Are you purchasing a car online for the first time, and do you need to reaffirm whether Vroom is legit? E-commerce enthusiasts have different opinions about brands online, hence the common question, “Is Vroom legit?”
This article unveils everything you need to understand about the company, including its history, founders, revenue, investors, policies, etc. Read through the following sections carefully.
What is Vroom?
Vroom is an e-commerce and retail trader of used vehicles that enable the sales, purchase, and financing of cars online in the United States. It is a public corporation, trading its shares on the New York Stock Exchange (NYSE) as Nasdaq: VRM.
The companies headquarter is located in New York City. It had 944 employees as of 2020 and a sum of $1.1 billion in revenue as of 2019. Vroom was founded in August 2013 and has experienced constant growth since its inception. Presently, Paul J. Hennessy is Vroom’s CEO.
How does Vroom work?
Vroom is a sure platform if you desire to buy a neat used car online with amazing benefits, including one-year 24-hour roadside assistance.
Vroom is a car sales e-commerce platform that lets you buy or sell cars online from the comfort of your bedroom or office. The company’s website is designed to enable users to review various vehicles, select their choice car, and make payments seamlessly.
The platform also lets you get rid of your used car by selling it to the company or trading it in for another one online. Selling a car to Vroom is extremely seamless. Meanwhile, the company’s website has various catalogs of cars of different make, models, years, prices, etc., to enhance swift purchases.
Once you log on to the company’s website, you can conduct a fast search for your desired car by using the filtering function. It categorizes cars into make, model, year, color, body type, fuel, efficiency, mileage, etc.
Vroom fees and pricing
Vroom is one of the best e-commerce car sales platforms in the United States. The company offers the best prices for used cars, with Chevys and Toyotas starting at $7,500.
However, car purchases include a standard delivery fee of $699 for regular delivery and $999 for enclosed trailer delivery. Not to worry; you can buy a car at Vroom without a delivery charge by going to Houston Texas to get your car personally after purchase.
|Regular delivery charge||$699|
|Enclosed trailer delivery||$999|
Vroom privacy and policies
Vroom has some policies that help to guide the seller-buyer relationship between the company and its numerous customers. Vroom also has a strong privacy system in handling customers’ information. Some of the company’s policies include the following:
The company operates on a fixed pricing policy. It does not offer negotiable prices, as all its vehicles come with a price tag. If you’re satisfied with the price tag on your desired vehicle, kindly check out and pay. However, things are pretty different when selling to Vroom.
Extra delivery charge
Delivery attracts extra charges up to $699 for regular delivery and $999 for enclosed trailer delivery. This amount is not captured in the price displayed on the purchase catalogs.
7 days return guarantee
Vroom allows you to return your car after purchase if you discover any defect or fault within 7 days or around 250 miles after the delivery date (whichever comes first). The company will pick up the car for free; however, the initial delivery charge will not be refunded.
Warranty/One-year roadside assistance
The company offers a limited warranty of 90 days or 6,000 miles after delivery. It also offers 24-hour, one-year roadside assistance after purchase.
Pros and cons of Vroom
Vroom ranks as one of the top 5 e-commerce car sales platforms online in the United States. The company offers amazing deals. However, there are a couple of pros and cons that accompany transacting with Vroom. They include the following:
- Vehicles are accident-free.
- The company performs thorough inspections.
- Offers a 24-hour one-year free roadside assistance.
- Relatively lower purchase prices.
- Relatively higher winning bid prices.
- Only delivers vehicles within the U.S.
- Delivery attracts a fee.
- Relatively slow customer service.
Is Vroom Legit?
There have been a couple of poor Vroom reviews due to its unsatisfactory customer service, delay in meeting up car delivery deadlines, etc. Customers have faced some challenges dealing with Vroom for different transactions.
However, Vroom is 100% legit. The company’s shares are publicly traded on the New York Stock Exchange (NYSE) as Nasdaq: VRM. It has the endorsement of big shots (Billionaire investors) like Bill Gates, Dan Gilbert, etc.
