The bottom line:
Best for applicants who want to purchase a Vroom vehicle and will qualify for the lowest rates offered by Vroom lending partners.
Pros & Cons
- Offers pre-qualification with a soft credit check.
- Works with financing partners to find the best offer.
- Application process 100% online including document upload.
- Does not disclose range of estimated APRs.
- Only finances vehicles sold through Vroom.
Compare to Other Lenders
How does Vroom work?
Vroom is an online used car dealership that also helps buyers pre-qualify for loans on the vehicles it sells. Shoppers can choose a car from Vroom’s inventory, arrange financing and complete the purchase online.
Cars and trucks sold through Vroom are mostly low-mileage used vehicles that have passed safety, mechanical and cosmetic inspections. Vehicles come with a free Carfax vehicle history report, which can be viewed in the details of each car listing. Vroom prices are non-negotiable. Delivery fees can be as high as $1,399, depending on location.
Vroom accepts trade-ins and also buys vehicles outright. (Trading in a car may save you money on sales taxes.) Vroom will pick up trade-ins and purchased vehicles at no cost.
This review looks first at Vroom financing options and then at buying or selling through Vroom.
Pre-qualifying through Vroom
Vroom does not currently offer its own financing. Instead, Vroom works with well-known banks — such as Chase, Santander and Ally — to match car buyers to the best loan offer for which they will qualify.
While Vroom says its lending partners accommodate most credit profiles, it does not provide detailed information on their available interest rates or requirements for credit scores, credit history, income or bankruptcy status. Only after pre-qualifying through Vroom with a soft credit check will applicants see an estimate of the rate and terms they might expect. Pre-qualifying does not affect an applicant's credit score, but it also is not an approved loan.
If applicants proceed, their loan application will be submitted to a Vroom lending partner, which will verify information provided, run a hard credit inquiry and show actual loan terms. The loan will be through the partner, not Vroom.
Vroom also allows car buyers to pay with cash or finance with their own lender. This gives borrowers the opportunity to shop multiple lenders outside Vroom's network, including their own bank or credit union, to ensure they are financing with the lowest rate possible.
NerdWallet strongly recommends you seek a preapproved auto loan before shopping.
A preapproved loan gives you a rate to compare with those presented through Vroom, and it allows you to shop for a car with more confidence. If you finance with a Vroom partner, consider whether refinancing your auto loan with another lender after a few payments could lower your rate.
Vroom may be a good fit for those who:
Want a simple car buying and financing process: Vroom enables car buyers to manage all aspects of car buying — shopping, purchasing, financing, arranging pickup or delivery — with one online car dealer.
Have good or excellent credit: While Vroom may be able to find financing for car buyers with bad credit, loans for these borrowers typically have the highest APRs. Borrowers with good or excellent credit will qualify for the lowest rates offered by Vroom lenders.
Want more choices when buying a used car: With thousands of cars in its inventory, shopping on Vroom is easier than going from dealership to dealership.
Vroom financing at a glance
Note that Vroom works with several different lenders, so the information provided below is general and may vary by lending partner.
Buying a car from Vroom
Vroom is one of a growing number of places to buy a car online. Cars and trucks sold through Vroom are mostly low-mileage used vehicles that have passed safety, mechanical and cosmetic inspections. Vroom sold about 20,000 vehicles in the third quarter of 2021.
Car prices are non-negotiable. Vehicles come with a free Carfax vehicle history report, which can be viewed in the details of each car listing. Listings also include 360-degree photos and detailed photos of imperfections. All vehicles have accident-free Carfax histories.
Vroom delivers vehicles in all states except Alaska, Hawaii and Massachusetts.
Does Vroom sell new cars?
Vroom sells used cars; its inventory is mostly low-mileage and late-model vehicles.
Can buyers negotiate with Vroom?
Costs and fees
Buyers can make a deposit to place a 24-hour hold on a vehicle while paperwork is completed. It can vary but typically is $249. The deposit is non-refundable and can be applied to a completed vehicle purchase.
Vroom charges a non-refundable delivery fee of $0 to $1,399, depending on the buyer’s location. Fees are disclosed on the vehicle listing and can be included in financing for qualified borrowers. To avoid the delivery fee, customers must pick up the vehicle from a Vroom dealership near Houston.
Guarantees and warranties
Vehicles sold by Vroom can be returned within seven days (or 250 miles, whichever comes first), minus delivery fee and possible $599 restocking fee. NerdWallet strongly recommends you pay for a vehicle inspection during this period.
Any balance of factory warranty carries over after purchase. Also, Vroom’s cars typically come with a 90-day or 6,000-mile limited warranty and a year of roadside assistance.
Selling or trading in a car with Vroom
As one of a growing number of places to sell your car online, Vroom accepts trade-ins and also buys cars outright. Trading in a car when buying a new one may save you money on sales taxes.
You’ll need to provide your car's 17-digit VIN or license plate number, mileage, vehicle options and loan information. You'll also provide your ZIP code and email address, and fill out a condition questionnaire.
Vroom does not buy leased vehicles.
Vroom picks up vehicles at no cost in all states except Alaska and Hawaii.
Can you negotiate with Vroom?
No. Vroom says it relies on its team of data scientists, tech engineers and supply experts to make its best offer. The offer is good for 7 days or 250 miles.
Will Vroom buy my car if I owe on it?
Yes. You’ll need to provide loan information so Vroom can pay off the lender. If you owe more than the amount of your offer, you will need to cover any shortage. Vroom accepts electronic payment (ACH) and wire transfers; it also accepts credit card payments up to $500. You make the additional payment to Vroom, and Vroom pays the lender off.
Does Vroom buy leased vehicles?
No. To sell to Vroom, you would need to buy out your lease at its residual price, obtain a new title in your name, and get a new offer.
To review Vroom, NerdWallet sent a survey to Vroom requesting more than 60 data points and followed up with company representatives. The information was compared with other lenders that seek the same customer or offer a similar product.
Frequently asked questions
Purchased Vroom cars arrive with temporary tags and can be driven immediately. Vroom provides a seven-day return period. Buyers have seven days or 250 miles to make sure the car is right for them. If not, they can return the car for a refund of the purchase price, minus any delivery fees and possibly a $599 restocking fee.
Vroom is an online used-car dealer that also works with more than a dozen lenders to provide auto financing. Founded in 2013, the company is headquartered in New York. Vroom is not Better Business Bureau accredited and its BBB profile includes a warning about a pattern of consumer complaints. Vroom was also named one of Inc. Magazine’s Top 250 Best-Led Companies in America in 2021.
In late 2021, Vroom entered into an agreement to acquire United Auto Credit Corporation (UACC), a provider of automotive financing. The acquisition announcement indicates an intent for Vroom to begin providing its own auto financing. Currently, Vroom offers third-party financing only.