Why is Carvana So Expensive? Here’s What We Know

Carvana is one of the top car companies in the U.S., but not everyone knows why it costs so much to buy from them. There are some great reasons why Carvana cars are expensive, and there are some not-so-great reasons too. Here’s what we know about why Carvana cars cost more than you might expect!

Why Is Carvana So Expensive: Here Are 10 Reasons

Carvana charges a lot because they are trying to make a profit, they have a large overhead, and they ship vehicles all over the country. However, some people feel that there are other reasons why Carvana is so expensive.

For example, many people believe that the company charges more because you can’t negotiate the price or find out how much your trade-in will be worth until after you’ve already placed your order.

Why is Carvana so Expensive

Some also feel that the company charges more because their website has glitches and errors with the checkout process.

Carvana offers several programs designed to help customers save money on their purchases including a program where customers can trade in their old car for up to $3,000 off of their new vehicle purchase.

-Regional Prices

Carvana prices are dependent on a variety of factors, including the location you live in. In Phoenix, Arizona, for example, the price ranges from $2,500 to $5,000. However, in New York City or Washington D.C., the cost ranges from $4,000 to $8,000.

There are also other factors that affect pricing such as trade-in value and whether or not you want to purchase any extras with your car (such as a 360-degree camera).

-Little Competition

Carvana has a small number of competitors, which may be why they are able to charge such high prices. The most comparable competitor, Vroom, doesn’t offer the same level of customer service and convenience that Carvana does.

The cost of car shipping from Carvana ranges from $0-1490 depending on the distance you are traveling and whether or not your vehicle requires transport on a flatbed truck.

This can add an additional cost to what appears like an already expensive transaction.

Car shopping has always been difficult for many people. With just one physical location in every market where you buy a car, it can be tough for shoppers to get the experience they want when buying a car online.

-Car Inventory Costs

Carvana pays for the inventory cost of each vehicle, which includes the cost of storage, maintenance, insurance, and repairs. The average car inventory costs are around $5,000 per vehicle.

This means that if you buy a $10,000 car from Carvana and drive it off the lot yourself instead of opting for our standard delivery service, you’re actually saving $5,000 on the purchase price!

Now that’s an expensive way to save money!

-High-Interest Financing

Carvana offers financing through a partnership with Santander Consumer USA. This means that the company can offer loans with lower interest rates than you would get from a traditional lender.

And, since you’re buying the car online, they can provide financing in as little as eight minutes.

-Delivery (Six Sentences)

Carvana makes it easy to schedule a delivery appointment and have your car delivered directly to your home or office parking spot (carports are available in most cities). You’ll receive an email confirmation when you place your order, which includes a delivery address and time estimate for your specific location.

-Exchange Policy (Five Sentences)

Carvana has an awesome exchange policy that allows customers to return their vehicle within seven days of purchase for any reason.


When you want to buy a car, you might feel overwhelmed with all of the different aspects to consider. Should you go for a new one or a used one? How much should I pay for it? Will it run well for my needs? The list goes on and on.

That’s why we created our transparent pricing system that makes it easy to know what you’re getting without any surprises.

One of the most common questions we get from customers is why are the rates so high when buying from Carvana.

-7-Day Money-Back Guarantee

To help you feel confident in your purchase, we offer a seven-day money-back guarantee. If you find that the car doesn’t suit your needs or if you simply change your mind, we will refund your purchase in full.

At Carvana, we’re committed to ensuring our customers are happy with their purchases. That’s why we offer a 7-day money-back guarantee for all of our vehicles.

If for any reason you’re not satisfied with your vehicle or have changed your mind about it, just call us within seven days and we’ll refund the full purchase price (including taxes and fees).

-Speedy Car Delivery

Carvana offers a speedy car delivery service to its customers. You can get your vehicle delivered within two business days for a fee of $399. This fee includes the cost of shipping and insurance, so you don’t have to worry about it breaking during transit.

-No Prior Sales Experience Necessary (Five Sentences)

Carvana doesn’t require any prior sales experience, making it an excellent place to start your career in the automotive industry.

In fact, they’re looking for candidates who are eager to learn and take on new challenges in an ever-changing industry.

-Newer Used Cars

Carvana operates like a vending machine, with the customer selecting what they want online and then picking up their purchase at one of the company’s locations. The company was founded in 2012 and has grown to over 40 locations in the United States.

All of its cars are used vehicles that are less than three years old, and most have fewer than 60,000 miles on them.

The company also offers free delivery and an optional extended warranty for an additional cost.

-Reconditioning Costs

Reconditioning costs are a big factor in the cost of a car. At Carvana, we recondition every car at no additional cost to you. This means that we’re able to offer some of the most competitive prices on vehicles.

-Carvana Price (Seven Sentences)

We offer an easy and transparent pricing model that includes all fees and charges so you know exactly what you’re paying for upfront. Additionally, our price doesn’t change based on trade-in value or mileage; it remains the same for everyone, regardless of your situation.


