The Risks of Buying a Car Online: Vroom vs. Carvana

The promise of buying a car from your smartphone and having it delivered to your driveway changed the automotive industry. For years, Vroom and Carvana battled for dominance in this space. However, the reality of purchasing a vehicle sight-unseen involves significant risks that go beyond simple convenience. While Carvana remains a giant in the industry, Vroom recently halted its ecommerce operations to focus on other business units. This major shift highlights the volatility of the online car market.

Understanding the specific policies, fees, and risks associated with these platforms is essential before you sign a digital contract.

The State of the Market: Vroom's Exit and Carvana's Dominance

In January 2024, Vroom announced it was winding down its used car ecommerce business. They ceased selling vehicles to consumers to preserve liquidity. This event serves as the ultimate example of the risks involved in this sector. If you purchased a vehicle from Vroom just prior to this announcement, your customer support avenues changed drastically overnight.

Currently, Carvana is the primary option for fully online car buying, but understanding how their policies compare to Vroom’s historical model helps explain the pitfalls of this purchasing method.

The “Sight-Unseen” Risk

The most obvious danger of buying online is relying on digital photos to judge a physical product. Both companies utilized 360-degree photography and “hotspot” features to highlight imperfections, but these digital tools have limitations.

  • Photo Limitations: High-definition studio lighting can wash out minor scratches, paint swirls, or interior odors (like smoke or pet smells) that you would notice instantly in person.
  • Mechanical Issues: A photo cannot tell you if the transmission slips or if the brakes squeal. While both companies touted “150-point inspections,” consumer complaints often cite mechanical issues arriving on the delivery truck.
  • Undisclosed Damage: A common complaint for online buyers involves shipping damage. A car might leave the hub in perfect condition but suffer rock chips or undercarriage scrapes during the transit to your home.

Return Policy Wars: Reading the Fine Print

The safety net for buying sight-unseen is the return policy. This is where the financial risk becomes very real. If you buy a car and hate it, it is not as simple as returning an Amazon package.

Carvana’s 7-Day Money-Back Guarantee

Carvana offers a 7-day return window. This allows you to treat the first week as an extended test drive. However, there are strict limits:

  • Mileage Cap: You are limited to 400 miles during this week. If you drive 450 miles and decide to return the car, Carvana charges $1.00 for every mile over the limit.
  • The “Swap” Limit: You can exchange a vehicle up to two times. The third vehicle you accept is final. You cannot return it.
  • Condition: The car must be returned in the same condition. If you get into a fender bender during the test week, the return policy is void.

Vroom’s Historical Return Policy (The Comparison)

Before shutting down sales, Vroom also offered a 7-day or 250-mile return period. The difference in mileage allowance (250 vs. 400) was significant. Vroom’s stricter limit meant you had less freedom to test the vehicle on long commutes. This comparison highlights a general rule for online buying: always check the mileage cap before accepting delivery.

The Hidden Financial Risks: Non-Refundable Fees

The biggest financial shock for online car buyers is often the delivery fee. These fees are rarely fully refundable if you decide to return the car.

Carvana Delivery Fees

  • Local Inventory: If the car is located at a nearby hub or vending machine, shipping is usually free.
  • Nationwide Shipping: If you live in Atlanta but want a specific car located in Los Angeles, Carvana charges a shipping fee. This can range from $190 to over $590.
  • The Risk: This shipping fee is non-refundable. If you pay $590 to have a car shipped, drive it for two days, and decide to return it, you get the price of the car back, but you lose the $590 shipping cost.

Vroom’s Fee Structure

Vroom typically charged a flat delivery fee, often around $699, regardless of where the car came from. Like Carvana, this fee was generally non-refundable. This created a scenario where a consumer could “try” a car and lose nearly $700 just for the privilege of rejecting it.

Administrative and Title Delays

One of the most severe risks associated with online retailers has been the handling of paperwork. Unlike a local dealership where you often leave with temporary tags and registration in process, online retailers have faced massive logistical bottlenecks.

The Title Problem

Both Vroom and Carvana faced legal scrutiny regarding title delays.

  • Registration Limbo: There have been thousands of reports of customers receiving their car but waiting months for the title and permanent registration.
  • Expired Temp Tags: Buyers were often forced to park their cars because temporary tags expired, and the retailer could not issue new ones legally.
  • State Suspensions: Carvana faced temporary suspensions of its dealer license in states like Illinois and Pennsylvania due to these paperwork failures.

The Risk: You could legally own a car that you cannot legally drive on public roads because the retailer failed to process the DMV paperwork in time.

Alternatives to Pure Online Buying

Given the shutdown of Vroom and the risks associated with Carvana, buyers should consider hybrid models.

  1. CarMax: CarMax allows you to reserve cars online but typically encourages in-store pickup. They offer a 30-day/1,500-mile money-back guarantee, which is significantly longer than Carvana’s 7-day window.
  2. Certified Pre-Owned (CPO): Buying a CPO vehicle from a traditional manufacturer dealership often includes better warranty coverage and the ability to inspect the car before signing any financial documents.

Frequently Asked Questions

Is Vroom still selling cars? No. As of January 2024, Vroom halted its ecommerce operations. They are no longer buying or selling used vehicles to consumers. They are winding down this part of the business to focus on their finance and analytics divisions.

Does Carvana charge for returns? Carvana does not charge a restocking fee if you return the car within 7 days and remain under the 400-mile limit. However, if you paid a shipping fee to get the car delivered to you (often between $190 and $590), that money is not refunded.

Can I inspect the car before I accept delivery from Carvana? Yes. When the delivery driver arrives, or when you pick up from a vending machine, you have time to walk around the vehicle and inspect the interior. You can refuse delivery on the spot if the vehicle does not match the description, without triggering the return process.

What happens if I damage the car during the 7-day trial? If the vehicle is involved in an accident or suffers damage while in your possession, Carvana may refuse the return or charge you for the repairs. The 7-day guarantee assumes the car comes back in the exact condition it was delivered.

Are online car prices negotiable? Generally, no. Both Vroom (historically) and Carvana operate on a “no-haggle” pricing model. The price you see is the price you pay, which simplifies the process but eliminates the chance to bargain for a better deal.