Thinking about buying a car online? You might have heard of Vroom – an online car dealership that promised to revolutionize how we buy vehicles. With home delivery and a no-haggle approach, it seemed like the perfect solution to traditional dealership headaches. But what went wrong with this once-promising company? Let’s dive into the details of this Vroom review.
What Happened to Vroom?
Vroom’s story is a dramatic cautionary tale in the online retail space. After going public in June 2020 at $22 per share and skyrocketing to nearly $74 just three months later, the company experienced a spectacular fall.
As of January 22, 2024, Vroom officially shut down its e-commerce operations and used vehicle sales. The company laid off nearly 800 employees—about 90% of its workforce. On November 13, 2024, Vroom filed for Chapter 11 bankruptcy and emerged debt-free on January 14, 2025.
Today, Vroom only operates through two subsidiaries:
- United Auto Credit Corporation (UACC): Provides financing to independent and franchise dealers
- CarStory: Offers AI-driven analytics for automotive retail
Despite narrowing its losses, the company’s Q2 2025 results still showed a net loss of $8.9 million.
Customer Satisfaction: The Numbers Don’t Lie
The data paints a grim picture of customer experiences with Vroom:
| Review Platform | Average Rating | 1-Star Reviews | 5-Star Reviews |
|---|---|---|---|
| Consumer Affairs | 1.5/5 | 73% | 9% |
| Better Business Bureau | F Rating | Dominant | Rare |
| Trustpilot | 1.3/5 | 79% | 7% |
The Better Business Bureau issued Vroom an F rating and published a report detailing patterns of consumer complaints. Dan Parsons, head of the BBB of Greater Houston and South Texas, described the volume of complaints as “totally unprecedented,” with more than 4,500 complaints logged with his chapter alone.
Top Customer Complaints About Vroom
Delivery Delays That Stretched for Months
The most common complaint? Vroom’s inability to deliver vehicles on time. While the company promised delivery within 10-14 days, customers routinely waited six weeks or more.
The Federal Trade Commission’s investigation revealed that Vroom continued to promise delivery timeframes even when they knew these promises were unrealistic. Customers were often left without updates during these delays, and when they requested information, they were transferred between multiple departments without receiving answers.
One customer reported waiting over a month for their vehicle, only to be told repeatedly that delivery would occur “within 24-48 hours,” a promise that was never fulfilled.
Title and Registration Nightmares
Many customers couldn’t legally drive their purchased vehicles due to missing or incorrect paperwork. The consequences were severe:
- The Texas Department of Motor Vehicles issued Vroom more than 80 violations since 2019
- 59 cease and desist orders were issued, primarily related to title transfer failures
- Florida fined Vroom $87,000 for 47 counts of failing to transfer vehicle titles within the required 30-day period
Customers reported receiving vehicles with temporary tags that expired before permanent registration was completed. This left them unable to drive cars they were still making payments on. Some had their insurance companies drop coverage due to registration delays, creating even more problems.
Vehicle Condition: Not as Advertised
Despite Vroom’s marketing claims of a “184-point inspection,” the FTC found that the company had misrepresented its vehicle inspection process. Customers frequently received vehicles with:
- Grinding noises and brake problems
- Bald or dry-rotted tires
- Body damage not visible in online photos
- Engine problems including coolant and oil leaks
- Electronic malfunctions
One customer reported purchasing a $15,000 vehicle that required $18,000 in repairs shortly after delivery. Another described buying a truck that was delivered with significant rust damage that wasn’t disclosed, requiring expensive repairs that Vroom refused to cover under warranty.
Customer Service: The Final Straw
Perhaps the most consistent complaint across all platforms was Vroom’s abysmal customer service. Customers described:
- Being transferred between multiple departments without resolution
- Experiencing long hold times (often 1-2 hours)
- Being unable to reach supervisors or managers
- Representatives reading from scripts without authority to resolve issues
The BBB noted that when customers requested to speak with managers, they were often told none were available or were simply placed on indefinite hold. One customer reported calling customer service over 100 times to resolve title and registration issues without success.
