Vroom auto loan alternatives: Try these online shopping platforms
Vroom, the online vehicle marketplace, announced in January that it is ending its online e-commerce operations and used vehicle dealership business. If you want to shop from the comfort of your home, check out these competitors.
Alternatives to Vroom auto loans
The company did not finance auto loans itself. It instead sold vehicles on its platform and matched buyers with auto loan lenders in its network. Consider these other online financing and shopping options if you enjoyed the experience Vroom offered.
| Carvana | CarMax | CarsDirect | |
|---|---|---|---|
| Bankrate score | 4.3 | 4.0 | 3.5 |
| Better for | Less-than-perfect credit | In-person shopping | Poor to fair credit borrowers |
| Loan types | Used | Used | New, used, refinance |
| Loan amounts | Starting at $1,000 | $500-$100,000 | Varies by lender |
| APRs | 7.95%-27.95% | Not specified | Not specified |
| Loan term lengths | 12-72 months | 36-72 months | Varies by lender |
| Fees |
|
|
|
| Min. credit score | No minimum | Not specified | Accepts all credit types |
| Time to funding | As soon as one day | As soon as the day you apply | 1-2 days |
Carvana auto loans
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While Carvana is best known for its car vending machines, the company also provides indirect lending and is an excellent alternative to Vroom. Borrowers can prequalify for an auto loan without hurting their credit scores. Carvana’s lowest annual percentage rate (APR) is unimpressive. But since the platform accepts outside funding, you can prequalify with other lenders as well and see if one offers you a better deal.
After purchase, you can return your car within 400 miles or seven days.
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Pros
- Competitive rates are not reserved for perfect-credit borrowers.
- Fast funding timeline.
- Option to pick up or have the car delivered.
Cons
- Inventory is limited to Carvana vehicles.
- Rates and terms not disclosed.
- Service is not offered nationwide.
CarMax auto loans
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CarMax is another online shopping platform that also serves borrowers who want to shop in person. As with Vroom, drivers can shop for used vehicles online. But you can also visit a CarMax dealership and test-drive a car for up to 24 hours. Loans are available for as little as $500 or as high as $100,000, with funding as soon as the same day you apply.
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Pros
- Loans are available for borrowers with poor credit.
- Quick funding decision.
- 30-day vehicle return program.
Cons
- Only available for shoppers in 41 states.
- Negotiation is not allowed.
- Steep fees for processing and vehicle shipment.
CarsDirect auto loans
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CarsDirect works with an extensive network of lenders serving those from a range of credit backgrounds. Unlike the other options on this page, CarsDirect sells both new and used cars. Unfortunately, though, CarsDirect shares no information about rate and term options.
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Pros
- CarsDirect doesn’t charge fees to find lenders.
- Online car buying platform.
- Extensive network of lenders.
Cons
- Negative online reviews.
- Lender partners may charge their own fees.
- Undisclosed rates and terms.
Why did Vroom stop selling cars?
The online platform discontinued its sales operations in early 2024 to “preserve liquidity” and “maximize stakeholder value through its remaining businesses,” a company news release stated. The company’s chief executive officer, Thomas Shortt, explained that the company failed to raise enough capital to fund operations. However, Vroom still owns car-shopping platform CarStory and automotive finance company United Auto Credit Corporation, which continue to operate.
FAQs
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If your vehicle has yet to be delivered, contact the Vroom support team at (855) 524-1300 to figure out your options.
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Log onto your Vroom hub to confirm the next steps. The Vroom team will still handle the titling and registration process.
