Short Answer: Carvana may require proof of income when you finance a vehicle; it requests documents to confirm application information on a case-by-case basis. Pay stubs, bank statements, or tax returns qualify as proof of income. You will also need to verify your down payment through funds verification and provide proof of insurance before vehicle pick-up or delivery. For specifics of the buying process and requirements at Carvana, see below.
The Carvana Car Buying Process
Carvana was founded in 2012 as a way for consumers to purchase a car entirely online. Carvana’s website has a wide variety of used cars available. And its 360-degree photo technology lets you view the inside and outside of any vehicle. Pop-ups highlight any damaged areas. All cars have undergone a 150-point inspection, and you can view each car’s CARFAX history report for free.
After you purchase a car from Carvana, you can then test drive it, and if you decide you don’t like it for whatever reason, you can return it under Carvana’s seven-day money-back guarantee.
Carvana has in-house financing available. You can get pre-qualified on the Carvana website. After pre-qualification, you can select your vehicle to see the available finance options, including your APR, monthly payment amount, loan term, and necessary down payment. Rates remain valid for 45 days.
Don’t have an annual income? See our research on how and where to get a loan without a job.
If you live in one of Carvana’s 60+ local markets, your vehicle will be delivered free of charge. If you live outside a local market, Carvana will arrange for a third-party to deliver your vehicle for a fee; fees vary by location.
Alternately, Carvana will pay up to $200 of the cost of a one-way plane ticket to one of its Car Vending Machine locations, where you can test drive the vehicle before submitting payment. You are still eligible for the seven-day money-back guarantee, minus the delivery fee.
Does Carvana Require Proof of Income?
The Carvana proof of income policy for financing varies depending on the specifics of your application, customer service representatives said. When you apply for pre-qualification with Carvana, one of the things you’ll be asked to provide is your annual income. Carvana’s minimum requirements to finance a vehicle are:
- Applicants must be at least 18 years old
- Earn a minimum annual income of $10,000
- Have no active bankruptcies
In addition to your annual income, the pre-qualification form asks for your name, address, and age. Your personal information will be confirmed before you finalize your purchase. You’ll need to provide your Social Security number for a “soft pull” credit check (which will not impact your credit score).
For some purchases, particularly those involving more expensive vehicles, Carvana will want to validate the information you list on the pre-qualification form. Depending on your credit history, income level, and the vehicle you intend to purchase, Carvana may decide to request proof of income to confirm your ability to pay.
Acceptable Documents for Proof of Income
The following documents can qualify as proof of income at Carvana:
- Copies of your two most recent paycheck stubs
- Three months of full bank statements showing proof of deposits
- Tax returns
If you have a non-traditional job, such as self-employment or a freelance contract, Carvana will examine three months of bank statements and your 1099 form from the previous year to determine your annual income, a corporate representative said. Otherwise, either your pay stubs or bank statements should be sufficient.
Any necessary documents can be scanned and uploaded to the Carvana site for approval.
Carvana Funds Verification
Whether or not you finance with Carvana, you will need to verify the funds for your down payment. You can link your bank account for easier verification of down payment funds when you place your order, Carvana representatives told us.
If you choose not to link your bank account, a Carvana representative will call you to verify the down payment at least 48 hours before your delivery date. The representative will then conduct a three-way call with your bank to confirm that you have the required funds available for the down payment. The verification call may take only a few minutes if a bank representative is readily available, or may take up to an hour or more if the call is placed on hold.
Once the bank verifies your funds, the delivery will proceed as scheduled, and Carvana will complete your order. While funds verification will take place several days before you receive your new car, Carvana will not process your payment until the time of delivery or pick-up.
Carvana Insurance Requirements
When you purchase a vehicle from Carvana in most states, you will need to show proof of insurance when you pick it up or receive the delivery. When you purchase insurance, you can set the date of your policy so that it will take effect on the day you receive your vehicle. However, note that the following states require you to have insurance earlier:
- New Jersey
- New York
In these states, you must provide proof of insurance to Carvana before the date of delivery or pick-up.
Insurance coverage requirements will vary depending on whether you are financing and, if so, with which lender. The coverage requirements are as follows:
- Cash purchases: State minimum liability insurance
- In-house Carvana financing: Full coverage insurance, including collision and comprehensive coverage
- Third-party financing: Third-party lenders have their own minimum requirements; you will need to contact your lender to find out how much insurance you need.
If you use Carvana’s in-house financing, the address you should list as the lienholder address on your insurance policy is:
PO Box 29002
Phoenix, AZ 85038
As noted above, Carvana offers a seven-day return policy for vehicles. Should you choose to return the vehicle, you must keep active insurance on it until Carvana picks it up. You can then contact your insurance provider to cancel the policy; refund policies vary by insurer, so you may or may not receive a full or pro-rated refund.
You may not need to provide proof of income to finance through Carvana, but you should be prepared to do so if Carvana requests documentation. Your pay stubs, bank statements, or tax returns can serve as proof of income at Carvana. Whether financing through Carvana or paying a different way, you will also need to show proof of insurance before vehicle pick-up or delivery, and complete bank verification online or by phone to confirm the availability of your down payment funds.