Carmax - What's Your Experience?

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Comments

  • featherzfeatherz Member Posts: 26
    I bought a VW beetle new from the dealer many years back and almost all of those things (plus more) happened also. Loved the look, but reliability was in the toilet!
  • lukuanvxlukuanvx Member Posts: 3
    Dear Andeet,

    I saw your comments while contemplating about buying a new car from Carmax at Kenosha, WI. They seems to list non-negotiable price of $3000-$4000 lower than the MSRP for the Toyota Sienna. I am not quite sure about your experiences with them. Would you have any advice?

    Kind regards,

    lukuanvx
  • andeetandeet Member Posts: 142
    First all, their lot is open to browse on Sundays. I recommend walking around each Sienna and decide on which model, options, and color.

    Second, call their local number (262-857-2134.) Go to the operator (I think it automatically goes to her/him if you don't push a option. Ask for a sales consultant named Christine. I know she'll make appointment with you. I would give you her voicemail number but I won't for privacy reasons. Reason why I recommend her is she's been with Keno Carmax for 10 years; she knows the answers and doesn't high pressure. I like to call her a "Old School Carmax Sales Consultant;" wants to help out in a very professional way. Cause she knows if she does great job, you'll come back to see her in the future. I would personally know since she has done two deals with me. I am 24 years old female who went alone on the second deal; she could of taken advanage of me but she didn't! On a funny note for you to know: I'm not her trying to score a deal. I am a customer of hers and I highly recommend her. If she asks you how you got her name tell her go ahead and say this "A customer of yours by the name of Andrea gave me it while I was posting on edmunds.com"

    Third, trade in process. If you have car still worth money like I had '06 Scion xA. They will give you top dollar cause they can throw it on the lot. I traded it in for $10k which was the blue book value I researched.

    Business Office visit aka "When you sign the papers." Christine hang around with me. While waiting to sign papers. We chatted off the wall stuff. Making the waiting game less stressful. But when the few times I was getting service; I saw most new consultants usually let their customers wait alone while they off doing something else. I thought that was unprofessional.

    Overall, Sales does great service. Service should take notes from sales. LOL "How hard is it to screw in the battery connector to the proper gap?" Geez! To bad for them; saved over $100.00s so far doing my own oil changes anyway.
  • andeetandeet Member Posts: 142
    I also gotten valuable advice during my 2nd sale. I think this advice has been one of the most important I've learned so far in my 24 year old life.

    The sales consultant says to me not in these words but same idea; "I've seen two different types of customers. The conservative, who only buys what they need. Then I see a customer who buys what they want so they can have fun. Makes me realize you should live and enjoy life. Enjoy what you earn; one day you'll wake up and its your last day."

    Being in my car allows me to have freedom. I can turn off the radio, blast the radio, turn left, turn right, keep going straight, speed up to 75, have windows down or have AC on. There's nothing in this world that gives you that many options.

    image

    My fun!
  • 1racefan1racefan Member Posts: 932
    The sales consultant says to me not in these words but same idea; "I've seen two different types of customers. The conservative, who only buys what they need. Then I see a customer who buys what they want so they can have fun. Makes me realize you should live and enjoy life. Enjoy what you earn; one day you'll wake up and its your last day."

    Yeah, that's a good line for a sales person - especially to use on a young person like yourself. It plays on your emotions. This isn't always the best financial advice.
  • andeetandeet Member Posts: 142
    Yeah but I was told that after I took the loan offer.

    I was making $8.00s hour when I bought my first financed car. Second deal, I was $15.00 hour. She told me I could buy Tahoe but I said "No. I rather buy 4Runner if I went that route." She gave me look. Few weeks, I'm getting promotion and could easily make $19.00-20.00 hour. Will I go back and trade in my Scion tC...Nope. I rather buy a house or second car.

