Carvana auto loans: 2024 review

Carvana auto loans are best for shopping from home

Carvana lets you skip the car lot and hours of paperwork at the dealership. Instead, you can take advantage of a seamless shopping and application process from your couch. Carvana may also be a good fit for people who lack good credit or a strong income but need an auto loan.

Where Carvana stands out

• Money-back guarantee: Like many car-selling websites, Carvana has a return policy. You can return the car within seven days after driving it up to 400 miles and get your money back, minus shipping charges. It also offers a free limited warranty for the first 100 days or 4,189 miles, whichever comes first. 
• Range of credit accepted: Carvana does not have a minimum credit score requirement. While this does not always mean bad-credit borrowers can receive acceptance. In this case, a range of borrowers can qualify. You could be eligible for financing if you earn at least $5,100 annually and do not have any active bankruptcies. 
• One-stop shop: Rather than having to navigate the vehicle shopping process and secure financing, Carvana streamlines the two. Borrowers can shop for a ride, arrange financing and have their car delivered all in one place.

Where Carvana falls short

• Limited inventory: Unlike traditional auto loan lenders, where your loan can be used almost anywhere, Carvana only offers financing for vehicles for sale on its site. 
• Down payment: Although adding a down payment can dramatically reduce your auto loan costs, it rarely is a qualification. Carvana, though, requires borrowers to make a nonnegotiable down payment to purchase a vehicle.
• Potentially high fees: Shipping and delivery fees apply when you choose to purchase and finance with Carvana. However, you can avoid the latter by choosing to have the vehicle delivered to a Carvana location or vending machine where you can pick it up.

Carvana customer resources

Customer support 

Carvana provides extensive customer support that goes beyond normal business hours to make your purchase as painless as possible. Support is available online and by phone from 7 a.m. to 1 a.m. ET. You can also text with a live advocate from 9 a.m. to 10 p.m. ET, seven days a week.

Digital experience 

One of Carvana’s most stand-out features is its online presence. Buyers can easily shop vehicles by make, model or keyword. The site also highlights popular vehicle styles on the front page, which can make it easy to shop for in-demand cars all in one place. 

Finally, the chat function on the site allows customers to ask questions or sign up for personalized recommendations on price changes and new arrivals. 

How this lender compares

While Carvana is a good fit for borrowers who know the vehicle they want and prefer solo shopping, it’s best to compare other auto loan rates with more variety in their products. 

Carvana vs. CarsDirect

While CarsDirect, an online car shopping platform and online broker, won’t deliver your car to your doorstep, it’s a comparable option. The platform has an extensive lender network, which makes it a solid choice for those with bad and fair credit. However, Carvana is more seamless for those who prefer a fully online experience. 

Carvana vs. CarMax

CarMax offers a convenient online shopping and financing experience similar to Carvana's. Both feature options for people of all credit backgrounds, and you can get prequalified with no impact on your credit score. The two offer similar limited warranties — CarMax’s lasts 90 days, while Carvana’s stretches to 100 days. 

But there are some key differences to be aware of. CarMax offers brick-and-mortar locations if you prefer an in-person shopping experience. Plus, CarMax’s 30 day/1,500 miles money-back guarantee is much longer than the seven days/400 miles Carvana provides. If you want more time to fall in or out of love with your car, Carmax might be a better choice.

Do you qualify for a Carvana auto loan?

You must live in the contiguous U.S. to shop through Carvana — it doesn’t operate in Alaska or Hawaii. Carvana only lists the following qualification requirements:

• Be at least 18 years old.
• Have six months of credit history.
• Have no active bankruptcies.
• Make a minimum of $5,100 a year.

You’ll need to provide documentation — like a recent utility bill, loan statement or lease agreement — for address verification purposes. Carvana will also verify your income through your two most recent consecutive pay stubs and three most recent bank statements or Plaid.

If you plan to apply with the help of a co-signer, simply input their information on the first application page. Your co-signer must also be present for vehicle pick up or delivery. 

How Bankrate rates Carvana

The Bankrate team assessed more than 35 auto lenders to find the best. Bankrate considered 18 criteria, such as acceptance criteria, loan amounts and APR range. These scores are broken into four categories.