LetYouKnow vs. Carvana: What's the Difference?
After more than fourteen years owning and operating new car stores, I know shoppers are not just comparing websites. They are comparing different ways to buy a car, how much control they have over the price and where they may find a lower price. Carvana sells mostly used cars at fixed prices it sets. LetYouKnow lets buyers bid their own lower price on a brand new car, with all dealer and platform fees included in the Bid. The clearest way to compare them is to look at who sells the car, how the price works and how the purchase moves forward.
How are LetYouKnow and Carvana different?
The first thing to know is that LetYouKnow and Carvana aren't two versions of the same service. Carvana is an online automotive retailer and the seller of the car. Its core business is used cars. It buys, reconditions and resells its own inventory, sets a fixed price with no haggling and delivers to your home or a pickup location. As of mid-2026, Carvana has also made small franchise dealership acquisitions that include some new-car activity, but used cars remain its core business.
LetYouKnow is not the seller. LetYouKnow is a digital automotive marketplace for brand new cars that lets you Bid Your Own Price and get an instant result. If your Bid is accepted, the new car is reserved at your accepted Bid price. If your Bid is not accepted, you are not charged and can adjust your Bid and/or change options and bid again.
The key difference is where the price starts. Carvana sets a fixed retail price and you decide whether to accept it. LetYouKnow lets you bid your own lower price on a brand new car and know instantly if your Bid is accepted.
How does Carvana work?
Carvana made its name by moving the car purchase online. Carvana is the seller, which means you buy the car from Carvana at the price Carvana sets. It buys and reconditions inventory, lists each car and uses a no-haggle, fixed-price model. Carvana states that it does not negotiate and does not add dealer charges. You shop, choose and buy the car from Carvana, with the car delivered to your home or made available for pickup at a Carvana location. Some listings come from vetted retail partners, but Carvana states that you still buy the car from Carvana, which coordinates with the partner.
Carvana sells mostly used cars at fixed prices it sets and uses an online buying process for payment, documents and financing. Shoppers can apply for financing through Carvana's purchase process or use their own bank or lender. Its out-the-door total is calculated at checkout and may include the listed price plus applicable taxes, title and registration, shipping or delivery charges and any optional products you select such as CarvanaCare or GAP coverage, where available. It also offers a 7 day money back guarantee. Under that policy, shipping fees are nonrefundable and delivery fees are refundable.
Carvana's core inventory is used. Its recent small franchise dealership acquisitions have added some new car activity, but new car availability through Carvana is limited. Per Carvana's SEC filings, this franchise activity is described as not material and does not mean broad new car availability through Carvana's main online retail flow.
How does LetYouKnow approach the same purchase?
LetYouKnow is not the seller and does not set a price for you to accept. It starts with you setting your own price on a brand new car. You build the exact brand new car you want, submit the price you want to pay as your Bid and get an instant result. The Bid price includes all dealer and platform fees. If your Bid is accepted, the car is reserved at your accepted Bid price. If your Bid is not accepted, you are not charged and can adjust your Bid and/or change options and bid again. Only applicable government fees such as sales tax, title, registration and licensing are added separately to reach your out-the-door total.
New car or used and who sets the price?
Two questions help sort this out: which car, and whose price.
On the car itself, Carvana's core business is used cars. LetYouKnow is for brand new cars. Carvana's recent franchise dealership activity has added limited new car availability, but if you specifically want a brand new car across a range of brands, LetYouKnow is built for that.
A used car at a fixed price and a brand new car with a Bid aren't directly comparable by dollar amount. Age, mileage, condition, warranty, financing and expected ownership costs all matter.
On price, these are two legitimate preferences. Carvana offers price certainty: a fixed number you can accept or pass on. LetYouKnow offers price initiative: you submit your Bid and get an instant result. If your Bid is accepted, the new car is reserved at your accepted Bid price. If your Bid is not accepted, you are not charged and can adjust your Bid and/or change options and bid again.