Transacting with Vroom is completely legit. However, it would be best to prepare to accommodate any slight delays or changes in the delivery schedule or any unexpected occurrences due to the poor Vroom customer service.
Besides, the company offers amazing prices for both purchases and sales than some other e-commerce car traders.
Q: Can Vroom be trusted?
Vroom is a nice platform for the purchase of cars online. However, one major negative remark most customers give about the company is the culture of delay in delivering the car purchased. In other words, customer satisfaction is the main challenge with Vroom.
So, technically, Vroom can be trusted because of the quality of used cars they sell. The company ensures a thorough inspection by them before you buy any of their vehicles. This helps you get the best when buying a car online from Vroom.
However, the unstable customer service delivery is something you must keep in mind when buying a car from Vroom. Besides that, it is a nice car purchase and sales company.
Q: What is the difference between Vroom and Carvana?
Vroom and Carvana are amazing car purchase, sales, and financing platforms that you can leverage to own a car of your choice. However, if you’re contemplating Vroom Vs. Carvana, the two companies are slightly different in operations and service delivery.
Vroom has a digital electronic system for paying sellers who choose to get rid of their car by selling it to the company. Conversely, Carvana deals with their clients one-on-one by issuing checks at the vehicle pickup appointment.
Another major difference is that Vroom offers a higher bid for car purchases than Carvana. However, Vroom includes a delivery fee when you buy a car from them. Meanwhile, Carvana delivers their cars without additional charges.
Q: Can you negotiate Vroom?
No! You can’t negotiate the price of a car at Vroom. The company’s structure is designed such that every car has a non-negotiable price tag. So once you choose a car, kindly navigate straight to the payment platform and do the needful.
Vroom also has a standard non-negotiable $699 regular delivery charge or $999 charge if you want your car to be delivered with an enclosed trailer. The charges will be added to the initial purchase amount to arrive at the total purchase price.
However, you can avoid the delivery charge by picking up your car in Houston after paying the purchase price. So, you’re free to choose the payment plan that is convenient for you.
Q: Is Carvana cheaper than vroom?
Carvana is not necessarily cheaper than Vroom. For example, car purchases start at around $8,000 at Carvana for Ford and Mitsubishi 2010s models. Meanwhile, Vroom offers a start price of around $7,500 for Chevrolets and Toyotas.
Both companies have a non-negotiable purchase price policy. Therefore, if you find the car of your choice, kindly go straight and make the corresponding payment. However, Carvana offers a free delivery service for purchases within the local market.
Conversely, Vroom has a standard $699 or $999 for regular delivery and enclosed trailer delivery, respectively. So, ensure to take note of both companies’ operations in order to get the best.
Q: How long does it take Vroom to deliver a car?
Vroom delivers cars to buyers between 10 and 14 days after purchase. However, the company may exceed the delivery date in some cases.
When you purchase a car from Vroom, the company delivers the car straight to your home or any convenient location based on your buyer-seller agreement. Cars from Vroom arrive with special temporary tags to allow the buyer to drive the car immediately.
Meanwhile, you must make proper preparation when purchasing a car at Vroom. Ensure you take note of the delivery charges and make a flexible schedule for your car’s arrival in case the company exceeds the delivery date.
Q: How much is the delivery fee for Vroom?
Vroom charges standard $699 or $999 delivery fees for regular delivery and enclosed trailer delivery, respectively. This amount is not captured in the price displayed on the shopping platform.
Once you pick a car of your choice, Vroom calculates the extra charges and computes the total amount you need to pay. The delivery fee is non-negotiable; however, you can avoid it by picking up your car in Houston, Texas.
Q: Who is Vroom owned by?
Vroom was founded by Marshall Chesrown and Kevin Westfall in August 2013. The company was initially AmericaAuto before the name was changed to Vroom in November 2014 after Allon Bloch and Elie Wurtman joined the company as co-founders.
