Car purchases can be entirely seamless with Carvana. Most residents in the United States leverage e-commerce platforms when buying a used car. That’s why the number of online car traders has leaped up in recent times.
However, some people are skeptical about purchasing a car online, despite the latest developments. Contemplation like “Is Carvana legit?” has saturated people’s mind due to the negative Carvana reviews, remarks, accusations, and complaints about the company.
This article exposes the essential details you need to know about Carvana before engaging in a sales or purchase deal with the company.
What Is Carvana?
If you’re reading this for the first time, Carvana is an online used car sales and purchase company. Ryan Keeton, Ernest Gracia III, and Ben Huston founded the company in 2012. Carvana has grown bigger with upgraded technologies since its inception.
The company is known for its famous vehicle vending machine. This innovation became the first of its kind in the United States.
Carvana sells some of the most amazing used cars online. These cars go through rigorous inspection when users offer them for sale to Carvana before the company sells them off.
Carvana went public in 2017 and started trading on the New York Stock Exchange (NYSE) as CVNA. The company’s revenue rose to about $12.8 billion, and a sales turnover of around 425,237 units of cars as of 2021.
With over 10,000 employees, Carvana continues to thrive in the automotive sales industry.
The company was recognized and listed on Fortune 500, making it one of the youngest companies with such an amazing record.
Ernest Gracia III is the present CEO of Carvana. Some of the subsidiaries within the group include Carvana Co. Sub LLC, Carlypso Inc., LLC, Carvana FAC LLC, and Carvana RR II, LLC.
Carvana started out on a clean slate in 2012 and grew to rank among the best e-commerce car sales and purchase companies in the United States. Irrespective of the so-called “Carvana nightmare,” people still log on to buy cars via the platform.
How Does Carvana Work?
Carvana offers an innovative solution to buying cars online. Unlike many car-buying websites, Carvana has physical locations across the United States and is fondly called “vending machines.”
However, this is just a fancy way of picking up a car from a site (although, admittedly, it’s a unique experience).
Purchasing a used car via Carvana is a straightforward process. You start by searching for the make and model you want and look at the search results. The results can be slimmed down using filters, including the location (your current location is the default).
The results are also sortable via various categories such as Recommended, Great Deals, Lowest Price, Lowest Mileage, etc.
After picking a vehicle you’re interested in, Carvana lets you inspect it with 360-degree freedom, including its interior. Another helpful feature is that Carvana highlights flaws and blemishes of the car that may affect your buying decision.
Carvana offers numerous financing options, including Carvana and third-party lenders. Clicking on the Get Started button will start the buying process, and you’ll be asked to create an account.
How Does a Car Dealership Work?
Buying a car from a dealership is a much more involved experience. However, regardless of which dealership you buy from, we highly recommend researching the vehicles you want to purchase and setting a budget.
Once you arrive at the dealership, the salespeople will gladly assist you and answer questions.
At a dealership, you can test-drive the vehicles to get a good feel of being behind the wheel. Once you find the car you like, you’ll have the chance to negotiate the car’s price and terms – and this is where your research will come in handy.
Once you have decided on the car you’re buying and settled on the terms and conditions, you’ll talk with the finance and insurance (F&I) manager to sign the sales contract and other relevant paperwork.
How to Buy a Used Car on Carvana?
Carvana’s primary advantage over standard dealerships is convenience. You can do everything through Carvana’s website: carvana.com.
From Carvana’s homepage, you can navigate to the site’s vehicle inventory and browse based on your preferences. Once you narrow your search, you can select individual cars for further review.
Each vehicle’s page contains a 360-degree view of the body. The display includes alerts about external and internal issues (e.g., dents, scratches). Below the 3D visual, you’ll find vehicle specs, warranty information, price details, and Carvana’s 150-point inspection.
At this point, car shoppers can “call dibs” on a vehicle of interest. This reserves it for 30 minutes and initiates the purchase process. Here’s a high-level overview:
- You’ll start by inputting personal information (e.g., name, address).
- Carvana will then ask if you’d like to proceed with trading in your old car. If you do, you’ll share information about your vehicle. That includes your vehicle’s license plate number or VIN, mileage, condition, features, and accident history. Once completed, Carvana provides an offer price.
