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What happens to my loan if the dealer goes out of business?

I was shopping for a car and found that Carvana gave me the best price. I’ve heard they’re having some financial troubles, though. What will happen to my car if I buy it from Carvana, then they go out of business?

avatar
Sarah Gray · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
If Carvana goes out of business, they’ll likely sell your
car loan
 to another lender or bank. You’ll get to keep your car, but your payments will go to the new lender.
Selling loans and mortgages is common legal and business practice. If your loan is sold, you’ll get a notification in the mail that includes:
  • New lender contact info
  • New payment mailing address and options
To qualify for financing through Carvana, you’ll need to meet the following qualifications:
  • Be 18 years old
  • Make at least $4,000 per year
  • Have no active bankruptcies
Keep in mind:If you’re truly worried about Carvana going out of business, remember that you have other options when it comes to financing. You can still purchase a car from Carvana with
a car loan from a credit union
 or a private lender.
MORE:
Carvana vs. CarMax
 
Car LoansCar BuyingCar Financing
View full answer 
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