Founded in 2012, Carvana took the US used car market by storm. Its customer-focused approach, ease of purchase, and flexible vehicle financing program made it the top choice for car buyers.
But today, its innovative offerings face stiff competition from a number of companies who have devised solid moats and alternatives in the vehicle buying and financing segments.
Here’s a brief overview of Carvana competitors with their business models and services.
Top 17 Carvana Competitors
Let’s take a quick look at other companies in the used-car segment so you have options when making a purchase!
CarsDirect
CarsDirect provides users with a listing of cars in their selected geographical areas. These listings are from dealership or other car-selling websites (like Carvana).
The powerful search engine of this $38.9 million revenue company constantly checks the newest car prices and trends online. This helps customers to always have the latest pricing information.
CarsDirect’s pricing is thus quite reliable and updated. The online platform also
showcases the best deals and discounts in your selected area.
If you have a less-than-perfect credit, CarsDirect provides financing options through their network of lenders. All you need to do is fill out a simple four-step loan application on their online platform to commence the process.
There’s also a dedicated Knowledge Center on their website with the latest news and trends in the vehicle and automotive market, buying guides, car comparison information, etc.
TrueCar
TrueCar follows an “asset-light” business model i.e. it does not sell used cars directly. Instead, it is the middleman linking buyers to dealers and offering a platform that gives fair price listings based on its database of pricing information.
Once you identify a vehicle dealership of your choice, the transaction is made directly with them. This is why you will find lower-priced car listings here than at Carvana.
It’s a good choice if you are looking for a budget car since there is room for direct negotiations with the dealer.
The website is extremely search friendly with a variety of tools that help you decide the car that fits your budget and needs best. TrueCar offers both used and new car options for customers.
Enterprise Car Sales
A division of Enterprise Rent-a-Car, Enterprise Car Sales deals in used trucks, cars, and SUVs in a variety of makes and models. The handy filters help you focus on the car of your choice with ease.
All listings are clearly marked with transparent pricing and plenty of photos for the buyer’s comfort. Most listings carry the ‘Enterprise Certified’ tag, which means that they have undergone a rigorous inspection process by ASE-certified technicians.
You can avail of a 12-month/12,000-mile limited powertrain warranty and 12 months of unlimited mileage roadside assistance. A free CARFAX Report is included in every purchase.
As one of the Carvana competitors, Enterprise also features a 7-day/1000-mile buy-back guarantee if the car has issues or you change your mind. If you are unsure about the kind of car you want to buy or need further assistance, there’s an online and offline team to help you decide.
Autotrader
Autotrader allows the selling of both new and used cars. You will find numerous listings here as the online platform hosts both dealers as well as private sellers (40,000 dealers and 250,000 private owners per the website!).
There are helpful research and comparison tools on the website that help narrow down the search for the perfect car and hence simplify the car-buying process for car shoppers. If you are still in doubt, the platform also has a section offering detailed automobile reviews and buying tips to guide you.
The website also features an advanced search option which goes into the smallest of details. This includes fuel type, transmission, cylinders, interior color, fuel economy, etc.,
Overall, Autotrader is a stalwart Carvana competitor that provides extensive car listings and facilitates the online car buying process by rendering financing options and market comparison tools to the buyers.
CarTrade
CarTrade has an easy-to-navigate site that simplifies your vehicle search. Located in Slatington PA, the company connects you to dealerships in the vicinity.
The car listings carry ample photos and information for the buyer to make the right decision.
Most of the listings also offer virtual appointments (where you can connect online with dealers) and video walkarounds (for detailed car inspections and queries).
Once you select the car door delivery and car financing are also offered. If you want to trade in your old car then CarTrade features that option as well.
In short, you can use CarTrade to connect with local dealers and scout for the best value cars in areas around you.
CarLotz
CarLotz is a consignment-based car trading website that makes buying and selling used car models beneficial for both - potential buyers and private sellers. It's an online marketplace that lists used cars by individual sellers.
CarLotz claims that this business model benefits both parties as the dealership’s fee is eliminated.
The car listings you see on the platform are of pre-owned vehicle variants that have been cleaned, inspected, and carry a vehicle safety report. The company’s sales staff handles all test drives, negotiations, financing, and DMV paperwork for the involved parties.