    My theory is she lecture me about wanting to buy a Scion. When I could afford something more like a Lexus. But I came with a game plan. Researched how negative equity works with a new loan. Knew the future total payoff before signing the papers. I could of went to the town's Mitsubishi dealership and gotten a EVO. But I didn't...I played it safe. Got a better car for little more without putting huge dent into my wallet. I wished I would of waited another month when I received my end of the year bonus' and walked in with $3k not $1k. I had crappy birthday that week and knew buying my possible car dream would make it better. It did.
  • mackabeemackabee Member Posts: 4,709
    "CarMax was and is an affliate of Circuit City: the company that replaced your Electronics Saleman with the kid from McDonalds to be your helpful advisor.LOL.
    Thats why everyone goes to Best Buy now. Their menatility on how to pay and treat sales people carries on in CarMax. "

    Dave

    Great info Dave. From the looks of it they want people with little to no skill selling their vehicles. Seems to be the trend nowadays. The dearlership I work for is doing the same thing. The "recondition" the used cars and "spend" a couple of thousand so the actual gross on the vehicle is minimal so the salesperson ends up with a minimum commission deal. All these dealers are just a bunch of greedy, money grubbing, scum.
    I won't buy anything from Circuit city since they pulled that crap with their seasoned sales staff. I hardly ever go to Best Buy either. If I need some computer stuff, ink, paper, etc. I go to Wally world, they are cheaper than anybody else and carry the name brands I'm looking for.
    ;)
    Mack
  • andeetandeet Member Posts: 142
    It's funny how you said about "Re-conditioning." When I saw they place my old '06 Scion xA onto the used lot. That Sunday I walked to it. I walked around it few times and noticed what they have done to "recondition;" & what I've done before selling it.

    First all, I used my xA as dog transporter too. I had a dog cage in the back. So which means I had tons of dog fur. I remember vaccum out the car for about hour and half spent about $6.00s and the fur was still in it hours before selling it.

    Guess what? That same dog fur was on the seats, on carpeting. The only thing they have done was take out the small door ding.

    Nice to know that I reconditioned the car for them...maybe I should walk up in there and ask for my hourly rate for detailing it for them LOL $15.00 hour- 3 hours=$45.00 please?
  • jipsterjipster Member Posts: 6,296
    The "recondition" the used cars and "spend" a couple of thousand so the actual gross on the vehicle is minimal so the salesperson ends up with a minimum commission deal.

    Glad to see you write that... british rover does't think dealerships do the above. Tack on another $399 dealers fee, that is pre-printed onto the contract, and you're lookig at even less of a commission for the salesperson.

    If I had money to burn Carmax would be a great place to buy a car. But then again, if I had money to burn I wouldn't be buying "pre-owned".
    2021 Honda Passport EX-L, 2020 Honda Accord EX-L, 2011 Hyundai Veracruz, 2010 Mercury Milan Premiere.
  • andeetandeet Member Posts: 142
    Whistling while rolling my eyes away on money to burn. Benefits about being in early 20s. Don't lecture me...I put 3% in my 401k each check. I have my savings account that still has original opening $100.00s that came down to $72.xx that I opened up back in November. I just haven't been able to place money in there due to personal finances; made BAD choice last year.

    I had five credit cards with lots of debt about 4k worth. Three of them are paid off; two of have total $600.00. My lovely big sissy helped me out cause she got very worried almost to a point she couldn't sleep. I let her help out. I've never felt like a different person for the good in a VERY long time.

    -----------------------

    Anyway, its funny how people here were talking about Carmax and Circuit City. My Circuit City is next door to Best Buy. So if Best Buy doesn't have what I'm looking for...I'll go to Circuit City. If you go to Circuit City then a Carmax. You'll see they both wear the required brown shoes and belt. Even if you're not buying anything; they both say "Have nice day" as you walk out.

    For those who didn't know...back in '02, Carmax separated from Circuit City. Carmax stock is 13.58 while Circuit City's is 2.34. I read somewhere about few weeks ago stating Circuit City is going under?

    Another thing, when I was looking up stock quotes. There was Car-Mart popping up in Carmax news. I went onto their site just wondering. Are they owned by Wal-Mart? One thing that made me laugh out loud is you can trade in anything including farm animals. LOL Or they associates wear jeans. You think they allow them to wear cowboy hats with cowboy boots with spurs too? LOL

    What's next? Car-Store? A urban, "ghetto" based company that sells cars that "fell off the truck"? LOL I think I'm going little too far. I think I'll shut up now.
  • andeetandeet Member Posts: 142
    I've done my research about Toyota engines and Engine Sludge. For the past three oil changes I've used K&N filters. Last change I found two tiny oil clumps coming out from the drain plug. I guess Toyota has produced better oil filters since the whole famous "Camry & Engine Sluge" problem. I noticed how better quality Toyota filters are that I decided on going back with them.

