Vroom Review 2023: Will They Really Buy Your Car Online?
Is Vroom a Legit Company?
Vroom is an online car-buying service that focuses on providing outstanding service and convenience to its customers. My Vroom review will help you decide if their service is a viable option for you.
They specialize in low-mileage pre-owned vehicles. Suppose you want to sell a late-model used car and want to sell it quickly. Vroom might be the most viable online car buying platform for you you.
Table of Contents
- What is Vroom?
- How does selling a car to Vroom work?
- How does buying a car from Vroom work?
- Pros and cons
- Advantages to using Vroom
- How does Vroom make money?
- The benefits of Vroom
- Can Vroom be better?
- My endorsement
- Vroom FAQ’s
- Vroom company details
- Alternatives to Vroom
What is Vroom and are they Legit?
Vroom is an online vehicle reseller headquartered in New York City that buys and sells used cars across the United States. They have another office centrally located in Stafford, Texas, to refurbish preowned vehicles.
Founded in August 2013 and as of December 2021, They employ approximately 1800 employees to assist you in purchasing or selling a vehicle.
Vroom has established itself as a significant participant in the online car-buying sector. They are traded on the Nasdaq under the symbol VRM and have reported $2.6 billion in revenue for 2021.
Key facts about Vroom:
- Buy offers are good for seven days and are non-negotiable
- Negative equity or current car loan is okay
- No fee to pick up your vehicle
- A deposit is required and is nonrefundable
- No lease vehicles: you’ll have to buy out the lease
- When buying a car, delivery fees can be up to $1,399
How Does Selling a Car to Vroom Work?
Vroom’s car buying system is pretty straightforward. They simplify buying your vehicle by offering you a fixed price and directly purchasing a car from you.
How to sell a car to Vroom in three easy steps:
- Quick and straightforward – Enter basic information about your car to obtain an immediate price.
- There is no obligation to sell – With no pressure to sell, their price offer is valid for seven days or 250 additional miles.
- Car pick-up is free – They’ll plan a free pick-up time for your vehicle anywhere in the lower 48 states.
While they will buy most late-model automobiles, it exclusively favors accident-free vehicles. Vroom’s experienced inspection team also performs testing methods to guarantee that your car meets all standards.
Pro Tip – If you find a car you would like to purchase from Vroom, you can request a trade-in value for your vehicle and a cash offer to buy your vehicle outright.
Is There a Fee to Sell Your Car to Vroom?
As an online used vehicle retailer, Vroom does not charge you fees. Because, as the owner of the vehicle, you may sell your car directly to Vroom rather than listing it for sale publicly.
Selling your car to Vroom would be like selling your car privately to your neighbor, just doing 99% of the process online.
How to Sell Your Car to Vroom (Step-by-Step)
Selling your vehicle to Vroom is a quick and straightforward procedure. Please fill out their brief online form with details about your automobile, including the year, make, model, and mileage.
Once you’ve entered your information, they’ll offer you a buy amount. If you accept the offer, Vroom will buy your automobile and pay you as soon as they physically check it and pick it up from you.
Pro Tip – Have your vehicle’s 17-digit identification number, license plate number, and mileage, and know your vehicle’s trim level before beginning the process.
Here are step-by-step instructions on how to sell your car to Vroom.
Step #1 – Fill out the form
Go to the Vroom website and fill out their simple online form to get a no-obligation. Your goal is to provide accurate information to determine your vehicle’s actual value.
Required information you will need:
- VIN or license plate number
- Exact mileage
- Trim level (LE, XE, SLT, etc.)
- Vehicle history
- Vehicle’s condition
Step #2 – Get a no-obligation offer from Vroom
Depending on the vehicle you’re attempting to sell, it may take a little time to evaluate your car after you’ve completed your online application. They may have more questions or need more details before sending you an offer. An agent may contact you within 30 minutes of providing your vehicle’s information with a cash offer for your automobile.
They will send you an offer to buy your vehicle that will be good for seven days or 250 miles from the mileage you inputted into their form. The good thing about Vroom is the offer they send you is non-negotiable. This means they will not haggle with you over the offered price.
However, now you have a solid offer on your car, and you can use that offer to compare offers from other reliable online car-buying services such as Peddle.
You can proceed with the following stages if satisfied with the evaluation.