AutoTempest
AutoTempest is an online used car aggregator that gathers search results from various car sites.
Once you select the search criteria, it scouts trusted sites like Cars.com, eBay Motors, TrueCar, Cars & Bids, Carvana, and more to yield multiple listings matching your search.
Being an aggregator, AutoTempest definitely saves a lot of time as you are able to access different sites in one go. There are numerous filters in the search tab that streamline the search and help customers reach relevant results quickly.
The website also features handy tools that will be useful to both sellers and buyers. The Guides feature tips and tricks for buying and selling cars effectively.
The Car Review feature brings you the top reviews on the internet about your searched car. Using the Quotes comparison feature, you can also compare insurance and shipping quotes from all major providers.
Think of it like Skyscanner, except for cars and not flights. Their powerful search engine is a time-saver and actually leads to the right results, whether you're one of the avid buyers looking for a used classic car or a used supercar!
Autolist
The online used car aggregator Autolist boasts of the capability to search over 5,000,000 listings to fetch you the perfect results. You can hunt for everything from trucks and wagons to convertibles and coupes on their website and app.
With a presence in almost 20 cities, Autolist certainly enjoys a wide presence in the United States. You can search the car models by city, year, and price.
The website and app are both user-friendly and give ample information on the potential purchase. Besides comparing various cars, you can also see the car price history (drops and increases), and the number of days it has been on the market, as well as its Carfax report.
Buyers can also make use of their tools to analyze the market car prices and read reviews before buying. You can even save your search, sync it across devices, and get alerts on price variations!
Cars.com is a digital marketplace and solutions platform that helps connect used car buyers and sellers. Launched in 1998, it is one of the oldest online aggregators in the USA.
On their website and app, you can find over 10 million reviews, and almost 20,000 local car lots and dealerships to choose from. Once you find your preferred car on their search engine it allows you to contact the seller and directly purchase the vehicle from them.
The website features multiple resources, tools, and guides on car buying, selling, financing and leasing, warranty, certified used cars, etc. for the ease of customers. The site also offers secure shipping (paid) for your purchased car.
Vroom
With an annual revenue of $893.2M in 2023, Vroom is a reliable online platform for the purchase of pre-owned cars and amongst the big Carvana competitors. The entire car shopping journey from selection and processing to delivery is digitized and simple.
Vroom follows similar certification standards to Carvana. Every car listed on the site is accident-free, clean title, disaster damage-free, and comes with a free CARFAX vehicle history report.
Like Carvana, it also has a 7-day Money Back Guarantee which allows you to return the vehicle within 7 days of purchase if you are not satisfied. But expect to pay a restocking fee of up to $599 depending on your reason for return.
Once you buy a car on Vroom, it is delivered to your doorstep anywhere in the USA at a fee. You can also collect it from their Houston office but don’t expect a fancy car vending machine like the one Carvana offers!
The car listings you see on Vroom come at a fixed pricing with no negotiation options. While Vroom does not have a direct financing option you can easily finance through its partner banks and lenders.
Tricolor Auto
Tricolor Auto is one of the largest used car dealers in Nevada that offers buyers a wide range of trucks, SUVs, vans, and cars. It has more than 12 stores spread across the State where you can physically see the vehicles.
The company has a dedicated scouting team to pick out the best pre-owned vehicles and make them available to customers. All their vehicles undergo 150 inspection points checks to ensure safety and quality.
One of the most attractive offerings is their in-house financing. Individuals with bad
credit or no credit are eligible to obtain this auto credit option. The monthly payments are low and flexible (up to 57 months), making it an excellent choice for those on a tight budget.
Their limited warranty is included with some vehicle listings and covers a period of 18 months or 18,000 miles. This warranty covers the power train (engine and transmission) and heating-cooling system of the vehicle.
CarMax
CarMax is another worthy Carvana competitor with both offline and online retail presence. You will find CarMax in 41 states with over 240 stores, which gives them a country-wide reach. They had an annual revenue of $26.632B in 2023.
Users can browse a database of 50,000 CarMax Quality Certified based on their search criteria and buy cars at fixed prices using the online/offline method or a combination of both. Every car listed on the website has been checked for 125+ details by trained technicians to ensure the best quality.
