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Carvana Review: How I Landed a Great Deal

December 12, 2016 by Thomas 26 Comments  Richmond Savers has partnered with CardRatings for our coverage of credit card products. Richmond Savers and CardRatings may receive a commission from card issuers.

Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed or approved by any of these entities. Disclosures.

Carvana deliveryI recently totaled my car, which prompted me to start looking for a new ride. I did a ton of research into the cars I was considering and into the dealerships in my area. After doing my homework, I bought a car online from Carvana and had it delivered to my door.

It was such a great experience on several levels (price, customer service, and convenience), that I wanted to share. Carvana is in no way compensating me for this review, nor do they even know I am writing it. So this is a completely unfiltered review of my experience. It’s a long read, so feel free to skip to the conclusion.

Some Background

I’m not a “car guy.” At all. I’ve never driven a stick shift and I couldn’t tell you what “GT” stands for. On top of that, I don’t like to spend money (especially on something that’s guaranteed to lose value) and I’m a slow decision maker. When you combine all of these, you’ll quickly realize why buying a car is one of my least favorite things, and is something I think of as a necessary evil.

Also, I always buy used cars. One time, my Dad and I were moments away from signing the dotted line on a new Toyota, which would have had a $300+ monthly payment, when I got cold feet and walked out. That was my “aha” moment that buying new cars just isn’t for me. I don’t mean to reignite one of the classic personal finance debates, but for me I’ll probably only ever purchase used vehicles.

How My Search Unfolded

Originally, I wasn’t sure exactly what type of car I wanted. Since I’ll be in law school next year, and in an area known for a few big snowfalls each season, I planned to get a Subaru Outback or Forester with all wheel drive. I quickly realized that wasn’t going to be worth the expense, and that an investment in good winter tires might be more valuable than having AWD. Plus, I can make do with a smaller sedan. That’s actually preferable since the next few summers may require me to commute long distances, so fuel economy is also very important. I’ll spare you too many more details into my thought process, but I narrowed the search down to a Honda Civic, Toyota Prius or Hyundai Elantra.

My Problem

After several weeks of searching, I had yet to find a great deal in my area for one of the cars I was hoping to purchase. All the deals were in Richmond or Northern Virginia, which would require me to drive several hours. If I ended up not liking the car or wanted to check out a variety of options, this could take, at best, an entire day or, at worst, several days of going back and forth to the various dealerships. That simply was not worth my time. On top of that, it was hard to vet the dealerships. Some of the “deals” I saw online were with smaller car dealers, and I wasn’t sure how good of an experience I should expect as opposed to a big, traditional dealership (but let’s be honest, that’s often not a good experience either).

Enter Carvana

CarvanaI first heard about Carvana when I saw one of their catchy commercials, featuring the tagline “That didn’t suck.” That resonated with me, because last time I bought a car at a dealership, I felt like they virtually held me hostage in an effort to sell me warranties I didn’t want, and they didn’t take “no” for an answer gently. On top of that, they charged me an outrageous dealer fee of over $500.

As I looked into Carvana, I could see that they really are trying to make car buying a much more pleasant experience.They have a few physical locations (at least in Atlanta and Nashville, though I couldn’t find an exhaustive list), but their bread and butter seems to be the online buying and delivery process.

That’s right, you can search their full inventory online, pick a car and have it delivered to your home, assuming you are in one of their “delivery regions.” Or if you prefer, you can pick it up at one of their locations. They even offer a $200 travel credit for you to fly to a location to pick up your car and drive it home the same day. Oh, and there is no “Dealership Fee,” so you’ll just pay the price they show, plus the taxes and title fee.

I know what you’re thinking…

My gut reaction was “Who in their right mind would buy a car without seeing it first?” but Carvana addresses this concern in a few very clever ways. First, they only sell accident-free cars. And, since their cars are relatively new I’m willing to bet that many have only had one owner (that was true for the car I purchased). They also give the cars a 150-point inspection, state inspection, and an oil change to make sure everything is in safe working order (I’m guessing other dealerships do this as well). Then, there’s the Carvana website. It’s AMAZING. They document everything that’s wrong with the car in a slick and intuitive 360 degree view. You can check out the car in every angle and zoom in to see scratches and other minor imperfections.

