Carvana approved me ! crazy interest rate- should i take it?

[Anonymous]

Hey guys so i was pre-qualified for a carvana loan 19% interest but only @700 down. My score are low though so it comes with the territory. I do have a NFCU membership and could refi with them once scores get a little higher. Only looking to finance around 12-13k. What do you guys think? any input is appreciated. 

[AllZero]

Not knowing the full details of your situation, 19% sounds kinda high. Have you pursued other options, Navy?

[TattnallTrio]

I purchased a car from Carvana (a 2016 Kia Optima) and returned it because they delivered it to me with a huge coffee said on the passenger seat and touch up paint covering a scrape. The touch up paint was poorly applied. The car was at full NADA retail. This was a low mile lease turn in. 
I'd be cautious of them from my experience and the majority of their inventory is prior rental cars. I wouldn't buy a used rental personally. 

[OmarR]

With only $700 down, someone else may not approve you for re-finance in the near future due to LTV ratio.

[Anonymous]

I bought from Carvana at similar interests rate and price... What ever you do, don't buy the extended warranty as it puts LTV way out of whack and it's worthless when compared to factory or CarMax aftermarket warranty. I was able to cancel and it get prorated refund along with doubling my payments over the course of 8 months allowed me to refinance with Cap One for 6%. Carvana through Bridgecrest and a Discover Secured card really help raise my scores in that time period.

If you go down this road, don't buy the warranty and get GAP (either through them or insurance). Get something you can easily pay off in a year or two just in case you can't get refinance and hammer the payments. FWIW, I bought a 2013 Mini Cooper S Clubman fully loaded with very low miles and a odd color that no one wanted so they kept dropping the price.

[pinkandgrey]

I don't know what your situation is, but my first instinct would be NOT to take a 19% loan. That's really high. I would try every available option before taking on that much interest. 

Good luck with whatever you do! 

[Anonymous]

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@Anonymous wrote:

I bought from Carvana at similar interests rate and price... What ever you do, don't buy the extended warranty as it puts LTV way out of whack and it's worthless when compared to factory or CarMax aftermarket warranty. I was able to cancel and it get prorated refund along with doubling my payments over the course of 8 months allowed me to refinance with Cap One for 6%. Carvana through Bridgecrest and a Discover Secured card really help raise my scores in that time period.

If you go down this road, don't buy the warranty and get GAP (either through them or insurance). Get something you can easily pay off in a year or two just in case you can't get refinance and hammer the payments. FWIW, I bought a 2013 Mini Cooper S Clubman fully loaded with very low miles and a odd color that no one wanted so they kept dropping the price.

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Extended warranties are generally garbage, but I wouldn't be driving a 7 year old MINI without some kind of coverage . . . . . 

[Anonymous]

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@Anonymous wrote:

Hey guys so i was pre-qualified for a carvana loan 19% interest but only @700 down. My score are low though so it comes with the territory. I do have a NFCU membership and could refi with them once scores get a little higher. Only looking to finance around 12-13k. What do you guys think? any input is appreciated. 

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Have you simply tried NFCU for the initial loan?

[Medic981]

I know you are in a tough situation but 19% is an awfully high-interest rate. I would look to find another financing if at all possible. As others have mentioned, I would try Navy first before accepting this offer.

[sccredit]

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@Anonymous wrote:

If you go down this road, don't buy the warranty and get GAP (either through them or insurance). Get something you can easily pay off in a year or two just in case you can't get refinance and hammer the payments. FWIW, I bought a 2013 Mini Cooper S Clubman fully loaded with very low miles and a odd color that no one wanted so they kept dropping the price.

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NOOOOOO!!!!!!  OP - DO NOT follow this advice.  Buying a car at retail with $700 down and NOT buying GAP (from either them or insurance) is a recipe for financial disaster.  GAP is usually a much better deal if purchased through your own insurance company (if offered) but either way OP needs to have GAP.