There’s a method to purchase or sell a vehicle that doesn’t require bargaining with people whose career depends on expertly convincing you to buy a machine that goes “vroom.”
Carvana allows you to research cars online, get a trade-in evaluated, apply for financing and purchase used vehicles without ever stepping onto a dealership lot. You can even have Carvana deliver your car to your doorstep or pick up a vehicle you’re selling. Some buyers opt to use one of the company’s vehicle vending machines, too.
Aside from the irritating sales techniques you might avoid, what are the perks of buying a car entirely online? As it turns out, there are quite a few.
What Is Carvana?
Carvana is a web-based car retailer, although its multi-level car vending towers and local hubs give it a tangible footprint in many metropolitan areas across the U.S.
The company sells used cars sourced from trade-ins, private sellers and partnering dealers. Each car undergoes a 150-point inspection, has no reported accidents, and comes with a complimentary CARFAX report, so you can shop with confidence.
Buying a Car Online with Carvana
It’s more than just dropping a token into a vending machine, watching your selected car be dispensed, and signing paperwork to complete the Carvana purchase.
That vending-machine moment is fun, but Carvana has streamlined the entire process — from vehicle research and financing applications to arranging trade-ins and closing the deal.
Vehicle Research
Carvana offers two main paths to explore cars online. You can use its search tool to browse listings and apply filters such as make, model, year, mileage and more. Alternatively, you can get personalized suggestions from Carvana by answering a few straightforward questions about what you want.
The site’s Car Finder feature begins by asking you to prioritize what matters: fuel efficiency, performance, features, cargo room, comfort, safety, towing capability or value. After you select a few additional preferences, it presents matching vehicles.
You can view interior and exterior aspects of each car in 3D within your browser, similar to Google Maps’ Street View. High-resolution photos let you inspect various exterior and interior angles up close and from a distance.
The online presentation essentially recreates the showroom experience. And yes, you can spot any imperfections — Carvana highlights blemishes for full transparency.
Carvana performs a comprehensive 150-point inspection on each vehicle it lists. Every listing includes the inspection results, along with specs and feature callouts.
You can purchase online with nearly the same assurance as you would in person.
Financing Options
It takes roughly two minutes to be prequalified for a vehicle from Carvana, and about 80% of buyers follow this path, according to the retailer.
Pre-qualification gives a clear sense of your potential down payment and the interest rate you might expect. It won’t affect your credit score, and the financing quote remains valid for up to 45 days.
Besides arranging financing through Carvana itself, you may pay with cash or secure a loan from an outside lender.
Carvana’s approval standards tend to be accommodating, although people with damaged credit histories may face fewer options and higher down-payment requirements.
To qualify, you must be at least 18 years old, have an annual income exceeding $10,000, and not have had a bankruptcy within the past seven years.
Pickup, Drop-off and Delivery
If the vending-machine spectacle isn’t your thing, Carvana will bring the car to you.
Tell them when and where to collect or park your car, and a representative will meet you there.
Any remaining paperwork or details can be handled at a vending tower, a hub or a location you choose. Carvana continues to offer touchless delivery and pickup options.
Trading or Selling Cars
Provide Carvana a candid description of your used car, and you’ll receive an offer that’s valid for seven days.
If you accept, you can get paid by check or ACH deposit. You may also apply the offer toward purchasing a vehicle from Carvana’s inventory to reduce or eliminate a down payment.
The quote process only takes minutes. Supply your vehicle’s VIN and answer a short questionnaire about its condition.
Carvana will verify your car’s condition before funds change hands. If you accurately reported mileage, wear and tear, service records and accident history, your offer should remain intact.
Using a Vehicle Vending Machine
It truly is a car vending machine, and the concept is as simple as it sounds.
After confirming your identity with a driver’s license, you insert a token and the vending machine dispenses the vehicle you selected.
Of course, there’s more to completing a purchase at one of Carvana’s towers than that little ritual. Still, the rest of the online buying, selling and trading process is almost as streamlined as the vending-machine experience itself.
Carvana Competitors: Carvana vs. Carmax vs. Vroom
Those eye-catching vending machines provide a unique selling point, but Carvana faces robust competition from large used-car retailers such as Carmax and Vroom.
Below is a comparison of how Carvana measures up to competitors in the internet-based dealership space, each specializing in used cars sold without reported accidents:
| Features | Carvana | Vroom | Carmax |
| Local Delivery Fee | $0 | $0 to $1,399 | $0 |
| Money-Back Guarantees | 7 days or 400 miles | 7 Days or 250 miles | 30 Days or 1,500 miles |
| Limited Warranty | 100 days or 4,189 miles | 90 days or 6,000 miles | 90 days or 4,000 miles |
| Qualifiers for Financing | At least $10,000 annual income; no active bankruptcies; no minimum credit score | At least $21,600 annual income, no active bankruptcies, no minimum credit score | Unpublished. Carmax accommodates “most credit profiles.” |
| Down-Payment Options | Cash, debit or e-check | Cash, debit, money order or up to $500 on a credit card | Cash, debit, e-check |
| Extended Warranty Available | Yes | Yes | Yes |
| Free CARFAX report and Inspection Reports | CARFAX, in addition to 150-point inspection | CARFAX and multi-point inspection | CARFAX and 125-point inspection |
Frequently Asked Questions
Here’s a short summary of commonly asked questions about Carvana from across the web.
Carvana is a digital-first car retailer that stocks used vehicles at hubs and car towers in metro areas nationwide. The car-buying journey is completed mostly online.
The online used-car seller sources cars from dealer partners, trade-ins and private sellers. Each vehicle added to inventory undergoes a 150-point inspection before it’s listed. Buyers can review the full inspection report on Carvana’s site to make an informed decision about a used vehicle.
Not in the traditional sense. Carvana allows a seven-day trial after purchase. During that window, you may return the vehicle if you’re not satisfied, without hassle.
If you’re the kind of buyer who enjoys spending hours test-driving cars on a lot, Carvana’s lack of conventional on-site test drives might be a drawback. Carvana argues that a seven-day trial gives buyers a much clearer impression of a car than a 20–30 minute test drive at a typical dealership.
Yes — Carvana provides in-house financing for purchases. You can also use third-party financing or pay cash. Car shoppers can apply for pre-approval in as little as two minutes, and the inquiry won’t affect your credit score. The pre-approval remains valid for 45 days, barring significant financial changes.
You can find Carvana’s distinctive vending machines and vehicle hubs in many metropolitan areas nationwide. You may pick up or drop off a car at a local hub or tower, or request that a Carvana representative meet you. The company continues to offer touchless delivery and pickup; simply tell them when and where, and they’ll arrange to meet you within reasonable limits.
In most states, Carvana will handle the registration process for you. A representative will take care of the paperwork and submit it to the DMV. Vehicles are delivered with temporary plates, and once registration is processed, Carvana will ship your permanent plates to you.
Final Word
No longer must you spend a full day driving around and inspecting cars at local lots as part of buying a vehicle.
Most buyers now start their search online. The Carvana experience augments that process with detailed inspection reports, high-resolution photos showing features and blemishes, immersive 3D tours of each inventory vehicle and robust guarantees that help you buy confidently.
Competition among online car retailers is intense, but Carvana does a great deal to differentiate itself and add tangible value to the car-buying experience.
