How Does Carvana Work

On April 5, 2024
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Author - Steve Momot

Complete Guide To How Carvana Works

Carvana is an online-only used car retailer that has absolutely disrupted the traditional car buying experience by removing the need for a car dealership.

Essentially, Carvana allows you to search for, finance, purchase, and deliver a used car, all without ever leaving your house.

But how does Carvana work? Better yet, does Carvana work? Does Carvana actually simplify the car buying process or simply complicate it in different ways.

In the article below, I’m going to explain in detail how Carvana works, from finding and purchasing a car to trading in or selling your current vehicle, and everything in between.

Related Articles About Carvana:

Does Carvana Buy Leased Cars

What to Expect In The Article Below

Introduction to Carvana: Brief overview of Carvana as an online platform for buying and selling used cars.
The Buying Process: Step-by-step guide on how to find, select, and purchase a car through Carvana, including browsing the inventory, checking vehicle details, and completing the purchase online.
Selling and Trade-ins: Explanation of how to sell your car to Carvana or trade it in towards the purchase of another car, including the valuation process and scheduling a pickup.

Delivery and Pickup Options: Information on how to receive your purchased car, including home delivery and pickup from Carvana’s vending machines.
Financing Options: Overview of financing through Carvana, including how to pre-qualify and what to expect in terms of loan terms.
Vehicle Inspection and Certification: Details on Carvana’s 150-point inspection and the certification process for vehicles sold.

Return Policy and Warranty: Summary of Carvana’s 7-day money-back guarantee and warranty options for purchased vehicles.
Unique Features: Highlight of unique aspects of buying a car through Carvana, such as the vending machine experience.

It’s important to note that experiences with Carvana seem to vary significantly, with some customers leaving reviews that report seamless transactions and others facing major issues

Carvana’s Online Car Buying Process Explained

Carvana’s online car buying process is designed to be simple and straightforward. Here’s how it works:

Browse and Search for Cars: Visit Carvana.com and use the search filters to find your desired make, model, year, price range, and other preferences. You can also save your searches and receive alerts when new vehicles matching your criteria become available.
Explore Vehicle Details: Once you’ve found a car you’re interested in, you can view detailed information about the vehicle, including:

High-resolution 360-degree photos

Vehicle history report (CARFAX)
Features and specifications
Pricing and financing options

Get Started with the Purchase: When you’re ready to buy, click the “Get Started” button to begin the purchase process. You’ll need to create an account or log in if you already have one.
Provide Personal and Payment Information: Enter your personal details, such as name, address, and contact information. You’ll also need to provide payment information, either through financing (more on that later) or by paying cash.
Schedule Delivery or Pickup: Choose whether you want the car delivered to your doorstep or if you prefer to pick it up at one of Carvana’s vending machines (more on that later).

Complete the Purchase: Review and confirm your order details, and finalize the purchase.

Finding and Purchasing a Car on Carvana

Carvana offers a vast inventory of used cars, ranging from affordable options to luxury vehicles. Here’s how you can find and purchase a car on their platform:

Search for Cars: Use the search filters on Carvana.com to narrow down your options based on make, model, year, price range, mileage, and other preferences.

Explore Vehicle Details: Click on a car listing to view detailed information, including high-resolution 360-degree photos, vehicle history reports, features, and specifications.
Get Started with the Purchase: Once you’ve found the car you want, click the “Get Started” button to begin the purchase process.
Provide Personal and Payment Information: Enter your personal details and payment information. You can choose to finance the purchase through Carvana or pay cash.

Schedule Delivery or Pickup: Select your preferred delivery or pickup option. Carvana offers home delivery or pickup at one of their vending machines.
Complete the Purchase: Review and confirm your order details, and finalize the purchase.