    So I went back to Carmax wanting to buy few...one of the sales consultants stops me and asked "You hit 100k yet?" I looked around seeing the whole sales department standing around waiting for customers. "Yeah I did. Now I'm at 102k." I never felt so embarrassed and proud at the same time specially since my tC's consultant happened to be there too but I didn't know. I knew it would give her opportunity to give me crap about it. I'm shocked she didn't take me out back and yelled at me. lol He was saying "I bet its still worth alot." Then another consultant said "I would like to see that offer?"

    Now they are making me wonder LOL
  • MarkClydeMarkClyde Member Posts: 1
    As a CarMax "sales consultant" for almost 4 years, I can tell you plainly that CarMax has an insidious side to it that differs substancially from the "wonderful alternative to the lying bastards that work across the street schlocking used cars." There are many salespeople at CarMax that are very sucessful at being lying bastards as well and they get promoted quickly because they help make budget (quota) for their managers. Managers get the majority of their pay from pushing the salespeople to make budget, and sometimes this gets dicey for the customer.

    I know of many instances of salespeople straight lying on credit applications for customers in the hopes of getting CarMax Auto Finance acceptance (CAF) because there is no verification of income needed if approved. What this does is get a customer into a car that they really cannot afford and probably will result in a repo on their record that will screw them up when they try to get another car note.

    In the nearly 4 years that I spent at CarMax in South Texas, I have noticed a huge difference in quality of car reconditioning. When I first started, the cars as a whole, looked great and ran great and generally had no issues with a sale. This quality deteriorated noticably as the standards began to be lowered. Scratches and nicks were now "to CarMax standard." Toward the end of my job there, I rarely sold a car that did not have to have me quickly drive it back to the service area and find a mechanic to fix one or more problems. The service manager, under pressure constraints to keep costs down, did the absolute minimum amount of work needed to get the car out the door. We, as salespeople, just hoped that the quick fix would hold up for at least 5 days, as that was the length of time the customer could return the car for a complete refund. I had so many customers complaining about major problems within the first month, that it became a ususal part of doing business. If it occurred after 5 days, we breathed a sigh of relief that the 150 dollars would not be taken away from our paychecks! We just had to refer them to the service area and throw them the problems.

    We would get so many complaints about our service operation! From downright abuse to customers with an attitude of "I'll get to it when I feel like it" to lying about both the problem with the car and the solution. The service writers would be trying to find a way of making the car problem one that would either void the warranty or be something that wasn't covered so they could get paid at a higher rate than the warranty company would pay.

    Sales consultants that were new "on the floor" would be easy cannon fodder for the experienced salespeople who would regularly "snake their deals" because they knew the system and its shortcomings. That is one reason why CarMax is always hiring new sales consultants. The drop out rate is astonishing. They would hire 20 people in a month and within the next quarter, maybe 3 or 4 people would still be there. It was usually the ones that could not find employment elsewhere! The standards for employment were lowered as well and it was noticable to anyone who had been there for a while.

    I was lucky to have made it to the top level, the President's Club where I would make an extra 25 dollars on a deal 25 dollars on a warranty. Not a lot of extra considering the amount of time and effort it took to get there. It required a consistance sales of 15 cars per month. Normally a salesperson was expected to sell 10 cars per month.

    The only way I really made any money was pushing that warranty! It would double my money on a deal. In may ways, that warranty was pure profit as was so easily voided if the customer didn't read the fine print!

    By the way the reason I don't work at CarMax anymore is that I was caught by the "CarMax Internet Police," a group within CarMax headquarters that scours the Internet for any mention of CarMax by current employees. I had a blog of my adventures in Texas for my relatives on the west coast and was boasting of how I was doing at my job. Well the CarMax Internet Police contacted my dealership and, even with being the top in sales consistantly, was fired on the spot. It is very interesting that a company as large as CarMax, ranked 367 on Forture 500, is so totally paranoid about its image.

    That is a little insight about my adventures with CarMax.