Lastly, they offer a 7-day no-questions-asked money back guarantee. This means that you can test drive the car to make sure it’s a good fit for you. But more importantly, it gives you time to take it to a trusted mechanic to ensure that nothing is obviously wrong. I’m terrible with cars, remember? So this was a crucial step for me. Oh, and even once the seven-day period is over, a Carvana 100-day warranty kicks in.

My Purchase

Carvana claims that customers save an average of $1,681 vs. blue book value, and I wanted to land a great deal. I found that many of the more popular models weren’t as deeply discounted, though. Quite a few cars I looked at were only $500 to $700 cheaper than the blue book value, but your mileage may vary here (pun intended). However, there were still some great deals and an even better deal on Black Friday. From Black Friday to Cyber Monday, Carvana offered $1,000 off every car in their inventory. They’ve done this several years now, and hopefully the trend will continue because it’s a great sale. If you can’t wait until (next) Black Friday, check Reddit and you can land a referral code to take $500 off your purchase (some states, including Virginia, are excluded though).

Carvana sale

Black Friday Deal!

I decided that I wanted my car’s interior to have some conveniences, such as leather seats (which make cleanup easier with a toddler) and a rearview camera. While I’m usually not willing to spend extra on these “wants,” I realized that it’s totally worth it if I’m going to keep the car for a long time. After all, I’m not one of those people who gets a new car every few years. I’m absolutely hoping to keep this for 10 or more years to come. And, I had been saving my money and had driven a “beater” for many years, so these minor luxuries are something I’ve been planning for via my saving. And, I’ll potentially be spending significant time in my car on long commutes, making these features even more worthwhile.

I realized I could get these extras at a much cheaper price in the Hyundai Elantra than the Civic or Prius, and I’d still retain good fuel economy. So, I purchased a 2013 Hyundai Elantra Limited, with just over 30,000 miles for $12,500 which was $2,168 below blue book value. On top of all the great perks from Carvana, I also inherited 28 remaining months of manufacturer’s warranty, which I’m really excited about.

My Carvana deal

My car is on the top left, the best deal vs. Blue Book value.

My car was delivered on time, about six days after I ordered it (things might have been slower due to the Black Friday sale). If there’s one “negative” at all, it’s that I feel like you need to show some initiative once you purchase the car online. Give them a call and just check in on the process. Everything went smoothly for me, but I feel like I was getting lots of automated communication, and checking in was reassuring. Plus, it prevented a few potential hiccups, so I highly recommend you reach out to their customer service during the process.

Overall I couldn’t be happier with the whole experience. The folks at Carvana had noticed that the car had some white “overspray” on the hood, though it was barely noticeable, and they paid for me to get it buffed out. On top of that, they paid to replace one of the key fobs, since there was only one when I purchased the car. At every touch point, they addressed my concerns above and beyond what I would have ever imagined. The delivery only took about 10 minutes and couldn’t have been easier. There’s honestly no comparison between how easy this was and how frustrating a big dealership can be. Not only did I get a good deal on the car, but I probably saved a few hundred dollars worth of my time.

Some Final Thoughts

Here’s a quick recap of my Carvana experience, plus a few other considerations and caveats. This post was already getting long, so I’ll just leave them here as bullet points. Feel free to ask me any other questions, or call Carvana customer service–they are great!

  • Buy a car online and have it delivered to your house, or fly to a Carvana location to pick it up (they reimburse up to $200 for travel).
  • It’s a great way to save time vs. driving to a bunch of dealerships, and it’s virtually risk-free given the free 7-day return policy.
  • Their website gives you additional confidence, because you can see virtually every nook and cranny of the car, including any imperfections.
  • All cars are accident free, and I’m guessing that most are one-owner.
  • Carvana offers a pretty sweet referral code program that takes $500 off your purchase. If you can get a code (try reddit), that would provide some awesome additional savings (not available in some states, including Virginia).
  • I was lucky that I didn’t need a car right away since I work from home. If you need a car immediately but don’t live near a Carvana delivery zone, it might not be your best option.
  • Carvana doesn’t accept credit cards, which was one big bummer because I prefer to earn points on car purchases, but there’s a catch…
  • If you finance with Carvana you can make loan payments with a credit card for a small fee ($4.50) per transaction. So, you could potentially meet minimum spend on card(s) or just earn points by first financing and then paying off the vehicle. This is a little bit of a hassle, but actually may be more favorable than trying to use a credit card at a traditional dealership with a limit of say $3,000.
  • Carvana pointed out an imperfection with my car that I wouldn’t have noticed–and paid to fix it. How amazing is that?