- Next, you’ll choose between Carvana’s financing program and separate financing (e.g., all cash or a loan through another lender). If you choose the former, Carvana will ask you for your annual income and Social Security Number to verify your personal information.
- You’ll then decide between a touchless delivery and an in-person pickup. If you live in an out-of-market area, your delivery could take 5-15 business days. In that case, you’d likely owe a delivery fee. However, if you live near a Carvana location, your delivery could be as soon as the next day. (And free.)
- Carvana will then prompt you about their warranty program, which has three tiers: essential, plus, and premier. Note that this protection is not mandatory.
- After you upload your driver’s license, you’ll reach the payment screen before reviewing your order.
Once you receive your vehicle, Carvana offers a seven-day money back guarantee. In other words, you’ll have a week to determine if it’s a good fit.
If you find faults or simply decide that it’s not your style, you can either return the car to Carvana or trade it back in for another model. You can swap it out up to three times.
With the process in mind, let’s walk through the pros and cons of using Carvana to buy a car.
Carvana Fees and Pricing
Carvana’s operations are spelled out from the beginning of your transaction with the company till the end.
All charges are defined to guide users who intend you opt for either cash purchase, trade-in, or apply for the car financing program. The following table describes Carvana’s car purchase fees and pricing structure.
| Feature | Description |
| Pricing | Fixed amount |
| Price negotiation | Non-negotiable |
| Delivery fee | $190 – $599 |
Carvana Privacy and Policies
Carvana has a couple of well-designed privacy policies that help to regulate the relationship between the company and buyers/sellers. Some of the privacy policies include the following:
Confidentiality
Carvana holds all customers’ personal or financial data in confidence. So, you don’t necessarily have to be scared about your personal information getting into the wrong hands. The company has a well-designed system for the collection and storage of data.
Fixed pricing
Purchase prices are fixed on every car on Carvana’s website. Once you identify a vehicle of your choice, simply go on with the necessary payment. However, the basic purchase price differs from the delivery fee or shipping charge.
Standard delivery fee
Carvana delivers cars to buyers at a standard delivery fee of around $169 – $599, depending on the type of car and location. This fee is separate from the actual purchase price.
Non-refundable fee
All additional fees are non-refundable once you complete payment. This applies especially under the 7-day money-back guarantee operation.
7-day return policy/100-day or 4,189-mile limited warranty
Carvana allows buyers to examine their cars after purchase for 7 days to ascertain any fault that may require the buyer to return the vehicle.
However, a faulty vehicle must be returned within the next 7 days after delivery. The company also has a limited warranty of 100-day or 4,189 miles (whichever comes first).
Roadside assistance policy
The company also provides a roadside assistance policy that allows customers to call for roadside support services whenever they are stranded. The roadside assistance policy includes jump start, towing, emergency fluid/fuel assistance, etc.
Carvana delivery process
Carvana offers a touchless delivery process:
- Identity confirmation: The Carvana Advocate will ask you to send a selfie with your driver’s license to confirm your identity.
- Vehicle sanitation: The delivery person will unload the car; sanitize the keys, steering wheel and shifter; and leave your paperwork in the vehicle.
- Test-drive: The delivery person will contact you to let you know the vehicle is ready for inspection and a test-drive. They’ll wait in their hauler while you confirm you want to go through with the purchase.
- Document signing: After your test-drive, the Advocate will call you and walk you through the paperwork.
- Document submission: Once the paperwork is complete, you’ll leave it in an envelope for contactless pickup by the driver. You’ll also include your check and title to the vehicle you’re selling, if applicable, in the envelope.
- Purchase completion: The Carvana Advocate will review your paperwork from the hauler before leaving; if everything looks good, they’ll finalize the transaction.
If you prefer, you can pick up your car at one of 33 Carvana Vending Machines. A Carvana employee meets you at the pickup time to verify your license and insurance via a touchless process. You will receive a custom coin to insert into the vending machine.
Once the vehicle is out of the vending machine, you take it for a test-drive. If you’re happy with it, you then sign the registration paperwork.