After years of owning and operating new car stores, I look at the comparison in practical terms. Carvana sets a retail price for mostly used cars most of the purchase is completed online. LetYouKnow gives brand new car buyers a clear Bid amount earlier in the process, with all dealer and platform fees included in the Bid. It also lets a brand new car buyer bid their own lower price and know right away if the Bid is accepted. For shoppers who know the new car they want and care most about the number, that is the key difference.
Sources
- What Carvana is. Per its SEC filings, Carvana is the leading e-commerce platform for buying and selling used cars. Retail car sales, predominantly used cars, are the foundation of its business and its largest revenue source. As of its Q1 2026 10-Q, Carvana had made small franchise dealership acquisitions, including one in Q1 2026 for $11 million that it described as not material and others in 2025. Its Stellantis facility also finances certain new car inventory purchases, but used cars remain Carvana's core business (Carvana Form 10-K for fiscal year 2025; Carvana Form 10-Q for Q1 2026, SEC EDGAR, accessed 15 June 2026).
- Carvana pricing, fees, and returns. Carvana says it does not negotiate or add dealer charges. Its out-the-door total is calculated at checkout and may include taxes, title, registration, shipping or delivery and optional products such as CarvanaCare or GAP coverage, where available. Carvana treats shipping fees as nonrefundable and delivery fees as refundable. It also offers a 7 day money back guarantee. A small partner inventory program exists where the buyer still purchases from Carvana (Carvana Help Center: out-the-door price; shipping vs. delivery fees; Carvana Partner, accessed 15 June 2026).
- Carvana purchase and financing. Buyers complete the purchase online and can use Carvana financing, financing from their own bank or lender or an electronic cash payment. Carvana says loans financed through Carvana are serviced by Bridgecrest (Carvana Help Center: payment and financing, accessed 15 June 2026).
- LetYouKnow platform facts: The buyer submits the price they want to pay as a Bid and gets an instant result. If the Bid is not accepted, the buyer is not charged and can adjust the Bid and/or change options and bid again. If the Bid is accepted, the new car is reserved at the accepted Bid price. All dealer and platform fees are included in the Bid. Only applicable government fees such as sales tax, title, registration and licensing are added separately. If your Bid is accepted, the $799 nonrefundable service and reservation fee serves as a prepayment. It is included in your accepted Bid price and is not added on top. The fee demonstrates serious buyer intent, supports the anonymous bidding process and helps provide access to prices that may not otherwise be available. The dealership is revealed, where the price is locked in and the new car is reserved with the matched dealer for up to 10 calendar days when the Bid is accepted.
- Carvana Limited Warranty. Every car sold by Carvana comes with a 100 day/4,189 mile Limited Warranty covering mechanical or electrical failures. There is no deductible for the first 14 days. After that, there is a $100 deductible at an in network repair facility and a $350 deductible at an out-of-network location (Carvana Help Center: What is the Limited Warranty?, accessed 21 June 2026).
- Business model - Carvana is an online automotive retailer and the seller. Its core business is used car e-commerce. Carvana buys, reconditions and resells vehicles from its own inventory, and also offers a smaller selection of partner inventory that shoppers still purchase through Carvana. LetYouKnow is not the seller. It is an online marketplace for brand new cars where buyers submit a Bid and LetYouKnow's patented technology instantly determines whether the Bid is accepted by a participating dealership. If accepted, the vehicle is reserved and the final sale is completed with the dealership.
- Where the price starts - Carvana sets a fixed price and says it doesn't negotiate or add dealer charges. LetYouKnow lets shoppers submit a Bid on a brand new car and get an instant result. If the Bid is accepted, the new car is reserved at the accepted Bid price. If the Bid is not accepted, the buyer is not charged and can adjust the Bid and/or change options and bid again.
- Fees and the out-the-door price - Carvana's final out-the-door price is calculated at checkout and may include the listed price, applicable taxes, title and registration, shipping or delivery charges and any optional products the buyer selects, such as CarvanaCare or GAP coverage, where available. With LetYouKnow, all dealer and platform fees are already included in the Bid. Only applicable government fees such as sales tax, title, registration and licensing are added separately to reach the out-the-door total.