Other advantages of shopping at CarMax are the 30-day return period and 24-hour test drives. Both features ensure that your used car purchase is stress-free. Their financing options begin at $90/month making them your budget-friendly alternatives.
CarMax’s offerings do not end at car purchase and home delivery. Other verticals of the brand include CarMax Autofinance, CarMax Auctions, and CarMax Service.
With such a comprehensive pre and post-car buying support system, CarMax definitely offers a reliable car purchase experience.
iSeeCars.com is a Boston-based business that promises to aggregate the best and widest collection of used car listings in one place. The website’s award-winning search engine analyzes millions of cars and thousands of dealers to fetch the most accurate results.
The search results inform the buyer whether the car is under/overpriced, its price change history, number of previous owners, and other relevant data. In short, you can be sure that you are paying a fair price for the vehicle you purchase.
Besides money, this website also helps you save time. Instead of visiting multiple sites, you can visit the iSeeCars platform and discover 75% of all used car listings in the United States.
They also have a Research option where you can scan recent car studies and buying and selling tips. At present the company does not offer direct financing options.
CarGurus
The Similarweb Traffic Report for Q4, 2022, designates CarGurus as the most visited automotive shopping site in the US.
According to a report by Similarweb Traffic, CarGurus is the most visited automotive shopping site in the US. Operating in markets such as the UK and Canada besides the US, CarGurus connects car buyers and sellers.
The complex mathematical algorithms used by their search engine analyze multiple car listings continuously for a better experience. These include factors like price, mileage, CPO status, dealer reputation, accident history, etc., to produce the most refined results for the user.
The brand promises complete information transparency in its 5 million+ listings (price drops, listing duration, and accident status). Buyers can consult its test-drive team for car reviews and buying guidance. It also has a Q&A forum where you can connect with automotive experts.
CarGurus offers a limited delivery option. Only listings with a ‘truck’ sign are eligible for nationwide doorstep delivery in this Carvana alternative. The cost will depend upon the dealer’s preferred mode—flat fee or per mile. Buyers can contact customer service for more details.
Facebook Marketplace
Facebook Marketplace (FBM) is definitely a non-traditional way of buying and selling used cars. It is being touted as among the biggest Carvana alternatives but there are various pros and cons associated with using FBM.
The advantages include the convenience and flexibility it offers. You simply have to click photos and give details about the car before posting online.
Since the buyer and seller connect directly, there is no middlemen fee, unlike other online platforms. It also makes negotiating the price and interacting with the seller easier. However, there are several disadvantages as well.
Firstly, FBM provides local targeting in a limited geographical area which caps your options. Secondly, since there are no stringent checks in place, you cannot be assured of the legitimacy of the seller (if it is an individual) as well as the quality of the vehicle.
Some of the cons can be countered by buying through dealership listings and checking their online reviews before making a purchase.
eBay Motors
eBay Motors is part of the larger eBay selling portal and is based on a similar business model. Since eBay enjoys enormous popularity, you will find an extensive listing of vehicles on this platform.
Besides used cars, you can also shop for motorcycles, trucks, and other vehicles. The
listings are a combination of fixed price and auction style. The filters are easy to use and significantly help streamline your search.
One drawback of eBay Motors as compared to Carvana is the lack of stringent quality control. Once you shortlist an option and connect with the buyer, you must do thorough research and checks on the vehicle. If this issue can be solved then eBay can become one of the strongest Carvana alternatives.
Other than this, eBay definitely is a more established online platform with extensive choices in selling and financing as well as trade-in options.
ACV Auctions
ACV’s website calls it the nation's leading wholesale automotive auction marketplace for buyers and sellers. Aimed at dealerships, this online platform allows them to pick clean titles or wholesale inventory at attractive prices.
The vehicle auctions are conducted online daily and do not require physical presence or travel to the auction location. The cars on sale undergo thorough vehicle inspection which includes checking the tires, engine, OBDII scan, engine sound, paint meter, etc.
ACV Auctions offers a comprehensive end-to-end solution for dealers. You can finance your inventory with ACV capital which has flexible financing solutions at low fees. They also offer competitive pricing on transportation and delivery of the vehicles throughout the USA.