Vroom Review 2023: Financing, Buying, Selling

Vroom is an online used-car retailer that sells and buys vehicles. Financing can also be arranged through third-party lenders.
By Shannon Bradley 

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Our Take

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.

Vroom - Used car purchase loan
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Pros & Cons


  • Offers pre-qualification with a soft credit check.

  • Application process 100% online including document upload.

  • Allows co-signers and co-borrowers.

  • Works with borrowers who have little or no credit history, including first-time car buyers.


  • Maximum APR possible is higher than many other lenders.

  • Not available in Alaska, Hawaii or Pennsylvania.

  • Only finances vehicles sold through Vroom.

  • Buyers have reported problems receiving titles for purchased vehicles.

Compare to Other Lenders

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Full Review

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. 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. Car buyers should be aware that Vroom has recently faced lawsuits and complaints for delays in providing titles for purchased vehicles. NerdWallet recommends asking for proof of title before signing to buy through Vroom.

Pre-qualifying through Vroom

Vroom does not currently offer its own financing. Instead, Vroom works with well-known lenders — such as Chase, Ally and Santander — to match car buyers to the best loan offer for which they will qualify.

Vroom says it has lending partners in its network to accommodate most credit profiles. 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, and 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 streamlined process for buying and financing a car. 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.

🤓Nerdy Tip

Because Vroom matches borrowers to a lender in its network, aspects of each loan — such as lender fees, service and how personal information is used — will depend on the lender.

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.

  • Origination fee: Did not disclose.

  • Personal information needed: For prequalification, applicants will need their address, email, phone and annual income.

  • Pre-qualification available: Yes, with soft credit inquiry. Offers are good for 30 days.

  • Online, in-person or both: Process is 100% online including document upload.

  • Approval speed: Usually in less than two minutes.

  • Funding speed: One to two days.

  • Minimum FICO credit score: 350.

  • Minimum credit history: Only a few lending partners have a minimum credit history requirement.

  • Minimum annual gross income: Only a few lending partners have a minimum income requirement. Among those who do, the lowest is $15,080 annual gross income.

  • Maximum debt-to-income ratio: Did not disclose.

  • Bankruptcy restrictions: A few lending partners have bankruptcy restrictions. The details were not disclosed.

  • States covered: Loans not available in AK, HI, PA.

  • Maximum vehicle age: At least one lending partner has no maximum.

  • Maximum vehicle mileage: At least one lending partner has no maximum.

  • Other vehicle restrictions: Only vehicles purchased through Vroom.

  • Loan amount minimum: $3,000.

  • Loan amount maximum: $100,000.

  • Maximum loan-to-value ratio: 140%.

  • Loan terms: 12-84 months.

  • Rate discount: None.

  • Greater-than-minimum payments: Did not disclose.

  • Bi-weekly payments: Did not disclose.

  • Late payment fee: Did not disclose.

  • Prepayment penalty: None.

  • Co-applicants allowed: Allows co-signers and co-borrowers. Co-applicants can apply at the same time.

  • Payment options: Mailed-in check, phone, mobile app, online, ACH. Varies by lender.

  • Selected payment due date: Borrowers can select the due date after signing the loan agreement.

  • Hardship plans: Did not disclose.

  • Availability: Monday-Sunday, 9 a.m.-8 p.m. ET.

  • Contact options: Phone, email.

Buying a car from Vroom


Key facts

  • No-haggle pricing. Prices are non-negotiable.

  • A refundable deposit is required to hold a car.

  • Delivery fees can reach $1,399.

  • Picks up purchased vehicles at no cost.

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 nearly 40,000 vehicles in 2022.

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 sells and 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 can be applied to a completed vehicle purchase. It is also refundable if the purchase is not completed.

Vroom charges a non-refundable delivery fee of $0 to $1,399, depending on the buyer’s location. Fees are disclosed when a buyer selects a vehicle 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.

  • Does Vroom accept credit cards for down payments? No. Vroom only accepts credit cards for the deposit to hold a car.

  • Is extended warranty coverage available? Yes, Vroom offers Vehicle Service Protection; price varies by vehicle. It also offers eVSP for electric vehicles, and separate coverage for dents, lost key, wheel and tire damage, and windshield chips and cracks.

  • Is GAP insurance available? Yes.

Selling or trading in a car with Vroom


Key facts

  • Offers are good for 7 days and non-negotiable.

  • No charge to pick up your car.

  • Current loan or negative equity OK.

  • No leased cars; you’ll have to buy out the lease first.

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 to sell through Vroom. You'll also provide your ZIP code and email address, and fill out a condition questionnaire.

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. 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.

  • Does Vroom have restrictions on trade-in vehicles? No. While Vroom may buy cars with previous accidents or branded titles, it does not sell them on its site.

  • What more is needed to complete a sale? Driver’s license photo and vehicle registration, title (if in possession); loan information (if applicable); photo of odometer reading, bank account information for electronic payment (if applicable).

  • Will Vroom pick up my car? Vroom picks up purchased vehicles at no cost.

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