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Why Vroom, Inc. (VRM) Is Surging in 2025

We recently published an article titled Why These 15 Vehicles & Parts Stocks Are Surging In 2025. In this article, we are going to take a look at where Vroom, Inc. (NASDAQ:VRM) stands against the other vehicles and parts stocks.

Certain automotive companies have held up surprisingly well in the current environment, and that’s especially true with companies that supply automotive parts. The high interest rate regime was supposed to crush automotive companies across the board, and early tariffs specifically targeted countries that produced the most automotive parts for the U.S.

Even then. These stocks have done well since high interest rates have made it difficult for low-income consumers to buy new cars. Instead, they have opted for repairing their existing vehicles, which has been a tailwind for automotive parts companies for the past two years. The average age of vehicles was already at a record 12.6 years in 2024, so this tailwind isn’t going away anytime soon.

Customers who have higher incomes have kept on buying new vehicles. It is mostly because of them that consumer spending has held up across the board. Here are the biggest winners from this trend.

Even during bear markets, there are pockets of the market that perform exceptionally well. For example, I identified 15 Financial Services Stocks that are up the Most in 2025 in another article.

For this article, I screened the best-performing vehicles & parts stocks year-to-date.

I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

A close-up of a technician’s hands meticulously reconditioning the car’s mechanics.

Number of Hedge Fund Holders In Q4 2024: N/A

Vroom, Inc. (NASDAQ:VRM) is now primarily an automotive finance and AI analytics company, operating through its subsidiaries United Auto Credit Corporation (UACC) and CarStory, after discontinuing its used car e-commerce operations in early 2024.

Vroom, Inc. (NASDAQ:VRM)’s stock performance in 2025 is heavily influenced by its emergence from Chapter 11 bankruptcy. The restructuring process discharged approximately $290 million in debt and involved the cancellation of old equity, followed by the issuance of new common stock and warrants. This successful emergence significantly improved the company’s financial position.