Summary: Carvana enables people to buy and sell used vehicles directly from their phones and have them delivered to their homes. Though the company enjoys positive ratings across various review sites, many customers complained about experiencing prolonged delivery, terrible customer service, and other irregularities. A deeper dive into customer experiences teaches us that you may want to think twice before working with this company.
Whether you are in the market for a vehicle and trying to avoid traditional dealerships or just wondering what it’s like to purchase a vehicle from a giant vending machine, it is safe to say that Carvana has piqued interests across the country. However, you may wonder how safe and legit it is and whether it’s worth your time. All the answers you seek are here; keep reading.
Table of Contents
- Carvana Company Information
- What is Carvana?
- Is Carvana Legal and Safe or a Scam?
- Is Carvana Reliable and Trustworthy?
- The Pros and Cons of Carvana
- How Does Carvana Make Money?
- Best Alternatives to Carvana
- FAQs
Carvana Company Information
| Official Website: | Carvana.com |
| Founded: | 2012 |
| Founder: | Ernest Garcia II, Ben Huston, Ryan Keeton |
| Location: | Tempe, Arizona, United States. |
| Contact: | 1 (800) 333-4554, https://www.carvana.com/help/ |
| Social Media: | Facebook, Twitter, Pinterest, LinkedIn, Instagram |
What is Carvana?
Carvana is an online used car retailer known for its multi-story car vending machines. It is a relatively new company on the auto dealer scene, advertising in-house financing, top-quality vehicles, and even a 7-day money-back guarantee if you aren’t satisfied with your vehicle. In addition, they offer delivery where the vehicle is brought to your home, or you can pick up the vehicle at one of their many locations across the country and experience a Carvana Vending Machine.
They sell used vehicles and even offer trade-in options if your vehicle meets their standards. Carvana also purchases vehicles that pass their inspections and quality standards from the public. They are entirely mobile, managing sales through the website and even the Carvana application on smart devices.
In a nutshell, Carvana is a modern way to purchase a vehicle, allowing customers to avoid physical auto dealerships and car sales agents. Instead, they streamline the car-buying process by listing all available vehicles on their platforms.
Is Carvana Legal and Safe or a Scam?
While it may be convenient to purchase a vehicle online or even through a mobile app, there will always be reservations and questions about the website and application’s legality and safety. Carvana is currently only available in the United States, and its website is totally legal.
Many sensitive and personal data is collected during the application process. The good news is that if you withdraw from the purchase or wish to cancel your account, it is as easy as reaching out to the company via the contact form at the bottom of their webpage. In addition, there’s no evidence suggesting that the website steals sensitive data or contains viruses.
Is Carvana Reliable and Trustworthy?
The legitimacy of Carvana’s website has been covered, but that doesn’t necessarily mean the company itself is reliable and trustworthy. The reviews on the site are very positive and boost confidence in the company and overall process. On TrustPilot, Carvana has a 3.7/5 stars rating from 5,896 reviews, while on Dealer Rater, the company has 4.1/5 stars from 9,262 reviews. On the Carvana website itself, the company has a 4.7/5 stars rating from 168,691 reviews.
However, Carvana also has its fair share of negative reviews and complaints. Several customer experiences outlined where the company fails to deliver vehicles on time, provide proper documentation and plates for vehicles, and provide decent customer service. Customer service is reported to be extremely difficult to get in contact with, to begin with, and if they get one, customers have been forced to wait for too long for reimbursement and refunds.
These complaints may be acceptable and looked over for companies selling smaller products, but Carvana isn’t selling a $10 iPad case; they are handling thousands upon thousands of dollars from individuals. It is scary to think that if a case/complaint is not appropriately managed, the customer may not see a dime of the money refunded or any acceptable resolution at all.
Although Carvana claims each car passes a 150-point inspection and is 100% accident-free, many reports of vehicles having pre-existing damage and even accidents are on record. And while the company does have an extended car warranty for their vehicles, customers have had to go to great lengths to get the damage covered. These reviews give reason to believe Carvana is not reliable or trustworthy.
The Pros and Cons of Carvana
| Pros | Cons |
| Convenient | Terrible Customer Service |
| Trade-in option | Unreliable delivery |
| Money-back guarantee | Documentation discrepancies |
| Flexible financing options | Vehicle inspections are unreliable |
| Nationwide locations | Agent knowledge is lacking |
| Wide variety of vehicles | Payment issues when selling/trading in your vehicle |
How Does Carvana Make Money?
Like any used car sales company, Carvana makes a profit by selling the vehicles they purchase for a higher amount than they originally paid. However, because they also offer in-house financing, they make money from the interest charges and additional fees that come with their loans.
Best Alternatives to Carvana
If purchasing from Carvana is not something you want to risk, or if the experience does not seem worth it, here are some alternatives for your used vehicle needs:
- Vroom
- CarGurus
- Cars24
- ACV Auctions
- CarMax
- Driveway
- Auto Trader
- Cazoo
Frequently Asked Questions
What happens at delivery?
When you purchase a vehicle from Carvana and choose to have it delivered to your home, there are a few things to know.
- A representative will haul the vehicle to you, and once it is unloaded from the auto hauler, they will sanitize the inside of the vehicle.
- You can test-drive the vehicle to ensure it is in good shape and satisfactory, and then you sign the documents left in the vehicle with any required documentation.
- After this, the representative will double-check to make sure everything is correct and call to confirm the completion of the sale.
Does Carvana price match/Can you negotiate prices?
No, Carvana does not offer price matching or negotiations. The price listed on their website and mobile app are the final prices of the vehicles.
How is financing determined?
Carvana uses a combination of credit history and income and considers the vehicle’s cost to determine available financing options.
How do I return the vehicle?
If the customer is unsatisfied with the purchase, they can contact Carvana to set up a time for a representative to come and collect the vehicle within the first 7 days.
How does the vending machine work?
If someone chooses to retrieve a vehicle from one of Carvana’s Vending Machines, the customer will receive a specialized coin upon arrival. The coin is then inserted into the vending machine, which activates it and begins the process. The vehicle is then lowered from the loading bay to the ground, where the customer takes possession of it.
Is Carvana in legal trouble?
Carvana is currently under investigation and has numerous class-action suits against it for its practices. These are spread across multiple states in the U.S. and are due to the company’s failure to deliver documents, tags, registrations, etc., within the legal timeframe required.
Is Carvana cheaper than a dealership?
While Carvana makes purchasing a car quick and relatively easy, price is definitely something to consider when comparing the two. Buying a car from a giant vending machine may be fun, but customers may be overpaying for vehicles just for the experience.
Dealerships can negotiate prices and even have sales on certain cars throughout the year. However, Carvana prices are set firmly and non-negotiable, so you will often get a better price at a physical dealership.