Carmax - What's Your Experience?
Bought from Carmax or thinking about it? Ask questions and share your experience here!
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I have also found Carmax to be a great place to go if you are torn between 3 or 4 different make/models of cars. Typically they have about everything in stock, so you can at least look at them each at Carmax, without having to drive around town to several places.
He ended up getting a slightly used RX-8 from across the country (at another Carmax) that they shipped over. He paid a small fee for that, but he wouldn't have to buy the car once it arrived. He had it inspected, and did end up buying it. He paid around $20k for a 15,000 mile loaded model, and he's been very happy with it (except for the fact that he could fit a bigger piece of luggage in his former '99 Miata's trunk than the RX-8's).
Just curious - was Carmax cool with your friend taking the car to his own inspector, or did he do this after he had purchased it, but still within the return/refund period?
They let him drive it to his mechanic. I don't know what conditions they set, but it worked out.
http://www.carmax.com/dyn/research/TaxTitleTags/taxtitletags.aspx
I'm considering what I can afford OTD for a new car, and the estimate of TTT (especially in California) is a pretty important figure. I'm wondering if anyone who recently purchased a car could quickly check against their actual costs and let me know.
Thanks!
That said, some deals are better than others. You can go into a Carmax and find two identical vehicles and one will be priced $1000 less than the other. The difference is due to the amount of reconditioning necessary to bring the cars up to Carmax spec.
Carmax spends more money and time reconditioning their used vehicles than most any other used car lot.
But are they the cheapest place to shop? NO.
Relying on Kelly Blue Book to determine whether or not you're getting a good deal at a car dealership is a dire mistake.
The Kelly Blue Book accuracy on private party transactions are much, much greater.
If anybody is curious why Kelly Blue Book is so inaccurate I would be happy to explain.
What is the usual profit margin on a CarMax used car? That would help me figure out how much they would be willing to give just based off their website.
Thanks!
2018 430i Gran Coupe
Seriously though KBB trade in values are almost never ever right and I have no idea how the make them up.
If people just paid what the KBB retail price was I would have no problem giving them what the KBB trade in value was since things would even out. We over allowed by 3-5 grand on their trade but they also over paid 3-5 grand on the used car they bought.
I was thinking the same thing. Probably in most cases a oil and filter change, detailing ...maybe an air filter.
Thats about $100.
As far as Carmax having the "best" quality used cars? Someone must have visited an aweful lot of dealerships and used car lots to make that statement.
Just for example lets take a Range Rover with 40k miles on it. These cars have scheduled maintence included so its next service is on Rover but that does not include Tires, brakes and wiper blades. On any car that is not cheap but on a Range Rover it is a lot more. Cost is just under a grand just for the back brakes and front brakes are a little over a grand. You can't put cheapy tires on a Rover since no one makes cheapy 19 inch tires and you really got to use Michelin Synchrones cause any other tire seems to cup badly on Range Rovers. There is another couple of grand in tires.
All of that is before any cosmetic issues are taken care of. Little scuff here and there little dent in the door, a chip in the window that adds up to hundreds of dollars very quickly.
Now granted I am using a pretty high end car as an example but even say an average 20k dollar used car with say a little under 40k miles on it is going to need brakes and tires. They probably won't cost 4 grand to do but might cost 2 grand or 1,500 to do.
However, I think the question here is what does Carmax do to a 5,000-15,000 mile used car to command a $1000-$1500 premium vs a traditional car dealer. You don't even receive a CPO warranty from them like you would through a dealer that sells the brand you ae looking at.
Most all other dealers do the same thing so have about the same reconditioning costs.
I've worked at three. I buy a car at least every 2 years.
i.e. an extended powertrain warranty that is good to 72 or 100k miles. Which is essentially worthless since most cars (excepting Korean cars and some low-end domestics) built these days have a powertrain good for well over 100,000 miles.
On both ends of the spectrum: We sold 04 Cavaliers, low teens, power for $9-$10k. A lot of them. As early as last summer at this price.
We also sold 03 and 04 7 series BMWs for THOUSANDS less than what could be negotiated across the street from us at a BMW dealership.
On average I believe Carmax sells cars for a little more money, but nothing as much as $1000.
So If I were a financing buyer (which is the majority these days), I would take the CPO warranty (powertrain, and in some cases bumper to bumper), with the lower interest rate. Just my opinion.
That is an excellent point. The lowest rate I've seen through any of Carmax's banks (and you certainly do not have to use them, in fact, Carmax doesn't care if you use your own bank...they make no $ on the financing) is about 6.9%. Last summer it was around 5.9%.
The books are simply not accurate.
