Vroom Wants To Make Used Car Salespeople Obsolete

Vroom, an online auto sales startup has announced $54 million in additional funding. Among those investors were former Denver Broncos quarterback and dealership owner John Elway. The organization is trying to make a name for itself as an alternative to traditional used vehicle sales through a dealer. The organization has raised a combined $108 million since 2013. Like Beepi and Carvana they are acting as the used auto sales dealership alternative.

While Beepi is more successful in funding, as they close in on $300 million, Vroom is moving right along. Their CEO has spoke out against the traditional used car salesman mantra saying that it’s creation is understandable. CNET reported Vroom CEO Allon Bloch said, “People have compared the trepidation of car buying and the slough of negotiating to having a root canal. The used-car salesman reputation is almost deserved.”

Vroom, offers a website that allows consumers to buy or sell their vehicle. Their vehicle-selling feature offers quotes as consumers take photos and gather personal data on their vehicle. They are then reportedly sent an instant quote for a cash deal on their vehicle. Vroom says they inspect and recondition the vehicles they purchase before they resell them. It’s a real estate-less business model that at least according to reports, is working very well. Estimates for yearly earning projections for Vroom are in the $300 million range. They have a stated goal for 2016 to hit the $1 billion revenue dollar mark.

Vroom, like Beepi, is raising capital in the tens of millions for their entirely online used auto superstore. Are those investors putting their money in the wrong place or are online auto sales simply inevitable? Finally – how close is your store to allowing a large part of your sales process to take place online?