Carvana offers a number of advantages over traditional dealerships. Shoppers can get the car they want, at the price they want, with no negotiations. Plus, the customer doesn’t have to walk through a dealership to find their car.

This convenience helps offset some of the higher pricing that you’ll see with this service.

-Delivery (Five Sentences)

Carvana offers customers seven days to decide whether or not they want their purchase delivered. If not, then you can return it for a full refund without any penalties or fees attached. This helps offset some of the higher pricing that you’ll see with this service.

How Long Does Carvana Take to Deliver?

Carvana is the first and only car company to offer customers the option of having a vehicle delivered to them. However, it can take up to two weeks for customers to receive their cars.

The delivery process has four steps: placing your order, choosing your car, taking delivery, and completing your purchase.

How Does Carvana Verify Income?

Carvana will verify your income by requesting a W-2 form and bank statements. This information will be reviewed to confirm your ability to afford the car you are interested in. However, if you are financing with a lender other than Carvana, they will handle the verification of income.

What Does Carvana Certified Mean?

Carvana Certified means that the certified technician has been trained by Carvana and is authorized to complete all necessary procedures on the vehicle. To maintain certification, technicians are subject to an annual examination and re-certification process.

Why do you need a car inspection before purchasing a car from Carvana? All cars come with a 3-day/150-mile exchange policy and a standard three-year/36,000-mile warranty.

How Do Carvana Vending Machines Work?

Carvana vending machines work by allowing customers to order a car online and pick it up at the nearest machine. All customers need to do is enter their contact information and credit card information, then choose which make and model they want to buy.

After the order has been placed, the customer can find out exactly when their car will be available for pickup by selecting check availability on the website.

The customer may also select a pickup location near them, with prices based on mileage from Atlanta, GA.

Once all of this information has been entered into the system, the customer will receive a confirmation email as well as an automated phone call notifying them that their vehicle order was successful.

Where is The Biggest Carvana?

Carvana has locations in 27 states, but the store with the highest inventory of cars for sale is Carvana of Atlanta. It has more than 1,000 used cars available to purchase. In order to help customers locate their nearest location, Carvana has a Store Locator feature on its website.

The search form asks for an address or zip code and then lists nearby locations. Customers can also filter by car type and color to find what they’re looking for.

Are Cars More Expensive Through Carvana?

Carvana offers low rates, and their prices are competitive with other car dealerships. A Carvana representative told us that the company’s goal is not to make a profit on the cars themselves, but instead to make money through their financing options.

Additionally, Carvana only charges for shipping if you choose to have your vehicle delivered to you.

If you want your purchase delivered at a later date or don’t want your vehicle delivered at all, you can opt for in-store pickup or delivery by truck.

You can also save some cash by choosing to pick up your car yourself when it’s time for delivery—Carvana doesn’t charge any fees for self-pickup like other car sellers might.

Who is More Expensive CarMax or Carvana?

CarMax and Carvana are both well-known online car dealers. At first glance, they seem to offer the same thing: a hassle-free way to buy a used car. But there are some important differences in pricing and offers that make them not so comparable after all.

The biggest difference between the two companies is that CarMax offers financing through its own loan company, while Carvana doesn’t provide any financing options of its own.

This means that customers who purchase from CarMax will end up with a higher monthly payment than those who buy from Carvana, because of the interest rates charged by the company’s financing arm.

What is The Oldest Car That Carvana Will Buy?

There are a few different factors that go into determining whether a vehicle is eligible to be purchased on the Carvana website.

  • The first factor is how old the vehicle can be, with an upper limit of 2007. This leaves out any year past 2007 and any car more than 10 years old.
  • The second factor is mileage; if the mileage exceeds 110,000 miles it will be ineligible for purchase.
  • Lastly, the condition of the car needs to meet certain requirements for it to be approved for purchase; this includes overall exterior appearance, interior cleanliness, and engine performance.

Is Carvana More Expensive Than Dealerships?

Carvana has been marketed as a cheaper alternative to purchasing a car, but the cost is much higher than most dealerships. The company offers six payment plans which allow customers to buy their car in monthly installments.

Customers have reported that some of these payments are more expensive than what they would pay at a dealership.

The prices for cars on Carvana are typically higher than the MSRP from other dealers, and pricing also varies depending on factors such as the make and model of your vehicle.

For example, a Honda Civic can cost around $4,000 at Carvana but you can get it for about $2,500 at other dealerships.

Despite these high costs, many people continue to purchase cars on this website because of the convenience and warranty offered by Carvana.

Summary: Why is Carvana so Expensive

Carvana offers a different kind of car buying experience. They sell cars online, and you can even select your own color from their website. But what are the costs associated with this service, and why does it cost so much more than a traditionally used car dealership?

Carvana costs about $2,000 for most vehicles. For comparison, a new-car purchase at a dealership or dealer typically runs between $20,000-$45,000. The difference in price means that buyers need to be aware of the additional costs that come along with using Carvana as their go-to place for purchasing a vehicle online.


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Why is Carvana so Expensive?