- Getting the car, returns, and warranty - Carvana delivers to your home or offers pickup at a Carvana location. It provides a 7 day money back guarantee, but its policy states that shipping fees are not refunded while delivery fees may be refundable. Carvana also provides a limited warranty on cars it sells, subject to Carvana's terms. With LetYouKnow, an accepted Bid reveals the participating franchise dealership's name and location and reserves the car at your accepted Bid price for 10 calendar days. The buyer completes the final sale with that dealership, including paperwork, financing if applicable, title and registration. From there, the buyer picks up the car or, where Ship to Me is available at checkout, finalizes remotely with shipping included in the Bid. Because LetYouKnow is for brand new cars, the car carries the manufacturer's warranty.
- Cost to use - Carvana does not charge shoppers a fee to use its site. It is the retailer selling the car and earns through vehicle sales, financing and optional products. With LetYouKnow, the buyer enters payment information when submitting a Bid but is charged only if the Bid is accepted. The $799 nonrefundable service and reservation fee serves as a prepayment. It is included in your accepted Bid price and is not added on top. If the Bid is not accepted, the buyer is not charged and can adjust their Bid amount and/or new car options and try again.
- Best fit by buying style - Carvana suits a buyer who wants a fixed price and a mostly online buying process, with financing options, delivery or pickup and a return window, mostly in the used market. LetYouKnow suits a buyer who specifically wants a brand new car and wants to try for a lower price. For best results, the buyer can find the lowest price or quote they can, then use LetYouKnow to submit a lower Bid and get an instant result.
- New and used cars are not directly comparable by dollar amount. Age, mileage, condition, warranty, financing and total ownership cost all matter.
Frequently asked questions
They use different models. Carvana is an online automotive retailer that sells cars directly to buyers, with used cars as its core business. It sets a fixed no-haggle price and does not negotiate. Carvana says it does not add dealer fees, though taxes, title, registration, shipping or delivery charges and selected optional products may still apply. As of mid 2026, Carvana had also made small franchise dealership acquisitions that included some new car activity.
LetYouKnow is not a retailer. It is an online marketplace for brand new cars where buyers choose the new car they want and submit a Bid for the price they want to pay. If the Bid meets a participating dealership's confidential threshold, the Bid is accepted, the vehicle is reserved at the buyer's Bid price and all dealer and platform fees are included in the Bid. If the Bid is not accepted, there is no charge and the buyer can adjust their Bid amount and/or new car options and try again. So Carvana sets a fixed retail price as the seller. LetYouKnow lets buyers bid their own lower price on a brand new car, with the final sale completed by a participating dealership.
Carvana's core business is selling used cars. Its SEC filings describe Carvana as the leading e-commerce platform for buying and selling used cars, and retail vehicle sales are its largest revenue source. As of mid 2026, Carvana had also acquired several franchise dealerships, which added some new car activity to its business. In connection with those acquisitions, Carvana entered into a Stellantis Financial Services floor plan facility to finance certain purchases of new vehicle inventory. Carvana described both the 2025 franchise dealership acquisitions and its Q1 2026 franchise dealership acquisition as not material to its financial condition or results of operations.
Not necessarily. For Carvana, the appeal is price certainty. The listed price is fixed, Carvana says it does not negotiate or add dealer charges and you decide whether the price works for you. Its final out-the-door total is calculated at checkout and may also include taxes, title and registration, shipping or delivery and any optional products you select. With LetYouKnow, the buyer starts by submitting the price they want to pay as a Bid on a brand new car. The Bid is accepted only if it is high enough to meet the participating franchise dealership's confidential threshold for that specific new car. If your Bid is accepted, the new car is reserved at your accepted Bid price with all dealer and platform fees included. Only applicable government fees such as sales tax, title, registration and licensing are added separately.