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Richmond Savers has partnered with CardRatings for our coverage of credit card products. Richmond Savers and CardRatings may receive a commission from card issuers.

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Comments

  1. Fervent Finance says

    December 12, 2016 at 10:40 am

    Wow sounds like a great experience. I haven’t heard of Carvana, probably because I don’t live anywhere near their locations. I’ve bought two cars in my life – one at a tiny dealership when I was 16 and a large dealership when I was 21. There was definitely some bait and switch tactics at the large dealership but I was too young and dumb to realize. I sold my last car to Carmax when I moved to NYC. I could of sold it private party and made an additional $1500 maybe, but I was starting a new job in Manhattan and didn’t have to time or patience to sell it privately, so it was a great option for me!

    Reply
    • Thomas says

      December 12, 2016 at 10:49 am

      Yeah, time is the real x factor when it comes to cars, especially on the selling side. And each month they sit accumulating insurance costs, so getting rid of it quickly isn’t always so bad even at a cheaper price. As for Carvana, they apparently have hubs throughout the country so they can deliver well outside of Atlanta and Nashville, so it might be worth a look if you’re ever in the market.

      Reply
      • Keith says

        September 25, 2018 at 12:15 am

        Where do I find referral codes…Thanks:)

        Reply
  2. Tommy B. says

    December 12, 2016 at 12:41 pm

    While we had a pretty good experience making a purchase from Carvana earlier this year, they do not sell “accident-free” vehicles. My wife and I purchased a 2012 Honda Odyssey van with LOW miles back in June. The online viewer showed what appeared to be a few minor imperfections to both exterior and interior. We agreed to go through with the purchase and met at a convenient location for both us and the delivery lady since we were outside of their free delivery zone. We were surprised to see that there appeared to be a quite a few other exterior scratches than were shown on the online listing that could be touched up and buffed out, so I was okay with that. On the other hand, the interior was another story. Many of the interior trim pieces were scratched and scuffed up. To me, it seemed obvious that this was some sort of service vehicle whether it made deliveries or was a shuttle service. Aside from the damaged trim pieces, it was dirty on the inside where the carpet needed shampooing and there appeared to be spill marks on the trim. Given the gracious return policy, we accepted the vehicle as is and had it quoted by a professional detail shop that stated it needed “a lot of work”.

    This next part gets to what I initially stated. We took the van to a Honda dealership to have a used car inspection only to find out that BOTH front tie rods were damaged and needed replacing. They also asked if I knew the front bumper was not OEM (not original and had been replaced). I said “NO”! They said it was obvious there was some sort of front-end accident with the tie rods being damaged and bumper being replaced, but it wasn’t recorded on the VIN. Because of that, Honda agreed to replace the tie rods under warranty otherwise it would’ve been $400. Their VIN search revealed it had bounced around a few places before Carvana received it as well.

    With ALL of that being said, I had some nice, lengthy conversations with Carvana during that whole process about not only the misrepresented quality of the interior and exterior and the work needing to be done to make it presentable, but reimbursing me some money back for state of the vehicle given it’s checkered past. In the end, I got them to reimburse me the $300+ for the detailing, $90 used car inspection fee, ~$500 for replacing interior trim pieces by a body shop, & $1000 reimbursement for the van’s value since it had obviously been wrecked before. I feel that they took care of me in the end and I praise them for it, but EVERYONE should be diligent to have their Carvana vehicle checked out before their return period expires. I still recommend them to people but tell them to make sure it’s good before fully taking it.

    One last thing, in terms of financing, is that there are many reports to find financing outside of Carvana as their rates are horrible for people with even the best of credit. Some reports of people with a credit rating over 800 not getting any better than 10+% rate. And, some financial institutions, like Bank of America, won’t finance with Carvana as they don’t consider them a “dealer” since they don’t have a dealership. We wasted a credit pull on that one before checking, so CHECK FIRST!

