Carmax - What's Your Experience?

spunkyblond · March 2011

Carmax is a good place to buy a used vehicle is you don't mind paying a premium price for an easy low pressure experience. However, most dealers put all their vehicles thru a multi-point inspection and offer a 30 or 60 day ltd. warranty. Carmax offers a 5 day return. If you find a better deal elsewhere, you can return their vehicle and walk away.

Carmax makes money several ways. Paying their consultants a flat commission of 150-175 per car rather than a percentage of the gross profit, which is fair for an order taker. They are also the largest wholesale auction in the US. If your trade is worth $4k on the auction block, then Carmax will hold back $1k-1500 from that amount. Carmax will make that much profit on your trade off of you. Even if you just sell your car to them and don't buy one. Also, their vehicles are $1500-2k above the traditional dealership. In some cases, if they took your vehicle as a trade and you bought a car from them, they make about a $3-4k profit off of you. Because they are no haggle and some people are willing to pay a premium for taking the easier route to buying a car, they have no idea they got their heads knocked off after they leave w/ their nused car. Also, they make points on financing. There APR is higher than a traditional dealer. It is a simple interest loan but if you don't pay it off early, you pay a lot of money in interest. If you have an 800 FICA and you go to a traditional dealer and buy a 2010 Honda accord w/ 10k miles, your interest rate will be in the 2 or 3% range; however, you go to Carmax, your interest rate will be in the 5-6% range. Not a bad rate but not the best either. If you're a numbers person, are or have been in the traditional car business, you feel me.

Now, if you're an employee, you are treated the same, like a droid or robot. Training is extensive and Carmax spends a ton of money to turn their associates into professional order takers. They are a publically traded company so they want to avoid lawsuits. They terminate anyone who doesn't fit perfectly into their mold, without any type of disciplinary steps first to correct the matter. They are a zero tolerance employer. Eventually, it will take fewer people to run that business as it becomes more and more automated.

One thing is for sure, you make more money as a part time sales consultant than you would anywhere else. A part time person sells 5 cars a month w/ 5 extended service plans and 5 GAP insurance plans, they grossed $1375 and you can work beyond your scheduled hours and make as much as a full time person. Just hard to make a living unless you are part time and have a decent paying full time job. Don't ever go full time unless you don't mind working 60 plus hours. If you follow their process exactly, you will make money; however, you take short cuts, you won't. It's just the way that business format is.

Just another way to sell or buy a car. Doesn't mean it's wrong. Company's are in business for one reason, make a profit. Profit isn't a dirty word. It's okay for a business to make a profit, just don't knock a customer's head off in the process.

megamark · April 2011

So I go into my local Carmax dealer to talk about two cars they have on their lot. Price is a little high, but nothing I'm not willing to deal with. When it comes down to time for my trade in appraisal, I go through the 30 minute wait.

Let me precursor this. I was trading my 2010 Ford Fusion Sport AWD with 64000 miles. I go into carmax doing alot of homework. I checked KBB and KBB tells me even with mileage my car is worth 20372 in excellent condition, and Yes my car is showroom perfect. Even the paint is flawless, not a swirlmark, not a scratch anywhere. Interior is pure perfection. Not so much as a small stain on the carpet or headliner, or a scratch on any plastic. I check NADA and they let me know my car is worth slightly less at 19775. I check Fairmarket value at carguru.com and there it judges my car by what other same models are trading in or selling for. Fairmarket value is set at 20,374.

So I decide to check around. Within a 200 mile radius, I find 2 other Fusion Sports for sale . Plus I have the upgraded Sony surround, moonroof, and rear parking assist, two full electronic keys, two sets of perfect condition floor matts (mudd and regular), and mine is AWD as apposed to FWD. I use cars.com, autobytel, autotrader.com, carsguru.com I call every Ford dealership in the area and not a single Fusion Sport on a lot, except the two others for sale at third party dealerships. One with 32K miles is selling for 26K and another with 42K miles is selling for 22K, but this car has some issues (like missing tailpipes, scratches in paint, and small crack in fender). I literally checked over 150 local dealerships including third party and private dealerships to see if I could find even another Fusion Sport for sale outside of the two I found online. Not a single one can I find.

