What is Carvana & How Does Carvana Work? [2023 Explanation]
Carvana is the ideal option for anyone selling their used vehicles online for the highest price and the least hassle. Both buyers and sellers can benefit from this convenient online marketplace for pre-owned cars. Vehicle sellers frequently use “Sell my car on Carvana” when conducting online searches.
Carvana stands out for its radical digital advancements in the auto retail industry. Read this post if you’re unfamiliar with selling cars online and want to know the ins and outs of using Carvana. In that case, let’s get started!
What is Carvana?
Carvana has been selling automobiles online since 2013, even though buying a car online wasn’t particularly trendy until the COVID pandemic.
Carvana is an online-only used car dealer that facilitates all aspects of the auto-buying process, from researching vehicles to arranging to finance, without the need to set foot in a physical showroom.
Carvana only deals in used vehicles no more than ten years old. Most of the cars, though, are less than five years old. More than 15 thousand cars are available on Carvana, all of which have passed a rigorous 150-point inspection.
Despite the initial worry, online car purchases have become popular due to their ease and relatively low cost. You might be asking how it is even possible to buy a car online, given how much time you spend at the car dealership and how much paperwork is involved in the process.
1. Searching for the Desired Car
At the top of the page, when you visit Carvana’s website, you’ll see buttons labeled “get pre-qualified” and “get an offer.” To determine whether or not Carvana carries the pre-owned vehicle you want to purchase, simply put in the name of the model you want in the big search bar and hit Enter or click the magnifying glass icon.
Carvana allows you to specify your maximum monthly payment amount and your maximum budget for a vehicle when browsing available options. Other vehicle details may also be filtered in addition to the vehicle’s price and monthly payment.
- Body Type
- Fuel Type
- Fuel Efficiency
- Drive Type
Carvana provides information about each vehicle on a detailed page once you locate the one you’re looking for. Just click on the car you’ve selected for additional information. The interior and exterior of the vehicle can be viewed in 360 degrees once you reach the detail page.
Carvana provides a complete 360-degree view of the vehicle you’ve selected, including notes on any flaws discovered during the company’s rigorous 150-point inspection of every vehicle for sale. Chips, dents, and other major problems will be highlighted in these reports.
A virtual tour, photos, and free CarFax report can all be accessed from the vehicle detail page. When you’ve settled on a vehicle, click the big green “Get Started” button on the top right of Carvana’s homepage to begin the purchasing process.
2. Apply for Financing
Financing is available through Carvana Finance, the company’s very own treasury. Customers can apply for financing anytime, including during the online checkout process or before they even set foot in a dealership.
Customers need to disclose their name, address, employment status, and income when applying for financing. Carvana will also need their social security number to examine their credit history.
In just minutes after the customer submits their application, they will receive a response from Carvana Finance. If the application for financing is successful, the customer will be given several alternatives regarding the loan’s terms, interest rate, and principal.
Traditional auto loans and leases are both available from Carvana Finance. Consumers can pick the pricing and feature bundle that best suits their lifestyle and vehicle. The interest rates offered by Carvana are competitive with those offered by other lenders, though they fluctuate based on the customer’s credit score and other criteria.
A consumer can obtain financing for a purchase even if they are not approved for financing through Carvana Finance by approaching a different lender. Customers with less-than-perfect credit can still be eligible for financing through Carvana because of the company’s partnerships with several third-party lenders.
The financing procedure with Carvana is quick, easy, and open. Customers can apply for loans online, get an instant decision, and select flexible repayment options.
Carvana is much more than just a place to buy and sell cars. They also have a wide variety of high-quality pre-owned vehicles that have passed inspection. They have a trade-in program if you want to upgrade to a larger vehicle in their lineup.
There is a trade-in option while you produce your current car’s offer. Getting an appraisal for your car follows the same steps as selling it. When you respond to some questions, an offer will be presented.