Pros and Cons of Buying a Car From Carvana

Pros	Cons
Convenience of shopping and purchasing entirely online	Cannot test drive or inspect the car before purchase
Vast nationwide inventory to choose from	Potential for undisclosed issues or damage not shown in photos
No-haggle, transparent pricing	Delivery fees can be expensive, especially for long distances
7-day money-back return policy	Limited ability to negotiate pricing or add-ons
Free delivery within certain mileage	Cannot purchase new cars, only used vehicles
Detailed vehicle information and history reports provided	Quality of vehicle inspection and reconditioning may vary
Ability to trade-in or sell your current vehicle	Delays or issues with registration and paperwork reported
Financing options available through Carvana	Customer service can be inconsistent or unhelpful in some cases
Unique experience of picking up at a car vending machine	Potential for receiving a lemon or high repair costs after purchase
Avoids dealing with traditional dealerships and salespeople	Return process can be frustrating or difficult for some customers

Pros and Cons buying a Car from Carvana

Trade-ins and Selling Process with Carvana

Carvana not only allows you to buy cars online but also provides an easy way to trade in or sell your current vehicle. Here’s how the process works:

Get a Trade-in Offer: During the car buying process, Carvana will ask for details about your current vehicle, such as make, model, year, mileage, and condition. Based on this information, Carvana will provide you with a trade-in offer. (Being honest simplifies the entire process)
Accept or Decline the Offer: You can choose to accept the trade-in offer and apply it towards the purchase of your new car, or you can decline the offer and sell your vehicle separately.
Schedule a Trade-in Appointment: If you accept the trade-in offer, you’ll need to schedule an appointment for Carvana to inspect and pick up your vehicle. This can be done during the delivery or pickup of your new car.

Complete the Trade-in Process: During the appointment, a Carvana representative will inspect your vehicle to ensure it matches the condition you described. If everything checks out, they’ll complete the necessary paperwork, and you’ll receive payment for your trade-in.

If you’re not purchasing a new car from Carvana but want to sell your vehicle, you can still get an offer from Carvana by providing your vehicle’s details on their website.

Delivery and Pickup Options

Carvana offers two convenient options for receiving your new car: home delivery or pickup at one of their vending machines.

Home Delivery: Carvana will deliver your car directly to your doorstep in a covered truck. During the delivery appointment, you’ll have the opportunity to inspect the vehicle and take it for a test drive. If you’re not satisfied, you can refuse delivery and receive a full refund.
Vending Machine Pickup: Carvana has several car vending machines located across the United States. If there’s a vending machine near you, you can choose to pick up your car there. The process is similar to home delivery, where you’ll have the chance to inspect and test drive the vehicle before finalizing the purchase.

Financing Options through Carvana

Carvana offers in-house financing through its lending arm, Bridgecrest Acceptance Corporation. Here’s how the financing process works:

Pre-qualification: During the car buying process, you can pre-qualify for financing by providing some basic information. This will give you an idea of the interest rates and loan terms you may be eligible for without impacting your credit score.
Apply for Financing: If you decide to finance through Carvana, you’ll need to complete a full credit application and provide additional documentation, such as proof of income and employment.
Review Loan Terms: Once approved, you’ll receive your loan terms, including the interest rate, loan amount, and monthly payment. You can choose to accept or decline the offer.

Complete the Purchase: If you accept the loan terms, you’ll finalize the purchase and begin making monthly payments according to the agreed-upon schedule.

Carvana’s financing options are available to a wide range of credit profiles, including those with poor or no credit history. However, it’s important to note that Carvana’s financing can only be used for vehicles purchased through their platform.

Carvana’s Vehicle Inspection and Certification Process

Carvana takes pride in offering high-quality used cars that have undergone a rigorous inspection and certification process. Here’s what you can expect:

150-Point Inspection: Every vehicle in Carvana’s inventory goes through a comprehensive 150-point inspection, which covers everything from the engine and transmission to the interior and exterior condition.
CARFAX Vehicle History Report: Carvana provides a free CARFAX report for each vehicle, giving you detailed information about the car’s history, including any reported accidents, ownership transfers, and service records.
Carvana Certified: Vehicles that pass the inspection and meet Carvana’s standards are designated as “Carvana Certified.” This certification ensures that the car has a clean title, no reported accidents, and no fire, frame, or flood damage.