Armed with my extensive knowledge, I head to carmax. After going to the CTS I was looking at and starting up the vehicle immediately I hear a constant shudder in the engine and a ticking sound. Salesgirl acknowleges the issue and says that we cant drive this vehicle, so takes me to three other CTS's to see if its a normal sound. Its not. We test drive a similar CTs and come back to await my trade in proposal. After a while they come back with an offer of 12,000. At this point a manager is there and says "Hey not bad at all". I tell him that they aren't even close to what I want. He goes on to state how common Fusions are and the market is flooded with them. I asked him if he was sure that he was referring to the newer model Fusions, to include the Sport version (only model that gets the 3.5 liter engine as opposed to the 3.0, lowered and higher end suspension, premium painted wheels, only model with the non problematic Hydraulic steering as opposed to the electronic steering, side body skirts, stitched leather seats and matching stitched leather panels, and AWD) not to mention moon and tune package with rear parking assist. He states, oh yeah he could pick one up for 14K right now with low miles. I asked him where, and if he could show me this run of Fusion Sports, of course he couldn't because they simply aren't out there to be had. I can find 200 cadillac CTSs in a 50mile radius, but could only find 2 Fusion Sports.

So its not like I couldn't understand not getting KBB, but to be 8K less on a car that was immaculate, was just plain disgusting. Even their own spreadsheet appraising the car came back all perfect scores, and I had the car fully inspected with proof, checking the brakes, tires, suspension, tranny for leaks, engine, and condition of awd. They couldn't find even a single wet area or potential problem.

I guarantee they imput my car as a non sport version, maybe a SE not even an SEL version. Carmax will never earn my business and I will ensure everyone I know, will hear this story.

Long story short, today I was offered 19,500 in trade for my car. And no they didn't raise the price of their vehicle even one dollar to give me that price. I was also offered 18750, and 17995 at two other dealerships. Great job carmax!

mikefm58 · April 2011

Hop on over to Real-World Trade-In values and see what they think. A 2010 with 64K miles is difficult to compare with but I do agree that I think Carmax messed up.

spunkyblond · April 2011

Sounds like you have a nice late model loaded Fusion Megamark(sincerely). If you don't like Carmax's offer, then don't do business w/ them! It's a FREE appraisal. You took their offer personally, rather than an offer to do business with them.

Out of all your research sources, Autotrader.com is the most resourceful and most accurate than the other sites. If you take your vehicle to an Autotrader buying center, have it appraised and compare it to your on-line Autotrader evaluation, your vehicle will be guarenteed for that amount.

Your Fusion's FMV, according to your research, ranges from $17,995 up to $20,374. That's a wide difference of nearly $2,400. Maybe you were expecting an offer close to your pay-off. Unless you put a sizable down payment at time of purchase, you will be upside down.

New 2010 Fusions sold for $29k MSRP, Invoice $26,700. New 2011 Fusions sell for about $500 more.

Autotrader is a division of Manheim Auto Auctions (#1 used vehicle wholesaler nationwide). I am not affiliated with Carmax or Autotrader; however, Autotrader buys/sells vehicles. So, I'd put my faith in their info. Carmax is the 2nd largest wholesaler nationwide. As you know, their intension to purchase your vehicle wholesale, recondition it (as they do every car on their retail lot) and sell it for a "no haggle" price. They hold back a few on your trade and sell it retail at a premium price. Just another way to buy a used vehicle.

As you know, many things impact the FMV of a "used" vehicle:
(1) Seasonality: This is sports car/convertible season. Your vehicle is AWD;
(2) Age/miles: You have put 32k miles/yr. on a two year old car, over double the average annual mileage;
(3) Historical trends: Some vehicles hold the value and are more in demand than others. For example, a Honda will hold it's value far better than a Ford;
(4) Regional differences: An area that has a lot of snow/rain, then a buyer would be more willing to pay a higher price for AWD, unlike FL where buyers would be more inclined to buy a convertible;
(5) Vehicle specs: original factory options/accessories, interior/exterior conditions, mechanical and structural (never been wrecked) conditions; and,
(6) local market conditions: comparable vehicle sales in your area, auction prices for the previous 90 days, and private seller pricing from local ads.