Step #3 – Complete paperwork
Once you’re happy with your offer and decide to sell your vehicle, you will need to provide them with some paperwork to transfer the title to Vroom and complete the transaction.
- Valid identification
- Valid vehicle registration
You will have seven days to get the required docs to Vroom. Once provided, Vroom will confirm the paperwork and then schedule a time with you that is convenient to pick up your vehicle.
Step #4 – Schedule pick-up time
Once a representative validates your paperwork and everything is in order, they will coordinate a time with you to pick up your vehicle free of charge.
NOTE: It is vital to remember that you will need to be with your vehicle at the time of pick up. You will be required to sign a bill of lading, and a Vroom professional will inspect your vehicle before loading to confirm it’s in the condition you described when requesting the offer.
Again, this is why it is crucial to be as upfront as possible with the condition of your vehicle when filling out the initial form.
Once the professional loads your vehicle and the necessary paperwork, they will notify the corporate office the car is in their possession.
Step #5 – Receive payment
As soon as the driver notifies Vroom headquarters that your vehicle is secured, they will process your payment within two to three business days. They typically send the check immediately after pick-up, but it usually takes a few days to arrive at your location.
If you find a vehicle you want to buy in their online inventory, you may want to take advantage of their trade-in value option to apply towards a purchase through the Vroom website.
How Buying a Car From Vroom Works?
Vroom’s car-selling system is streamlined and straightforward. They simplify buying your vehicle by offering you a fixed price and directly purchasing a car from you.
How buying a car from Vroom works:
- Browse high-quality vehicles – Cars go through multiple inspection processes. Free vehicle history report. A limited warranty is included at no extra charge.
- Car-buying made easy – There is no bargaining, hassles, or haggling. The way it should be is a simple and efficient car-buying procedure.
- Delivered directly to you – Get your automobile or truck shipped to your house or a suitable spot nearby.
Vroom employs hundreds of team members who are revolutionizing how consumers buy, sell, and trade in preowned automobiles. They claim that your next used-car-buying experience will be the finest one you’ve ever had.
Are There Fees When Buying a Car?
Used car prices you see on the Vroom website are non-negotiable. That means the price you see is the price you pay. There is no room for negotiating or haggling.
If you buy a vehicle from Vroom, you will be required to pay a $599 fee for delivery or a $999 delivery charge if you want your car delivered in an enclosed trailer.
You can avoid the delivery price if you pick up the vehicle in person in Houston, Texas. There is also a $500 fully-refundable deposit to hold the car as you’re doing the paperwork, so the vehicle is not sold from under you while you’re buying it.
Where Does Vroom Get Vehicles From?
Specializing in low-mileage pre-owned vehicles, many of which are under three years old. Vroom maintains its fleet of vehicles, which it buys from dealers, rental car companies, auctions, and customer trade-ins.
Their vehicles undergo inspection and reconditioning to guarantee they are safe for sale and have a clear title.
For added protection, Vroom includes a 90-day limited warranty and a year of roadside assistance with every vehicle sold.
How to Buy a Car From Vroom
Buying a car from vroom is a pretty simple process:
- Go to Vroom’s website.
- Search by make, model, or body type. You can also browse all cars online and select the one you want to purchase.
- Once you find a vehicle you like, create a Vroom account by clicking on the “Start Purchase” button.
- Next, you will select how you intend to pay for the vehicle. Your options include paying cash, financing through your lender, or Vroom. (You also have the opportunity to trade in a car for a trade credit)
- A Vroom Specialist will contact you as soon as possible. To prove your identification, they will ask you to send a photo of your driver’s license and evidence of auto insurance.
- Once verified, you will send a $500 fully-refundable deposit to hold the vehicle you’re interested in for 24 hours, so you will not have to worry about anyone buying it while you finalize the transaction.
- Paperwork will be emailed or overnighted to you to complete. Examine everything thoroughly and return the signed documents within 24 hours. If you have any questions or concerns, contact your Vrooom Specialist.
- Vroom will next check the vehicle one more time before scheduling the delivery. The Delivery Support Team will provide you with regular updates, and you can expect the car to arrive within 10-14 days of purchase.
- You will have temporary tags on the car when it arrives. You will receive an email with information on registration and titling, which you will need to complete in a timely fashion once you have the car. NOTE: If you decide to finance through Vroom, they will handle all DMV paperwork for you.
