The New York company also will give the initial purchasers an option to buy another $75 million of notes.
The notes are convertible or can be redeemed in full or in part for cash at Vroom's option on or after July 6, 2024.
Vroom will use the funds for general purposes, including advertising and marketing, expansion of its logistics operations and increased resources for its customer experience team.
At last check Vroom shares were off 5.7% to $42.61.
Last month, Vroom shares rose after its first-quarter report received positive reviews from analysts and prompted some price-target upgrades.
Vroom's first-quarter net loss widened to $77.2 million, or 57 cents a share, from $41.1 million, or $4.85 a share, in the year-earlier quarter. Shares outstanding jumped to 135.5 million from 8.5 million.
The FactSet-derived analyst consensus called for a loss of 63 cents in the latest quarter.
Revenue jumped 57% to $591.1 million, ahead of the FactSet consensus estimate of $517.2 million. Consumer demand for cars -- and online shopping generally -- has surged during the pandemic.