Your 2010 Fusion w/ 64k miles is out of the manufacturer's warranty. Carmax may have been more inclined to give you a bit more for your vehicle w/ average miles and still w/ a warranty. Vehicles are a necessity and expensive; however, they break down and get older mile by mile, day by day. They are not an investment. Also, if your vehicle was less than 60k miles, Carmax would not consider it as a "Valuemax". Mileage makes a big difference.

Lastly, it can be frustrating seeing all these surveys giving an estimated FMV of your used vehicle. Don't take it personally, after all that work, you did what's right for you, go somewhere that will do business your way. Carmax isn't for everyone! Carmax is not for me either!

explorerx4 · April 2011

You do seem to be promoting Autotrader, but I could be wrong.
Isn't the Autotrader quote, as you are recommending, also free?
I know you are trying to be helpful, but I am not sure I understand the whole post.
Carmax has a huge inventory. Once way to make up for that is to under value the vehicles people are trying to sell to them.

spunkyblond · April 2011

No explorerx4, I am not promoting autotrader.com, and yes it is free. I'm sure you could say same about me promoting Carmax after you read this post, which is not true either. I just think autotrader is a better source to get a ball park of the fair market value of a used vehicle b/c they don't do surveys like KBB and other sites.

I am very educated on how carmax holds back on their trade-ins and sell their retail cars at a premium. They also hold points on their financing, that's another topic. Carmax does business no differently than a traditional dealer, except they are no haggle on their retail vehicles and their wholesale offer is what it is.

Some people enjoy the negotiation game, so they go to a traditional dealer. Some people don't like the stress and therefore, will pay a premium for their next vehicle at Carmax. Again, not a bad way to buy a car, just another way. I bought my last two vehicles from Carmax b/c they had specifically what I was searching for, with more of a selection than other dealers in the area at the time. I'm not sure where I will buy my next vehicle, could be Carmax, could be a traditional dealer.

Maybe reading my previous post again will give a better understanding.

megamark · April 2011

dwynne · April 2011

Best guess is that they put the wrong model / trim in to have missed it by that much.

Keep in mind their primary source of cars is the auto auction, so they know what they can get or have to pay to get a car like yours at auction and are not going to pay more that that type of price.

The is real high miles for a one model year old car and may not be something that would be of interest. All others with that year are under warranty, others with this many miles are thousands less. so maybe they figured they could never move it and make money on it.

On trade, options and packages pretty much have no value. Even trim level seems to not be as important to price as it should be.

I have received written appraisals from CM several times and they were all mostly fair and twice I have sold them the car.

megamark · April 2011

They have several vehicles on our lot with 90k miles plus on them, which they sell at a KBB premium. My car has been driven for two full years now. I averaged 32k a year, not that terrible. Condition of vehicle is what drives value most. My car was perfect. Paint was better than any car on their lot, same with interior. Mechanically I jade proof in hand showing it was perfect, which they acknowledged. I found another Carmax with same car and 50k miles on it for sale at 22k and it wasn't AWD. They merely wanted to cheat the crap out of me.

12k at trade and they would sell at about 21k. Check around for yourself and see what these cars go for. Actually try to find a few even for sale. Fact is they don't sit on lots, they move quickly. They would of made about 7 to 9 k off the sale of my vehicle plus whatever premium they made off selling me a car. I read that Carmax makes over 2k profit on each sale. They were looking at making 10 k on one sale. Just outrageous.

robr2 · April 2011

Just for kicks - post this car over at Real World Trade In Values and see what some pros have to say about it's value.

spunkyblond · April 2011

Dwynne,

When a buyer at Carmax appraises a vehicle, they enter a VIN and it will give the year/make/model/trim and then they use a check list for any additional features such as nav, leather or cloth interior, etc. It is not just the appearance of the vehicle that gives it the most value. It's multiple criteria such as age/miles, make/model (some cars hold their value more than others like Hondas, Infinitis), mechanical condition (dash lights on), market conditions (a V8 SUV appraises for less when fuel prices increase). In otherwords, you can have a year old Ford Expedition w/ spotless interior, still under manufacturer warranty, with 3k miles on it and it will appraise for less b/c gas prices have increased to $5/gal.