    In summary, let me point out some Ture Facts about CarMax:

    1. the cars are overpriced as a rule of thumb - (when trying to get independant financing, customers get that fact from their banks, "the car doesn't book out!"

    2. CarMax has the lowest sales commission in the auto business yet has revenues of over 100 million annually.

    3. Reconditioning of cars is all about the shine and not the mechanicals. The standards for cosmetics is much more stringent than the mechanical aspects.

    4. 80 per cent of my work was preping for appraisals. People would come in for the free appraisal and have a number in their heads and our job was to "downgrade that idea with some reality" and "be realistic with their car" by going out to the parking lot and pointing out scratches and dings and obvious shortcomings with the car to degrade their idea of the value of their car. IF CarMax bought the car, we as salespeople would make 50 bucks so it was in our best interest to push down the value as much as we possibly could. I remember having a customer bringing in a almost new Honda s2000 with only 3000 miles, beautiful and perfect. He was going through a divorce and needed to sell it that week before the lawyers had a chance at making it an asset of the marriage. Low book was $22000 and we offered him $18000 and, with a lot of regret, agreed to sell it. He losk about $8000 on that deal. The car didn't even go through reconditioning and was for sale on our lot for $29998 the next day!

    5.The more cars you sell, the more evil you can get away with (at the dealer level). We had a top seller that has sexual harrassment claims against him time and time again and those problems just "went away" because he was helping to make budget (quota).

    6. Never go to CarMax to get your car serviced if you can possibly avoid it. They promise the world and find new and creative ways of making you wait and wait for the service to be completed and/or done correctly. My dealership went through so many service writers that it made your head spin!

    7.If your in the market for a late model Honda or Toyota, know the retail blue book and the price of competitors that are selling them new with all the discounts that other dealers offer. I lost many deals when a customer bought a almost new Toyota or Honda for more money than they could have bought new. One example is a 1 year old Corolla S model (normally with alloy wheels) but we took alloys off and put 5 dollar hubcaps on it. I sold it for 1500 more than they were selling for new across the street (with alloy wheels). Custome
  • golicgolic Member Posts: 714
    Thanks for this fascinating insight. I have used the car max appraisals a number of times. As bad as you say you like to low ball the value (which is good business sense) Carmax was never as bad as the dealer. I would always use the Carmax appraisal as a negotiating tool. For one, who else would give you something in writing that would last for 1 week or 500 miles, certainly no other dealer.

    Last time the dealer offered my about $3500 less on a trade in. I said no thanks, I have a car max appraisal here for more. They agreed to match. Which was better for me, as with the trade in, I do save the sales tax in my State.

    As for the divorced guy, anytime you are placed in a position of a "fire sale" your value will be depressed. Sure he lost out, but he was not in any position to hold out for the best deal. But then again, he was able to shelter $18000 from his wife - so didn't he just make $9,000?

    thanks for the story...
  • jipsterjipster Member Posts: 6,296
    Thanks for the informative post. I always assumed any reconditioning on cars 1-3-4 years old was minimal. Why put money in a car that you won't get back? Makes sense just to give it a good spit shine and put a for sale sign on it.

    Yes, the cars are way overpriced, but I've always heard though that Carmax will give you more for a trade than a dealership.
    2021 Honda Passport EX-L, 2020 Honda Accord EX-L, 2011 Hyundai Veracruz, 2010 Mercury Milan Premiere.
  • dhogue1dhogue1 Member Posts: 14
    In light of Carmax's weak financials, are they still non-negotiable?
  • volvomaxvolvomax Member Posts: 5,238
    What does the one have to do with the other?
  • snakeweaselsnakeweasel Member Posts: 19,592
    I lost many deals when a customer bought a almost new Toyota or Honda for more money than they could have bought new. One example is a 1 year old Corolla S model (normally with alloy wheels) but we took alloys off and put 5 dollar hubcaps on it. I sold it for 1500 more than they were selling for new across the street (with alloy wheels).

    I have noticed that many low mileage used cars at Carmax go for close to what a new one goes for. Just for fun I looked up Nissan Sentras on Carmax's site and found a 2008 6 speed manual with 9K miles for 14,998. I went to edmonds and found that the TMV with incentives and rebates came to 15,020. Spend and extra $22 and get new not hard to guess what people will do. (Caviet, I tried to get the same options but may have missed on one or two).

