Capital One vs Carvana

Capital One, founded in 1994, is a major player in the auto loan industry, offering competitive financing options, flexible terms, and easy online application processes for new and used vehicles. They serve millions of customers across the United States and provide auto loans for new and used cars, as well as refinancing options. Through their Auto Navigator tool, customers can pre-qualify for financing without affecting their credit score and explore various loan options. Loan amounts start at $4,000, with terms spanning from 24 to 84 months. Additionally, they offer educational resources to guide customers through the loan process. Capital One has a mixed reputation in the industry but receives an A+ rating with the BBB. They recently settled a $16 million class-action lawsuit over improperly charged proxy fees. This doesn't involve their auto loan services. They receive mixed reviews, so consider all your options before using their services.

Carvana, headquartered in Tempe, Arizona, offers a unique and streamlined approach to auto financing exclusively for used vehicles purchased through their online marketplace. Founded to revolutionize the car-buying experience, Carvana provides auto loans with no minimum credit score requirement, making it accessible to a wide range of credit profiles. The company's online platform allows users to prequalify for loans in just 2 minutes, with terms valid for up to 45 days, giving ample time to browse their extensive inventory of over 25,000 vehicles. Key features include loan terms of 36 to 78 months, loan amounts starting at $1,000, and a 7-day return policy. Carvana's vehicles undergo a 150-point inspection, with a free Carfax report and a 100-day/4,189-mile warranty. The application process is entirely online, with phone and live chat support. While interest rates range from 7.90% to 27.90%, the absence of prepayment penalties and origination fees adds to the appeal. With a solid reputation for their intuitive technology and extensive inventory, Carvana is particularly suited for those seeking a hassle-free online car buying experience, especially those with less-than-perfect credit.