As for making $9k off your vehicle, not true! There are reconditioning costs involved. The 125-point inspection is a 10 hour process so a tech is being paid their hourly rate to perform this, if something is found that needs to be repaired, then the tech is paid to fix it and the cost of the part(s), detailing could involve not only cleaning but dent remove, repainting a bumper/hood/door, etc., so you pay someone to do that. If tires need to be replaced, then they do that. Depends on what they have to do to make the vehicle pass their retail standards for their lot. They will spend money to make these vehicles "retail" worthy. The less they do it for, the more gross they make on it.

The majority of Carmax's vehicles come from trade-ins bought through their appraisal lanes. It is less expensive than going to an auction.

Sincerely,

Former Buyer/Sales Manager
at Carmax (East Coast)

explorerx4 · April 2011

You seemed to infer that a 'free' Carmax appraisal inferior to the Autotrader appraisal, which is also 'free'.
If you had not made it seem like 'free' had an influence on the Carmax vs Autotrader quote, I wouldn't have posted at all.
Since you wanted to pursue the different scenarios, a dealer that does not negotiate on retail sale price AND trade in price is the polar opposite of the 'traditional' dealer.

explorerx4 · April 2011

When I brought my AWD Fusion in for an appraisal last October, they spoke all sweetness (It's October, the vehicle is an SEL, looks beautiful, super low mileage, just heading into winter, so AWD is in demand, etc...) to me, then offered a bit above rough condition.
Got it appraised at a local Ford dealer last month and they offered almost 30% more still looking great, despite, higher mileage, spring is here, blah, blah, blah.
This was my number BEFORE negotiating a price on the new vehicle.

spunkyblond · April 2011

Your interpretation of what I was implying continues to be off base. Whether it is a free Carmax appraisal or a free Autotrader evaluation, is not the subject of my original post. I don't recall indicating Carmax and a traditional dealer are one in the same.

Since you want to pursue this, anyone who goes into Carmax and leaves angry b/c they didn't get the offer they believed their vehicle was worth, needs to realize it is a free appraisal, they didn't pay for it.

spunkyblond · April 2011

That Ford dealer expected you to buy a vehicle from them. Carmax or an Autotrader buying center will simply write a check for its fair market value without you buying a vehicle.

explorerx4 · April 2011

Sorry, I don't mean to upset you. I sure am not angry.
Just backing the OP from my own experience in a similar situation.
You did not write about Carmax and traditional dealers were the same except their business 'model' or 'philosophy' in your first post.
Are you saying an Autotrader appraisal is not free?
We all know a Carmax appraisal is.
Kind of confused, although I am a rational person.

spunkyblond · April 2011

Not upset here. As I said in my last post, second line, fourth word, autotrader evaluations are "free".

It may make more sense to know I am a former sales manager and former buyer who worked at Carmax for ten years. I parted on good terms; however, I'm neither a friend nor foe or Carmax. Just someone who finds this interesting and nothing better to do when I'm bored than to respond.

explorerx4 · April 2011

Next time I am ready to think about selling my car, I will try the Autotrader route.
I started the process one time, but didn't complete it because I realized I wasn't ready to sell, yet (what would I do if I really got a reasonable offer?).

spunkyblond · April 2011

Simply answer all the questions and based on your zip code, it will give u a list of buying centers. They will appraise your car and will honor your offer should there be no issues w/ your car. It's easier than selling on your own and tends to be a more fair offer than carmax. Good luck!

dwynne · April 2011

The two that I sold them were marked up $3.5-4.5k each and prices dropped the longer they set on the lot. Neither of them needed any work before they were ready to sell. I was happy with the deal if Carmax was, and whoever purchased them got good cars but paid too much for them :-)

If the car is a hot seller I can't see any reason that carmax would not make you a fair offer to get yours on to the lot. I think someone just made a mistake somewhere in the appraisal process of this one car. Since all the canters are tied together via computer, you can't stop in for a NEW appraisal at 2nd location - they will just pull the original. Ditto waiting and going back later.

megamark · May 2011

Without sounding totally rude, but you are not going to sell me on the fact that carmax spends 10 hours on every single vehicle they take in trade.