    Hope this helps.

    Reply
    • Thomas says

      December 12, 2016 at 4:34 pm

      Wow thanks for sharing! You definitely had a rockier experience than me, but I’m glad to hear that it worked out and that their customer service treated you well in the end. It seems like they are growing and working out kinks for sure. Definitely a good reminder to have the car inspected within the 7-day period. That’s a must have. And good point re: financing. I’ve heard the same, but I was quoted at 2.99% which is pretty competitive, so maybe they are getting better in that regard.

      Reply
      • Tommy B. says

        December 12, 2016 at 4:42 pm

        You’re welcome. Time will tell if this was a good buy, but I think it will be as Honda gave it a clean bill of health otherwise. That is very good to hear re: your financing. From the reports I was seeing, I hadn’t seen anyone get approved lower than 8-9%. Thanks for your post!

        Reply
      • ken says

        September 27, 2017 at 10:46 pm

        are you happy that you financed with carvana?

        Reply
        • Thomas says

          October 5, 2017 at 3:52 pm

          I’d say so. But you should rate shop if that’s a concern. One good thing about Carvana’s loan company is that they accept payment via credit cards in a way that is very favorable to earning points.

          Reply
    • guillermo says

      August 31, 2018 at 8:16 am

      Tommy B thanks for your detailed review. you have no idea how much you helped me on my decision regarding Carvana. The note about Bank of America not dealing with them was what i was wondering about since i also read from another review that financing from another place rather than Carvana’s is better. Thanks once again.

      Reply
  3. Farid Soltani says

    March 29, 2017 at 2:42 am

    Do Carvana keep stock of their vehicles? or whoever want to sell his/her car just approach carvana to sell it for them.

    Reply
    • Thomas says

      March 29, 2017 at 10:52 pm

      They buy vehicles directly from consumers, but they don’t offer great prices. I think that’s partially because they only sell vehicles that meet a specific criteria. The rest probably get auctioned off or something like that.

      Reply
  4. ashley says

    May 2, 2017 at 5:56 pm

    This a lengthy post but I live in Richmond and wanted to comment. I work at a collision repair facility so I look at vehicles day in and day out. I’m going to know if something’s been wrecked and I have a certified mechanic that is going to know if a vehicle has any mechanical defects. I purchased a 2013 Toyota Rav 4 a couple months ago from Carvana. On the site- it listed a scratch on the hood and a few chips. I called about a million times prior to delivery to make sure everything was in order. Everyone was very helpful and friendly on the phone and there was zero wait time. I even got a quote for trade in on my 2008 Toyota Avalon and I am still wondering why they gave me so much money for it. The vehicle arrived on time and the delivery driver was awesome. She pulled it right off the truck and told me to take it for a test drive. While I was test driving it, she looked at my trade in. She even let me take my new delivery to my mechanic and put it on a lift right away. The oil was clean, new brakes on the front, new tires and under the hood was clean with no issues. Now here’s the part where people are knocking Carvana. The undercarriage rust. Yes, this vehicle did come from up north. It had more rust than the average vehicle in my area ( Virginia). However, it is surface rust. It is on the bolts to the suspension and exhaust and a little on the exhaust pipe. Yes, the vehicle will continue to rust by it will no longer be exacerbated by northern driving conditions. Was it a dealbreaker? Not for me. Nowhere bad enough to be an issue. Got the vehicle off the lift. A few more scratches than noted on the online photos. A few light ones on the door ( buffed out), deep one in liftgate and a couple deep ones on front bumper. Interior was very clean except for front floor around mats which could have been detailed a little better. Also, bumper had been replaced before- all the other body lines on the car looked good ( usually indicative of no prior body damage). VIN report on vehicle listed no accidents ( that doesnt mean there werent any, just means none reported) The delivery driver offered to waive the 100 day insurance deductible to get the scratches fixed that weren’t noted online. Anywhere I wanted 🙂 They also paid my shop within a day of the claim so Silverrock- the insurance claim company was on top of things. Paperwork was easily taken care of at delivery-no hidden fees and so easy! Plates arrived earlier than expected in the mail. Car was about $900 less than cargurus.com excellent deals and about $1,000 less than nada value. So overall, experience was great. If you are super picky and things like a little surface rust underneath and maybe a few extra scratches/dings bother you, maybe this isnt the place for you. If you do, just make sure you check out the vehicle thoroughly, because they probably do get their vehicles from auctions up north.For me, the high trade in value, zero hassle and automatic paperwork was worth it the less-than perfect condition on the vehicle.