You can choose from many upgrade options when you trade in your vehicle at Carvana. Choose a car from the options provided. As soon as your new vehicle is delivered, Carvana will take your old one away. Really, it’s that easy. In case you’re wondering how Carvana trade-in works, here it is:
- You should first visit the Carvana website to determine how much your current vehicle is worth in a trade-in.
- You’ll select a new car on Carvana, keeping in mind that the price will be adjusted downward by the amount your current car is worth when traded in.
- Have your new automobile delivered or picked up, and then deal with your old car as necessary. At the time of delivery, a collection agency will arrive to inspect your old vehicle, give you cash, and tow it away in preparation for the arrival of your new vehicle.
If you opt for a pickup, you’ll have your replacement vehicle waiting for you at the hub, where you’ll also turn in your old ride and get paid for the new one. This procedure is extremely well-organized and easy. The following section will review a few more relevant points regarding trade-in autos.
4. Confirm your Payment Type
In this section, you can see how much the car will cost in two different payment plans: “pay once” and the “pay monthly” approach. The “pay once” price considers the total up-front cash price for the vehicle, shipping included. If you choose to finance the car, clicking “pay monthly” will display the payment based on the pre-qualification number you entered.
5. Choose Delivery or Pickup
When you’ve made your vehicle selection and payment, you can have the vehicle delivered to your doorstep or pick it up from one of 34 vending machines located strategically across the country. Suppose you select this option and happen to reside next to a vending machine.
In that case, you’ll be given a special coin that, when inserted, will cause the machine to summon your automobile from the car tower to the delivery area. Your new car is ready for you to take for a spin.
Carvana Vending Machines
Many enormous vending machines selling Carvana products are in several U.S. cities. Automobiles are stored in multi-story glass structures that serve as vending machines. When buying a car from Carvana, customers can pick up their vehicle from a vending machine instead of delivering it to their house.
Customers are given a unique coin at the vending machine, which they use to access their desired item through a designated opening. When the consumer presses the button, the vending machine brings the selected vehicle to a delivery bay for further inspection and a possible test drive.
If the client is set on keeping the vehicle, the sale is finalized in the showroom with the assistance of the Carvana salesperson. According to Carvana’s return policy, customers have seven days to decide whether or not they want to keep the vehicle and receive a complete refund.
As part of its mission to revolutionize the car-buying process, Carvana used the vending machine model. It’s a win-win for buyers since they get to see and touch the vehicle in person before buying, while Carvana keeps its online shopping and financing options available.
6. Returning Your Vehicle
Consumers have seven days to notify Carvana of their intent to return a car. Delivery fees are never refundable, but deposits are.
Customers receive 400 free miles per week, with an additional charge of $1 per mile driven over the allotted limit. If a car has been altered, damaged, or altered in any manner, Carvana will not accept it. The guarantee is void in case of any mishaps.
A seven-day return policy allows customers to try out a vehicle and return it for a different model if they aren’t satisfied. Customers can return a car up to three times with Carvana, but there is no more return option after that.
How to Sell a Car Online With Carvana
Like buying a car, selling one may be started entirely online with Carvana. You must submit a questionnaire and your vehicle’s VIN to receive a price. After that, you will promptly receive a price estimate.
Although Carvana must physically inspect your vehicle before making a payment, you can get an estimate of your earnings through their website. If you agree to the price, a Carvana driver will come to your residence to pick up the vehicle. Carvana will pay cash or accept your trade-in vehicle.
The process of selling a car to Carvana is simplified throughout. The entire transaction takes no more than 15 minutes and eliminates the need to advertise your vehicle or negotiate with prospective buyers.
Carvana is worth looking into if you’re in the market for a pre-owned vehicle. Purchasing a used automobile online is more advantageous than going to a dealership since it cuts out the haggling and gives you more time to look around and find the best deal.
Nevertheless, when buying from Carvana, you’ll likely have to pay in full for the vehicle before ever setting eyes on it. While Carvana does its best to present as much information as possible, some shoppers may feel more comfortable checking out a vehicle in person.