Carvana vs. the Dealership: What Every Car Shopper Should Know
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Online shopping has undoubtedly changed how we buy and sell things. However, does it also apply to cars? In the past, many people believed that car shopping was an event best experienced in person. It seems fair, especially when cars are generally an expensive investment. After all, there’s plenty of merit to seeing the car right in front of you before you buy it.
However, with the rise of online car-shopping websites, it’s clear that many people love being able to buy their cars on the internet. One of the most popular websites for buying and selling used vehicles is Carvana, known for its “car vending machines.” But is it really better to use sites like Carvana than buy from a dealership?
For today, we’ll compare the Carvana vs. dealership experience. Which one is better for buying used cars? Let’s take a look!
Carvana vs. Dealership: How Do They Work?
While both let you buy used cars, there are many differences between Carvana and the old-fashioned style of car shopping, going to a dealership. We break down the differences and similarities between the two.
How Does Carvana Work?
Carvana offers an innovative solution to buying cars online. Unlike many car-buying websites, Carvana has physical locations across the United States and is fondly called “vending machines.” However, this is just a fancy way of picking up a car from a site (although, admittedly, it’s a unique experience).
Purchasing a used car via Carvana is a straightforward process. You start by searching for the make and model you want and look at the search results. The results can be slimmed down using filters, including the location (your current location is the default). The results are also sortable via various categories such as Recommended, Great Deals, Lowest Price, Lowest Mileage, etc.
After picking a vehicle you’re interested in, Carvana lets you inspect it with 360-degree freedom, including its interior. Another helpful feature is that Carvana highlights flaws and blemishes of the car that may affect your buying decision. Carvana offers numerous financing options, including Carvana and third-party lenders. Clicking on the Get Started button will start the buying process, and you’ll be asked to create an account.
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How Does a Car Dealership Work?
Buying a car from a dealership is a much more involved experience. However, regardless of which dealership you buy from, we highly recommend researching the vehicles you want to purchase and setting a budget. Once you arrive at the dealership, the salespeople will gladly assist you and answer questions.
At a dealership, you can test-drive the vehicles to get a good feel of being behind the wheel. Once you find the car you like, you’ll have the chance to negotiate the car’s price and terms – and this is where your research will come in handy.
Once you have decided on the car you’re buying and settled on the terms and conditions, you’ll talk with the finance and insurance (F&I) manager to sign the sales contract and other relevant paperwork.
Vehicle Selection and Quality
This is where Carvana has a clear edge over dealerships. Carvana offers high-quality selections of cars, SUVs, and trucks, ensuring they are damage- and accident-free. Carvana also performs stringent inspection processes, including the 150-point inspection. It also offers thousands of used vehicles in the inventory, something most dealerships can’t afford to match.
On the other hand, the used car dealership market has a reputation for shady practices. While it’s not fair for used car dealers who are only making a living, many establishments have suffered from red flags such as low-quality inventory, questionable warranties, etc. Dealerships do provide test drives which are essential for many car shoppers.
Pricing and Delivery
Both dealerships and Carvana have comparable prices based on market trends. Carvana does have a “no-haggle” policy, which means that what you see on the listing price is what you’ll pay, or at least close to it. You cannot negotiate the costs down when shopping in Carvana.
On the other hand, dealerships will allow you to negotiate the price, monthly payments, and payment terms. Therefore, there’s a good chance that you can get the best deals when buying from a dealership. However, of course, that’s never a guarantee.
For delivery, Carvana offers delivery services if you live close to one of its markets; otherwise, you’ll pay a $0 to $590 shipping cost. Conversely, you can pick up your new vehicle from one of Carvana’s vending machine locations. On the other hand, dealerships will let you drive the car out of the lot if the translation is finalized on the same day. However, they may also deliver if you’re within 100 miles of their location for free.
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Warranty and Returns
With Carvana, you’ll receive a free 100-Day Limited Warranty (or 4,189 miles) and a 7-Day (or 400 miles) Money Back Guarantee. You may also purchase protection plans from Carvana for extended warranties. Meanwhile, very few dealerships have return policies because sales are final once you’ve signed the contract. If it’s allowed, it can vary by state and the dealerships themselves.
Carvana vs. Dealership: Which is Better for You?
As you can see, there are pros and cons to each option. Ultimately, it depends on your needs and shopping preferences. Carvana’s huge selection of cars and flexible financing options are great benefits, but you won’t be able to test drive your car or see it in person. On the other hand, dealerships offer a more old-school way of buying a car, allowing you to test drive.
A Better Way to Shop for Cars
If Carvana and shopping from dealerships don’t appeal to you, you should check out CoPilot for a better way to shop for cars. For starters, CoPilot is 100% independent and objective, so no single dealership is paying us to sell their vehicles. We’re always on the consumer side, hence the name CoPilot.
Frequently Asked Questions: Carvana vs. Dealerships
Q: What are the main differences between buying a car from Carvana and a traditional dealership?
A: Carvana offers an entirely online car-buying experience, with a large selection of high-quality vehicles, a 150-point inspection process, and a no-haggle pricing policy. Dealerships provide a more traditional, in-person shopping experience, allowing customers to test drive vehicles, negotiate prices and terms, and finalize the transaction on-site.
Q: How do Carvana’s vehicle selection and quality compare with those of dealerships?
A: Carvana has a clear advantage in vehicle selection and quality. They offer a wide range of high-quality cars, SUVs, and trucks, ensuring they are damage- and accident-free. Carvana also performs a rigorous 150-point inspection on all vehicles. While some dealerships may have quality used cars, others have a reputation for questionable inventory and practices.
Q: Can you negotiate prices when buying from Carvana or a dealership?
A: Carvana has a “no-haggle” policy, meaning the listed price is what you’ll pay, with little to no room for negotiation. In contrast, dealerships allow customers to negotiate the price, monthly payments, and payment terms, potentially resulting in better deals for savvy shoppers.
Q: Can you test drive a car before buying it from Carvana?
A: No, one drawback of buying from Carvana is that you cannot test drive the vehicle before making a purchase. However, Carvana does offer a 7-day Money-Back Guarantee, allowing customers to return the car within that timeframe if they are not satisfied. In contrast, dealerships provide the opportunity to test-drive vehicles before buying.
THE BEST USED LUXURY CARS ON THE MARKET
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If you need advice, we offer a personal assistant CoPilot to help you make an educated decision based on facts, trends, market prices, and more—CoPilot searches for all dealerships and their cars, not just ones that pay to play. Therefore, you’ll have access to more cars and better inventory so that you can compare and contrast your options.
Get a Curated List of the Best Used Cars Near You
The CoPilot car shopping app is the easiest way to buy a car. Tell us what you’re looking for and we’ll search the inventories of every dealership in your area to make you a personalized list of the best car listings in your area.
The best part? CoPilot is built using the same technology that dealerships use to buy and sell their inventories, so we have more info on each vehicle than competitors. CoPilot doesn’t work with dealerships, so there are no sponsored posts or other shady practices — just the most info on the best cars. Check out our About Us page to see how CoPilot works.