    2011 Hyundai Sonata, 2014 BMW 428i convertible, 2015 Honda CTX700D

  • joel0622joel0622 Member Posts: 3,299
    In light of Carmax's weak financials, are they still non-negotiable?

    Yes, they are still charging $20K for a car you could go to any dealer in town and buy for $17K.
  • andeetandeet Member Posts: 142
    If you have read my posts throughout the whole tread. You'll notice I've been Carmax customer since '06. I've done service, I bought two new Scions, and I even tried employment.

    I will tell you. I thought there was some thing fishy about few things. One, 1 out of five sales consultants have been there more about a year. And when I came back in the future, MORE new consultants were there. Second, I dealt with three different service consultants. Two of three were doing more "Aggressive" consulting while the other "Hey you can afford the 400.00 warranty work? I understand." Third, some of the 40-somethings don't like it when they see a early 20's female who works in a warehouse that makes $35k a year. Blows the extra cash on the car!!! While they are barely getting by." I was at the local Carmax few weeks ago...I got bothered by a sales consultant wanting a insider input about employment at my employer.

    I did get appraisal for my 100k '07 Scion tC; back in September. I have scanned the price. LOL!!!
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    LOL I can still sell my high mileage tC to high school student for almost $3K more than that!!! LOL They claimed everything was in good shape including the no tread tires, two summers & two all seasons, and the very nice dented wheels caused by hitting a nasty pothole. I also know that the engine and transmission is worth double that on the streets. LOL
  • dhogue1dhogue1 Member Posts: 14
    From what I have read, they are losing market share to outfits like AutoNation, et. al. They could move more cars if they were more open to accepting any reasonable offer instead of trying to make a certain profit margin on every deal. I guess if they reprice inventory as it ages like they will eventually move a car. In this market, I just don't see how they stay competitive. However, I'm certainly not the expert you are.
  • andeetandeet Member Posts: 142
    Have you been doing inventory searches lately on their site?

    Well, I've been thinking of buying used Scion xA? For the past two days, I've been getting bonus' from work that I could easily use for a down payment. First, they had black 5-speed in Indianapolis. They were asking $10,600. Second, they have silver 5-speed in the Chicagoland area for $10,800. Third, they have silver automatic for $11,200 at another Chicagoland location. Before we got into the recession, Carmax was least asking high 12,000s and low 13,000s for these xAs.

    But the good side of me decided to pay off other debts with the bonus money and decided to save up for the whole stick tag money. Walk in to a dealership with it and buy it in cash; next year.

    The carmax near me sells new Toyotas....You go to the used side and see base '08 Corolla for 18,000-ish then you go to the new side then you see new '08 Corolla for 16,000-ish. I get a kick when seeing that. lol
  • ZombiefcukZombiefcuk Member Posts: 3
    Curious...

    I know there are like 70 pages of posts, but I can't seem to find an answer to my question.

    How can CarMax sell a "NEW" car for like $5,000-$8,000 LESS than the dealer does?

    I've tried to get the answer out of the sales staff at a few different locations, but they won't say anything. They just keep saying, "Come on in and I'll give you an ever BETTER deal than what the internet price shows."

    Are the "NEW" cars being sold, factory rejects? Had some damage on the way to the dealer?

    ?!?!?!?!
  • snakeweaselsnakeweasel Member Posts: 19,592
    How can CarMax sell a "NEW" car for like $5,000-$8,000 LESS than the dealer does?

    Can you cite an example? I have seen low mileage used cars at CarMax priced within a thousand or two of what the same car goes for new.

    2011 Hyundai Sonata, 2014 BMW 428i convertible, 2015 Honda CTX700D

  • exb0exb0 Member Posts: 539
    You can get this price from most other Jeep dealers. You just have to negotiate for three hours and walk away twice to get this price. Carmax just advertises low price on new cars up front.
  • snakeweaselsnakeweasel Member Posts: 19,592
    Brand new it would sticker at just above 31K. But what would be the sales price. A quick check at Fitz mall and those things are going for 4-5K under sticker. My guess with very little effort you can get a similar price elsewhere.