The company began to operate a more advanced electronic technology in 2014 after the co-founders joined forces with the initial founders. Since then, Vroom has grown so large, with over $1.1 billion dollars in revenue as of 2019. Currently, Paul J. Hennessy is Vroom’s CEO.
Q: What credit score do you need for Vroom?
Buyers need at least 500+ credit scores to take up a car financing plan with Vroom. The company ensures that buyers who want to apply for a car financing plan are credit-worthy and reliable. It also requires buyers to be legal U.S. residents between 18 years and above.
Vroom gives lower rates to buyers with higher credit scores. This is based on the fact that such buyers are more credit-worthy and reliable. Hence, they are capable of paying up the amount on their car financing plan faster than those with lower credit scores.
Q: Does Vroom price include tax?
No! Vroom’s car purchase price does not include sales tax. It is your responsibility to calculate your state of residence’s sales tax and include the cost in your total budget.
The sales tax, delivery fee, etc., are a few extra charges you will have to fuse into your car purchase budget when buying from Vroom. You need to ascertain every single financial implication before proceeding to buy your dream car from Vroom.
Q: Who pays more for car Vroom or Carvana?
Vroom pays relatively higher than Carvana. The average winning bid by Vroom is about $1,880. Conversely, Carvana’s average winning bid is about $1,218. So, selling a car to Vroom is more profitable than selling to Carvana.
However, study carefully the rules of engagement with both companies in order to get the best from your sales deal. Also ensure to pay attention to vital factors like the state of your car when attempting sales to any of the companies.
Q: Who is paying the most for used vehicles?
Carvana pays the most for used vehicles. The point is very obvious; Carvana is a large public corporation trading on the New York Stock Exchange (NYSE) as CVNA. The company has the responsibility to impress its investors with high turnover and constant growth.
So, technically, Carvana needs to sell more cars to present a high turnover report to its investors; meanwhile, having more cars to sell requires buying a lot of stock from sellers that are willing to get rid of their cars. Therefore, Carvana can pay so much for used cars because to whom much is given, much is expected.
Q: Does Vroom charge to pick up your car?
No! Vroom doesn’t charge a dime to pick up your car. It doesn’t matter whether you’re offering your car for sale only or you’re trading it for another one; Vroom will pick it up for free anywhere around the United States.
If you have a used car that you intend to trade in to get a new one from Vroom, kindly check out the company’s website. You can sell off your vehicle in a moment, provided you comply with the company’s trading policy.
Q: Is Bill Gates an investor in Vroom?
Of course! The Billionaire technology guru and Microsoft founder, Bill Gates, is an investor in Vroom. As of June 2020, Mr. Gates invested in Vroom Inc. to become one of its major shareholders.
Vroom is a powerful brand among e-commerce companies that deal in sales and purchases of used cars in the United States. The Microsoft Billionaire had spotted the company as a viable investment, hence the move to take up its shares.
Q: How many cars has Vroom sold?
Vroom is one of the e-commerce used-cars traders in the United States. The company recorded a total sale of 74,698 units of cars as of the 2021 financial year. According to Paul J. Hennessy, Vroom’s CEO, the company recorded twice its sales as of 2020 the new financial year (2021).
The company has experienced constant growth since its inception. However, reports also show that there have been a few periods of ups and downs in the company. Nevertheless, Vroom is one of the major sellers of used cars online in the United States.
Despite the vroom reviews online, the company ranks as one of the best e-commerce car purchase, sales, and financing platforms in the United States. Hence, if you’re wondering, “Is Vroom legit?” Of course, the company is 100% legit.
However, if you’re buying a car via Vroom, make sure you understand the terms and conditions, and make proper preparation to accommodate delays in meeting delivery schedules and other regular Vroom complaints by customers. If this is well organized, you are good to go with Vroom.