Trading Up? Can You Sell Your Financed Car To Carvana?
So, you’re eyeing that shiny new ride and wondering if Carvana can help you make the switch. But there’s a little snag: your current car isn’t fully paid off yet. Can you still sell it to them with a loan hanging over it? 
The short answer is yes! You absolutely can sell a financed car to Carvana, but there are a few important details to understand before you start browsing their inventory for your dream vehicle.
How Selling A Financed Car Works:
Carvana makes the process surprisingly straightforward, even with a loan in the picture.
1. Get Your Loan Payoff Amount:
First things first, contact your lender and get the exact payoff amount for your current car loan. This is crucial because Carvana will use this figure when determining your offer.
2. Get A Carvana Offer: Head to Carvana’s website or app and start the appraisal process. You’ll need to provide information about your vehicle, including its make, model, year, mileage, and condition.
3. Review The Offer: Carvana will generate an offer based on your car’s details and current market value. Keep in mind that their offer might be slightly lower than if your car were paid off outright, as they’ll need to factor in the remaining loan balance.
4. Accept The Offer: If you’re happy with the offer, accept it! Carvana will then guide you through the next steps.
5. Schedule Pickup/Delivery: Choose a convenient time and location for Carvana to pick up your car or arrange for delivery if you prefer.
6. Handle The Loan Payoff: On the day of pickup/delivery, Carvana will handle paying off your loan directly to your lender.
7. Receive Any Remaining Equity: If Carvana’s offer exceeds your loan payoff amount, you’ll receive the difference. This “equity” is yours to keep! Conversely, if your loan balance is higher than the offer, you might need to pay the difference to Carvana.
Things To Keep In Mind:
* Loan Type Matters: Carvana typically accepts most types of auto loans, including those from banks, credit unions, and even private lenders. However, it’s always best to confirm with them directly about your specific loan type.
* Negative Equity: If you owe more on your loan than your car is currently worth (negative equity), Carvana might still make an offer, but you’ll likely need to pay the difference. In this case, consider refinancing your loan or exploring other selling options to minimize out-of-pocket expenses.
* Prepare Your Documents: Have all relevant paperwork handy for a smooth transaction. This includes your car title (or lienholder information), registration, and loan payoff documentation.
* Inspect Your Car: Be honest about your vehicle’s condition during the appraisal process. Any undisclosed issues might lead to a revised offer or rejection from Carvana.
Is Selling To Carvana The Best Option?
Carvana offers convenience and transparency, but it’s not always the only option for selling a financed car. Consider these alternatives:
* Selling to a Private Buyer: While this can potentially yield a higher price, be prepared for more effort in advertising, showing the vehicle, negotiating with buyers, and handling paperwork.
* Trading In at a Dealership:
Dealerships often accept trade-ins even if there’s a loan outstanding, but their offers might not be as competitive as Carvana’s.
Ultimately, the best way to decide is to explore all your options, compare offers, and choose what works best for your individual circumstances.
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