    2011 Hyundai Sonata, 2014 BMW 428i convertible, 2015 Honda CTX700D

  • andeetandeet Member Posts: 142
    image

    Now they are asking $48,998. lol

    Since it doesn't have three bedrooms and bath 1/2. I think I'm going to pass that small deal LOL :P
  • ZombiefcukZombiefcuk Member Posts: 3
    Thanks!
  • andeetandeet Member Posts: 142
    Circuit City officially is over. My local CC, was packed though out the whole weekend. I haven't seen the parking lot so full since they opened the doors back in '98 or '99. Didn't help the fact, Best Buy is next door. They marked everything down to 30% off in the store. I would of bought a TV but I have more serious problems to repair first. Like my car accident crashed Scion tC (not my fault.)

    I wonder what is Carmax headquarters was thinking about since they filed bankruptcy? I'm going to guess "Thank God, we branched away when we did."

    Anyway, my Carmax was sweating few months ago. There was small article in the city's newspaper stating a Illinois car dealership tycoon is in the process of buying a business for the hot location and build new Honda dealership. Well, its been very quiet. I wonder if the economy changed his mind?
  • tidestertidester Member Posts: 10,059
    My local CC, was packed though out the whole weekend.

    Our local Circuit City was also packed but what astonished me is that they discounted merchandise a paltry 10% and people were buying it! Don't people know what liquidation means?

    tidester, host
    SUVs and Smart Shopper
  • tallman1tallman1 Member Posts: 1,874
    That sort of thing always cracks me up too. The challenge is finding the perfect balance of when the discount is worth the trip and the merchandise you want is still there.

    Now if everyone just stayed away until they REALLY dropped prices. But alas, when it gets to 70% off, only junk will be left. :sick:
  • tfields1tfields1 Member Posts: 2
    Question, I paid carmax to transfer a pontiac solstice from Florida to Dallas Texas. They said 7-21 days. Has anyone transferred a car? How long was everyones else's transfer from the time you paid, until the time you got to see the car?
  • anonymouspostsanonymousposts Member Posts: 3,802
    time will depend largely on how quickly they can get a carrier to pick the car up. I would assume they are dependent on a vendor to do this for them. My guess would be it's closer to a week.
  • tfields1tfields1 Member Posts: 2
    This picked up the car on thursday (the 22nd). And Today is Monday the 26hth. I am really praying it gets here today, because until it gets here I am car-less. Anybody know about how long it may take if it go on the truck Thursday?
  • Thul17Thul17 Member Posts: 25
    Did you get it yet????
  • amfrenchamfrench Member Posts: 1
    I've got a 2004 Camry Solara w/44k miles, and it's been in 2 minor fender benders. No frame damage. It has 2 other dents from self-inflicted parking mishaps, but nothing serious and the paint wasn't scratched. All in all it's an excellent car, drives very well, no other problems. Would CarMax still consider buying my car? Especially now in this !@#!@!! economy?
  • Thul17Thul17 Member Posts: 25
    They will buy anything for certain amount. They will "Low Ball." Back in '06, I sold them '95 Ford Probe with a dent on the passenger side, engine sludged engine, crap transmission, 130+k miles. Sold it for $250.00 LOL

    Like I posted back in Fall of '08. They wanted to buy my '07 Scion tC for $5,000. Before I walked in there; I looked through "Blue Book" and saw the value is $7,700-ish.

    My advice to you about this....If this Toyota is extra car and you need cash. I'll say try. But if you're just wanting to up size or down size, think about it. You can always get appraisal; they don't charge.
  • mitchfloridamitchflorida Member Posts: 420
    I had never gone there before, but heard that Carmax is generous with trade-in values. I found that not to be the case.

    I have 1999 Honda Accord V6 Coupe EX , in very good condition and low miles. CarMax is selling the exact same car with higher miles for $10,000. And they don't negotiate the price. They really charge a lot for Accord Coupes with low miles. They had two other Accords like that and were charging $9500 to $10,500. Mine is fire engine red, so it will be worth more I think . I just had it repainted and all the small dents and dings removed.

    The guy offered me with a straight face only $3500. What a joke.

