Is Vroom Legit in 2026? What's Changed and What to Know

Vroom was considered the largest online car retailer and a good Carvana alternative. In 2022 and 2023, it faced quite a lot of issues stemming from internal organizational gaps, multiple lawsuits, and many service issues, which led to the Vroom bankruptcy. In 2014, the company started growing rapidly, becoming a great used car marketplace, with a unique idea to buy, refurbish, and resell used cars to the U.S public. Now, the company is a shadow of its former self, only offering car financing and vehicle analytics.

Who should use Vroom?

In its heyday after 2020, Vroom was reportedly selling over 100,000 a year, making it a massive used car marketplace. If you were online car buying at that time, chances are you would have gone to Vroom instead of its competitors. Its many TV ads, billboards, and marketing campaigns made it a very popular place to go for online car buying.

Who should avoid Vroom?

Vroom had a haggle system that allowed customers to get a lower price on their car. If you were not the type of buyer who was looking forward to haggling, then Vroom wasn't for you. Vroom was also known for its second-hand cars, which were an alternative to the expensive new car market. This means that if you are looking for that new shiny Lexus or Range Rover, chances are Vroom wasn’t the service for you.

What Is Vroom and How Does It Work Today?

Vroom is now much smaller than it was back in 2023 and 2024; in fact, it no longer offers second-hand vehicles, but rather focuses on Vehicle financing through its branch of the United Auto Credit Corporation and vehicle analytics through a company it acquired in 2019 called CarStory. Ever since the Vroom restructuring, the company no longer operates with second-hand vehicles and has therefore liquidated and sold off all of its inventory.

What Happened to Vroom?

This is a long story cut short - Vroom was never financially viable, each year reporting more than $350 million in losses stemming from their practices of buying used cars on credit and selling them for a loss due to interest rates and fees. Furthermore, the company was spending millions on advertising in order to stomach the growing pains of a new corporation, but was never really profitable. Starting in 2021, the company was hit with several class action lawsuits, which found the company guilty of not inspecting vehicles properly and not being able to provide the title for a vehicle customers had already purchased.

Is Vroom Still in Business?

Yes, it is technically still a business, but it no longer operates as a car-buying platform, and it more focuses on vehicle financing. While it once was a CarMax alternative, the scathing customer reviews quickly reduced the trust in the company and sealed its fate. The many issues with the title and registration of sold vehicles were the biggest problem the company was facing, and they never managed to resolve them.

How Vroom Makes Money

That’s the thing: Vroom was never really in the green in terms of revenue but was steadily reporting growing losses year over year, even in 2021, its most successful year, when the company reported a staggering $3.1 billion in gross revenue. The Vroom business model hinged on buying used cars cheaply and selling them for more after repairing any damage. The company also still offers vehicle financing options. It had used car delivery options that further made the customer experience more convenient.

Pros of Using Vroom

Convenient Online Car Shopping

Convenience was the biggest selling point for Vroom, as it was marketing itself as the alternative to the pesky car dealerships, often portrayed as evil in Vroom ads. The company’s biggest plus was its online presence and the fact that customers had access to hundreds of thousands of vehicles that had passed a thorough 181-point inspection. It made it far easier to live the dream of an online vehicle purchase.

Home Delivery Options

Vroom had an abundance of vehicle delivery options that were personalized according to customer needs. It made it administratively far easier for customers to receive their vehicle without a title in hand, which meant a faster delivery time.

Competitive Vehicle Pricing

Vroom was extremely competitive when it came to pricing the vehicles it sold. This was their biggest pro and the biggest advertising caveat that most people really went for. The cars sold through Vroom were up to 10% cheaper than alternatives, which made the customer choice a no-brainer, especially in the excessively expensive new car market, which stemmed from the breakdown of the supply chain as a result of the Pandemic.

Common Complaints About Vroom 

Delivery Delays

Vroom was plagued by problems, one of which was the often extensive delays in delivering cars that had already been sold. Some customers have even reported that the company was never able to locate the car that they sold them, leaving them no choice but to choose litigation. Even if you received your car, chances are you would have spent weeks waiting for it to arrive, only to learn that it had no title.

Customer Service Issues

Many customers also reported issues with vehicles that were supposedly in mint condition. Reports state that some customers had issues with bald tires, squeaking brakes, mechanical issues, and engine failures. While the cars that Vroom sold were visually sound, they were littered with many hidden issues that were supposed to be resolved.

Registration and Title Problems

One of the biggest issues that Vroom had was the issue with locating the title of vehicles they had int heir inventory. However, due to financial pressure and customer demand, Vroom sold the cars anyway, resulting in long delays for customers waiting to receive their titles. Without it, customers cannot register the car, which in some cases causes huge issues, since most states have a statute of 30 days after purchase to register the car. This was one of the nails in the coffin for Vroom, since many customers formed a class action lawsuit, which was one of the many legal troubles that the Vroom title and registration problem attracted.

Vroom Alternatives

Vroom was one of the biggest players in a huge $300 billion industry, but that doesn’t mean it did not have alternatives back then. While now Vroom is restructured and is something else entirely, back in 2023-2024, it was a huge contender. Here are the alternatives to Vroom.

Carvana vs Vroom

While Carvana is facing some similar issues as did Vroom, it is still hanging on, providing customers good-value vehicles without the same issues that Vroom had. The best comparison is that Carvana is still around, while Vroom’s used car branch is no longer around.

CarMax vs Vroom

CarMax operates entirely differently from Vroom, focusing on the physical presence of the vehicle, allowing test drives, easy appraisals, and up-front, haggle-free pricing. Vroom focused entirely on online car buying and financing, which was its biggest draw for customers.

CarGurus vs Vroom

CarGurus is an online marketplace and holds no inventory; it facilitates the connection between buyers and sellers and even has some space for dealerships, whereas Vroom held the ownership of every car it sold and did not really have space for dealerships or private sellers. CarGurus is still around, whereas Vroom isn’t, at least not in a relevant form, meaning that CarGurus is a better alternative to Vroom than most on this list.