Carvana vs. Other Methods
In the table below, we compare different methods of selling a car to going through Carvana.
| Carvana | Private Sale | Dealership | |
|---|---|---|---|
| Price | Similar to KBB value | Potentially above KBB value, but dependent on local market and negotiation | Similar to KBB value, but subject to negotiation |
| Ease of process | Very simple — most steps handled by Carvana | Very involved — requires listing of vehicle, fielding offers, meeting buyers and dealing with money and paperwork by yourself. | Varies, depending on location, personnel and whether vehicle is being used as a trade-in |
| Time to complete sale | 20 minutes plus waiting time for in-person inspection | Varies anywhere from a few hours to several weeks | Several in-person hours |
| Delivery options | Have the vehicle picked up or deliver it to a Carvana location | Agreed upon between you and the buyer | Some dealerships offer delivery, but self-pickup is standard |
| Additional steps needed | None | File title transfer paperwork, change registration, handle loan paperwork if needed, pay taxes if car is sold for a profit | Varies — some dealerships will file paperwork for you, others may not |
Pros of Buying a Car from Carvana
#1. Quick Process.
There are few websites as streamlined as Carvana’s. In just a few minutes’ time, you can find your dream car, purchase it, receive the latest financing offers, or get a trade-in value on your existing vehicle.
How long does it take you to do these things at a traditional dealership? If you are lucky, you might spend as little as two hours at the dealership, but that’s unlikely.
#2. Great Prices.
The online model helps Carvana keep the prices low. With less overhead, you can take advantage of super discounts.
On most vehicles, you will see the prices are a few hundred dollars below anywhere else for a comparable model. With only 28 locations to staff and about a third of the employees of a traditional dealership, Carvana is able to pass on the savings to you.
#3. Exceptional Financing Rates.
In just two minutes, you can pre-qualify for the latest financing offers through Carvana, and it only requires a soft credit check. The terms are competitive, ensuring you save even more money.
You can discuss the options with someone from the Carvana team if you need support. It’s also possible to get your own financing if you prefer.
#4. Highly-Rated Customer Service Team.
If you read online reviews about Carvana, you see how highly people think of the customer service team. It’s simple to get a hold of someone when you need help.
Plus, the staff is always willing to go above and beyond to serve you. Above all, they are caring and truly listen to your concerns.
#5. Return Policy & Warranty.
Carvana extends a seven-day return policy with no questions asked. They even come to pick the car back up.
Carvana also provides a 100-day/4,189-mile warranty. The warranty even covers cosmetic concerns on top of the typical mechanical components.
Cons of Buying a Car from Carvana
#1. Poor Trade-in Deals.
The downside of buying cars that are cheaper is that you won’t get as much for the car you turn in. In fact, Carvana tends to offer about 25% or less of the Edmunds True Market Value, while most dealers offer 40-60%.
If you want to buy from Carvana, it’s best to sell your car elsewhere. I recommend using Carmax, or to trying to sell it yourself.
#2. Can’t Inspect Cars Physically.
The Carvana Certified Program includes a 150-point inspection, which is supposed to ensure everything is in good condition. However, the company doesn’t spend a lot of time on this inspection.
A real mechanical inspection would take several hours. That’s why some cars show up with defective parts, body scratches, and other imperfections.
#3. No Test Drives.
It’s hard to pick a car simply by looking at online pictures. You want to get behind the wheel and see how the vehicle feels.
Without the ability to take a test drive, you can’t see how the vehicle feels. However, the company does give you seven days to return it, which could be seen as a test drive, except you have to pay for the vehicle first.
#4. Lack of Charitable Giving.
Carvana brings in about $5 billion in revenue each year. With that said, the company does very little charitable work.
For an organization of this size, one would expect to see much more happening to help people and communities. This is a huge downfall if you want to support companies that give back.
Is Carvana Legit?
Carvana is a legit online used car sales and purchase company. Its stock is currently trading on the New York Stock Exchange (NYSE) as CVNA.
Although the company has a couple of lapses, its position as a public limited liability company is an assurance that users can hold on to when dealing with the company.
So, if you are wondering, “Is Carvana legit for selling a car?” Carvana is a trusted platform you can leverage.
Are Carvana prices good?
If you’re wondering, “Is Carvana legit to sell your car?” Sure! Carvana’s purchase and sales prices are relatively good compared to some other online car sales and purchase platforms.
Cars like Mitsubishi and Ford start at $8,000 and above at Carvana. Comparing this to a regular dealership, Carvana’s prices are relatively fair.
However, some dealerships may offer prices cheaper than Carvana price tags if you are willing to forego the comfort of buying a car online. Also, your ability to negotiate is another factor to consider.