Mackabee
If I were to go to a Carmax on Saturday (say my bank is closed, and I go there on a whim) and see a car I just gotta have. I know that my bank's current interest rate on auto loans is X%, and it ends up that Carmax can't touch the rate. What is the Carmax policy on holding vehicles? Would they take a nonrefundable deposit from me to hold the car until Monday (when my bank would reopen)?
It's very, very tough.
Carmax will not hold cars. There are just too many flaky customers and honestly...Carmax cars sell much quicker than the average dealer can sell his. This is due to the online transfer system they use. Carmax cars last on average 12 days on the lot.
But what they will do is allow you to drive off the lot using their financing, then coming back within 3 days with a check from your bank to pay off the loan. If for some reason your bank is dragging their feet and you don't get your check that quick, just return the car with their 5 day return policy.
I have had some good salespeople candidates who didn't make the jump because of comission fears. It's understandable. OTOH, I could never be happy with the same check every week...I know that if I work hard I get more and if I work really hard I get alot more income...it's nice to give yourself a raise when you need it!!
I'll agree with your last 2 points .... but the reason why Carmax conducts business the way they do is because of their corporate thought process -- and that doesn't make it good or bad ... it's just the way they think.
Their thinking, is to keep the cost of many employee's out of the auctions, they feel they save money on transport, auction fee's, floorplan, time, etc ...
That said, they also have the highest cost of recon, which is an immediate profit to the dealer because they balloon the cost and they also have the highest "pack" .. this way they are only paying 17.5/$19% commission across the board .... again, immediate profit for the "house" and the buyers still pay more money for the product ...... good for the dealer principle, not so good for the sales staff or the buyer ..
Terry.
Mackabee
I always worked hard and I would see my paychecks fluctuate according to the whims of customers. I will not allow whims to determine my income.
This is a problem specific to Carmax. At a regular dealership I had a lot more control over my income but at carmax...with their automated "Ups" system, the selling process was more like a lottery draw. Would you get:
1) Customers who want to see "what their car is worth" via Carmax's much-advertised free appraisals. They have no intention of buying or selling anything.
2) Customers who want to "lower their payments" because they cannot afford their 2005 GMC Yukon Denali XL and want something closer to $300 a month.
3) "The BMW Guy"...usually a young professional (w/ girlfriend in tow) who thinks he has more money than he really does and wants to do nothing but test drive BMW/Acuras/Lexus' all day without having the means to buy anything. Usually wearing nice clothes that he put on his maxed-out Banana Republic credit card.
4) Customer who has champagne tastes on a beer budget.
5) Customer who is extremely and unreasonably picky about options and color and does not understand that there aren't Nogaro Blue Audi S4's on every dealer lot.
6) people with bad credit and no money down
7) A customer who, if they find the right car at the right price, is willing to buy a car.
So when I sign in to the front desk at Carmax, I am at the mercy at whatever customer walks in the door. There is a very slim chance I will get customer #7 above. If Customer #7 happened to call or email Carmax beforehand and I sell them a car, whomever they spoke to in email or over telephone gets HALF my commission.
When undesirable customer 1-6 comes through the door, Carmax policy dictates I am assigned to that customer and cannot leave them until they leave the store's property. I am stuck with the losers. At a regular dealership, I can "broom them" and find a better prospect.
The only reason I worked at Carmax is they allowed part-time sales. At a regular dealership you don't see people who are selling 16 cars one month and 4 the next. Sure, there is some fluctuation, but not that much. At Carmax, huge fluctuations are the norm...and these fluctuations are despite the salesperson's best efforts.
For whatever it is worth...
Commission is flat.
Accessory spiff is a joke, honestly not worth your time to sell and the equipment is garbage to boot. They're selling Sparco stereos at Alpine prices.
Warranty spiff is good and worthwhile the effort. If you don't sell a warranty with a car, you won't last long at Carmax.
Money CAN be good, but not as good as traditional dealership.
You stated if you don't sell a car all month you're paid $7.75 an hour. How long would a "greenpea" last selling only 1 or 2 cars a month...providing they didn't quit?
It is very, very hard to get fired at Carmax by not selling enough cars. They are very lenient and supportive.
Carmax's turnover seems (to me) to be lower than that of a traditional dealership.
An 8 car month is acceptable?? Wow!
Little different product though.
This brings up an interesting point though about a negative to being a Carmax salesman....What's to keep the average shopper that is looking for an SUV, but doesn't know which model to come to a Carmax lot just to drive several different models in order to try to decide which one they like the most (with no intention of buying from Carmax)? Seems like they open themselves up to being a "testdrive fleet" for people like this, since they carry just about everything you can imagine.
Don't be too sure about their "higher" profit margins either.