Carvana and Vroom are both front-runners in the car-buying business and very good choices for those looking to buy, sell or finance used cars online. Both businesses overshadow traditional dealerships by boasting a hassle-free car buying process, stellar customer service and an easy, online car buying site, however it is imperative to distinguish which e-commerce car retailer is right for you.
By “right for you,” we mean the company that will give you the most money for your trade-in. Overall, each deal varies from person to person and depends on the current market value, however we have scraped data to help you figure out whether Carvana or Vroom will give you the highest offer depending on the following factors:
We have compiled data from multiple sources to show you whether Carvana or Vroom will give you the highest bid based on your vehicle’s odometer reading. Refer to the chart below:
With this data, we can see that Vroom is more likely to win a bid (by offering a higher price) on vehicles with lower odometer readings in the 10,000-50,000 range. Odometer readings between 60,000 and 80,000 are about 50% likely to go to either Carvana or Vroom. Also, Vroom is 68% more likely to win on vehicles over 100,000 miles. If your vehicle has lower mileage, you are more likely to get a better offer from Vroom than Carvana.
When it comes to the average price of your vehicle, you can also determine where you can get a better offer. For example, the graph below compares Carvana and Vroom’s win ratios based on prices.
This graph tells us that Vroom wins bids on vehicles costing below $5,000 75% of the time, compared to Carvana’s 25%. Vroom also is very likely to win a bid on cars prices over $20,000. Carvana, however, does take the win when it comes to vehicles costing $5,001 to $19,999. With this in mind, Carvana offers better bids for mid-priced cars, while Vroom will give you a better deal for your car if it is either very cheap or on the higher-priced side.
Next, your vehicle’s year is also very telling of whether you should look into Carvana or Vroom when selling. According to the data in the graph below, Carvana is more likely to place higher bids on 2013, 2014 and 2015 model vehicles. On the other hand, if your vehicle’s year is less than 2013 or higher than 2015, Vroom is more likely to place a winning offer on your car. This distinction in bids by year shows that Vroom tries to fill their inventory with newer model vehicles, so your model 2015 vehicle is more valuable to them, whereas Carvana tends to hold a variety of inventory based on model year.
Average winning bid amount
Overall, Vroom also offers, on average, higher winning bids, meaning they are more likely to pay a higher price by bidding on more expensive vehicles than Carvana is. Vroom’s average winning bid is $1,880, while Carvana has an average winning bid of $1,218. This data is shown on the graph below.
Taking into consideration the previous four graphs, we can make the observation that Vroom is more likely to place a winning bid on newer, more expensive vehicles with lower odometer readings. Carvana, on the other hand, is more likely to purchase older, cheaper vehicles with higher miles on them. With this, it makes sense that Vroom’s average winning bid amount is higher than Carvana’s-they tend to offer higher pricing for higher quality used cars.
Other factors that impact the car-selling experience
When deciding which used car dealer to go with, it is important to look factors beyond the strict data that will impact your overall car buying experience. First, both CVNA and VRM offer the choice of trading your vehicle in at their physical locations or through pandemic-friendly, $0 contactless pickup. Carvana also offers customers free delivery for trade-ins within the local market, however Vroom charges a $599 home delivery fee. Next, Carvana offers a 7 day money-back guarantee return policy, while Vroom allows returns within a 7-day test drive period or the first 250 miles, however charges a $599 restocking fee if you picked the vehicle up. When searching for a warranty it is best to compare outside lenders with Carvana and Vroom's warranty; both companies offer limited warranty with the option to purchase their own extended warranty. Both companies also advertise a no-minimum credit score requirement. Overall, a major difference of Carvana and Vroom is customer satisfaction. According to ConsumerAffairs, Carvana receives 3.2 out of 5 stars for overall experience, while Vroom only receives 1.3 out of 5 stars. This disparity in consumer ratings could be due to Carvana's exciting vending machine in lieu of the traditional car dealership experience.
Are you interested in getting the best deal your trade-in can get with car buyers other than the dealership such as Carvana, Vroom or Carmax? You can also save big on refinancing your car loan.
WithClutch.com is a fully digital platform that lets new car owners like you lower their car payments from the comfort of their own home. No need to set a foot in a bank or credit union. You can lower your rate or get cash in as little as 20 seconds.