So, if you’re asking, “Is Carvana legit to sell a car?” or you want to buy a used car at a fair price with the maximum comfort of receiving the car at your convenience, Carvana is a legit platform to leverage.
Is Carvana cheaper than a dealer?
Not really! Carvana prices are not necessarily lower than the regular dealership. This is because Carvana used cars have specific price tags which are non-negotiable.
So, all you simply need to do is choose your car and make a payment based on the amount on the price tag.
Meanwhile, a regular dealership does not operate with a “no negotiation” policy. You can negotiate any car at a dealership until you get a fair satisfactory price.
So, in this case, you can save hundreds or thousands of dollars by buying a car at a dealership instead of online at Carvana.
However, the convenience of delivery is one of the advantages of purchasing a car from Carvana. The company delivers your car to you at home or any designated location based on the purchase agreement.
Best Alternatives to Carvana
If purchasing from Carvana is not something you want to risk, or if the experience does not seem worth it, here are some alternatives for your used vehicle needs:
- Vroom
- CarGurus
- Cars24
- ACV Auctions
- CarMax
- Driveway
- Auto Trader
- Cazoo
How much does Carvana pay?
Carvana pays top dollar for their used cars. Why? Because they’re a HUGE publicly traded company that needs to impress investors with constant growth.
The only way they can grow is to sell more cars, and the only way they can sell more cars is to buy more inventory. Because of this, Carvana is willing to pay top dollar for used cars.
Obviously Carvana (and all the other digital retailers) buy inventory from wholesale used car auctions, however, when you buy a car from the auction there are a lot of associated fees (buyers fees, transportation, and more).
Because of this, companies like Carvana are happy to pay a premium to people like you and me because they don’t have to worry about all of the other costs associated with buying an auction car.
If you’re thinking “should I sell my car to Carvana to get the most amount of money,” the answer may be yes.
Before you do, make sure you compare multiple offers from the growing number of online car buyers. CarEdge has made it easy for you to get all of your offers in one spot, with no annoying phone calls, and no hassle. Check it out below!
Customer Experiences and Reviews
Carvana has received mixed reviews from customers, with some praising the company’s convenience and others expressing frustration with the buying process.
As of June 19, 2023, Carvana has a 2.2/5 rating on Trustpilot with over 16,000 reviews. On Consumer Affairs, Carvana has a 1.8/5 rating with over 2,000 reviews.
Many customers have complained about issues with their purchases, including receiving cars with mechanical problems or damage not disclosed in the online listing.
Some customers have also reported issues with Carvana’s customer service, including long wait times and difficulty resolving issues.
However, some customers have had positive experiences with Carvana. They have praised the company’s easy-to-use website and the convenience of having the car delivered directly to their doorstep.
Some customers have also reported that their cars were in excellent condition upon delivery.
Despite the mixed reviews, Carvana has made efforts to address customer complaints. The company has resolved many complaints reported to the Better Business Bureau, and has also faced disciplinary action in several states following consumer complaints.
Overall, it is important for customers to thoroughly research and review their potential purchases before making a decision to buy from Carvana.
FAQs.
Q: Can Carvana be trusted?
Of course, you can trust Carvana with the purchase of your choice of used cars. Since its inception in 2012, the company has sold amazing used cars to American residents. The unique Carvana slogan “Skip the Dealership” is not a mere phrase.
The company is designed to help you overcome the stress, energy, and time-consuming effort of approaching a dealership for your car sales or purchase. Many American residents now buy used cars online instead of going to a dealership.
If you need to buy a used car and you’re wondering, “Is Carvana good?” Carvana is a trusted e-commerce platform to go on with. Of course, you can navigate through the company’s website and complete a purchase or sale in a moment.
Q: What’s wrong with Carvana?
Although Carvana has a great reputation as one of the best e-commerce used car purchase and sales companies in the United States, some consumers experience some challenges with the company.
Some of the Carvana complaints include the following; incorrect paperwork, extended time of getting titles and registration, etc. The failure to deliver car license plates to customers is a major issue in Carvana. Hence, some people are skeptical about dealing with Carvana.
Nevertheless, the company ranks as one of the top e-commerce used car sales and purchase companies in the United States.
Q: Is Carvana a real thing?
