucson. The process was even smoother the second time -- they had my info on file, trade-in was handled in the same transaction, and the car was delivered in 3 days. Financed through my own bank this time at 6.2% instead of using Carvana financing. Pro tip: use Carvana to FIND and BUY the car. Use your own bank to FINANCE the car. Best of both worlds.
the car itself was excellent quality
Car was in really good shape. Had my mechanic check it and he said it was solid. Better than most used cars I've looked at on lots.
the 7 day return policy is legit -- used it with zero hassle
Bought a Toyota Camry. Drove it for 5 days and decided I didn't love it. Called Carvana, scheduled a pickup, they came and got it from my driveway. Full refund processed in 5 business days. No restocking fee, no hassle, no guilt trip from a salesman. The 7-day return policy is Carvana's best feature. It eliminates the pressure of a dealership purchase. You're essentially test-driving the car in your real life for a week. Use it.
their warranty (SilverRock) is mediocre
Bought the extended warranty through SilverRock (Carvana's warranty provider). When my AC compressor failed at month 8, SilverRock approved the claim but insisted on using their preferred shop which was 40 minutes away. The repair took 2 weeks because parts were backordered. SilverRock's warranty coverage is real but the claims process is slow and they control where the work gets done. Consider a third-party warranty from Endurance or CARCHEX instead if you want more flexibility.
car delivered to my driveway, no dealership BS
Car showed up on a flatbed right on time. Signed stuff on a tablet and that was it. No dealership BS, no finance manager trying to sell me undercoating, no "let me talk to my manager" games. This is how buying a car should work. Just use your own bank for financing, their rates aren't great.
Carvana prices are 5-10% above local market
Tracked the same model across Carvana, CarMax, AutoTrader, and local dealers for 2 weeks. Carvana was consistently 5-10% more expensive for comparable vehicles. On a $25K car that's $1,250-$2,500 premium for the convenience of online buying. Whether that premium is worth it depends on your tolerance for dealer negotiations. I hate negotiating so I paid the Carvana premium. But price-conscious buyers should absolutely cross-shop.
picked up my car from an actual vending machine
The car vending machine in Tempe is real and it's awesome. Put in the oversized coin, the machine rotated my Honda Accord down to the ground floor. Total time from online purchase to driving away: 45 minutes. The car itself was in good condition -- better than what I'd seen at used car lots. 32K miles, clean Carfax, no issues. Financed through Carvana at 8.9% which isn't great but the convenience of the whole experience was worth it for me.
bought from out of state, title transfer was a mess
Car was in Texas, I'm in Ohio. Carvana handles interstate title transfers but mine took 11 weeks. The car arrived with Texas plates and a temporary registration that expired twice before I got Ohio plates. My local BMV couldn't help because Carvana handles the registration. I was completely at their mercy. If you buy from out of state through Carvana, budget 2-3 months for registration. It's their biggest operational weakness by far.
Carvana financing is 3-4% higher than my credit union
Carvana offered 10.9% APR. My credit union offered 6.5% for the same car and same term. That's $150/month difference on a $30K loan. Carvana makes buying the car easy but their financing is NOT competitive. Get pre-approved at your credit union or bank FIRST, then use that to pay for the Carvana car. Their financing rates are 3-5% above market for most credit profiles. This is how they make money on top of the car markup.
WAITED 4 MONTHS FOR MY REGISTRATION AND PLATES
FOUR. MONTHS. FOR. PLATES. Bought the car in October didnt get permanent registration until FEBRUARY. Drove on expired temps and got pulled over. Had to show the cop my email chain with Carvana like that makes it ok?? The buying part is fine but their registration process is absolutely broken and they clearly dont care. Check r/carvana, thousands of people with the same problem.
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