Vroom vs Carvana – Which is Better?

When shopping for a car online, there are no shortage of options nowadays. With local car dealers coming online with their own websites to new companies offering online car buying services, you may not know where to start. In fact if you may have heard of two relatively new companies recently, Vroom and Carvana. But for the uninitiated you probably haven’t heard of them. So who are they and which is better between Vroom vs Carvana?

What is Vroom?

Vroom is a company based in New York City, New York that specializes in online car sales. Founded in 2013, Vroom helps their customers buy, sell, and finance cars online through their website.

An an online automobile retailer, Vroom is currently upending much of the auto industry that is unprepared to transfer their operations online. That being said Vroom still needs to maintain physical locations in order to store their inventory, which they do in Texas through acquired car dealerships.

How Does Vroom Work?

When buying a car with Vroom, it will be unlike most transactions you have made before. Especially when buying a used car, Vroom has no need for you to go to an in-person location. Since they are not a peer-to-peer marketplace, Vroom handles the entire process themselves.

That means Vroom owns and stores their own used car inventory. In 2015 the company purchased a large used car dealership in Texas as a way to improve their distribution network. However in 2018 Vroom was forced to close another facility, so the company is still working things out. Nonetheless, their services are still very popular today.

In addition to selling cars online, Vroom also buys cars to add to its fleet. Similar to InstantOffer.com, Vroom will pay to buy your car and will also tow it away for free. If you are selling a car to Vroom, you can also use the proceeds to buy another car directly from Vroom. In fact the will deliver the new car to you. They will even help you finance the new vehicle with partnerships to over dozen different banks.

What is Carvana?

Vroom vs Carvana

Carvana is a used car dealer from Tempe, Arizona specializing in online car sales. The company was started in 2013 and is known famously for their invention of the car vending machine. Carvana offers its customers financing services to help with their car buying needs.

In addition to car sales, Carvana also buys cars nationwide. Just submit your car’s information on the Carvana website to get an offer for your vehicle. Carvana will tow the car free of charge. Plus if you happen to be buying a car from Carvana, they will drop off your new car while picking up your old car at the same time.

How Does Carvana Work?

What are the benefits of using Carvana vs Vroom? Carvana promotes their seven day money back guarantee when buying a car. If you purchased a used car on Carvana, you have seven days after the car is delivered to change your mind. If you do not like the car or have any issues, they will pick up the car from you and give you your money back.

Carvana also offers trade in services. If you were not already planning to sell your old car, you can exchange it for a new car with Carvana. Plus their financing department will help get you covered with any value your old car cannot cover. By offering all of these services Carvana is among the top online used car dealers.

Vroom vs Carvana Reddit Reviews

Since both Vroom and Carvana are becoming more popular, we decided to check out some Vroom vs Carvana Reddit reviews. Hopefully this will give you an idea of how other customers feel about working with these online car dealerships.

“Traded 2 cars in with Vroom, nothing but smooth sailing! Didn’t try Carvana since they wanted us to drive ~100 miles to their nearest inspection station.”

This customer was pleased with their experience trading in two cars with Vroom. They chose not to use Carvana because in this case Carvana needed to inspect the vehicles at one of their car inspection facilities.

“Vroom have to mail you a document via fed ex overnight. You sign and send it back with whatever spare keys you have with the prepaid label. All great and dandy and even the pickup process wasn’t bad. About the same turn around time from start to pickup. One major difference was Carvana comes with there own pickup truck and Vroom came with a massive car carrier and they give you a bill of landing basically a receipt that they came to pick up.”

This customer was relatively pleased with both Carvana and Vroom, however they pointed out the difference in how the companies picked up the old car. Depending on your scenario, you may want to confirm with the company or carrier what you need to have a safe pick up process.


In all, the debate of Vroom vs Carvana will depend on your own experience. While both companies have their pros and cons, the online car buying experience is in its infancy. Over time, these companies will improve their work flows and buying a car online will become much smoother.In the meantime, if you need to sell a car, InstantOffer.com wants to buy your car!