    I am pretty sure I can sell this private party for $6500, if not more. This model really keeps its value. What do you guys think?
  • jipsterjipster Member Posts: 6,296
    Always better to private sell an older car as opposed to a trade in, or sell to a Carmax. Carmax usually has pretty high standards on car they put on their lot. The dealership could have been scared off by your paint job,.. some will think you are trying to cover up a wreck. It also could be that they had several other Accords on their lot and really didn't need any more, hence the low offer. I haven't looked at the numbers, but $6,500 seems a bit high for a 1999.
    2021 Honda Passport EX-L, 2020 Honda Accord EX-L, 2011 Hyundai Veracruz, 2010 Mercury Milan Premiere.
  • mitchfloridamitchflorida Member Posts: 420
    $6500 is the private party price for this particular model. They should be ashamed of offering $3500 for a car they are selling for $10,000. They did not have this model on their lot, it was located in a different state.

    How are the Buyers at CarMax paid? I am guessing he would probably make about 25 percent of the profit on the used car?

    The buyer said he wouldn't put the car on the CarMax front line . . he didn't say he wouldn't be keeping the car. Who would expect them to put a 10 year old car on the front line? They also have a 1998 Coupe for sale. that is the oldest car that Carmax will sell.
  • jwilliams2jwilliams2 Member Posts: 910
    Wholesale price on this car is between $3500-5000, depending on miles and condition. I would guess having been painted, yours would be at the lower end. And they probably would not sell it on their lot with the repaint (which diminishes the resale value considerably). My advice is to sell it yourself.
  • Thul17Thul17 Member Posts: 25
    Apparently, this whole "Buy a new car & get free sales tax" tax break probably will put Carmax back on track. I drove by the one near me and saw several cars went on test drives. I heard this break only effects on used cars? But I thought I heard Obama stating it was for both "New & Used?"

    I'll probably wait for that Scion iQ... I know its "concept" but there's so many Toyota employees who happened to be Scion owners also. They visit the same sites as Scion owners and they claim its gonna to be released as a model for 2010. Also, stated they are not going to have that same $20k sticker tag as the Smarts.

    Its so cool...If xD and Yaris were mated together; the offspring would be the iQ. LOL

    My carmax S.C. better not talk me out of it or I'm gonna see another salesperson from another dealership. I wouldn't feel right letting Carmax service it if I didn't buy from them. I know they will give me crap everytime I was there... LMAO
  • oldfarmer50oldfarmer50 Member Posts: 23,997
    "...this whole "Buy a new car & get free sales tax" tax break..."

    Maybe I've been living under a rock but I've never heard of that tax break. Here in NY that could equal several thousand dollars on a new car. Could you post a link or tell us more?

    2019 Kia Soul+, 2015 Mustang GT, 2013 Ford F-150, 2000 Chrysler Sebring convertible

  • snakeweaselsnakeweasel Member Posts: 19,592
    So far nothing has been decided about this, but if it does go into effect it will most likely be only for new cars. Its designed to help the auto industry and buying used doesn't help much.

    Currently if you itemize you can deduct sales taxes paid to the state, but if you do you lose the ability to deduct state income tax.

    2011 Hyundai Sonata, 2014 BMW 428i convertible, 2015 Honda CTX700D

  • golicgolic Member Posts: 714
    Actually - this was passed:

    The American Recovery and Reinvestment Act of 2009 which was signed into law by President Obama, on Feb. 17, 2009, represents a massive effort to stimulate the economy with spending and tax cuts. One tax provision designed to generate more automobile purchases is a new income tax deduction for state or local sales or excise taxes paid on qualifying 2009 motor vehicle purchases. People contemplating purchasing a new car or other qualifying motor vehicle this year are very likely to be quite interested in learning the details of this new temporary deduction.

    New temporary deduction. For purchases on or after Feb. 17, 2009 and before Jan. 1, 2010, the Recovery Act expands the definition of taxes allowed as a deduction to include qualified motor vehicle taxes paid or accrued within the tax year. ( The deduction generally is allowed to itemizers. It also is allowed to those claiming the standard deduction as an addition to that deduction.

    Only taxes on that part of a the qualified motor vehicles purchase price not exceeding $49,500 may be deducted. The amount of sales or excise taxes that may be treated as qualified motor vehicle taxes is phased out ratably for a taxpayer with modified AGI between $125,000 and $135,00 ($250,000 and $260,000 on a joint return).