If you’re wondering, “Is Carvana a legit company?” Of course, Carvana is a legitimate e-commerce company that deals with the sales and purchase of used cars. The company is distinguished by its unique car vending machine, which is the first of its kind.
The vending machine works like a regular coin-operated vending machine in a shopping mall. The car vending machine dispenses cars that are purchased online through a completely automated process.
Q: Why is Carvana being investigated?
Carvana is being investigated because of its failure to deliver customers’ registration and license plates. In other words, Carvana is alleged to be involved in car sales without a license, which is against Florida law.
Since the company sells used cars, customers expect the cars to come with their registration and license plates.
On several occasions, Carvana has failed to comply with this necessity, hence the accusations that have led to the company’s investigation. However, if you’re contemplating, “Is Carvana legit to sell or buy a car?” Of course, the company is legit.
Q: What credit bureau does Carvana use?
Carvana uses Equifax and Experian credit bureaus. These companies help to assess the credit score (creditworthiness) of individuals that apply for car loans or financing packages with Carvana.
Carvana ensures that applicants are capable of meeting the financial obligations of their car financing program so that the right applicants enjoy the opportunity. If you intend to buy a car through the Carvana car financing program, ensure to first determine your credit score.
Meanwhile, Carvana may not necessarily reject an application from an individual with a low credit score; however, the company uses this data to advise the applicant on the best deal that matches their financial report.
Q: Does Carvana have hidden fees?
Carvana does not have any hidden fees when you purchase a car except the basic purchase price. However, the company may demand a shipping charge for your car delivery depending on the type of car and location.
Carvana is one of the few e-commerce used car sales and purchase companies that do not include a hidden charge in its operations. The company expects you to pay the standard purchase price on the price tag of any car you choose.
Q: Does Carvana test drive your car?
Of course, Carvana usually test-drives cars that clients bring to them for sale. There are a couple of conditions you need to meet before Carvana accepts to buy your used car. They include the following:
- The car model must be newer than 1992.
- The odometer must be working perfectly.
- The car must be available for a test drive.
Besides test-driving sellers’ cars, Carvana also offers a 7-day test drive policy to enable buyers to inspect and examine their cars after delivery. This enables consumers to engage an expert auto mechanic to help them check the car properly for any hidden faults.
Q: Can you negotiate Carvana prices?
No! Carvana prices are fixed and non-negotiable. The cars displayed on Carvana’s platform come with specific price tags. The prices are for your awareness of what it costs to purchase whatever car you choose.
So, once you finally get a car you like and want to buy, proceed to make the corresponding payment for the car. However, cars at Carvana are relatively cheap, with Mitsubishi and Ford’s cars starting at $8,000 and a bit up.
However, if you need a negotiated deal for a used car, it would be best to contact a dealership near you. You may be able to get a nice car at a lower price than Carvana’s when you take your time to visit a dealership and engage in a proper negotiation.
Q: Does Carvana give you a full tank of gas?
Absolutely! Like most dealers, Carvana offers a full gas tank when you purchase a used car from the company. The amazing fact is, that Carvana car purchase deals come with a care extended warranty that involves roadside assistance.
The roadside assistance covers jump start, towing, locksmith, flat tire assistance, as well as emergency fluid/gas assistance.
All you simply need to enjoy this service is to place a phone call. Apart from Carvana, most regular dealerships also provide customers with a full gas tank when they purchase a car.
However, customers may not get the full package because of the sales reps’ failure to refill the gas tank after a test drive.
Q: Does Carvana refund the delivery fee?
Carvana’s delivery fee is not refundable. The delivery fee is around $190 – $599, depending on the type of car and location.
When shopping on the company’s website, cars with a shipping charge have the amount stated on the right-hand side beneath the car display.
Once you choose a car with an extra shipping cost, Carvana will compute the figure along with the car purchase price.
Also, if you pick a car with a shipping charge under the car financing program, the cost will be included in your down payment and subsequent monthly payments.
Final Words
By now, you should have got all your queries about Carvana’s legitimacy clearly addressed, as this article has dealt extensively with the issue of Carvana’s authenticity.
So, if you were contemplating, “Is Carvana legit?” go through the details about the company, including its operation status, financial capacity, and terms of engagement, which have been unveiled above.
If you desire to buy a used car in the United States, Carvana is a trusted company with an easy-to-use online platform. Ensure to leverage this platform for your car purchase with maximum convenience.