Introduction
Table of Contents
Carvana is a company based on the premise that buying a car should be as easy as ordering a book online. As more and more people are transitioning to e-commerce, it makes sense that buying a car would follow suit. The company has taken advantage of this trend by creating vending machines where customers can pick up their new cars in just 30 minutes. Here’s how Carvana works:
What is Carvana?
Carvana is an online used car retailer that uses vending machines to make the experience of buying a car less painful.
It’s also a car dealer, a car buying service, and a used car business model.
The company takes cars people don’t want anymore and sells them to other people who do want them. It does this by buying them at auction or from private sellers and selling them at either its website or via its mobile app. The customer then picks up their new wheels through Carvana’s vending machine delivery system (more on that in a minute).
Features of Carvana
Carvana is a car-buying service that allows you to purchase a car through a vending machine. The company offers three different subscription plans: Carvana Select, Carvana Premier and Carvana Black.
Carvana Select costs $199 per month for six months, after which time the subscriber can trade in their vehicle for a new one or return it for an 80 percent refund on the original purchase price.
Carvana Premier costs $399 per month for 36 months (three years). This plan includes all benefits of the lower cost one with an added bonus—a free trip home from any location within 50 miles if your vehicle breaks down or malfunctions while you’re away from home.*
Carvana Black costs $599 per month for 72 months (six years) and includes all benefits offered by the other two plans plus lifetime roadside assistance coverage.*
Where can I find the nearest Carvana vending machine?
If you’re in the market for a new car, Carvana can help! We have vending machines located in major cities around the US, and we’re expanding to more locations with each passing month. If you’d like to see if there’s a vending machine near you, visit our website and enter your city and state—we’ll show you where our nearest location is located.
If there isn’t yet a vending machine close by, don’t worry! We plan on expanding into many more states over time. In fact, we’re currently working hard on opening up locations in South Carolina, Kentucky and New Jersey so that wherever you live or travel to next year will be covered by our convenient service offering.
The Pros and Cons of Buying a Car with Carvana
Pros:
- Easy to buy
- No salesperson pressure
- You can trade in your existing vehicle for a credit towards your new purchase, and if you don’t want a new car, you may be able to still get cash or a gift card. This flexibility is great for people who are trying to sell their own car privately but haven’t sold it yet.
Cons: – Carvana charges almost $200 in title fees, which is higher than most states’ average of $135. – If you live in an area where there aren’t many Carvanas nearby, you’ll have drive time costs associated with getting your car delivered—but they do offer free delivery within 10 miles of certain locations in select cities (see our site for more details).
Is it safe to buy a used car from Carvana?
Carvana is a secure place to buy a car. When you buy from Carvana, you’re protected by our Buyback Guarantee and warranty coverage for all of our vehicles.
Buyback Guarantee: If you ever have any issues with your vehicle—whether it’s a minor scratch or something more serious—we’ll buy the vehicle back from you at the same price that we sold it to you (not including taxes and fees). That way, even if something goes wrong after you purchase your used car from Carvana, we have your back so that you don’t have to worry about it going unrepaired or costing more than expected in repairs.
Warranty Coverage: We stand behind all of our vehicles with an industry-leading warranty program that includes roadside assistance as well as 24/7 customer support from one of our certified technicians who can help diagnose any problems before they become major headaches down the road.
What type of warranty does Carvana offer?
Carvana offers a limited warranty on all of its used cars, whether you buy them through the website or through dealerships. The limited warranty lasts for 30 days from delivery and covers repair or replacement if there are mechanical or electrical problems with your vehicle. You can also purchase an extended warranty from Carvana that lasts up to 84 months.
The company also offers a limited warranty on its certified pre-owned cars, which comes standard on every vehicle they sell (certified pre-owned vehicles are inspected by an outside source and come with an extended 36-month/60k mile powertrain warranty).
What happens if my car doesn’t meet expectations when it rolls out of the vending machine?
If you’re unhappy with the condition of your vehicle and want to return it, Carvana will inspect it before delivery. If anything is found to be damaged or missing, they will fix or replace it at no additional cost and cover any costs associated with getting your car back to them (for example, if you have paid for shipping).
If Carvana determines that there is no damage but you still want to return the vehicle if for any reason whatsoever, they will refund your money minus a 5 percent restocking fee.
