About lender
Vroom is a web-based car-selling service that allows you to purchase vehicles from the company's extensive line-up. Vroom does not offer lending services itself, but it partnered with some of the best automotive lenders and banks in the US. Selecting a car and financing its purchase is fairly simple and is done entirely through the internet. Whether to fund a loan doesn't take over ten minutes. Most car buyers report receiving an instant response.
There are two main types of automobile loans offered by Vroom – ordinary used car loans and trade-ins. The latter form of online financing is a slightly more complex process as it requires the company to assign a car expert to inspect the vehicle and give you an appraisal.
The company was established in 2013 under the name AutoAmerica. It mostly floundered throughout its first year but found its footing in 2014 after being renamed. The online financing company's key executives and personnel, including Kevin Westfall, Tom Shortt, and Paul Hennessy, all earned a great reputation for their work. Vroom offers its services throughout the contiguous United States.
Pros and cons
Pros
There is a pre-qualification option. After a soft credit check, you'll be able to pre-qualify for a loan.
An extensive network of financing partners. The used car financing company does not offer financing on its own, as mentioned above. Instead, it tries to match you with the best offer from its trusted affiliates.
Fully online application process. You can upload all the documents on the website to qualify for a loan.
Return period. In case your new car isn't right for you, you can submit a return request. You have seven days to decide to return the vehicle.
Easy vehicle registration. Vroom will handle all the needed paperwork at no additional charge.
Many options to choose from. Vroom boasts an impressive line-up of low-mileage vehicles that can be purchased with their help.
Convenient delivery. Vroom can deliver the vehicle to your doorstep. The pickup spot doesn't have to be your actual house, and you can also opt for in-store pickup.
Cons
No official information regarding APRs. You can't really gauge the APR rates unless you go through reviews.
Only possible to qualify for financing for Vroom cars. Even though there are many options to choose from, it's still a limitation.
Costly delivery. Once again, there's no official information regarding the delivery fee. It's not a flat fee, so it can be extremely expensive depending on where you live.
No test drive options. It's not possible to test-drive a vehicle before making the purchase.
Terms and conditions
The loan amounts offered by Vroom can be as little as $5,000 and as high as $100,000. Loan terms span 24 to 75 months. As far as major fees go, some affiliated lenders charge a late payment fee.
There are certain costs associated with the handling of your paperwork. There are extra charges if you elect to have the car delivered to a certain location when financing with Vroom.
Funding a loan
Since financing with Vroom is carried out through 3rd-party lenders, there's not a universal set of timeframes and methods of how the money gets transferred to a borrower. Most people report the funds became available on the same day they applied.