Whether one option is lower depends on the specific car, condition, fees, incentives, financing and alternatives available to you. A used car price and a Bid on a brand new car should not be compared on price alone. Age, mileage, condition, warranty, financing, insurance, maintenance and potential repair costs all matter.
Carvana says it does not negotiate listed prices and does not add dealer fees. Its total vehicle price is calculated at checkout and may include the listed price, applicable taxes, title and registration costs, shipping or delivery charges and selected protection plans, such as CarvanaCare and GAP coverage where available. Carvana's 7-day money back guarantee also treats shipping and delivery differently. Carvana says shipping fees are not refunded, while delivery fees may be refundable. With LetYouKnow, all dealer and platform fees are already included in the Bid. Only applicable government charges, such as sales tax, title, registration and licensing, are added separately to reach the out-the-door total on a brand new car. In both cases, review the final itemized figure before moving forward.
With Carvana, you do not go to a dealership to negotiate or complete the purchase. You buy from Carvana online, complete payment and documents online and can use Carvana financing, financing through your own bank or an electronic cash payment. The car is delivered to your home or made available for pickup at a Carvana pickup location.
With LetYouKnow, you complete the bidding step online first. When your Bid is accepted, the participating dealership's name and location are revealed and the new car is reserved at your accepted Bid price for 10 calendar days. The final sale is completed with that dealership, including paperwork, financing if applicable, title and registration. From there, you either pick up the car from the dealership or use Ship to Me when available. If Ship to Me is selected, shipping is shown at checkout and included in the Bid. In some cases, shipping may be free. Required paperwork for shipped vehicles may be completed remotely, online or by mail where available. The main difference is where the final sale happens. Carvana sells the car directly to you. With LetYouKnow, your accepted Bid is matched to a participating dealership within your selected search radius and the final transaction is completed with that dealership.
It depends on what you are shopping for and how you want the price to work. Carvana makes sense for a buyer who wants a fixed price, an online buying process, financing options, delivery or pickup and a 7-day money back guarantee, mostly in the used car market. Carvana also provides a limited warranty for 100 days or 4,189 miles, whichever comes first, subject to Carvana's terms. LetYouKnow makes more sense for a buyer who specifically wants a brand new car and wants to bid their own lower price. A practical approach is to find the lowest price or quote you can, then use LetYouKnow to submit a lower Bid and get an instant result, with all dealer and platform fees included in the Bid. Keep in mind that a used car price and a Bid on a brand new car should not be compared on price alone. Age, mileage, condition, warranty, financing, insurance and the potential cost of maintenance or repairs all matter.
Online car retailer
A company like Carvana that sells cars directly to buyers online at fixed prices it sets. Carvana is primarily a used car retailer. Some inventory may come from vetted retail partners but the purchase is still handled through Carvana instead of through a dealer you negotiate with.
No-haggle price
A fixed price the seller sets with no negotiation. Carvana uses no-haggle pricing and says it does not add dealer charges. LetYouKnow avoids uncomfortable negotiations. The buyer submits a Bid and LetYouKnow's patented technology instantly determines if the Bid is accepted. A Bid is accepted only if it meets the participating franchise dealership's confidential threshold for the selected car.
Bid Your Own Price
The single price you submit on LetYouKnow for a specific brand new car, with all dealer and platform fees included in the Bid. If the Bid meets a participating dealer's confidential threshold, the Bid is accepted at your price. If not, there is no charge and you can adjust your Bid amount and/or new car options and bid again.
Confidential dealer threshold
A confidential amount a participating franchise dealership privately sets for a each new car on LetYouKnow. Buyers never see it and LetYouKnow does not reveal it. A Bid must meet or exceed the participating franchise dealership's confidential threshold to be accepted. The dealership is guaranteed never to receive less than its own threshold.
Out-the-door (OTD) price
The total price of the car purchase before any financing terms are applied. On Carvana, it is calculated at checkout and may include the listed price, taxes, title and registration, shipping or delivery and optional products. On LetYouKnow, the Bid includes the new car and all dealer and platform fees. Only applicable government fees such as sales tax, title, registration and licensing are added separately.