Look under my car and you saw nothing. Nothing even remotely wet, not even a small leak anywhere. It took the shop all of 1 hour to inspect my car and and come back that it was absolutely perfect.

10 hours is what it would take to rip an engine out and replace it. Not to mention if they spent 10 hours on every vehicle, then why was the CTS I was looking at shuddering and a serious clacking noise going on when it was started up for me.

Im not a stupid person. No way in hell they would of tried to sell this car for less than 20-22 K, and thats me be very generous. I already stated I found a Fusion Sport with 50K miles for 22k at carmax already, without Moon and Tune package and without AWD. Lets say the 14k difference in miles in my car and this one dropped the price to a gaudy 18k on their lot, thats still a 6k profit to be made. There was zero reconditioning of my vehicle that needed to occur. I absolutely know without a doubt when they appraised my car they realized this. I detailed my car completely before I went in there and my car runs perfectly.

Carmax merely preys on the uneducated to stay in business.

petero3 · May 2011

Almost four years later...I have a solid background in sales. However, I thought that I might have an advantage because I have not sold cars, and so I would be a good Stepford Employee for Carmax. I was called in after applying on the Internet. I did the same testing. I had one interview, and I was asked the same generic questions that seem to be cliches now days such as "What have you done to go out of your way at a job?"

I only saw one employee who looked to be over forty five or so. I am going by what I saw. I was not called back, and I received the same form letter...which obviously was written by risk management.

I am going to keep looking for other people who have the same notion. I have no doubt that my age was a factor. No doubt.

petero3 · May 2011

How did this turn out?

spunkyblond · May 2011

Megamark,

Then there are several million "uneducated" people out there that have done business with Carmax. I bought two cars from Carmax in the past because they had what they wanted. Does not mean I am uneducated or stupid.

I doubt you would buy a vehicle from a dealership that they took on trade and NEVER looked at because the customer they got it from said, "my car runs perfectly".

You had a reason, whatever it was, to replace your AWD Fusion. Neither Carmax or the dealership you did business with knew you and how you maintained your vehicle. They need to know their product before selling it.

Also, Carmax or another dealership would not be able to put a warranty on their vehicles if they did not do the multi-point inspection. If something went wrong and the inspection records had to be reviewed post-purchase and discovered a multi-point inspection was not performed by the selling dealership, the repair would not be covered. As a customer, you would be pissed because you would be stuck with a problem and even worse, a legality issue, depending on whether or not the dealership wanted to make the situation right. If they cared about their customers, they would.

No one implied you were stupid. Shouldn't have to clarify your level of intelligence on a forum board. It's just open discussion. Everyone has an opinion, it's neither right or wrong. Try not to take your experience at Carmax personally. You didn't like what they offered for your trade so you went elsewhere. I doubt the sales consultant who assisted you at Carmax recalls who you are.

Best regards,

mlb15 · June 2011

I originally went to a Honda dealership to trade in my 2007 Cadillac CTS and 2004 Nissan Pathfinder. Honda was going to give me 16,000 for the Caddy and 4,500 for the Pathfinder. I went over to Carmax and they gave me 17,500 for the Caddy and 5,000 for the Pathfinder, much better trade in value. I recommend Carmax.

spunkyblond · June 2011

Think about your last sentence prior to your credit score scam
Do you really think a dealership should pay you retail for a verhicl that they will sell for retail? They are in the business to flip cars. That's like expecting a person off the street who wants to buy your car to pay retail.