Carvana’s Return Policy and Warranty Coverage

Carvana offers a generous return policy and warranty coverage to give you peace of mind when purchasing a used car.

7-Day Money-Back Guarantee: After taking delivery or picking up your car, you have seven days to decide if you want to keep it. If you’re not satisfied for any reason, you can return the vehicle for a full refund, no questions asked.
100-Day/4,189-Mile Limited Warranty: Carvana provides a 100-day or 4,189-mile limited warranty on every vehicle they sell. This warranty covers most components and systems, giving you added protection against unexpected repairs or issues.

Extended Warranty Options: During the purchase process, you can choose to add an extended warranty to your vehicle for additional coverage beyond the limited warranty period.

Carvana’s Vending Machines

One of Carvana’s most unique features is their car vending machines. These massive, fully automated vending machines are located in select markets across the United States and offer a fun and innovative way to pick up your new car.

Here’s how the vending machine process works:

Schedule a Pickup Appointment: When you purchase a car from Carvana, you can choose to pick it up at a vending machine location near you.
Receive a Vending Machine Token: Upon arrival at the vending machine, you’ll receive a special token that you’ll use to retrieve your car.
Retrieve Your Car: Insert the token into the vending machine, and watch as your car is retrieved from the tower and delivered to the pickup bay.

Inspect and Test Drive: Once your car is delivered, you’ll have the opportunity to inspect it, take it for a test drive, and complete the necessary paperwork.

The vending machine experience is not only convenient but also adds an element of excitement and novelty to the car buying process.

Scheduling Delivery or Pickup with Carvana

After completing your purchase on Carvana’s website, you’ll need to schedule a delivery or pickup appointment for your new car. Here’s how the process works:

Choose Delivery or Pickup: During the purchase process, you’ll be prompted to select whether you want your car delivered or if you prefer to pick it up at a vending machine.
Select a Date and Time: Carvana will provide you with available dates and time slots based on your location and the vehicle’s availability.
Confirmation and Preparation: Once your appointment is scheduled, Carvana will send you a confirmation with all the necessary details. You’ll need to have proof of insurance and a valid driver’s license ready for the delivery or pickup.

Delivery or Pickup Appointment: On the scheduled date and time, a Carvana representative will either deliver your car to your doorstep or assist you with the pickup process at the vending machine.
Inspection and Test Drive: During the appointment, you’ll have the opportunity to inspect the vehicle, take it for a test drive, and complete any remaining paperwork.

Carvana’s Trade-in Process

If you’re trading in your current vehicle as part of your purchase from Carvana, here’s how the trade-in process works:

Get a Trade-in Offer: During the car buying process on Carvana’s website, you’ll be asked to provide details about your current vehicle, such as make, model, year, mileage, and condition.
Accept or Decline the Offer: Based on the information you provide, Carvana will give you a trade-in offer. You can choose to accept or decline this offer.
Schedule a Trade-in Appointment: If you accept the trade-in offer, you’ll need to schedule an appointment for Carvana to inspect and pick up your vehicle. This can be done during the delivery or pickup of your new car.

Vehicle Inspection: During the appointment, a Carvana representative will inspect your trade-in vehicle to ensure it matches the condition you described.
Complete the Trade-in Process: If everything checks out, Carvana will complete the necessary paperwork, and you’ll receive payment for your trade-in, which can be applied towards the purchase of your new car.

It’s important to note that Carvana’s trade-in offers are valid for seven days, giving you ample time to decide if you want to proceed with the trade-in or sell your vehicle separately.

Payment Options with Carvana

Carvana offers several payment options to make the car buying process as convenient as possible. Here are the available options:

Financing through Carvana: As mentioned earlier, you can finance your purchase through Carvana’s in-house lending arm, Bridgecrest Acceptance Corporation.
Cash or Certified Funds: You can also pay for your vehicle in full using cash or certified funds, such as a cashier’s check or money order.

