2024 Vroom Review: Online Used-Car Buying

Update

In January 2024, Vroom announced that it halted all purchases and sales of used vehicles on the site. The company is also discontinuing its e-commerce operations and used vehicle dealership business. However, Vroom subsidiaries, United Auto Credit Corporation (UACC) and CarStory, will continue to serve customers.

Vroom is a platform that allows you to buy or sell a car from the comfort of your home. The Houston-based company has been around since 2013, but its reputation went downhill starting in 2020 when the company went public.

Vroom lost its Better Business Bureau (BBB) accreditation and has settled lawsuits in several states in the time since the initial public offering (IPO) announcement. The company’s stock plummeted in 2021 and has all but flatlined since March 2022.

Two years later, Vroom still hasn’t recovered. Because the decline in stock value is so directly tied to customer experience, you might want to look to competitors rather than purchasing through Vroom in its current state.

How Vroom works

Vroom is an online platform that allows you to buy and sell used vehicles completely from your phone — no haggling necessary. The entire process is frictionless when it works right. Vroom provides the ability to trade in your current vehicle, secure financing through partner lenders and have your vehicle delivered straight to your driveway. If you don’t like the car, you have seven days (or 250 miles) to return it.

The business model appeared to work well until customers started waiting months or even years for vehicle titles. Without the title, they couldn’t register or drive the car. It doesn’t matter how seamlessly the app works if you can’t prove ownership of the vehicle at the end of the day. Around the same time, there was also an increase in reports of issues not shared in the vehicle descriptions.

How to buy a car from Vroom

Should you choose to brave your way through the Vroom buying process, you’ll be able to complete the entire thing from your couch. Here are the steps:

Browse inventory

Vroom’s inventory is easily searchable by make, model, model year and mileage. If you’re particular about the transmission or body type, there are dozens of feature filters to make your search even more granular.

The first set of cars that shows up are likely to be local, which means they’re less likely to come with a delivery fee. The further you scroll, the more likely those delivery fees become. You won’t be able to see delivery fees until you click on the listing, and unlike the cost of the vehicle itself, delivery fees are not refundable.

Select vehicle and financing

Once you’ve found the vehicle you want to purchase, you’ll select it along with a financing option. You can choose to finance directly with Vroom partners within the app, or you could bring in your own financing. It’s wise to at least shop around for the best auto loan rates. That way you can ensure the Vroom offer is competitive — or save money by securing outside financing.

During this part of the process, you will be asked for your driver’s license, proof of insurance and deposit information, which holds the vehicle for 24 hours if you need to secure outside financing. If you have a trade-in vehicle, you will provide information about it so Vroom can generate a quote and adjust your bill accordingly. Finally, you sign the purchase contract.

Vehicle delivery

Within about 10 to 14 days, your vehicle should be delivered. You have seven days or 250 miles after delivery to decide if you want to keep the vehicle. If you don’t, let Vroom know. Someone will be out to pick up the car and refund the purchase price.

Guarantees and warranties

There are free and paid warranties with Vroom. Every vehicle purchase comes with a free limited warranty, which includes one year of roadside assistance and 90 days (or 6,000 miles) of coverage for mechanical breakdowns.

Then, there are paid policies. You’ll pay extra if you opt into the Platinum Vehicle Service Protection (VSP) plan, which extends your coverage for mechanical repairs to 10 years or 120,000 miles. It does not cover repairs due to accidents, acts of God, vandalism or lack of maintenance. The Platinum VSP also includes roadside assistance and rental car reimbursement of $35 per day for up to 10 days.

Additional paid coverage plans include:

• Tire and wheel protection
• Dent protection
• Key protection
• Windshield protection
• Guaranteed asset protection (GAP) coverage

GAP insurance helps in case you total your car when you’re upside down on the loan. This type of policy really only helps people who owe more than the car is worth.

How Vroom’s pricing compares

When you hold up Vroom against the competition, it’s anyone’s game depending on the make and model of the vehicle. Sometimes you’ll find lower prices at places like CarMax and Carvana, but sometimes Vroom is the cheapest option. Overall, CarMax tends to have a much better reputation when it comes to the condition of the vehicle and title compared to Vroom and Carvana.

How to return a car to Vroom

If you decide you don’t like the car, you have seven days or 250 miles to make a return. Technically, you can return the vehicle if you drove more than 250 miles as long as you’re still within the seven-day time frame, but you’ll pay an extra fee of $1 per mile for every mile over 250 that you drove. To initiate your return, reach out to customer service while logged into your Vroom account.

The entirety of the vehicle’s purchase price will be refunded, but if you paid to have it delivered, you won’t get the initial delivery fee back. This is meaningful, as the delivery fee can be hundreds or even thousands of dollars. If you live in California, Vroom will refund the delivery fee, but the company will charge you an additional restocking fee to make up for it.

How to sell a car to Vroom

Selling your car on Vroom is as easy as buying one. First, you provide your license plate or vehicle identification number (VIN). Then, you answer a few simple questions about the condition of your car. Once you’ve submitted your name and email address, Vroom will provide you with a quote. The entire process can take less than two minutes.

If you’d like it to take longer and you live in the right region of the country, you can also take your vehicle to a physical location to sell it. Vroom physical locations can be found in Stafford, Texas, Orlando, Fla., and Scottsdale, Ariz.

The quote is good for seven days or 250 miles, whichever comes first. Once you decide to accept the offer, Vroom will pick it up at your home. Your check will arrive via overnight mail two to three business days later.

If you want to trade in a vehicle, first initiate the purchase of the new-to-you vehicle. You will be prompted to provide trade-in information as a part of the buying process. You could also initiate a trade-in independently by requesting a quote here.

Financing a Vroom car

Vroom claims that two out of every three customers choose Vroom partner financing. Partners include big, trusted names in the industry, like Chase, Capital One, Ally, Fifth Third and Exeter. One small perk of financing with Vroom is that they’ll register your vehicle and secure plates for you, saving you a trip to the DMV.

Because Vroom works with a wide variety of lenders, you may be able to secure a loan even with bad credit. No matter where you finance, better credit will get you more favorable rates on a loan. If you’re struggling to qualify or the rate is too high, you are allowed to bring on a co-applicant.

Just because the majority of customers end up financing with Vroom partners doesn’t mean you have to follow suit. Shopping around for the best rate is always advisable. If you find a lower rate elsewhere, you’ll need to provide Vroom with the lienholder’s name and address. Vroom will also need payment in full by ACH payment or wire transfer.

Vroom pros and cons

While Vroom provides a seamless car-buying experience, that doesn’t go far if you don’t have the title to your car or the car has issues that weren’t advertised or immediately apparent in the first seven days after purchase. These nightmare scenarios are what Vroom is known for after facing multiple lawsuits in multiple states. It got so bad that the BBB revoked its accreditation — currently, the company ranks at an F.