    Old Law: Taxpayers had a choice of either deducting Sales and Use Taxes OR State and Local income tax.

    New Law: You can now deduct sales tax on a qualified motor vehicle even if you choose to deduct state and local income taxes. If you take the standard deduction and do not itemize - you get an increased Standard deduction for taxes paid on a qualified auto.

    You are only allowed a deduction UP to a $49,500 purchase price. So, if you buy a car for $65,000 you can not take the full amount of sales tax paid.

    Finally, if you make over $135,000 or $260,000 you are the Obama Wealthy and not allowed squat.
  • golicgolic Member Posts: 714
    The buy a car and get "free" sales tax is also inaccurate.

    For purposes of your federal tax return, the sales tax is a deduction and not a tax credit. Therefore it is not a dollar for dollar trade off.

    For example, if you purchase a $25,000 car and pay 6.5% sales tax of $1,625 you would get a deduction on your tax return for $1,625.

    Depending on what tax bracket you are in, that would determine your savings. If you were in the 28% tax tax bracket, your tax savings would equate a $455 tax savings.

    So, no where even close to being "FREE"
  • mitchfloridamitchflorida Member Posts: 420
    It also does nothing for those of us in states where we already can write off our sales taxes anyway, such as in Florida. There is no income tax in Florida, so we can write off our sales taxes.

    It is a benefit to those who write off their state income taxes and can now write off their sales taxes on the car purchase as well.
  • lemmerlemmer Member Posts: 2,689
    The ability to write off sales tax does not negate the fact that you pay sales tax. You only save your income tax rate multiplied by the sales tax, not the entire amount of sales tax.
  • flip77flip77 Member Posts: 14
    Unless you live in South Carolina where Sales Tax on any registered vehicle capps at $300
  • mikefm58mikefm58 Member Posts: 2,882
    I just picked up an 08 Sebring at the Orlando Carmax and thought I'd post my experience. I'd been unsuccessful at getting my price with other local dealers, one that had a nice 08 Sebring Limited 4 cyl, and another that had a new 09 Sebring Touring 4 cyl that had some extra dealer cash. Neither wanted to give what I needed for a trade in.

    I checked their website and found an 08 Sebring Touring 6 cyl in Kansas City that was listed as a 4 cyl but the engine specs and pics showed it was a 6 cyl. The price was about $1300 less than other comparably equipped 6 cyl models. So either the local Kansas City market is way low or someone marked it wrong. Either way I had them double check to make sure it was a 6 cyl before paying the $599 transport fee.

    They appraised my truck, which was an 06 Tundra Limited, and came in right at what Volvomax indicated over in RWTIV, $14K. The price of the Sebring was $12K plus $149 processing fee plus $599 transport fee. So I decided to do the deal.

    They indicated it could take up to 21 days for the transport but it actually only took 14 days. The vehicle arrived Friday night and I went in yesterday to complete the deal. A quick test drive and walk around to make sure all the lights worked and nothing else unexpected and we go inside to complete the paperwork. They also had to re-appraise my truck since the original one had expired, no problems the trade in price was still the same.

    Since it was the weekend with the banks closed, I had to put in a backup finance application even though I'm going through my local credit union at 5.4%, closest they could come was 8.25%. So I've got some leg work to do Monday to get them the check.

    I'm going over the buyer's order and see this $24 fee for "Optional online filing fee". It's a fee that the state charges dealers for the convenience of doing online filing of the DMV paper work. I know it's only $24 but fees are a pet peeve with me so I ask to speak with a manager, but he would not take off the fee. I told him so much for no hassle and everything being disclosed up front. I said you actually have two processing fees, one for $149 that is disclosed and this one for $24 that is not disclosed.

    I'm open for suggestions on how to recover this. Other than dinging them on the survey and maybe taking this to corporate, not sure what else I can do. Also, the payoff of my trade in is $40 higher than what it should be so I need to double check this with SETF. Maybe this is another undisclosed fee.

    Overall, good buying experience, not great since it took 2.5 hours to do the delivery, and the $24 undisclosed fee. But I love the car and felt it was a great price, even for Carmax.
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