:confuse:

papadonkey · July 2011

here's my review on yelp, if you are interested in my own person experience.

was sold at the Carmax in Modesto, California.

his is a review for SELLING your car to carmax. since i did not purchase a car there, i don't what that process is like to buy a car and do not have a review for buying a car from them.

i opened a yelp account just to give this place a glowing review. i did a lot of research about selling a car to carmax. most of the things i read seemed to say they gave you a fair price, but i read a few where the people weren't happy so i was a bit apprehensive on selling them my vehicle.

i went to the modesto location at 9am and was approached by a salesperson and told him i wanted to sell my car. we sat down on the computer, plugged in my vehicles info and then an appraiser came out in 10 minutes. we then walked outside and the appraiser looked at my car, took it for a test drive and then i went and sat back down with the salesperson. after 5 minutes, the computer said they would give me 17k for it and i said yes. i owed 15,700 on it, so i then went over to the admin office and signed some paperwork and got a check for the difference. the whole process took about 45 minutes, but i got there right when they opened.

my car listed on http://kbb.com (trade in value) for 17,500 (good condition), NADA (trade in value) 17,500 (rough condition) and the "subaru guaranteed buy back program" was around $17,500 also. i was offered 17,000 for it by carmax and am totally happy. i feel i got a fair deal.

i think people who have a problem with the price carmax offers to buy their car at is because is those people look up the "retail or private party" value on http://kbb.com and expect carmax to pay that. they wont. they are not in business to break even. they need to make a profit. if you want retail value sell it yourself. also your car may not be worth what you are thinking it is.. its only worth what someone is willing to pay for it. if carmax can get an identical car to yours for 10k at the auction, why would they pay you 15? remember you're always going to get less selling to a dealer or trading it in than what you would get selling to an individual!

also for all those people who say a "traditional dealer" will give you more for your trade in, that's because the "traditional dealer" is not giving you that great of a deal on the new car you are buying. "traditional dealers" have to make money too! a "traditional dealer" might give you more on your trade in and they might profit very little on your trade, but the new car with a sticker price of MSRP 20K, might only come down to 19K, which would be the same as them giving you less for your trade and more of a discount off the new car, just different ways of playing around with the numbers.

if you go to carmax and you think you got a "low ball" offer, it's probably because your car isn't worth what you "think" it is. so dont get mad, nobody is making you sell to them. if you dont like what they offer you, then try to sell it on your own. you have 7 days to think about it, so i guess during that time you could see if you could do better on craigslist.

however... if you still owe money on the car, then its going to be hard to sell it to anyone on craigslist. they arent going to want to hand over cash to you or your bank, wait for the title to come, then wait some more for you to sign it over to them.

so once again check the "trade in value" of your car not "private party or retail" and be realistic, dont pick excellent condition(even if you think it is).. use KBB fair/good condition and NADA rough values. also there are too many dynamics/variables for kbb/nada be an exact appraisal.

carmax will need to make a few thousand profit on it. i think the offer they give you is based off a number of things including: miles, condition, inventory on hand & demand for your kind of car, and auction prices... here is info about how they determine your car's value http://www.carmax.com/...

also if your car isn't in demand or a gas guzzler, in crappy condition, has been in an accident (google "diminished value"), has high miles or they have 20 other cars like it on the lot expect lower.

if your car doesn't meet that criteria for them to sell it on their lot, they are going to auction it off at http://carmaxauctions.com and sell it to some mom & pop dealer, which means you are going to get less.

im happy that i got out of the high payments i had on my car and also got a check for a little over $1000 dollars.

as for the carmax employees. they were friendly and i didn't feel any pressure and i got a good vibe from everyone. they seemed upfront and honest.

i would definitely sell a car here again.

the only thing is i had to drive 90 minutes to get there, but the sales guy said they are planning on opening up a location in fremont, in a few years. but how often do you sell a car? maybe once every 5 years, so what's a 90 minute drive?

i'm giving 5 stars, because i am a more than satisfied customer! i would definitely recommend carmax for SELLING your car.

graphicguy · July 2011

Went to get a "buy only" offer on my car (as they advertise they're more than happy and willing to do). I was approached by a sales person. Upon informing him of why I was there, we sat at his desk and I gave him my info. This was on a Tuesday night, about 90 minutes before they were to close.

