Is Carvana Legit? [2023 Review]

Buying a car online can be an overwhelming and time-consuming process, especially with numerous options for car dealerships and online platforms. One such platform is Carvana, an online-only used-car retailer that offers a no-haggle, no-pressure experience.

With its growing popularity in the auto industry, you might find yourself wondering – is Carvana legit?

In this blog post, we will dive into Carvana’s business model, customer reviews, and look into its overall legitimacy to help you make an informed decision about buying or selling your next vehicle through their website.

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Carvana Review

What is Carvana?

Are you in the market for a car but find traditional dealerships to be overwhelming and stressful? Look no further than Carvana, the online-only used-car retailer that promises a no-haggle, no-pressure buying experience. It’s a bit like Amazon for cars.

Founded in 2012, Carvana offers an extensive inventory of vehicles, unique features like their famous vending machines and seven-day return policy, as well as third-party financing options.

Is Carvana legit? To help determine that, we will look into customer reviews and what people who have purchased a car from Carvana are saying about their experiences.

But first, let’s examine how the car purchasing process works.

Overview Of Carvana As An Online Car Seller

Carvana is revolutionizing the used car market by offering an online-only platform for purchasing and selling vehicles. This innovative approach removes the need for physical dealerships, the car-buying process which has been likened to pulling out teeth, car salespeople, and provides customers with a convenient, hassle-free car buying experience from the comfort of their own homes.

As an online retailer, Carvana’s website serves as a virtual showroom where potential buyers can search through thousands of vehicles based on factors like make, model, price range, and features.

Each listing includes full vehicle specs along with detailed photos taken from multiple angles so that customers can get a thorough understanding of their chosen car before making any decisions.

In addition to bringing convenience to the shopping process itself, the Carvana website also streamlines trade-ins and financing options with competitive rates and flexible terms available alongside its vast inventory of used cars.

How Does Carvana Work?

Carvana operates as a modern solution to the traditional car buying process by offering an entirely online experience. From browsing their extensive inventory of used vehicles to securing financing and even trading in your current vehicle, Carvana streamlines the entire process into user-friendly steps on their website.

One unique aspect of Carvana’s platform is its 360-degree virtual tours, allowing prospective buyers to examine each vehicle closely inside and out from the comfort of home.

After choosing a vehicle and finalizing your payment method – either through Carvana’s own financing options or third-party financing – you can schedule delivery or pick-up at one of their famous “Car Vending Machine” locations.

To put customers at ease with their purchase decision, Carvana offers test drives before signing any paperwork and provides a 7-day money-back guarantee if you are not satisfied with your new ride.

How to Sell a Car on Cavana

Selling a car through Carvana is relatively easy. You start by inputting your vehicle’s information, scheduling an appointment, and having a Carvana representative inspect it at home.

Carvana’s Inventory

Carvana’s inventory boasts an impressive selection of used vehicles that cater to various preferences and budgets. From compact cars and sedans to trucks, SUVs, and even luxury models, buyers can easily browse through thousands of options on their user-friendly website.

What sets Carvana apart from traditional dealerships is its unique vehicle display format; high-resolution photographs accompany each listing along with detailed information about the car’s history such as reported accidents and maintenance records.

They also have a search option that allows you to filter the listings based on:

Payment and Price
Make and Model
Body type such as convertible, coupe, minivan, truck, sedan, SUV, hatchback, and wagon.
Year and Mileage
Features like the entertainment options, luxurious interior options, safety features, and utility options.

You can also find cars based on your color, drive, fuel, mpg, interior color, cylinders, transmission, and drive type under the “more filters” section:

This comprehensive presentation allows potential buyers to get an accurate understanding of the condition of the vehicle before making any purchasing decisions.

Carvana’s Unique Features

Carvana has some unique features that set it apart from other online car sellers. Here are a few of them:

Vending machine pickup: Carvana has a few large, glass buildings called “vending machines” where customers can pick up their purchased vehicle. The process involves simply inserting a giant coin and watching as the vending machine brings your car down to you.
Delivery options: If you don’t live near one of the vending machines, Carvana offers home delivery options for your convenience.
Easy financing process: Unlike traditional dealerships, Carvana offers third-party financing options that can be completed entirely online with just a soft credit inquiry.
Vehicle condition guarantee: Every Carvana vehicle undergoes a 150-point inspection before being sold, and they provide detailed reports of any repairs or maintenance done before the sale.
Seven-day money-back guarantee: If you’re not satisfied with your purchase within the first seven days, Carvana will arrange for pick-up and refund your money.
Trade-in support: Carvana also offers a platform for selling or trading in your current vehicle, which can be applied toward the purchase of your new one.

Overall, these unique features make buying a car from Carvana an easy and stress-free experience with plenty of conveniences to fit any customer’s lifestyle.

Is Carvana Legitimate?

Many people may wonder if Carvana is a legitimate way to purchase a car, but after analyzing customer feedback, examining their Better Business Bureau rating and industry recognition, it’s clear that Carvana is indeed a trustworthy option for buying or selling vehicles online.

