From August 2019 to August 2022, used-car prices increased by 52 percent, while new cars increased by 29 percent. And with soaring interest rates, it was challenging for many Americans to afford a new, let alone a used vehicle. Looking for options to buy a car became vital.
How Carvana Works
Seventy percent of cars sold in the United States are used, and buying one can be nerve-wracking. Going to a high-pressure dealership or used car lot is intimidating for some people. That’s where Carvana comes into play.How to Find a Car on Carvana
On the Carvana website, you can search for a specific model or general category. If you want a “small SUV,” you can search for one. If you want a 2021 Ford Explorer, the filter will also let you search for that.You can also search by other filter options, for example, price, color, year, etc.
Once you find a car you’re interested in, you can look at its profile. You’re provided with an interactive 360-degree view of the actual in stock vehicle. And you see multiple images of its interior. You can also click the vehicle identification number (VIN) to look up the vehicle’s history for free.
How Does Carvana Deliver a Car?
How you take delivery on a Carvana vehicle depends on where you live. If you live in one of its local markets, Carvana delivers your car on one of their trucks on an appointed day. This is usually done at no charge. But sometimes, even if you’re local, there’s a delivery charge.You can search for a make or model without shipping charges.
For those not living in a local market, you pay a non-refundable shipping charge to have your car delivered by a third party. The shipping cost can be added to your financing. You won’t receive your shipping cost back if you return the car.
You have seven days to decide if you want to keep the car. And you have a 100-day or 4,189-mile limited warranty.
Does Carvana Offer Financing?
Financing is available at Carvana, even if you have bad credit. But depending on your FICO (Fair Isaac Corporation) score, the terms can be expensive. You may want to go to your own bank or credit union instead.Does Carvana Cost Less Than Dealership?
The vehicle purchase price on Carvana’s website is fixed. There’s no negotiating. Depending on the vehicle, Carvana is somewhat competitive compared to what you might purchase at a dealership. For larger, newer SUVs, you may find the dealership less expensive, though.How to Sell a Car to Carvana
Carvana takes trade-ins and will also purchase your vehicle outright.They only accept trade-ins or cars for sale in local markets. If you don’t live in a local market, you'll need to take your car to a local market to sell it or trade-in to Carvana.
If you’ve traded in your car, it’s held for seven days while you decide if you want to keep your Carvana car. If you don’t keep the car, Carvana will return your trade-in.
If you want to sell your car, input the license plate number, VIN, and your vehicle, then click “Get My Offer.”
You’ll be asked several questions about the condition of the car. If Carvana accepts your car, you’ll receive a cash offer that’s good for seven days.
Carvana a Good Used-Car Option, but Use Caution
Carvana has been hit with some legal issues. Several suits from states claim buyers were sold cars without titles. Carvana was banned from selling cars in Michigan until lawsuits were settled. So, ensure you receive the proper documentation when purchasing a vehicle.But despite these problems, Carvana is just another version of online shopping. And it’s a viable option if you’re looking for a used car. It’s also a good deal if you want to sell your car.