Carvana Used-Car Financing: 2021 Review

Carvana provides financing for the used cars it sells, and accepts borrowers with bad credit.
Philip ReedJun 23, 2020

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Our Take

The bottom line:

Best for used-car shoppers wanting a simple online shopping and financing experience.

Learn More

on Carvana's website

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Pros & Cons


  • No minimum credit score requirement.
  • Prequalify with a soft credit check.


  • Finances vehicles only sold through Carvana.
  • Offers loan terms over 60 months.

Compare to Other Lenders

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Min. Credit Score


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Est. APR


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Full Review

To review Carvana, NerdWallet collected and compared more than 15 data points with other lenders that seek the same customer or offer a similar product.

Carvana has pioneered a unique retail model that could revolutionize the way used cars are sold. You can pick a car from its inventory of more than 20,000 cars, select financing terms and fill out the paperwork all online.

The company sells used vehicles, mostly with low mileage, that are given a 150-point inspection and come with a free CarFax vehicle history report.

Carvana prices are non-negotiable, but seem in line with Kelley Blue Book prices for certified pre-owned cars in very good condition. Additionally, Carvana accepts some trade-ins in local markets.

The company says it extends credit to customers with a broad range of credit profiles, which includes car buyers with bad credit (300 to 629 FICO range) who may have trouble getting loans from traditional dealerships and lenders. Carvana has no minimum credit score; however, you must make at least $833 per month and not have any current bankruptcies.

Car shoppers can get pre-qualified financing offers with a soft credit inquiry, which won’t lower their credit score, making it good for rate shoppers. Though most customers who finance a purchase use Carvana, you can also pay with cash or financing from an outside lender.

Carvana auto loan rates

The lowest interest rate Carvana offers for its purchase loans is available only if you have excellent credit (720 FICO minimum).

If your credit score is less than stellar, your interest rate will be higher. This means your monthly payment will be more and, over time, you’ll pay more interest. If you know your credit score, you can get an idea of the rate you might qualify for.

You can use NerdWallet’s auto loan calculator to see estimated monthly payments and total interest paid for an auto loan based on your credit score range.

Applying to Carvana

  • No hard credit inquiry required for pre-qualification.

  • Decision for pre-qualification within minutes; more information and hard pull required for final approval.

  • Pre-qualified financing terms valid for 45 days.

  • No application fee, origination fee or prepayment penalty. Carvana’s loan servicer may charge late fees.

  • Carvana does not allow co-signers or co-applicants.

Carvana restrictions

  • Financing only available for Carvana vehicles.

  • Applicant must be at least 18 years old.

  • No current bankruptcies.

  • Minimum income: $833 per month.

  • Maximum loan term: 72 months. (NerdWallet doesn’t recommend loans longer than 36 months for used cars and 60 months for new cars.)

  • Carvana financing is unavailable in Alaska and Hawaii.

  • Cars delivered in 48 states to date; Carvana will deliver to Alaska and Hawaii, though delivery fees will likely be prohibitively expensive.

More from Carvana

Delivery: Carvana delivers its vehicles for free in a growing list of cities, or for a fee, which depends on your location. You can also pick up your car from a Carvana “vending machine.” If you fly to a pickup city, Carvana will subsidize up to $200 of your airfare, and pick you up from the airport.

Return policy: All vehicles sold by Carvana come with a seven-day money back guarantee. During that time customers can return their car, receive a refund for their down payment and unwind their loan before the first payment. Delivery fees are nonrefundable, and check the fine print, as you may be responsible for excess mileage fees.

Trade-ins: Carvana accepts trade-ins (even if you don’t purchase one of their vehicles) and will give you a price for your car if you provide your license plate or vehicle identification number. In free delivery areas, Carvana does the final trade-in inspection when your purchased car is delivered.

Warranties and other products: All Carvana vehicles come with a 100-day (4,189 mile) limited warranty. For some cars, buyers may also be able to purchase CarvanaCare, an extended warranty. Carvana also offers gap insurance in some states.

Frequently asked questions