Carvana Customer Reviews

One of the best ways to determine if Carvana is legit is by analyzing customer feedback. Carvana has a 4.7 rating out of 5 from over 178,248 customer reviews.

Many customers have praised the site for its user-friendly interface and transparent buying process.

While most reviews are positive, there are some negative ratings as well. On Carvana’s website itself, there are 382 reviews with an average rating of only 1.3 stars out of five (as at the time this was written).

Some customers have reported issues with vehicle repairs or delivery delays, while others have complained about poor communication from Carvana representatives.

However, it’s important to note that many negative reviews may be due to individual experiences or misunderstandings during the buying process rather than an indication on whether or not Carvana is legitimate.

Better Business Bureau Rating

Carvana has an A+ rating from the Better Business Bureau (BBB), a non-profit organization that helps consumers find trustworthy businesses. The BBB accreditation indicates that Carvana meets their high standards in transparency, responsiveness, and ethics.

However, it’s important to note that the BBB rating is just one factor to consider when evaluating Carvana’s legitimacy.

While some negative reviews can be found on the BBB website, overwhelmingly positive customer feedback and recognition from industry experts highlight Carvana’s commitment to providing a reliable online car buying experience.

Industry Recognition And Awards

Carvana has received several industry recognitions and awards since its establishment, which is a testament to the company’s legitimacy. With thousands of cars sold on the platform, Carvana was on the 2021 Fortune 500 list, making it among the youngest companies to be on the list.

It was the No. 2 automotive brand in the U.S. in Forbes’ 2022 Most Customer-Centric Companies List. It was also named as the No. 1 large employer in the Retail and Wholesale industry and one of America’s best employers for diversity.

In 2020, Carvana was recognized as one of Fast Company’s “World’s Most Innovative Companies,” ranking number nine in the transportation category.

Legal challenges

Over the years, Carvana has had its fair share of legal issues in multiple states mostly based on how it handles vehicle titles.

In 2021, Carvana was temporarily banned in North Carolina for failing to properly conduct inspections and issue vehicle titles to customers as stipulated by state law. It was allowed to resume business in the state in early 2022.

Pennsylvania filed a class action lawsuit alleging that the company had violated the state’s Unfair and Deceptive Trade Practices Act for not properly transferring ownership to buyers.

Michigan suspended the license for a Carvana dealership in Novi for committing several alleged violations of the Michigan Vehicle Code. Consumers mostly complained about title problems with their vehicles.

Before suspending Carvana’s dealership license, the state had conducted an investigation and Carvana had agreed to be placed under probation after admitting to some violations. However, during the probation period, Carvana committed additional violations (violating the terms of the probation agreement 127 times) and it agreed to a six-month extension of the probation period.

The company’s business license was suspended in Illinois following customer complaints and was thus banned from conducting business in the state. The Office of the Secretary of State of Illinois accused the company of failing to provide titles to buyers within 20 days, per state law. In some cases, to circumvent the legal requirements, the company had illegally issued temporary registrations from other states to customers in Illinois.

The state of Illinois lifted the suspension but then reimposed it after finding out that the company had continued to engage in illegal conduct. Carvana’s Vice President was charged with multiple misdemeanor and petty offenses.

Benefits and Drawbacks of Using Carvana

Using Carvana comes with both its advantages and disadvantages. From the benefits of online car buying to potential drawbacks, it’s important to weigh your options before making a decision that suits your needs.

Benefits of Online Car Buying

Online car buying through Carvana offers numerous benefits that make the process more convenient and straightforward for customers. These benefits include:

No-haggle pricing: With Carvana’s no-haggle pricing policy, customers can be confident they are getting a fair price for their desired vehicle without any negotiations.
Convenient delivery: Carvana delivers purchased vehicles straight to the customer’s doorstep or a nearby vending machine, eliminating the need to visit multiple dealerships or transport the car yourself.
7-day return policy: Customers have a full week to test drive and evaluate their purchased vehicle, giving them peace of mind with their purchase decision.
Flexible financing options: Carvana offers a variety of financing options, including third-party financing and their own financing solutions, with pre-qualification available on their website. They have no minimum credit score or credit history requirements.
Streamlined buying process: Carvana’s online platform simplifies the buying process, allowing customers to browse inventory, select options and features, complete paperwork online, and schedule delivery all in one place.
Access to detailed information: Carvana provides detailed information about each vehicle on its website, including its history report, condition report, and 360-degree photos of both exterior and interior.

Overall, buying a car through Carvana provides convenience, transparency, and peace of mind throughout the entire process – from browsing to purchasing to delivery – making it an attractive option for car buyers today.

Potential Drawbacks Of Using Carvana

There are a few potential drawbacks to using Carvana for your car-buying needs. Here are some of them:

Limited test drive options – Although Carvana offers a seven-day return policy, some buyers may be hesitant to purchase a vehicle without first test-driving it. While Carvana allows customers to test drive the vehicle upon delivery, that may not be enough time for everyone.
No negotiations – Unlike traditional dealerships where you can haggle over the price of a car, Carvana’s prices are non-negotiable. While this may result in a fairer price for both parties, some buyers may miss the thrill of negotiating.
Limited inventory – While Carvana offers thousands of vehicles, their selection might not be as extensive as a local dealership with multiple manufacturers under one roof.
Delivery fees – While most vehicles on Carvana come with free delivery depending on location, some areas may require an additional fee for delivery or pickup.
No in-person interaction – If you prefer conducting business face-to-face, then buying from Carvana might not be for you since their entire process is online-based.

