Consumer complaint received 2025-03-21 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Getting a loan or lease — Confusing or misleading advertising or marketing
Company: Carvana Group, LLC
State: MO

Complaint narrative:
On XX/XX/XXXX, I submitted a credit application to Carvana to purchase a XXXX XXXXXXXX XXXX XXXX XXXX listed at {$49000.00}. However, after my credit pull, XXXX raised the down payment to {$14000.00}, making the total due at order unaffordable. Due to these excessive charges, I canceled my original purchase and attempted to buy a XXXX XXXX XXXX XXXX XXXX. Instead of providing transparent financing terms, XXXXarvana engaged in misleading pricing tactics, hidden fees, and deceptive lending practices, which are detailed below.

Issue 1 : Misleading Advertising & Bait-and-Switch Pricing : Carvana initially advertised the XXXXXXXX XXXX XXXX XXXX XXXX  for {$31000.00} with {$0.00} down ( Exhibit A ). However, after conducting a hard credit inquiry ( Exhibit F ), Carvana changed the financing terms drastically, requiring an {$8700.00} down payment and increasing my APR to 27.9 % ( Exhibit B ). Carvanas website does not disclose that the " {$0.00} down '' offer is conditional on creditworthiness or limited to specific consumers before the credit inquiry. No clear formula or methodology was provided to explain how my credit history impacted the required down payment and APR ( Exhibit E ). The increased down payment did not reduce the amount financed, meaning it was an additional unexplained charge rather than a traditional down payment ( Exhibit C & D ). This bait-and-switch tactic misleads consumers into applying for financing under false pretenses. The advertised " {$0.00} down '' offer is an inducement to trigger credit inquiries, but once a hard pull is conducted, the financing terms change significantly, making the purchase unaffordable. Issue 2 : Hidden Fees & Inflated Purchase Price : After conducting a credit check, Carvana inflated the total purchase price to {$39000.00}, which included an unexplained {$8700.00} charge, with or without add-ons ( Exhibit C & D ). Despite this high down payment, the amount financed was only {$30000.00}, which is less than the vehicles original advertised price. Carvana manipulated the order summary after my credit pull to demand extra upfront payments, even when I declined additional add-ons like CarvanaCare and GAP insurance ( Exhibit D ). This pricing manipulation appears to be a way for Carvana to mask hidden fees, charging consumers more than the advertised price without justification. Issue 3 : Carvana & Bridgecrests Auto Loan Securitization Raises Ownership Questions : Upon further research, I discovered that Carvana and Bridgecrest securitize auto loans and transfer them through multiple entities before the consumer even finalizes the purchase.

Carvana Receivables Depositor LLC first acquires the loans from Carvana ( Exhibit N ).

The loans are then transferred to Carvana Auto Receivables Trust ( CRVNA ) Series, where they are pooled and securitized ( Exhibit H ). These loans are funded through publicly traded securities, as disclosed in Carvanas SEC 424H Prospectus Filing ( Exhibit I ). XXXX auto loans are also securitized through the XXXX XXXX XXXX XXXX XXXX ( Exhibit M & L ). This raises serious concerns : 1. Why is Carvana requiring a large upfront down payment before the loan is even finalized? 2. If the loan is immediately securitized, who actually owns the debt obligation once the contract is signed? XXXX. Are consumers being misled about the nature of the financing agreement, where XXXX does not actually retain the loan? 4. Why is the total amount financed lower than the original listing price, suggesting undisclosed fees? 5. This lack of transparency in Carvanas financing process prevents consumers from making informed financial decisions and could constitute predatory lending practices. Violation of 15 U.S.C. 1662 : Misrepresentation of Financing Terms : Under 15 U.S.C. 1662, it is illegal for any creditor to misrepresent financing terms, including false advertising related to down payments. Carvanas actions violate this law by : Advertising a " {$0.00} down '' offer but later requiring a substantial down payment after a hard credit inquiry. Failing to disclose the formula used to determine down payments and APR before the credit pull. Inflating the total purchase price after the credit check, effectively adding hidden charges. 
These deceptive practices harm consumers by preventing them from accurately comparing financing offers and making informed financial decisions.

Company response to consumer: Closed with explanation