Wondering whether you should shop online for a vehicle or head to the used car lot? Before you choose to buy your next used car online, you should understand the differences between shopping at Carvana vs. dealerships. What are the pros and cons of buying a used vehicle online through Carvana, Vroom or Shift? How is it different from a used car dealer near you? In this article, we’ll compare typical buying experiences at places like Carvana and auto dealerships.
*Article updated: August 2022
Carvana: Pros & Cons
| Carvana: Pros | Carvana: Cons |
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Pros
Zero Haggling
Carvana promises a no-haggle, no-hassle buying experience. Just pick a used car, apply for financing, and fill out all the necessary paperwork. For anyone who dislikes negotiating, this perk sounds like an appealing convenience.
All Online
You don’t have to leave your home or swim through crowds at the dealership on a busy Saturday. All Carvana or internet car dealership sales are done online.
Pick-up & Delivery
You can pick up your vehicle at Carvana’s Vending Machine or have it delivered straight to your door for a nominal fee. This service is surely convenient to many in 2020, but not as unique to Carvana as it was prior to COVID-19, as many dealerships have begun offering car delivery services.
Large Selection
At any given moment, Carvana and other online car dealers have thousands of used vehicles for sale. Even large car dealerships can’t compete with Carvana’s sheer volume of pre-owned cars.
Carvana is also the largest used electric car dealership online. However, used EV prices have skyrocketed because Carvana can essentially set the EV market's prices.
Open 24/7
Traditionally, you can only purchase vehicles when car dealerships are open. With places like Carvana, shoppers can buy anytime and from anywhere. This convenience is one of the biggest advantages of shopping and buying cars online with companies like Carvana.
Cons
Less Savings
Because you can’t negotiate asking prices down at Carvana, you aren’t guaranteed to get the lowest price on a vehicle. And if you need to buy a car with poor credit, Carvana's bad-credit financing options are less than adequate. You're better off getting financing privately through your bank or getting a used car loan at a dealership.
Can’t Test Drive
The only way to physically see, touch and drive a Carvana vehicle is to purchase it. After you receive the car, you have 7 days to return it – this 7-day period is essentially your “test drive,” and returns may not be accepted if the vehicle has been driven more than 400 miles.
Return Hassles
In some instances, returning a car to Carvana can feel like pulling teeth. You must request a return, sign paperwork, meet the delivery driver, get a replacement car or refund the entire cost, and more. If you must return your second vehicle, you also lose the 7-day return policy on your next (third) vehicle.
Lackluster Warranties
Every Carvana vehicle includes a 100-day “Worry Free Guarantee” that covers any repairs or replacement parts. After that, you may be at the mercy of the automotive gods if your vehicle doesn’t have any carryover coverage. Carvana also doesn’t necessitate the use of OEM car parts for repairs; instead, they stock third-party parts at their service locations. We don't want to call it a Carvana scam, but their used car warranty coverage certainly leaves a lot to be desired.
In comparison, most auto dealers, including Roper Honda, have extended used car warranties.
Repair Hassles
If you need to take advantage of Carvana’s warranty, you could have difficulty getting quality repairs. This is because Carvana uses third-party shops, which is compounded by scheduling delays and numerous hoops to jump through.
Long Delivery Times
The convenience of having your vehicle delivered is great – until it takes a week to get the vehicle. Typical Carvana horror stories include buyers who have had to wait through delivery delays, with some customers experiencing delays for up to three weeks.
Not for Sellers
Is Carvana a good deal? Not for sellers, typically. Selling is quick at Carvana, but you’re not likely to get market value if you choose to trade in or sell your car online.
Few Pick-up Locations
Carvana Vending Machines are located throughout the U.S., but only in major cities and metro areas. If you live in Joplin, MO, for instance, your nearest Carvana pick-up location is in Kansas City, nearly 150 miles away.
Can’t Buy in Alaska or Hawaii
Carvana does not deliver or have pick-up locations in AK or HI. You can buy a car and travel to the nearest Vending Machine, however.
Can’t Buy New Cars
Unlike car dealerships, Carvana only sells used cars, with no option for new vehicles.
No Used Car Specials
Also unlike used car dealers, Carvana doesn’t offer any monthly specials on pre-owned vehicles.
Cars Aren’t Always Clean
The used cars sold at Carvana vary in condition – some are extraordinarily clean and some look like they’ve been to hell and back. The issue is, you never know which one you’re getting when you buy from Carvana. Their specialists perform basic cleaning tasks prior to shipping your vehicle, and you could be left to do the rest, including detailing and attempting to get rid of cigarette smells.