Despite these potential drawbacks, many people still find great value in using Carvana due to their hassle-free buying experience and 7-day satisfaction guarantee.

Making An Informed Decision About Carvana

To ensure that you make an informed decision about buying a car from Carvana, it is important to consider factors such as your budget, preferred vehicle type and features, and any potential drawbacks of the online buying process.

Factors To Consider Before Buying A Car From Carvana

Before buying a car from Carvana, there are several factors that you should consider to ensure that you are making an informed decision. These include:

Your budget: It is essential to have a clear idea of your budget and how much you can afford to spend on a car before making any purchase.
Vehicle history: Carvana provides detailed information on the vehicle’s history, including any reported accidents, repairs, or previous owners.
Financing options: Carvana offers financing options through third-party lenders, but it is also possible to use your own financing.
Delivery options: Carvana delivers cars directly to your door, but it is important to check if they deliver in your area and at what cost.
Inspection process: All vehicles sold by Carvana undergo a 150-point inspection process to ensure that they meet quality standards.
Return policy: Carvana offers a seven-day money-back guarantee if you are not satisfied with the car’s condition or performance.
Trade-in options: If you have a vehicle to trade in, Carvana provides an online tool to obtain an estimate of its value.
Customer service: Carvana has received positive customer reviews for its customer service and response time in handling issues related to purchases.

Considering these factors can help you make an informed decision when purchasing a car from Carvana and ensure that you get the most value for your money.

Comparing Carvana To Other Online Car Sellers

In this section, we will compare Carvana to other online car sellers, examining their features, pricing, and customer satisfaction to help you make an informed decision.

Carvana

Features: Online-only used-car retailer, no-haggle pricing, 7-day return policy, car delivery or pickup, trade-in options
Pricing: Transparent pricing, competitive rates
Customer Satisfaction: 4.7 out of 5 from 177,455 customer reviews, some negative reviews regarding delivery and customer service

Vroom

Features: Used and reconditioned vehicles, 7-day return policy, car delivery, trade-in options
Pricing: Competitive rates, additional fees for delivery
Customer Satisfaction: Mixed reviews; some customers report issues with delivery and customer service

Shift

Features: Used vehicles, no-haggle pricing, 5-day return policy, test drives, car delivery or pickup, trade-in options
Pricing: Transparent pricing, competitive rates.
Customer Satisfaction: Mostly positive reviews, some complaints about customer service and delivery.

CarMax

Features: Used vehicles, no-haggle pricing, 7-day return policy, test drives, car delivery or pickup, trade-in options
Pricing: Transparent pricing, may be slightly higher than competitors
Customer Satisfaction: Mostly positive reviews, some complaints about customer service and trade-in valuations

Comparing Carvana to other online car sellers, it is evident that while Carvana has its advantages, other options are also available for online car buying.

Each platform has its unique offerings, and customer satisfaction varies among these online car sellers.

However, Carvana is known for its transparent pricing and competitive rates, making it a strong contender in the online car buying market. It’s no surprise that you see Carvana license plate frames all over.

Seeking Advice And Recommendations From Others

It’s always a good idea to seek advice and recommendations from others when making a big purchase like buying a car. With Carvana, there are several ways to get opinions from other car buyers.

One option, as we’ve already seen, is to check out online reviews on websites like Trustpilot and the Better Business Bureau.

Another way to get advice about Carvana is to ask for recommendations from friends or family members who have used the service before. If you don’t know anyone personally who has bought a car through Carvana, you can also turn to online forums or social media groups dedicated to discussing car buying experiences.

Carvana Final Verdict

After thorough research and analysis of customer feedback, industry recognition, and Carvana’s unique features, it is safe to conclude that Carvana is a legitimate online platform for buying and selling cars that provides value for its customers.

Carvana offers unique features such as the vending machine experience that’s a convenient way to have your car delivered and seven-day money-back guarantee that make them stand out from traditional dealerships.

In terms of value, Carvana offers competitive pricing with no haggling or hidden fees. While some negative reviews do exist, the company takes responsibility for any issues that arise during the buying or selling process and works to find solutions in-house.

Overall, if you are looking for a convenient and hassle-free way to buy or sell used cars online without going through traditional dealerships’ pressure sales tactics, then Carvana is worth considering as they offer buyers more flexibility without compromising quality service at every stage of the buying process.

Before you leave

If you’re tired of scams and want a real solution for making money online check out my no.1 recommendation.

It’s helped me earn over $300,000 in the last 12 months alone:

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(This is a 100% free training)

David Fortune

David Fortune has been the editor NoBSIMReviews.com since 2019. He is an expert at writing content on stock advisory services, side hustles, reviewing online business opportunities and many more topics. You can learn more about David on our about us page.

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