Shift recently filed for bankruptcy, leaving car shoppers needing a new solution for buying and financing vehicles directly online. Fortunately, alternatives exist to replace Shift’s online car purchasing and loan offerings.
Top 3 Shift Alternatives
These online used car retailers let you shop inventory, secure financing, and complete buying totally online, similar to Shift:
Carvana
- Bankrate Score: 4.4
- Best For: Less-than-perfect credit
- Loan Types: Used only
- Loan Amounts: Not specified
- APRs: Not specified
CarMax
- Bankrate Score: 4.0
- Best For: In-person shopping
- Loan Types: Used only
- Loan Amounts: $500 – $100,000
- APRs: Not specified
Vroom
- Bankrate Score: 3.6
- Best For: Wide range of financing options
- Loan Types: Used and new
- Loan Amounts: Varies by lender
- APRs: Varies by lender
READ ALSO: Bank of America: 2024 Auto Loan Review
How They Compare
While all three offer simplified online car buying and financing, some key differences exist.
Carvana
Carvana streamlines the entire car shopping process online. You can secure financing regardless of credit background and qualify for loans from 12-72 months. Delivery is available but fees apply in most areas.
CarMax
CarMax supplements online buying with physical locations across the country for test drives. It works with various lending partners specializing in auto loans for poor credit. Click-to-buy with nationwide delivery is also available.
Vroom
Vroom sells both new and used vehicles online with delivery included. Instant pre-qualification helps compare multiple financing offers. Like Shift, Vroom provides a generous 6-month/6,000-mile warranty on used purchases for buyer protection.
Shift’s Bankruptcy: What Happened
In October 2022, Shift announced it was ceasing operations and filed for Chapter 11 bankruptcy. Insufficient cash flow forced Shift into bankruptcy court for restructuring after investors declined to provide additional operating funds.
Specific events included:
- Filing for protection in U.S. Bankruptcy Court for the Northern District of California
- Listing over $240 million in liabilities and $110 million in assets
- Shutting down both of its California dealership locations
To Recap
While Shift’s closure is disappointing, alternatives exist to buy and finance cars completely online if you wish to avoid dealerships. Top options include Carvana, CarMax, and Vroom. Each continues simplifying how to purchase vehicles directly from your couch. Just take time to understand exactly how financing works with each alternative marketplace before committing to a loan.
FAQs
What if I was in the process of buying a car through Shift?
Unfortunately, all pending sales and transactions with Shift have been canceled, including any payments you submitted. You’ll need to restart the car shopping process with another dealer.
What happens to my existing Shift car loan?
Since Shift facilitated financing through outside lending partners, any existing loans remain legally valid. You must continue making payments as required. Only the servicing of these auto loans is impacted.
In another related article, Bank of America: 2024 Auto Loan Review
