If you'd like to buy a used car, there are now more websites and apps to help you than ever before. One of the more novel options is Carvana. It is an online used car retailer that also happens to sell cars out of vending machines.
The idea of a car vending machine is obviously attention-grabbing. They are, however, just one of the reasons for the company's popularity. So, what is Carvana and should you try it?
What Is Carvana?
Carvana is an online used car retailer. It has physical premises across the United States, but most sales occur online. Its website allows you to inspect cars virtually, and this enables customers to make informed choices without seeing a car in person.
It offers all of the services that you'd expect from a used car retailer, such as buying and selling cars, accepting trade-ins, and offering financing. If you're buying a car, you can have it delivered to your door.
Why Does Carvana Use Vending Machines?
Carvana currently has 24 car vending machines spread throughout the United States. You don't need to use them, but you can. It's possible that they were designed as a way to attract attention to the company, but they also offer an alternative to having a car delivered.
If you opt to pick up your car at a Carvana location, you will receive a coin that activates the machine. You can then watch as the car is delivered to the ground.
How to Buy a Car Online With Carvana
Buying a car online obviously has its drawbacks. The idea of choosing a car without seeing it in person isn't going to appeal to everyone. Carvana, however, is designed to allow you to inspect each vehicle virtually.
Each vehicle is listed with a 360-degree view. More importantly, there doesn't appear to be any attempt to hide problems. Each dent is not only visible but advertised. The page for each vehicle includes an alert section, which highlights any problems that the vehicle has. The website also provides VIN information and history for all vehicles.
To further alleviate concerns about vehicle condition, each car sold by Carvana has to pass a 150 point inspection. If you find a vehicle that you like, you can purchase it directly on the website. You can pay cash but Carvana also offers both financing and trade-ins.
Related: Websites to Help You Purchase Your Next Vehicle
If you don't want to try the vending machine, Carvana will deliver your new vehicle to your door. The price depends on your proximity to one of its premises. If you live nearby, delivery is handled by Carvana. This type of delivery is either free or paid depending on the distance. But anything you pay is refunded if you decide to return the vehicle.
If you don't live nearby, delivery is outsourced to another company. This type of delivery is always paid and it is not refunded if you decide to return the vehicle.
The obvious issue with Carvana is that you are asked to pay for a vehicle before you've inspected it yourself. To get around this potential problem, all vehicles are sold with a one-week money-back guarantee.
If the vehicle isn't as expected, or you simply decide that you don't want it, it will pick the car back up and refund your money.
How to Sell a Car Online With Carvana
Carvana can also be used as a way to sell a vehicle, and like buying one, the process can be initiated online. In order to receive a quote, you are asked to fill out a questionnaire and provide your vehicles VIN number. Afterwards, you will be given a quote immediately.
Carvana obviously has to check your vehicle in person before paying but the availability of an online only quote allows you to know where you stand. If you accept the quote, Carvana will then send somebody to your house to collect the vehicle. Carvana purchases cars for cash and as trade-ins.
Are Customers Happy With Carvana?
Carvana currently has a score of 2.8 stars out of 5 on Consumer Affairs. While many people are happy with the service, various complaints have been aimed at the company. Some customers report that vehicles arrive with problems that haven't been fully described. Other customers complain that refunds take longer than they should.
How Does Carvana Compare With Other Online Retailers?
If you like the idea of Carvana, it's worth noting that there are other apps for buying used cars. Here are a few alternative options:
Autotrader
Autotrader is probably the best known website for buying a used car. Unlike Carvana, it doesn't actually sell cars but rather allows you to find people who are. The advantage of this is that it has a massive selection of vehicles to choose from. The website offers a choice of private sellers and dealerships. It also offers new cars and the ability to negotiate on price.
Vroom
Vroom offers an almost identical service to Carvana. It's an online-only used car retailer, it also offers a 150 point inspection of all vehicles, and it delivers to your door. One notable difference between the two is that Vroom charges a non-refundable $599 delivery fee on all purchases.
eBay
eBay allows you to buy almost anything and it has a dedicated section for cars. Unlike Carvana, buying a car on eBay usually means buying a car from a private seller and possibly bidding in an auction. This may allow you to get a better price but it also carries additional risk. You also won't get a warranty.
Carvana Is an Interesting Alternative for Buying a Used Car
If you'd like to buy a used car, Carvana is certainly an interesting option. Buying a used car online is convenient, removes the need to negotiate, and it allows you to spend longer researching your options and comparing prices.
On the other hand, buying a car from Carvana usually means paying for a car before you've seen it. Carvana attempts to provide as much information as possible but many buyers may still prefer the experience of viewing in person.
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