Consumer complaint received 2025-03-28 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Managing the loan or lease — Problem with the interest rate
Company: Carvana Group, LLC
State: TX

Complaint narrative:
I purchased a vehicle on XX/XX/year> from Carvana online and signed a term loan that they preapproved me for off the website. The vehicle price was {$27000.00} with APR 20.36 % with XXXX down payment. First payment was applied from the down payment.. However, when I picked up the car the dealership i picked it up at had me sign a document for release of the title. However, they had me sign a different contract for a simple interest loan describing it to me as the same term loan of 72 payments. I recently went to pay off the vehicle and was horrified to find out that not only was the APR inaccurate but the fine print several pages back defines the APR as XXXX/XXXX. The loan is now serviced through XXXX which has me at 62 payments made and that my principle is still {$15000.00}. I called to have them explain and they told me its a simple interest loan. I showed them that when i go online and make a payment, it shows i am ahead a payment and the due date is over a month out. For example, i made a payment today and the web portal you pay through gives me a due date of XX/XX/XXXX. However, a month goes by and i am being called as I've missed a payment. It was this event that made me ask for the payoff value to find out that this was not a term loan and it had been changed. XXXX says i have to take it up with Carvana and neither company will give me the details on how my payments have been applied. there were even automatic withdrawals that come out a day after the due date, then canceled for insufficient funds ( my bank has not record of returning and shows balance in the account ). it is then 3 days later the payment is taken out but has more interest applied. I have asked them to please disclose the calculations on how they applied all payments to date and they refuse to give me an exact breakdown. They still claim simple interest loan and not a daily simple interest loan and now i'm being told something about a balloon being due but wont give me that figure. I have made several calls and several attempts to communicate with them on the following dates of which they continue to say the other is responsible and neither are providing how they changed the terms, how they come up with their figures, and neither will even think about redifining the terms and claim that i signed it and should have known to look three pages in and understand that the dealership agreeing with, the website agrees with terms of {$660.00} for 72 months for a total price of {$51000.00}. They even applied my downpayment as if it was an add. the car price i signed was XXXX including tax title and registration. the contract is different then the purchase and is not mathing.. It is why i have asked for details and how this is possible and i cant get a straight answer or them to acknowledge the discrepencies or to show how my payments are applied and why. Can you please help me to understand how you can advertise one set of terms on the website and then to change the terms when you pick up the car? How you sign with Carvana but then pay XXXX in which niether company can tell you how they apply your payments. they only say you owe {$9.00} a day interest and thats why all your payments continue to go to interest only. How can a term loan be switched without me seeing the paperwork or seeing how these invoices apply my payments. What are my rights and can you please help me track down how this happened. its not once but twice with another care I own with a lower APR but again it was switched from term loan on the website to simple interest. When i compare both contracts side by side, even those are different but somehow the calculations are different as well. No one at either XXXX or Carvana will answer my questions nor give me the answere other than you have to talk to XXXX to XXXX saying talk to Carvana and carvana back to XXXX. What are my rights on this loan to be the original disclosed version of term. Throughout the contract all you see is terms 72 months, APR and nowhere except in very tiny print defines apr as XXXX. The website is one thing, the dealership is another contract and it isn't until the end when you go to a payoff that boom its not the contract you agreed to.

Company response to consumer: Closed with explanation