    Reply
    • Thomas says

      May 2, 2017 at 7:49 pm

      Wow, thanks so much for taking the time to share this, Ashley! Glad to hear that you also had a great overall experience and got a good deal. I definitely agree that there are quirks here and there, but that’s true just about anywhere and Carvana goes above in beyond to solve any issue, as you point out. Thanks again!

      Reply
  5. Lightfoot says

    July 3, 2017 at 7:11 pm

    I couldn’t find much online about Caravan. So when I saw this one I buckled in and put my reading glasses on. This post has been so amazingly informative. That you so very much for taking the time to put this out there. The same goes to all the commenters as well.

    I just moved to Durham NC and I’m looking to upgrade my infiniti to a newer model. Caravan has one that will be available in a few days that looks amazing. I’ll update you all on the process if the deal is a go.

    Thanks again for shedding the light on the good/bad when it comes to this company. You guys rock!!

    Reply
    • Lightfoot says

      July 3, 2017 at 7:12 pm

      you gotta love iOS for auto correcting Carvana to Caravan . . . and me not even noticing.
      HA!

      Reply
    • Thomas says

      July 4, 2017 at 5:51 am

      Awesome–Glad this has been so helpful, and glad to hear you might be landing a good (and convenient!) deal. Yes, please keep us posted, and I hope things go smoothly for you!

      Reply
  6. Amy W says

    July 21, 2017 at 10:18 pm

    Did you have to pay additional taxes/fees in Virginia after you purchased to register the vehicle? How did it work, coming in from another state?

    Reply
    • Thomas says

      July 22, 2017 at 3:10 am

      Hey Amy,
      This is from memory at this point, but I’m pretty sure the final cost from Carvana included the registration fees. There weren’t any issues on my end regarding different states. Carvana may have brought the car in from another state, but they got it inspected in Virginia. So the origin of the car didn’t affect me at all.

      Reply
  7. J.R. Duren says

    August 25, 2017 at 6:58 am

    Thomas, thanks for the post! What I’m very interested in are taxes and fees. Taxes, obviously, are fixed. Can you tell me what the fees were? I’d be interested in comparing them to the fees you’d pay at a dealership.

    Reply
  8. Robert says

    September 3, 2017 at 6:30 am

    Hey! Thanks for the review!

    I just ordered a car and hoping it arrives before the said date, could you tell me/us whats the next process after you receive the car? And feel free to include what freebies did they gave you 🙂

    Thanks

    Reply
    • Thomas says

      September 3, 2017 at 7:56 pm

      Robert, I just remember the process being smooth! I would call them just to confirm all the details. When they brought my car, it was pretty quick. I gave it a once over and then just signed a few papers, most of which were for them to handle all the DMV stuff if I remember correctly. Not sure if anything has changed, but I was given a $25 gas card (inside the gas cover) and then some candy, and a dash sun cover. Good luck with everything!

      Reply
  9. Dionne says

    September 20, 2017 at 8:30 am

    Can you negotiate for a $0 downpayment or use the referral code ($500) in lieu of an actual downpayment?

    Reply
  10. Julie says

    May 16, 2018 at 7:10 pm

    Thanks for sharing your experience. I’m considering purchasing a car from Carvana and am told I can get $500 off the price if I have a referral (the person referring gets a $100 gift card) Would you be willing to share your info with me? Name, phone number and make/model you purchased. Thanks for considering!

    Reply
    • Thomas says

      May 24, 2018 at 8:30 pm

      Julie, sorry I didn’t respond sooner. If this is still a need email me at thomas@richmondsavers.com

      Reply
  11. Dionne Neal says

    June 22, 2018 at 10:36 am

    Jennifer, can I use you as a referral

    Reply
  12. John Palmer says

    November 2, 2018 at 9:31 pm

    You can get a used auto loan at Pentagon Federal and the rate is only 1.99 percent as of 11/2018. I saw Carvana cars in their car buying program.

    Reply

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