Carvana’s ‘7-Day Money-Back Guarantee’

In a recent podcast ad for Carvana’s “7-day money-back guarantee,” celebrity power couple Kristen Bell and Dax Shepard offer up some ideas on the kinds of tests you can perform during the week-long trial period, from evaluating “seat comfiness” (Kristen) to assessing “brake pad resistance at variable speeds” (Dax).

But before you attempt to take advantage of Carvana’s money-back guarantee, you should know that the online used car retailer may charge a shipping fee at the time an order is placed that isn’t refundable and isn’t disclosed at any point in the ad. And this undisclosed shipping charge may leave you in A Bad Place, on the hook for hundreds of dollars or more.

In a post on its website, Carvana explains that a shipping charge “may be applied for transporting the vehicle from its current location to the nearest Carvana location in your area.”

Once an order is placed, the shipping charge cannot be refunded due to the expense of transporting the vehicle.

Carvana notes that the shipping charge is different from a delivery charge consumers can elect to pay to have the vehicle dropped off at their home or a mutual location, which the company says is refundable under the 7-day money-back guarantee.

But while Carvana provides an example of a vehicle listing that advertises free shipping, the reality is many models on its site require consumers to pay up to $1,990 for shipping. That’s money that consumers will not get back under the advertised money-back guarantee.

And there are other restrictions and disqualifying events regarding Carvana’s 7-day money-back guarantee that are not disclosed in the ad, such as a 400-mile limit with a $1-per-mile charge for overages, among other things.

Carvana declined to comment on the record.

The bottom line

In theory, money-back guarantees allow consumers to test out a product or service with minimal or no risk. But that’s not always the reality.

Consumers need to be alert to the potential pitfalls of these promotions and make sure they read and understand the terms of the offers before making any purchase, especially large purchases like a car.

Find more of our coverage on cars.