By now, everyone has felt the effects from ongoing supply chain woes in some way, shape, or form. Everyday products are becoming more expensive, while the affordability of bigger ticket purchases are becoming less attainable.
When the pandemic first reared its ugly head, microchip manufacturers had to shut down their factories. There were plenty of new cars sitting on lots, but all were useless without a microchip. Today’s cars contain dozens, and they do everything from controlling engine and transmission functions to helping you change the radio station.
With a shortage of new cars came a huge boom for the used car market, and prices soared as consumers struggled to find quality cars for affordable prices. Some experts predict that the shortage will ease over the course of the year, but even when prices are high, Carvana can provide vehicles within your budget.
In fact, Carvana has the widest selection of cars under $20,000 of any online retailer. At the time this article was written, there were over 11,000 cars available within that price range. Some available models include a 2014 Chevy Malibu, a 2013 Mini Hardtop, and a 2018 Hyundai Elantra.
Although there are plenty of great options within this price point, you can always check out vehicles marked as “Great Deal” when browsing the inventory. This means the vehicle is priced $1,500 or more under the Kelley Blue Book Suggested Retail Value. Like all Carvana Certified vehicles, these cars have no reported accidents and undergo a rigorous 150-point inspection. To see all cars marked “Great Deal”, you can add it as a filter to your search.*
So how does Carvana price its cars, and how do these savings get passed on to you?
There are many factors that determine the listing price of a vehicle, such as options, mileage, and availability. We buy vehicles with minor imperfections, such as light scratches or scrapes, which are factored into the selling price. And since Carvana does not have any traditional dealerships (except for our Car Vending Machines, which take up minimal real estate), there are no overhead costs from running those traditional dealerships.
For every car a dealership sells, most of the profit goes to personnel, but a good amount also has to go towards the cost of running everything. In short, Carvana’s delivery model makes it less expensive to deliver high quality vehicles to customers compared to the cost of running hundreds of dealerships across the country.
Online car buying also eliminates the middleman, so any costs associated with sales commissions are also removed. Because of this, buyers on average spend hundreds, if not thousands, less than what they would spend if they bought the car at a traditional dealership.
Another big way Carvana keeps vehicles affordable is through Carvana Financing. Deciding how to finance your car can be intimidating, but it doesn’t have to be!
Traditionally, financing has worked in favor of dealerships and not in favor of the customer. We strive to be fully transparent with our customers in every aspect of the purchase process, and this includes financing. We want buyers to know they are in total control and not feel pressured at any point.
Everyone has a financing solution that works best for them, and that’s why Carvana offers flexible options. Whether you’re looking for something to get you from point A to point B, or looking for something that’s a bit of an upgrade, we’ve got you covered. If you’re over 18, make at least $4,000 a year, and have no active bankruptcies, we have a car for you.
Our Auto Loan Calculator can help anyone who is looking to get an initial grasp on what works best for them in terms of financing. Here you can enter the cost of the car you want, your credit score, desired loan term, and down payment amount. Carvana also makes it easy to browse cars based on your preferred financing terms by entering your desired down payment and desired monthly payment.
Qualifying for Carvana Financing is super easy, and requires minimal information from the buyer. We don’t make our selections judged on credit scores alone, because we understand there’s more to a person than a credit score. We consider several other factors in order to provide a fair down payment and interest rate. Getting pre-qualified through Carvana does not have any impact on your credit score, and a formal credit inquiry will only be submitted once you schedule a delivery or pickup.
Even with supply chain constraints and used car prices at an all-time high, Carvana is committed to giving buyers the best deal possible. Through both reasonably priced cars and easy financing, there’s an affordable option for everyone.
*The “Great Deal” price comparison is not displayed to customers in Texas, Louisiana, or Utah due to state restrictions.