- You will now have seven days or 250 miles to test drive the automobile to ensure it is a good match for you and your family. If not, you may be eligible for a refund of the purchase price; if it is, congratulations on purchasing your new vehicle!
Does Vroom Offer Financing?
There are three ways to pay for a vehicle you would like to buy from Vroom: You can pay with cash, provide your financing, or finance with Vroom.
If you pick Vroom finance, know that Vroom will not lend you the money personally. Instead, they function as a loan broker, distributing your application to lenders who work with them, such as Ally Bank and Chase.
When you utilize Vroom as a middleman, they will receive a commission on the transaction.
Because intermediaries, such as car dealerships, can profit from consumer finance, they may provide you with loan alternatives that aren’t the best fit for you.
For comparison, I always recommend obtaining an online auto finance loan to know the rate you qualify for before contacting a dealership.
You can go with your preapproved auto loan if Vroom can’t beat or match the interest rate.
They Will Check Your Credit History
Vroom will not pull a hard credit check during the pre-qualification stage of the car buying process. But before final approval, they will do a hard credit history check like any other dealership, bank, or lender.
They also have basic requirements to meet before purchasing a vehicle from them.
Vroom’s minimum credit requirements are:
- $1,800/month minimum monthly income.
- They will only finance Vroom vehicles.
- Vehicles must have under 100,000 miles.
- Vehicles 8 years old or newer.
- You must pay the $500 deposit and the $599 delivery fee.
- The maximum loan term is up to 75 months.
What information do I need to apply?
To apply for financing through Vroom, you will be asked to provide a few basic details, including:
- Date of birth
- Social Security number
- Gross annual income
- Monthly housing payment
To complete your application, Vroom will ask you to provide a copy of your driver’s license and proof of insurance and income.
Vroom Pros and Cons
What I like about SELLING a car to Vroom (Pros)
- Vroom car-buying process is quick and easy
- The process is completed online and only takes minutes
- You will have an offer to buy within about 30 minutes
- There is no obligation to sell after receiving your offer
- You have seven days and 250 miles to accept the offer
- They will pick your vehicle up free of charge
- There are no fees associated with selling your car
What I don’t like about SELLING a car to Vroom (Cons)
- Vroom’s offer may be less than you would get selling the vehicle privately
- The price they offer to buy your car is not negotiable
- They tend to pay more for late-model cars and less for older vehicles
- Vroom has a low satisfaction rating on many review sites. However, most of these reviews refer to the sales side of their business model.
What I like about BUYING a car from Vroom (Pros)
- They have a lot of inventory to choose from
- Free home delivery to your location
- No haggling, the price is set, and you know what you’ll pay for the car
- Vroom only sells vehicles with clean titles
- Free vehicle history report
- Many pictures and details on the vehicles
- Three different options to pay for the vehicle
What I don’t like about BUYING a car from Vroom (Cons)
- No test drives are available
- No negotiating – This may keep you from getting the best price out there
- The return policy is somewhat weak but standard with online dealers.
- Refunds only cover the purchase price of the vehicle
- They have a history of consumer complaints
- There is a potential delivery fee
- Vroom’s customer service seems to be split between good and poor when referring to its customer reviews.
Suppose you find a vehicle you want to purchase with Vroom (or any other dealership). Make sure you review, read and understand all contracts before you sign. If you don’t understand something, make sure you ask questions first.
What Gives Vroom an Advantage Over Other Car-Buying Services?
Let’s face it. There are a lot of car-buying services out there. On the other hand, Vroom appears to have a distinct edge in three areas. The company’s strategy is on convenience, simplicity, and speed. These three characteristics are appealing when you’re rushing to sell a car.
- Your privacy is important: You do not have to give your life history. You fill out an online form telling them about the vehicle you wish to sell and any “special” features it may have. When you click “submit,” you will almost immediately get an offer for your automobile. Accept that, and you’re good to go.
- You can rely on them to be trustworthy: Vroom will organize a pick-up window for your car once you accept their offer. You will receive your money, and they will be on their way if you have the title prepared and notarized and the keys, and your automobile is in the condition indicated when initially submitted. It’s known as “easy peasy.” You can always rely on it.
