2025 Carvana Auto Loan Review

Carvana auto loans at a glance

Carvana might be best known for its towering vending machines holding cars for sale, but the used-car dealer also offers auto loans for its inventory of over 25,000 vehicles. Noteworthy features of a Carvana loan include:

• No-obligation prequalification: You can get prequalified for an auto loan online with no ding to your credit report. With this feature, you’ll be able to see your estimated payments.
• No minimum credit score requirement: If you earn $5,100 per year and are at least 18 with no active bankruptcies, you can get financing at Carvana.
• Seven-day money-back guarantee: If you change your mind in the first week after you buy your vehicle from Carvana, you can return or exchange it as long as you meet Carvana’s return policy. You can exchange up to two vehicles.
• Financing terms are valid for 30 days: You can take up to a month to consider your offer and shop around.
• Offers free limited warranties: Each vehicle purchased at Carvana comes with a 100-day/4,189-mile warranty.
• Best for those who want a one-stop shop: At Carvana, buyers can get prequalified, shop an inventory of tens of thousands of vehicles, go on test drives, get financing and purchase a vehicle all in one location.

Carvana auto loan requirements

One of the benefits of financing with Carvana is that there’s no minimum credit score requirement. However, there are other requirements you’ll need to meet. You must:

• Be at least 18 years old (19 in Georgia and Alabama)
• Earn at least $5,100 annually
• Have no active bankruptcies

You can complete the short, two-minute online prequalification form with Carvana here.

Carvana pros and cons

Carvana certainly offers some advantages for buyers, but no business is without its drawbacks. You’ll have to weigh the pros and cons of Carvana to determine if it’s the right option for you when you’re looking to finance a vehicle.

If you have a low credit score and are looking for a one-stop shop to buy and finance a car, Carvana might be a good match for you. As long as you’re of majority age and meet its income requirements, you may find a financing deal at Carvana.

You can even take your vehicle for a spin for up to seven days and return it for a full refund if you change your mind, assuming you haven’t damaged the vehicle or driven more than 400 miles.

However, there are some limitations to financing a vehicle with Carvana. Unlike with other lenders, you can’t get preapproved for a loan at Carvana and then buy a vehicle somewhere else. Carvana doesn’t operate in Alaska, Hawaii or any U.S. territories.

As of this writing, the company is also facing legal troubles over customers reportedly having difficulty accessing their registration and title information.

Carvana company overview

Founded in 2012, Carvana sells and finances used cars. Customers can shop for vehicles and car loans without ever leaving their homes as the company offers a 100% online experience. Carvana has 40 car vending machines in locations across the U.S. where customers can pick up their vehicles.

Carvana auto loan types offered

Carvana offers used auto loans on the 25,000+ used vehicles in its inventory. These include everything from sedans, minivans, coupes and SUVs to convertibles, trucks, hatchbacks, wagons, EVs and hybrids.

However, there is no such thing as new-car financing at Carvana, as its entire inventory consists of only used vehicles and Carvana only offers financing for the vehicles it sells. If Carvana’s financing options won’t work for you, you can also purchase a Carvana vehicle with an auto loan from a different lender.

Carvana also offers car lease buyouts for a few approved leasing companies:

• Aston Martin
• Chase Auto Finance (JP Morgan Chase)
• Chrysler Capital
• Jaguar
• Land Rover
• Lexus
• Maserati
• Mazda
• Mercedes (Daimler)
• McLaren
• Porsche
• Rivian
• Subaru
• Toyota Financial Services (Toyota Lease Trust)

How to get an auto loan with Carvana

An important part of Carvana’s brand is its streamlined auto-buying process. Here are the steps:

1. Get prequalified. Fill out the two-minute application on the Carvana website to get prequalified for financing.
2. Shop for your vehicle. After you get your loan approval, you’ll be taken to Carvana’s inventory, where you can see your prequalified terms for each vehicle.
3. Verify your information. Next, you’ll need to verify personal information, such as your name, address and date of birth, and you’ll need to substantiate your financial information. You may be asked for a copy of your ID, pay stubs and bank statements.
4. Review order and finalize your purchase. When you’re ready to make your purchase, you’ll have to submit to a hard credit pull for final review. Once you receive final approval, you’ll be offered a contract to read and sign to complete your purchase. You can choose to either pick up your car or have it delivered. Bear in mind, you may face shipping or delivery fees if you select the latter option.

Is a Carvana auto loan right for you?

A Carvana auto loan could make sense for you if you’ve had trouble getting financing elsewhere and you have your eye on a vehicle at Carvana.

The company’s 30-day financing quote is a huge plus, as it gives you ample time to shop around for other vehicles or loan terms. Carvana’s seven-day return policy allows you time to really inspect and get comfortable with your vehicle and give it back with no penalty if you have buyer’s remorse, as long as you meet Carvana’s return requirements.

The bottom line is that a Carvana auto loan could be right for you if:

• You like a vehicle at Carvana you can’t find anywhere else
• You have poor credit
• You like the idea of being able to return your car for up to seven days after purchase
• You want time to shop around

How Carvana auto loans compare

Even if you like what Carvana has to offer, it’s good practice to shop around for the best auto loan rates available to you. Keep in mind that your rates will ultimately be determined by factors such as your credit score, income and down payment, so these figures should only be used as a general guide.

For more information on car loans with Carvana’s competitors, visit LendingTree’s reviews of CarMax and Digital Federal Credit Union (DCU).