Customer Experience - Financing Options

Question 1

Cash (ACH transaction or certified check)

Answer 1

We’re proud to offer our customers financing options when it comes to paying for their vehicle. We will go through each option, beginning with Cash! Customers who pay in cash will provide payment for the total out-the-door price of their vehicle at the time of delivery via ACH (Automated Clearing House) transaction or certified check.

Question 2

Benefits of Cash Purchases

Answer 2

Easy - Cash purchases require fewer verification steps. These customers can be verified quickly.

No Interest - Because cash customers pay in full, they will not pay any interest for money they may have borrowed to finance their car!

Ownership - The customer has full ownership of the vehicle upon purchase and will receive the title once the registration is completed in their name.

Question 3

What are the Unacceptable Forms of Payment?

Answer 3

Credit/debit, Money order, personal check or physical cash.

Question 4

Third-Party Financing

Answer 4

In addition to paying cash, customers have the option to finance with their own bank or credit union (CU). This is also known as Third-Party Financing. These customers will complete the loan application and approval process via the bank of their choice, and Carvana will receive funds from the third-party bank when the purchase is completed.

Question 5

Third-Party Purchase Benefits

Answer 5

Established Relationship with the Bank - Some customers like working with a bank they know and already have a working relationship with.

Add a Co-Signer - Customers can explore the option of purchasing with a co-signer for potentially better terms (Carvana currently only offers single-buyer loans).

Competitive Financing Rates - Customers may be able to get a better rate at their own bank, such as a lower interest rate or a $0 down payment.

Question 6

Third-Party Banks We Cannot Work With

Answer 6

A+ Federal Credit Union
Ally Bank
American Express Auto Purchasing Program
Ascentium Captial LLC
Bellco Credit Union
Carmax
Carfinance.com/Car Finance Capital
Chase Bank
Chrysler Capital (Manufacturer banks often only finance if the vehicle is purchase directly from them)
Credit Acceptance
​​​​​​Check Ready Auto Loan by PNC
Exeter Finance Corp
Ford Motor Credit (Manufacturer banks often only finance if the vehicle is purchase directly from them)
Gain Federal Credit Union
Golden1 Credit Union
GM Financial (Manufacturer banks often only finance if the vehicle is purchase directly from them)
Honda Financial
Logix Federal Credit Union 
Metabank
Mission Federal Credit Union
PNC
Road Loans (a.k.a Citibank or Santander)
Wells Fargo
Westlake Financial

Question 7

Carvana Financing

Answer 7

Carvana Financing is our in-house financing option with competitive rates. Carvana Financing contributes to a smooth purchase process for our customers who can get pre-qualified in seconds for every vehicle on the website! Like the rest of the Carvana experience, we want to make getting a loan with Carvana easy and transparent.

Question 8

Carvana Financing Benefits

Answer 8

Easy Process - Customers are able to get their actual financing terms from the comfort of their home without having to speak to anyone (but, of course, we are here if they do have questions)!

The Customer is in the Driver’s Seat! - Customers can personalize their financing terms to meet their needs by adjusting the loan term length and increasing the down payment amount if they have more saved up.

Transparent - No more backroom deals! Customers can see their down payment, monthly payment, and APR for every vehicle on the website. That’s it, those are the terms!

Question 9

What are the Minimum Carvana Financing Qualifications?

Answer 9

1. 18+ years old
2. Minimum annual income (at least 4,500)
3. NO active bankruptcies

In addition to these three requirements, we also require that customers have 6 months history of credit. If a customer does not have any credit history, we are unable to pull their financing terms.

Question 10

What are the Calculating Terms?

Answer 10

Carvana Financing terms are based on three factors:

Credit history, annual income, and the price of vehicle

Question 11

Carvana Financing Facts - Soft Pull

Answer 11

The Carvana Financing application on the website is a soft pull and therefore will not affect the customer’s credit. This feature allows them to shop without penalty!

Soft Pull Terms are valid for 45 days! Customers have the ability to get their terms and move forward at any point during the 45 days.

Question 12

Carvana Financing Facts - Experian

Answer 12

There are three main credit bureaus used by financial institutions: Experian, Equifax, and Transunion. Carvana pulls a customer’s credit history from Experian. We will report to all three should a customer purchase a vehicle with Carvana financing.

Question 13

Carvana Financing Facts - Loan Term Length

Answer 13

The longest length of a loan Carvana offers is 72 months (6 Years). Customers can choose to reduce the length of the loan, and this would increase their monthly or down payments.

Question 14

Carvana Financing Facts - Range of APRs (Annual Percentage Rates)

Answer 14

The lowest APR offered for Carvana financing is 3.9% and the highest is 27.99%.

Question 15

What are the Unavailable Financing Options?

Answer 15

Re-Financing, co-buyers, and financing for non-carvana vehicles

Question 16

Carvana Financing Flow

Answer 16

1. Soft Pull: In order to see terms for all vehicles on the site the customer will complete a soft pull to receive their terms.
2. Locking a Vehicle: Once a soft pull has been completed, customers will be able to view their specific terms for every vehicle on the site to start their purchase.
3. Navigating Finance Terms: Once the customer finds their perfect car, they can select their finalized financing terms for the specific vehicle.
4. Hard Pull: Last, the customer will answer a few Key Identification Questions (KIQ), and a hard pull will be completed.