I traded my Golf R for a Volvo V60 via Vroom. Yes, I kinda gave up on driving. But, needs change and all that, and frankly I was using about 10% of the capabilities of the Golf, and when I was I was likely to get arrested.
As someone who's been around the VC world and seen what "industry disruptors" are doing, their business model is somewhat understandable to me. I also have some serious questions about the implementation.
The company is putting growth and "scalability" above all else. They're hiring like crazy, opening new hubs like crazy, and they're burning through expensive venture capital at an astonishing rate. They are also really struggling on the implenatin of their actual business of buying and selling cars.
My own timeline: I initiated the trade and purchase 5 weeks ago. I received the new car 2 weeks ago, and received the title today. The timeline is faster than some, as I basically emailed the entire board a couple of weeks in, and clearly they assigned the case to someone so that I'd stop bothering important executives...
Along the way, I've talked to completely incompetent (likely outsources CS reps), and dealt with highly competent folks who clearly do give a @#@. The inconsistency though in the experience is startling. What's also startling is that their whole business model is predicated on going remove through Vroom because it's easy. I suspect for most folks, there's nothing easy about it. Maybe for a lucky few. But a quick look at their BBB reviews (their accreditation there has been revoked) and the reviews on several sites show that they are seriously struggling. I get the internet amplification thing, but compared to their competitors, their online reputation is abysmal.
In my own case, things went pretty well, but it took way too much work for a process they sell as "easy". I put up with it because finding a V60 w/the options I wanted was almost impossible, and the tax advantage of trading was so high (about a $4,200 difference, which I almost gave up on out of frustration early on in the process).
They also paid 3K more for my Golf that I paid for it, which is crazy--but I also found that same offer locally.
As far as making money on specific transactions, it's clear they don't care about that--they're in "growth above all else" mode. The fact that they're offering convertible bonds shows to me they are leveraging through the roof. Maybe it will work out long-term. Maybe the fact that they are not signing checks is incompetence vs. cashflow (personally, not so sure). I do know that as an investor, I'm always looking for opportunity. This isn't a place I'll put my own money based on my own experience.
The deal I got on the trade ended up being great after some heartburn, but I could only recommend them with a whole bunch of caveats. Maybe they'll get things sorted out in the future. Maybe not.
