Carvana Debuts New Co-Signer Financing for Texas Residents

Rhea-AI Summary

Carvana (NYSE: CVNA) has enhanced its vehicle financing options for Texas residents by allowing the addition of a co-signer in the loan process. This change enables customers in cities like Dallas, Houston, Austin, and San Antonio to unlock better financing terms, including reduced down payments and lower interest rates. The application process is quick, with no impact on credit scores for either party. This initiative targets new drivers and those seeking to build credit, aiming to ease the financial burden amidst rising vehicle prices and interest rates.

Positive

• Launch of co-signer financing improves vehicle loan accessibility.
• Potential for lower down payments, interest rates, and monthly payments.
• Focus on helping customers in a high-price, high-interest environment.
• Supports new drivers and young adults in building credit.

Negative

• None.

Customers in the Lone Star State Can Now Easily Add a Co-signer When Financing with Carvana

PHOENIX--(BUSINESS WIRE)-- Carvana (NYSE: CVNA), the industry pioneer for buying and selling used cars online, makes its vehicle financing qualification process even easier by offering Texas residents the ability to add a co-signer to buy the vehicle they love. By sharing responsibility for the vehicle loan, Carvana customers across Texas, including Dallas, Houston, Austin and San Antonio, who qualify may unlock more attractive financing offers, including lower down payments, lower interest rates, or lower monthly payments.

Carvana launches new online co-signer financing for Texas residents. (Photo: Business Wire)

Adding a co-signer couldn’t be easier. Customers can simply apply alongside their co-signer and include the co-signer’s information on Carvana’s website or app. Customers will see their financing terms—both with and without their co-signer—in a matter of seconds with no impact to either individual’s credit score. If eligible customers want to move forward with a co-signer, Carvana collects driver’s licenses and other documents from both individuals and schedules a delivery where both individuals must be present to check out the new ride.

“Since day one, Carvana’s core values have guided our mission of creating a better car buying and selling experience for people and we’re thrilled to launch our co-signer offering during a time when the opportunity to help customers is bigger than ever,” says Ernie Garcia, Carvana founder and CEO. “As we continue our work to improve and modernize the automotive experience for people, this feature provides the opportunity to qualify for lower payments, lower interest rates, or less cash upfront which helps in this economy.”

Car shoppers continue to face high used vehicle prices, rising interest rates, and other macroeconomic pressures. Carvana’s co-signer option allows customers to apply for vehicle financing with another individual—like a parent, child, partner or family member—as an option to help unlock more attractive financing terms. This benefit is ideal for new drivers or young adults, especially those looking to build up their credit scores as fall semesters begin or as they get started in their career. This offering also benefits couples or family members looking to expand their selection of affordable inventory, as well as anyone who wants the best possible financing offer to purchase their next car. Carvana co-signer financing is available to qualified Texas customers before its official nationwide launch.

Carvana was named the No. 2 automotive brand in the U.S. as designated by the Forbes 2022 Most Customer-Centric Companies List. This recognition reinforces the company’s leadership, proving it has successfully changed the way people buy – and sell – cars, demonstrated by its industry-leading Net Promoter Score (NPS) and 4.7 out of 5 star customer experience rating average. Carvana serves more than 80% of the U.S. population across more than 300 markets. With a continued focus on people-first values, industry-leading customer care, technology and innovation, Carvana has become the second largest used automotive retailer in the U.S. and one of the fastest companies to debut on the Fortune 500.

About Carvana (NYSE: CVNA)

Founded in 2012 and based in Phoenix, Carvana’s (NYSE: CVNA) mission is to change the way people buy and sell cars. With a continued focus on its customers, technology and innovation, Carvana offers an intuitive and convenient online car buying, selling, and financing experience. Carvana.com enables customers to quickly and easily shop more than 75,000 vehicles, finance, trade in or sell their current vehicle to Carvana, sign contracts and schedule delivery or pickup at one of its patented, automated Car Vending Machines. Carvana is a Fortune 500 company, providing as-soon-as-next-day delivery to customers in over 300 U.S. markets.

For further information on Carvana, please visit www.carvana.com, try our Online Chat, or connect with us on Facebook, Instagram, Twitter, YouTube or the Carvana Blog.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220810005525/en/

MEDIA CONTACT:

Carvana Communications

Kristin Thwaites

press@carvana.com

Source: Carvana

FAQ

What is Carvana's new financing option in Texas?

Carvana has introduced a co-signer option for vehicle financing, allowing Texas residents to improve their loan terms.

How does the co-signer option work with Carvana?

Customers can apply with a co-signer on Carvana's website or app, viewing financing terms with and without the co-signer instantly.

Which Texas cities are affected by Carvana's new financing option?

The co-signer financing option is available to residents in Dallas, Houston, Austin, and San Antonio.

What benefits does adding a co-signer provide?

Adding a co-signer can lead to lower down payments, reduced interest rates, and more favorable monthly payments.

When will the co-signer financing option be available nationwide?

The co-signer option will officially launch nationwide after its initial rollout in Texas.