For many car buyers, financing can feel like a black box. While most buyers choose to finance their car purchases, getting information about financing often isn’t easy and typically happens one vehicle at a time. Buyers choose a car, apply for financing, and only then, after significant time and effort invested, find out if they’re approved and on what terms.
At Carvana, we handle financing differently. Carvana’s technology brings transparency and convenience to the financing process and puts the customer in control every step of the way. In less than two minutes, customers can get pre-qualified online and see personalized down payments and monthly payments across tens of thousands of vehicles, without affecting their credit score.
Behind that experience is a financing system built directly into Carvana’s online shopping platform. It lets customers compare vehicles with certainty about not only the sticker price, but also about the financing terms that impact their monthly budgets. There’s no impact to your credit score and no high pressure sales tactics, just the information you need to compare your options and choose what’s right for you at your own pace.
More than 2 million customers and counting have purchased a vehicle using Carvana financing.
How does Carvana determine your financing terms?
Carvana’s financing system considers your personal details, including credit history and income, alongside each vehicle in our inventory to calculate personalized terms.
The process starts with a short pre-qualification form at Carvana.com/financing and a soft credit check. The process usually takes less than two minutes and does not affect your credit score.
Because financing is integrated into the shopping experience, one pre-qualification lets you see and compare your terms across tens of thousands of vehicles, without submitting a separate application for each car.
Before completing your purchase, you can review your annual percentage rate (APR), loan term length, down payment, and monthly payment. Final loan approval requires verification of the information you submitted during prequalification.
How does Carvana help you find a vehicle that fits your budget?
Carvana lets you shop by your personalized monthly payment and down payment, alongside vehicle make, model, mileage, and other preferences. You can filter search results by any of those criteria and more to find vehicles that fit both your lifestyle and your budget.
You can also adjust your down payment or choose from other available term lengths and immediately see how those changes affect your monthly payment. For example, for a lower monthly payment, customers can choose to put more money down. Once again, this transparent customizability lets you understand your options so you can make an informed decision on your own time and your own terms.
Providing clear terms across tens of thousands of cars can also reveal choices you might not have considered. You might find a newer or lower-mileage vehicle within your preferred monthly payment range, or choose a less expensive car that leaves more room in your budget.
You’re in control of those decisions. You can compare actual payments privately, at your own pace, with no pressure.
Is Carvana a full-spectrum auto lender?
Yes. Carvana finances customers across the credit spectrum, from those with excellent credit to those building their credit. The credit profile of customers who finance through Carvana generally reflects the credit distribution of U.S. car buyers.
Our proprietary models evaluate each customer’s credit history alongside the details of each vehicle to provide personalized terms. That gives customers of all credit backgrounds the same ability to shop with transparency and confidence – comparing their options and choosing a vehicle and payment that fit their budget.
What credit score do you need to finance through Carvana?
Carvana does not have a minimum credit score requirement. We use many factors to score applicants and provide personalized terms. Beyond credit score, credit history, income, and vehicle details are also important inputs to this calculation.
Having no minimum credit score requirement does not mean every customer is approved or receives the same terms.
Customers with a past bankruptcy may also be eligible, although those with an active bankruptcy do not meet Carvana’s financing eligibility requirements.
Does Carvana approve everyone who applies for financing?
No. We work to serve as many customers as we can, but we are not able to approve every applicant. Customers who apply for financing must meet Carvana’s eligibility requirements and complete underwriting to receive final loan approval.
Carvana’s 99% approval rate applies to customers who meet eligibility requirements, accurately report their information, complete their down payment, and fully participate in the underwriting process in good faith.
What happens after you choose a vehicle?
When you choose a vehicle and proceed through checkout with Carvana financing, we verify your information and complete underwriting. This includes identity and income verification, along with other lending requirements. When you place your order, we also complete a hard credit inquiry.
The personalized financing terms you received during pre-qualification do not change because of the hard credit inquiry, so long as the information provided is accurate. Final loan approval requires completing those verification and underwriting steps.
Does Carvana let you use your own lender or pay in full?
Yes. While the vast majority of our customers choose Carvana financing, customers can also use third party financing or pay in full through a secure electronic payment.
You choose the payment option that works for you. However you choose to pay, your purchase includes Carvana’s 7-Day Money Back Guarantee, giving you time to make sure your vehicle is right for you.
Frequently Asked Questions
Are the payments shown while shopping estimates?
Once you’re pre-qualified, Carvana shows real monthly and down payment figures calculated from your personalized terms for each vehicle. These terms are accurate to the penny and valid for 30 days. Final loan approval still requires verification and underwriting.
Does pre-qualifying mean I am fully approved for a Carvana auto loan?
No, when you pre-qualify for Carvana financing, you can see your real terms for every vehicle, but you are not fully approved for a loan yet. Your pre-qualification terms are based on a variety of factors, including your personal credit history, income, and unique vehicle details. In order to be approved for your Carvana loan, you must complete underwriting, which includes satisfying identity and income verification, among other underwriting standards. This step happens after you place an order for a vehicle.
Does Carvana offer financing if I choose to purchase elsewhere?
No, Carvana Financing is available exclusively for vehicles sold on Carvana.com, where customers can choose from tens of thousands of vehicles to find one that fits their needs and budget.
Disclaimer: This article is provided for general informational purposes only and reflects information available as of the date of publication. It may not reflect the most current legal, regulatory, pricing, or market developments. Carvana makes no representations or warranties, express or implied, regarding the accuracy, completeness, or timeliness of this information and undertakes no obligation to update it. This article does not constitute legal, tax, financial, or other professional advice, and you should not rely on it as such; consult qualified professionals regarding your specific circumstances. To the fullest extent permitted by law, Carvana disclaims all liability for any loss or damages arising out of or related to your access to, use of, or reliance on this article. Third-party links are provided for convenience only; Carvana does not control and is not responsible for third-party content. In the event of any conflict between this article and Carvana’s terms, policies, or transaction documents, those terms and documents control.