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March 27, 2021
Used car shopping is quickly shifting online. Let's take a detailed look and compare three of the biggest players: Vroom, Carvana, and CarMax.
Table of Contents
Each of these online used car websites is user-friendly and has some great offerings. However, there are key differences between each platform.
So, when it comes time to buy your used car online, which is best?
Today, we'll break down each service, digging into how they work and what they offer. Find out which platform may be best for you and what you should consider before using them.
Company | |||
Website | |||
# of Vehicles | - 15,000+ | - 55,000+ | - 23,000+ |
Pricing | - Vehicle prices vary ($7,500-$70,000) - No Negotiation | - Vehicle prices vary ($8,000-$70,000) - No Negotiation | - Vehicle prices vary ($6,599-$90,000) - No Negotiation |
Financing | - Compare rates - No minimum credit score - Must make at least $21,600/year | - Non-negotiable financing - No minimum credit score - Must make at least $10,000/year | - APR ranges from 3.5% to 20% - Accepts wide range of credit scores |
Delivery Fee | - $599 home delivery fee | - $0 if within local market - Option to pick up locally - $250-$1,000 depending on distance | - Depends on distance |
Warranty | - 90 days or 6,000 miles - One year roadside assistance | - 100 days or 4,189 miles - CarvanaCare optional | - 90 days or 4,000 miles |
Return Policy | - 7 days or 250 miles | - 7 days or 400 miles - If over 400 miles, $1 extra per mile | - 7 days |
Our Full Review |
On Vroom, you can search (or post) used cars and trucks with ease. You can sell, buy, or trade-in using a very simple process, and enjoy home delivery right to your doorstep. The majority of Vroom's inventory is comprised of low-mileage, pre-owned vehicles under 3 years old. All of their cars have clean titles, and they source them from dealers, auctions, and private sellers.
The Vroom buying process is quite simple. You begin by searching for vehicles by make, model, or body type. You can also filter searches by qualities like mileage and price.
Find the car you love, then place your order. Vroom will approve your contract and book the car for transport through one of its network carriers. You can expect an email with an estimated delivery date within five days of the fund receipt.
You can choose to finance with Vroom. If you opt for Vroom financing, they'll handle the registration and plates for you. You also get a week or 250 miles to decide if you want to keep the vehicle, but you won't get the $599 delivery fee back.
Vroom isn't just a place where you can buy a car online, you can also sell or trade-in your car to Vroom with contact-free pickup.
To sell or trade-in your car, you'll need to complete the free appraisal form online. You have to provide the mileage, features, and VIN or license plate.
Then, Vroom sends you an offer that's good for 250 additional miles or 2 days. The offer does not allow negotiation, you must accept or decline it. If you accept Vroom's offer, then you complete the paperwork to transfer the title to Vroom. Once the paperwork is finalized, Vroom will schedule your free pick-up.
When it's time for pickup, they'll inspect the vehicle and then sign a bill of landing. The driver will notify Vroom of the pickup, and Vroom will process the payment once they receive the car.
The one nice thing about today's inflated car prices is that you can sell your car at an all-time high.
Carvana has a strong need for used vehicles and typically pays more than local dealerships.
Check out our full review and guide on selling to Vroom.
While Vroom has many benefits, there are also some drawbacks to consider. Some of the most commonly mentioned complaints include:
Carvana is a completely online used-car dealership, and they also offer direct financing for the vehicles they sell. Carvana prides itself on offering a streamlined, haggle-free digital car-buying and selling experience, and they sell a wide variety of vehicles.
Start your Carvana car-buying process by searching on the side. You can filter your search based on features, keywords, price, model, make, etc. When a vehicle catches your interest, head to the listing page. You can view all of the details and examine the 360-degree views.
Once you choose a vehicle, you simply click "Get Started" and create an account. You may pay in cash, through financing, or via trade-in. Carvana offers in-house financing, and you can apply for pre-qualification on their site.
Next, you'll choose delivery or pickup, and complete the rest of the paperwork. If you choose delivery, you can expect the vehicle within a few days, and if you opt for pick-up then you'll need to find the closest Carvana Vehicle Vending Machine.
Select "Get My Offer" and then input your vehicle's details including condition, accident history, features, color, mileage, VIN, etc. If your car qualifies, Carvana will give you an instant cash offer that's valid for 7 days.
If you decide to accept the offer, then you'll schedule an appointment for a Carvana representative to inspect your vehicle. As long as your vehicle passes inspection, Carvana will give you your check right on the spot and take the car for pick-up.
The one nice thing about today's inflated car prices is that you can sell your car at an all-time high.
Carvana has a strong need for used vehicles and typically pays more than local dealerships.
Check out our full review and guide on selling to Carvana.
There's a lot to like about Carvana. Here are some of its top qualities:
As great as Carvana is, there are some downsides to consider such as:
Browse a huge selection of new and used cars at fixed prices on CarMax. You can see cars that are not trade-ins, and cars in many locations. Choose from a curbside pickup option or home delivery when shopping via CarMax. Since CarMax has physical locations, you can also go to a dealership to test-drive the cars if you want to make your car-buying experience offline.