Unverifiable Vehicle Condition
Whether during delivery or even before, Carvana cars may get scuffed, scratched or stained. These issues are oftentimes not visible in online pictures. Additionally, mileage may be recorded improperly.
And while Carvana buys just about any car, sight unseen, that can actually be detrimental to shoppers. Carvana can choose to put that vehicle up for sale without any visual
No Loyalty Incentives
Dealerships love repeat business – so much so that they offer incentives for loyal customers who return. Carvana does not directly incentivize customers to buy online again.
Car Dealer: Pros & Cons
| Car Dealer: Pros | Car Dealer: Cons |
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Cons
Less Inventory
Carvana certainly has your local used car lot beat when it comes to selection. However, most dealerships will help find your preferred vehicle and have it shipped to their location on your behalf.
Closed on Sundays
You can shop online to browse vehicles at your used car dealership anytime, but they’re only open for sales at certain hours and on certain days of the week. Most dealers close their doors on Sundays, too.
Negotiations Preferred
To get the best deal on a car, it’s best to negotiate – a factor that might dissuade some shoppers from visiting the dealer.
Pros
Negotiations Preferred
Car prices at local dealerships are negotiable, unlike the prices listed on online dealership sites like Carvana’s. This means you can save hundreds or even thousands at the dealership.
In fact, you’ll sometimes even find that dealership pricing is lower overall. For instance, when this article was re-published (Aug 2022), our Joplin used car dealership had a 2011 Honda CR-V with 75,000 miles on sale for $17,000; Carvana had a 2011 CR-V with 95,000 miles listed for the same price.
New AND Used Cars
You can buy both used and new cars at the dealership. Carvana cars are only pre-owned, with the exception of their “Carvana Certified” vehicles, which don’t provide the same peace of mind as the factory warranties you can get at a new and used car dealership.
Drive a Car Home Today
There are no delivery delays when buying a car at a store. You can come in and drive home in one afternoon.
Form Real Relationships
There’s something to be said about having a relationship with a good car dealer and salesperson. When you find a trusted car dealership, you keep them.
Better Auto Finance Assistance
Although getting car loans through Carvana is easy, there’s not much “customer service.” When you get auto financing at a dealership, you can ask questions and go over your options in real-time, not through email or a webchat (though, those are also available through your dealer’s website).
Service After the Sale
Getting repairs or maintenance for your car is far simpler at a dealership. Simply schedule an appointment at the dealership service center or drive the car in for a quick look-see.
Warranties
Expect a better car warranty from your used car dealership. New cars come with extended coverage, and many local dealers offer their own warranty programs for used vehicles as well. At Roper Honda, our Warranty Forever coverage is offered at no cost to the customer on virtually every vehicle we sell.
Higher Trade-In Values
Thinking of selling your car to Cavana? You’re more likely to get better value when you trade your vehicle in at a dealership. Request your free trade-in value estimate to see how much more your dealership will pay you over Carvana.
Test Drive at Will
Of course, choosing to shop at a car dealership allows you to actually take cars out for test drives. And not just one car, either – you can test drive dozens or even hundreds of cars before picking the ideal one. With Carvana, customers are basically limited to two test drives before the return policy expires.
Loyalty Incentives
Ask your dealer about any loyalty perks for return customers. For instance, when you lease a new Honda at our Joplin car dealership, you receive additional Wear-and-Use damage waivers and aren’t required to pay your turn-in fee when you decide to re-lease or purchase another car.
Car Specials
What about Carvana prices vs dealership prices? The price you see on Carvana is the price you pay. Online car stores like Vroom, Shift and Carvana don't allow haggling or negotiating. At your used car lot, you can do both and also take advantage of monthly or weekly car specials to lower your costs.
The Verdict: Car Dealerships are Still Superior
Is Carvana good? As you can see, car dealers offer shoppers more benefits than online stores like Carvana, Vroom, Shift and even Carmax. They allow you to drive home the same day, take test drives before committing to buying, and emphasize customer service. So, stop shopping for vehicles online and take full advantage of your dealer's showroom!
Contact Roper Honda at 877-747-0738 or visit us in Joplin, MO, at 902 N Rangeline Road. We’d be glad to show you why dealerships are still better than Carvana.
Categories:
Pre-Owned Inventory