- It’s a mind-bogglingly fast procedure: Vroom’s business approach is purchasing large quantities of vehicles. They have a strong interest in completing your transaction as swiftly as possible, and they will. A simple form, an immediate offer, and speedy pick-up and payment are all available.
How Vroom Makes Money
Vroom generates revenue in a variety of ways.
Many of these income streams are on the purchasing side of their business model.
- Preowned vehicle sales
- Wholesale auctions
- Auto warranties
They partly generate money by selling preowned vehicles on their online marketplace, like a traditional brick-and-mortar dealership. They buy cars close to wholesale prices and then sell them for around retail prices, just like any retail business.
The company will also take vehicles to wholesale auctions that don’t pass their criteria to become retail units to sell on their online marketplace.
They also reduce their capital requirements by partnering with third-party businesses such as financial institutions and warranty companies to increase their chance for sales and profits.
Benefits of using Vroom
A few of the most prominent benefits of using Vroom’s car-buying service are:
- The quickest way to sell your car online: Vroom will make you a fast offer. It isn’t easy to imagine a speedier method to transform your automobile into cash.
- The procedure is straightforward: You may sell your automobile by just filling out a simple form from the comfort of your own home. They will come to your location to pick up your vehicle. Vroom will send a check once your car is in its possession.
- You are not obligated to accept the offer: You have seven days or 250 additional miles to decide if you want to sell to Vroom. If you do not like the offer, you can disregard it.
What Could Make Them Better?
No online car-buying service is perfect for every which, which is also valid with Vroom. Keep in mind Vroom focuses on simplicity and convenience.
- It may not be the best option for selling a low-value car: If you have an older, high mileage car in rough condition, you can probably make more selling it to a different online car buying service such as Peddle.
- Expect amounts around wholesale value: Because they specialize in buying cars fast to fill their online marketplace, offers can be slightly lower than you may expect. However, when you consider this perhaps the easiest and quickest way to sell, the convenience and speed can make it worthwhile.
- They will not pay “cash” for cars: While some car buying services promote “cash for cars,” few do. Vroom, like others, will pay you for your vehicle with a check. It is a safer, more documentable way to handle the transaction for all parties concerned. Once they secure the car from your location, they will process payment.
I can’t say Vroom will provide you with the highest offer for your car, but when you have a late model vehicle that you need to sell quickly, they are a professional, convenient, and customer-focused way to turn that car into money.
Vroom’s business model is based on convenience to the seller and buying cars quickly and easily. That is extremely valuable for many people who want to sell an unwanted vehicle.
- Benefits: Sell your car quickly with no hassles. Offers are instant and guaranteed.
- Advantages: Get an instant online offer, schedule a pick-up time window, and get your vehicle picked up at no charge with a guaranteed check payment.
- Features: Guaranteed offers (based on an accurate description), title assistance, and free pick-up.
- Limitations: It may not be the best way to sell a low-quality or high-mileage car.
Is Vroom trustworthy?
Vroom is reliable; however, it has garnered unfavorable publicity due to delivery delays and other issues. Most of these negative reviews are on the car-selling side of their business model and not on the car-buying side.
Can you negotiate with Vroom?
Unfortunately, when selling a vehicle to Vroom, you will not be able to negotiate the amount sent to you. The offer is firm and does not allow haggling of any kind.
How long do I have to accept an offer?
When selling a vehicle, you have seven days or 250 miles to decide if you would like to accept Vroom’s offer to buy your car.
Does Vroom have fees for selling a car?
No, there are no additional fees associated when selling a car to Vroom.
Will my offer change at pick up?
Your Vroom offer price will stay the same if you submit accurate information. If there are any inconsistencies at the time of pick-up, Vroom may adjust the offer if the car value changes. If the carrier has already departed the pick-up site, the firm may need to reschedule pick-up if you accept the offer.
When can I expect a check from Vroom?
It usually takes 2-3 business days to arrive. Upon pickup, the carrier will have you sign a bill of lading. Once the vehicle is confirmed to be in Vroom’s possession, they will process payment.
Will I be paid cash or check?
Checks are the most common method of payment.
What are Vroom’s hours of operation?
Vroom is open online 24 hours a day, 7 days a week.
How long has Vroom been in operation?
Vroom has been in operation since 2013.
Vroom Company Details
Company Name: Vroom
Location: New York, New York, U.S.