Third-Party Financing: If you prefer to use an outside lender, Carvana allows you to arrange your own financing and provide the necessary information during the purchase process.
Trade-in Value: If you’re trading in your current vehicle, the trade-in value can be applied towards the purchase of your new car, reducing the amount you need to finance or pay out of pocket.

Carvana accepts various forms of payment, including debit cards, credit cards, and electronic transfers. However, it’s important to note that some payment methods may incur additional fees or restrictions.

Reviews From Real Carvana Customers

Here are two positive reviews and two negative reviews I found of Carvana that might be helpful:

Positive Reviews:

“I had a positive experience overall. There was a little learning involved, but ask questions if there are any. I’m reading a lot about how the 150 point inspection was false, lots of rust issues, or things falling off. Were there any issues with your car when you compared it against the inspection? Thanks”

This user reported having an overall positive experience with Carvana and recommended asking questions if any issues arise. They mentioned concerns raised by others about the 150-point inspection and vehicle condition but did not encounter major problems themselves.

“I am very happy with my purchase. Bought a 2016 Toyota Highlander for about $4000 less than it was at local dealers…Ended up being about $3000 worth of damage they repaired after the vehicle was delivered. If this was our only car it would be a significant pain in the ass, but since we have other vehicles to use it doesn’t bother us.”

This customer was satisfied with their Carvana purchase, citing a lower price compared to local dealers. While they had around $3000 worth of damage repaired by Carvana after delivery, they were still happy overall since they had other vehicles to use in the meantime.

Negative Reviews:

“We bought one car from them and had a bad experience, but we thought we’d give them one more try: THEY’RE STILL H O R R I B L E! MUY MALO. DISASTER. Not sure how they can be in business even! I’ve been on the phone with them as well as tried to provide documents, spent hours and hours and hours=Going to a dealership that is a royal pain in the $#!, is way, way, way better than dealing with $#!VANA!”

This customer had two extremely negative experiences with Carvana, describing it as a “disaster” and stating that dealing with a traditional dealership would be better than using Carvana’s services.

“This was my first and (last) time purchasing a car from Carvana. It seems great in theory with all their “certified and inspected for quality” mumbo jumbo. When my car arrived I had it checked out by 2 auto shops. Both shops said I needed replacement tires. I called Carvana customer service and the lady assured me that when they inspected the tires at the warehouse it was to Oh really lady? Then why did 2 auto shops said I needed to replace my tires?! I was charged 100 bucks for my new tires!”

This customer vowed not to use Carvana again after their first purchase, citing issues with the vehicle condition despite Carvana’s “certified” claims. They had to replace the tires shortly after receiving the car, contrary to what Carvana had told them about the inspection process.

My Final Thoughts

The Jury is still out on Carvana and other online car buying services.

From my research, as of now, Carvana is no different than any standard car dealership in that you will run into helpful people to make the experience pleasant, and you will also run into people who seem almost unwilling or unable to be helpful.

Buying or Selling a car seems to remain frustrating whether you have to deal with a dealer or not. And remember, even when you are using a website, there are people behind it!

For now, Carvana’s biggest benefit is that they can offer you the convenience of not going to the dealership and dealing with people directly, which in today’s society, is in high demand.

So, Carvana certainly solves that problem.

But, does this new type of car shopping experience eliminate or reduce the hassles associated with buying a car? So far, I have to say no, it only changes which hassles you have to deal with.

Sources For This Article

https://www.reddit.com/r/carvana/comments/njw7ji/delivery_vs_pickup_opinions_please/?rdt=35584

Steve Momot - Author

Steve, a seasoned expert in the automotive industry, formerly held a car dealer license in Florida. With extensive experience spanning across car trading and mechanical work, he founded Autohitch. His mission? To guide both buyers and sellers through the intricate maze of car purchasing, ensuring a seamless and informed experience. Outside of the automotive world, Steve has a passion for fishing and capturing the beauty of nature through photography.