How Does Carvana Make Money?

Carvana is an online automotive retailer that caters to customers looking to buy a used or certified pre-owned car. With its innovative approach to the car buying process, Carvana has created a new way for people to purchase cars without visiting a dealership. But how does Carvana make money? In this article, we’ll discuss the different strategies that Carvana employs to generate revenue and why it’s quickly becoming one of the most successful online car retailers.

Selling Used And Certified Pre-Owned Cars

Carvana is an online car dealership that sells used and certified pre-owned cars. They offer customers a unique shopping experience with no-haggle pricing, a 7-day return policy, as well as free delivery and pick-up. Carvana makes money by selling used and certified pre-owned cars at competitive prices, as well as providing financing options for customers who are in need of them. The company also offers extended warranties for vehicles that have been through their rigorous 150+ point inspection process.

Carvana operates full service car vending machines around the US, where customers can pick up their purchased vehicles. This method of delivery allows them to reduce overhead costs associated with traditional dealerships and pass those savings onto their customers. Additionally, Carvana has developed mobile apps for both iOS and Android users which allow customers to browse their inventory, get an instant trade in value for their current vehicle, apply for financing, schedule delivery or pickup of the vehicle they’ve purchased, and even track its progress on a map.

Customers who purchase a vehicle from Carvana are also able to take advantage of the company’s “No Pressure Guarantee” which gives them 7 days to return the vehicle if they aren’t satisfied with it or if any issues arise after purchase. This guarantee can help alleviate any buyer’s remorse by giving them peace of mind when making such a large purchase online. All in all, Carvana is able to make money by selling used and certified pre-owned cars at competitive prices while providing convenience to its customers through innovative technology such as its car vending machines and mobile app.

Financing Options And Leasing

Carvana offers both financing options and leasing for those looking to purchase a used or certified pre-owned car. Financing allows buyers to make payments towards the purchase of the vehicle while leasing is a great option for those who want flexibility in their auto ownership. Let’s explore these two options further.

Financing Options

Financing offers several benefits:

  • Customers can customize their payment plan, spreading out the cost of their purchase over time.
  • Customers typically have access to lower interest rates than other lenders, making financing more affordable.
  • The entire process can be completed online – from application through approval – making it easy and convenient.

Leasing Options

Leasing is also an attractive option for many buyers:

  • It allows customers to drive a new car every few years without having to take on the full responsibility of ownership.
  • Leases usually require little or no down payment, allowing customers to save up front costs.
  • Maintenance costs are generally lower with leasing than with financing as repairs and wear and tear are usually covered by the manufacturer’s warranty.

The decision between financing and leasing largely depends on personal preference and budget constraints. Carvana makes it easy for customers to explore both options before deciding which one best fits their needs so they can drive away with confidence knowing they made an informed decision.

Advertising And Promotions

Carvana makes money through advertising and promotions. They leverage online marketing campaigns such as Google Ads and social media campaigns, as well as traditional marketing such as print ads. Carvana also promotes its services by hosting events, including test drives and car shows. This helps to create interest and excitement around their cars and services.

Carvana also sells vehicle protection plans that provide customers with a variety of options for extended coverage beyond the factory warranty on their vehicles. These plans are designed to give customers peace of mind when it comes to maintaining their car over time. Additionally, Carvana offers financing options for customers who are looking to purchase a vehicle from them.

Furthermore, Carvana has developed an extensive network of partners that can help facilitate the sale of vehicles in certain areas where they don’t have a physical presence yet. Through these partnerships, Carvana is able to increase its reach across the country while still providing customers with the same quality service they’ve come to expect from them. By utilizing both online and offline forms of advertising and promotion, Carvana has been able to grow its business significantly over the years.

Affiliate Programs

Carvana makes money primarily through its online car sales. The company has an extensive used-car inventory and offers customers a convenient way to buy their vehicles from the comfort of their own home. Carvana also provides additional services such as financing, trade-ins, and protection plans that give customers even more control over their purchases.

Moreover, Carvana has a robust affiliate program to generate revenue. Through this program, affiliates receive commissions for every sale they refer to Carvana. Some of the common types of affiliates include bloggers, content creators, influencers, and website owners who review or promote Carvana’s offerings.

The benefits of joining Carvana’s affiliate program are numerous. They include:

  • High commissions
  • Access to promotional materials
  • Free signup with no fees or minimum sales requirements
  • A wide selection of cars to choose from
  • Dedicated account support team
    As such, Carvana’s affiliate program is a great way for affiliates to capitalize on the growth of the automotive industry without having to invest in inventory or overhead costs. It’s an excellent opportunity for those looking to make money quickly and easily with minimal effort required on their part.

Carvana Vending Machines

Moving on from affiliate programs, Carvana also makes money through their popular vending machines. The idea behind these vending machines is to provide customers with an easy way to buy a car. Customers can go online and pick out the car they want and then go to the vending machine to get it. When they arrive at the machine, they just enter their payment information and then receive their new car. This eliminates the need for middlemen and allows Carvana to keep more of their profits.

The vending machines are also very convenient for customers because they don’t have to wait for someone else to bring them the car or take them back home. They can pick up the car immediately after buying it and drive away in minutes. Additionally, the vending machines are located in cities across the country, so customers don’t have to travel far to buy a vehicle.