How do I return a car purchased from Carvana?
- If you’re returning a car that was purchased from Carvana, the process is quick and easy. Simply enter your information into your Carvana account, log in to the website or app and then head over to a Carvana vending machine (which are typically located on street corners). You’ll be given an envelope with instructions for how to return your car—all you need is some cash for the trip and any accessories included in the sale, such as keys or manuals.
- If you don’t live near a vending machine location, there’s another option: You can also return your vehicle at an authorized dealer that has agreements with Carvana. If this sounds like more trouble than it’s worth, simply drop off your vehicle at any other dealership near you and let them take care of everything else!
Can I get my money back on a car purchased from a dealer in good faith that has since been recalled?
Yes, you can get your money back on a car purchased from Carvana in good faith that has since been recalled.
Carvana will refund your money if the car you bought is recalled, and they’ll also pay for the cost of repair or replacement parts and labor. If you already paid for the repairs before we refunded your purchase price, we’ll reimburse you up to $1000 towards any repairs or replacement parts (subject to verification). We’ll also reimburse all reasonable costs associated with rental vehicles incurred during the time it took to get your repaired vehicle back from us, up to $100 per day for each day that a rental car was needed (maximum reimbursement: 10 days).
Do you have to pay sales tax on cars bought with Carvana?
Yes, you will be charged sales tax when you purchase a car from Carvana. However, this only applies to in-person transactions. You won’t have to pay any sales tax when buying a car online from Carvana. Even if you live in an area where taxes are not required for online purchases, you still won’t have to worry about paying any taxes on your purchase through Carvana because there is no way for the company itself or its affiliates (like Autonation) to know that a particular vehicle has been purchased through them until after it has been delivered. Your local DMV will take care of notifying all applicable parties that they need to collect taxes at registration time as well as when selling your vehicle privately—and they do it automatically using their databases!
How do people finance their purchases with Carvana and what kind of interest rates does the company offer?
Carvana offers financing through Ally Bank, LightStream and Wells Fargo. These companies are among the largest financial institutions in the world. Carvana also offers financing through Santander and Citizens Bank. These companies provide loans for cars to people with bad credit or no credit who might not qualify for a loan at other places like a bank or car dealership.
The interest rates for these loans vary depending on your credit score, income, debt level and other factors that lenders look at when determining how much money they can lend you. Your interest rate will be higher if any of those things are poor than if they’re good.
If you don’t have all of your information ready when applying online—such as an old address where you’ve lived in the past five years—you may be asked to call customer service so they can verify it before approving your application; this usually takes less than five minutes per person but is worth noting if you’re hoping to apply online instead of over the phone (which is also possible).
Will my credit score take a hit for applying for financing through Carvana?
If you’re worried about your credit score taking a hit when applying for a loan through Carvana, don’t be! The company will only pull your credit once you’ve been approved and are ready to buy. In fact, the only information they’ll pull from one of their sources is your annual income—this is so they can verify that you’re able to pay off your loan in full before it’s due.
If approved, this isn’t the last time you’ll be asked for sensitive personal information—you’ll also be asked to provide an array of documentation such as proof of residency and identification. This is standard practice for any kind of financing setup (whether it’s through Carvana or another lender).
Future of Carvana
Let’s take a look at how Carvana has grown and what we can expect from them in the future.
Carvana was founded in 2012, and its main focus is used cars. In 2016, they started selling their vending machine-like machines that allow customers to pick out vehicles in person (i.e., without having to make an appointment). The company’s goal is “to provide every customer with an easy, convenient experience when purchasing or selling a car—from financing options, to transportation logistics and delivery—all for one low upfront price” (Carvana).
The company has received funding from some notable investors including: Google Ventures (GV), Sequoia Capital, TPG Growth and others who believe in the success of their business model.
The way they sell cars allows them to offer lower prices than traditional dealerships while still making enough profit on each sale because there are no overhead costs associated with physical locations or staff salaries since everything is done online through their website or app which makes it easy for them since they don’t have any overhead costs!
Conclusion
Carvana has made the process of buying a car more convenient, efficient and fun than ever before. They have changed the way we shop for vehicles and made it possible for even those with low credit scores to get financing on their dream vehicle. The company is also working on expanding their services by adding additional locations across the United States so it will soon be easier than ever for people all over this country to buy cars from vending machines!
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