Legal Consequences for Vroom
Vroom’s problems attracted significant regulatory attention:
The Federal Trade Commission filed a lawsuit in July 2024, alleging violations of:
- The Mail, Internet, and Telephone Order Rule
- The Pre-Sale Availability Rule
- The Used Car Rule
The FTC’s complaint specifically alleged that Vroom:
- Failed to obtain consumer consent for shipment delays
- Did not provide prompt refunds when cars weren’t delivered as promised
- Misrepresented that it thoroughly examined all vehicles before sale
- Failed to provide required warranty information and buyer’s guides
As part of the settlement, the FTC is distributing more than $934,000 in refunds to 20,361 affected consumers.
The Texas Attorney General also filed a lawsuit in April 2022, resulting in a $3 million settlement for similar charges including misrepresenting vehicle history and condition.
The Few Positive Experiences
While overwhelmingly negative, some customers did report positive experiences with Vroom, particularly in the company’s earlier years. Positive aspects mentioned by satisfied customers included:
- Convenience of home delivery when it worked as promised
- No-haggle pricing that eliminated negotiation stress
- Competitive pricing that sometimes beat local dealerships
- Large inventory selection available online
- Streamlined financing process for approved buyers
However, these positive experiences were rare exceptions. Even customers who initially had good experiences often noted caveats, such as minor cosmetic issues not disclosed online or communication gaps during the process.
Why Vroom’s Business Model Failed
Vroom’s collapse represents a cautionary tale about scaling too quickly without adequate operational infrastructure. The company attempted to grow rapidly during the pandemic car buying boom, but several factors contributed to its downfall:
- Unsustainable growth model: Financing inventory through floor plan facilities and promising quick delivery times proved unsustainable.
- Market shifts: When the used car market shifted and interest rates rose, Vroom found itself with expensive inventory it couldn’t sell quickly enough.
- Operational complexity: The company underestimated the complexity of vehicle titling, registration, inspection, and delivery, creating multiple points of failure.
- Poor customer service infrastructure: As complaints mounted, Vroom couldn’t adequately address customer concerns, creating a downward spiral of reputation damage.
What This Means for Online Car Buying
Vroom’s failure doesn’t mean online car buying is doomed. Other companies like Carvana and CarMax continue to operate, though they’ve faced their own challenges. For consumers considering online car purchases generally, Vroom’s experience highlights important considerations:
- Research company reviews and BBB ratings before making deposits
- Understand return policies and associated fees completely
- Verify inspection and warranty claims through independent sources
- Ensure adequate financing alternatives if deals fall through
- Maintain documentation of all communications and promises
Given Vroom’s current status, consumers can no longer purchase vehicles directly from the company. For those who previously purchased from Vroom and are still experiencing issues, the FTC refund program may provide some relief, though claims must be made through the designated refund administrator.
The Future of Online Car Buying
The online car buying industry continues to evolve. While Vroom’s failure highlights the challenges, consumer demand for alternatives to traditional dealership experiences remains strong. Companies that can solve the logistical challenges while maintaining strong customer service have potential for success.
Key lessons from Vroom’s experience include:
- Operational excellence matters: The convenience of online shopping means nothing if the company can’t deliver vehicles as promised.
- Transparency is essential: Being upfront about vehicle condition, delivery timelines, and potential issues builds trust.
- Customer service must be prioritized: When problems arise—and they will—responsive customer service is critical.
- Scaling requires infrastructure: Growing too quickly without the necessary systems in place is a recipe for failure.
Online car buying will continue to evolve, but companies must learn from Vroom’s mistakes to build sustainable businesses that truly deliver on the promise of a better car buying experience.
Vroom’s story serves as a stark reminder that innovative business models must be supported by operational excellence and customer service capabilities. Despite initial promise and significant investment, the company’s inability to deliver on basic customer expectations ultimately led to its downfall.