This innovative approach has been highly successful for Carvana, resulting in additional revenue streams while providing customers with a unique experience that sets them apart from other automakers. The company’s success in this area has helped them become one of the largest used-car retailers in the United States and given them a competitive edge over other companies in the industry.


Carvana offers customers the option of trading in their old car when purchasing a new one. This is a great way for customers to avoid dealing with private buyers or going through the hassle of selling their vehicle online. Carvana will provide an estimate for the value of the trade-in and take care of all paperwork involved.

This money serves as a major source of income for Carvana, making up a significant portion of its revenue each year. Here are three key benefits that make trading in a vehicle at Carvana so attractive:

  1. Quick and easy process – Customers can get a free estimated value for their vehicle in just minutes and have it sold with no hassle.
  2. No negotiation – The customer will be given an offer based on market prices, so there’s no need to haggle or worry about being taken advantage of.
  3. Instant payment – The customer will receive payment immediately, either in cash or credit toward their new car purchase from Carvana.

These features ensure that trading in your car at Carvana is convenient, secure, and profitable for customers, as well as providing a reliable stream of income for the company itself.

Carvana Care Plans

Having the ability to trade-in your car is definitely convenient, but Carvana also offers another way to save money with their Carvana Care Plans. These plans provide an additional layer of coverage and protection for your vehicle, so you can feel secure in your purchase.

Carvana Care Plans offer several options, ranging from basic coverage that covers only mechanical breakdowns, to a more comprehensive plan that adds additional coverage for items such as tires and brakes. Each plan comes with a variety of benefits, including a 30-day money back guarantee and 24/7 roadside assistance. Additionally, all plans are transferable if you decide to sell or trade-in your car during the plan’s term.

The cost of these plans depends on the make, model and year of your car, as well as the type of coverage you select. However, by purchasing one of these plans upfront with your vehicle purchase, you can save up to 50% off retail prices when compared with traditional auto insurance policies. This helps ensure that you get maximum value out of your purchase while protecting yourself from unexpected costs down the road.

Vehicle Shipping And Delivery

The thrill of buying a car is unparalleled, yet the process itself can be daunting. Carvana takes all the hassle out of purchasing a car, allowing customers to buy their dream vehicle quickly and easily. From start to finish, Carvana strives to provide an exceptional experience that leaves its customers feeling satisfied and excited about their purchase.

Carvana offers free shipping and delivery options for its customers:

  • Free home delivery within 100 miles
  • Free as-soon-as-next-day delivery within 500 miles
  • Doorstep delivery for an additional fee up to 150 miles away from the closest Carvana Vending Machine
  • Pickup at any Carvana Vending Machine location without charge
  • Delivery to your preferred local mechanic for inspection before finalizing the purchase, also without charge

This fast and reliable service ensures that customers get their cars in a timely fashion with minimal effort. With flexible schedules and helpful customer service representatives, Carvana makes sure that purchasing a car is an enjoyable experience for everyone involved. Customers can rest assured knowing that they are getting their dream car with ease and convenience.

Carvana Cash Back Program

Building on their already successful vehicle shipping and delivery services, Carvana has recently launched a new program – the Carvana Cash Back Program. This new program gives customers even more incentive to purchase a car through the company, as they can now receive up to $1,000 cash back when they purchase a vehicle. The program is designed to help customers save money while still getting the same great service available from Carvana.

The Carvana Cash Back Program also offers additional perks for customers who purchase cars from the company. Customers who take advantage of this offer have access to exclusive discounts and deals on select vehicles. Additionally, Carvana will cover up to $500 of any maintenance or repair work that might be required for their newly purchased vehicle.

With these added benefits, it’s no wonder why so many people are choosing to buy their cars from Carvana. Not only do they get great savings and deals on their purchases, but they also know that they’re getting reliable customer service and an easy-to-use online platform with which to make their purchase. It’s a win-win situation for all involved!

Carvana Car Care Products

Carvana offers a wide range of car care products to help customers maintain their vehicles. Customers can purchase anything from basic cleaning supplies, such as waxes and polishes, to specialized tools for engine maintenance and repair. Carvana also provides parts and accessories tailored to specific makes and models, allowing customers to customize their car to meet their individual needs. This allows customers to upgrade or replace worn out parts with ease.

Carvana’s online store is easy to use and provides detailed descriptions of each product so customers can make informed decisions about what they need for their vehicle. They also offer a wide selection of brands, giving customers plenty of options when it comes to selecting the best product for their car. Furthermore, Carvana’s prices are competitive with other retailers in the automotive industry, making it an attractive option for car owners looking for quality products at a reasonable cost.

The company also offers free shipping on orders over $50, which helps offset the cost of purchasing multiple items at once. This encourages customers to purchase more than one item at a time and save money on shipping costs in the process. All of these factors combine to make Carvana an ideal destination for anyone looking for quality car care products that won’t break the bank.


In conclusion, Carvana has a variety of ways to make money. From selling used and certified pre-owned cars to offering financing options and leasing agreements, Carvana has found a way to monetize its services. They also have advertising and promotions, as well as affiliate programs, vending machines, car care products and shipping/delivery services. All of these offer Carvana the opportunity to generate revenues while providing customers with an easy way to purchase vehicles from the comfort of their own homes. With the wide range of services they provide, it’s no wonder that Carvana is able to be so successful in the automotive market.