Start your car buying process by searching for a vehicle based on the model, make, or keyword. Apply filters for price, year, brand, or type to simplify your search. Easily compare the different vehicles with CarMax's detailed listings, and get a free car history report through AutoCheck.
View the vehicles' interactive 360-degree profiles, along with several interior photos. You'll also get the VIN.
Once you decide on a vehicle, you actually have two options. You can buy it online and have it shipped to your nearest CarMax location for pickup. If you do qualify for home delivery, CarMax will show it as an option on the listing. Otherwise, you can actually schedule a test drive at the vehicle's location and purchase it in-person for the sticker price if you choose to buy it.
Should you choose to finance, you can get preapproval from CarMax. However, beware that you cannot make your down payment via credit card, you must use a personal check or debit card.
You can also sell your car to CarMax. Start by completing the form on their website, where you'll need to enter the details about its make, model, year, and mileage. If they're interested, they will send you a message to schedule an inspection.
Bring your car to a CarMax location near you for inspection. If it passes their inspection and meets their specifications, you'll get an instant cash offer that's valid for 7 days. Even if you decide to sell your car to CarMax, you are not required to buy a car in return.
CarMax makes buying a car a breeze. Here's how:
CarMax is great, but it's not perfect. Here are some of the cons of CarMax:
The one nice thing about today's inflated car prices is that you can sell your car at an all-time high.
Carvana has a strong need for used vehicles and typically pays more than local dealerships.
Delivery can get expensive, and it's not something you want to pay an arm and a leg for when buying your car. Here are the delivery prices for each platform:
Since you usually cannot test drive when buying a car online, it's important to choose one with a strong warranty.
Buying a car online can be a frightening process, but a great return policy can make a huge difference.
If simplicity is the name of your car buying game, then Vroom is a top choice. Many customers praise Vroom for its easy car-buying experience. Their site is incredibly user-friendly, and they offer more flexible payment options than alternative sites.
Carvana may be for you. Similar to Vroom, they offer a pretty streamlined online shopping experience that's fairly simple. Carvana also provides financing, which is very helpful for used-car buyers. It's a good choice for many used-car shoppers.
For the best service and the ability to test-drive, you'll want to use CarMax. Just like Vroom and Carvana, you can buy entirely online, but you may also have the option to test-drive, which is a major plus for used car shoppers. CarMax is a top-rated online car buying site with many positive reviews that praise their great deals, ease of use, and helpful customer service.
The bottom line is that all three sites have their advantages and disadvantages. CarMax has the highest-ratings, with many satisfied customers, but there are reasons to consider all three.
Since we recommend comparing 6-8 dealers (online and local) for the best pricing and experience, it's a good idea to consider using all three sites. There's no sign up fee to browse for cars, and checking on all three sites can help you snag the best deal. On each site, make sure to read the fine print and take your time with any purchases.
The one nice thing about today's inflated car prices is that you can sell your car at an all-time high.
Carvana has a strong need for used vehicles and typically pays more than local dealerships.
What is the best online car-buying platform?
Vroom, Carvana, and Carmax are some of the top online-car buying platforms available. Each offers a user-friendly experience with some great offerings. Vroom is the most simple and straightforward, and CarMax is the most highly-rated platform out of the three.
Do online car-buying platforms offer financing?
Vroom, Carvana, and CarMax all offer some form of financing. Vroom has several financing partners to choose from, Carvana offers non-negotiable financing, and CarMax offers loan rates that range from 3.5% to 20%.
Can I return a car I bought through Vroom, Carvana, or CarMax?
Each site has a different return policy, but you should be able to with some possible fees. Vroom gives you 250 miles or 7 days to return, Carvana offers a 7-day money-back guarantee, and CarMax also has a 7-day return policy.
What is Vroom?
On Vroom, you can search (or post) used cars and trucks with ease. You can sell, buy, or trade-in using a very simple process, and enjoy home delivery right to your doorstep. The majority of Vroom's inventory is comprised of low-mileage, pre-owned vehicles under 3 years old. All of their cars have clean titles, and they source them from dealers, auctions, and private sellers. Check out our full review on Vroom here.
What is Carvana?
Carvana is a completely online used-car dealership, and they also offer direct financing for the vehicles they sell. Carvana prides itself on offering a streamlined, haggle-free digital car-buying and selling experience, and they sell a wide variety of vehicles. Check out our full review on Carvana here.
What is CarMax?
Browse a huge selection of new and used cars at fixed prices on CarMax. You can see cars that are not trade-ins, and cars in many locations. Choose from a curbside pickup option or home delivery when shopping via CarMax. Since CarMax has physical locations, you can also go to a dealership to test-drive the cars if you want to make your car-buying experience offline.
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Posted in Car Buying Tips |
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