This was the 3rd "dealer" I had stopped at to solicit a buy only offer on my car.

5 minutes later, an appraiser came out to get my keys to inspect it and take it for a test drive. During the intervening time, the sales person tried over and over again to get me to look at what I might want to purchase from them on his computer screen. Time and again, I told him I wasn't interested in buying a car from them, just wanted a buy offer on my car.

There was one other couple in the building working with a sales person. But, for some reason, I could not get my "buy offer" nor my keys back. After about an hour, I told them to just give me my keys and forget about the offer. This was taking entirely too long. Finally, about 5 minutes before they were to close, the sales person went to the "administration office" to see what was going on. He came back with my offer and my keys.

The offer was literally $1,000s less than the other two buy offers I had received. In short, they "low-balled" me....no by a little, but by quite a lot.

Won't be going there again. They weren't even remotely competitive on their buy offer. And, their customer service was poor.

Wouldn't recommend going there.

dwynne · July 2011

Good review, thanks for posting.

I sold them 2 last year with similar transactions.

One thing to keep in mind, if you are going to replace a car you are selling them (and you are not leasing the current car) is you will get a tax break if you trade in you car.

Here, 7% tax is due so getting $17,000 trade saves you $1,190 in sales tax on the replacement. So if dealer would go $16,500 and Carmax $17,000 your would be bette of trading toward a new/replacement car. $16,500 + 7% tax = $17,655.

If looking at a used car replacement, it might even make sense to buy and overpriced Carmax car - but probably not (they are really high compared to what you can negotiate elsewhere).

Selling an on lease car is different, as there is no sales tax break is most places for an on-lease car - so higher offer is better.

The fine print of the contract with Carmax to sell them the car is scary. Anything goes wrong and they unwind the deal and come to you to get the payoff and "profit check" back. No reason has to be given. The check htey gave us are us bank drafts too that can't normally be converted to cash right away. It all worked out in the end for me, so I was please with the process and the offers.

spunkyblond · July 2011

A bank draft is issued rather than a check to the customer selling a car to carmax is so if something is found wrong w/ the title work or misrepresented by the seller, carmax can stop payment on the draft. Carmax is protecting themselves from getting into a legal mess and loss of assets.

As for a good deal from carmax buying a car from an individual, that depoends on the vehicle itself and supply and demand in the wholesale market.

With regard to a tax break when trading a vehicle, not all states have that tax saving benefit. TN and FL do. If you live in TN but buy the the car in KY, you take the tax savings when you register the vehicle in your home state.

robr2 · July 2011

With regard to a tax break when trading a vehicle, not all states have that tax saving benefit. TN and FL do. If you live in TN but buy the the car in KY, you take the tax savings when you register the vehicle in your home state.

Check your state's rules. That is the case in MA as long as the selling dealer is registered with the state RMV.

papadonkey · July 2011

If you sold your car (that you still owed money on) to carmax. how quickly did they pay off the balance?

mikefm58 · July 2011

I don't recall exactly but it was within the 10 day payoff window that was quoted. If they don't pay yours off within the 10 day window then they might come after you for the additional interest that has accrued, of which I'd tell them to go pound salt.

dwynne · July 2011

It was within 2 weeks, but I had planned ahead and made sure no payment was going to be due right after selling them the car. I did keep checking with the lease bank until they showed the account closed just in case I had a problem. I kept insurance on the cars until they were paid off as well - until the lease bank has the buyout money the car is still your responsibility including payments and late fees. A local stealership used to make extra money by taking in trades and not paying them off until they sold the trade, This left the original owner potentially on the hook or late fees and interest.

papadonkey · July 2011

Well i sold my car on a saturday and it was paid off thursday.. Fairly quick.....then my car was on their site by tuesday.

Once u sell a car in california u go online and do a transfer of liability ....so u dont need to keep insurance on it after the sale. You arent liable for parking tickets or anything after u do the transfer of liability.

Also they marked up my car 4k which is a fair amount for my car.

iza3nee · August 2011

Last week Thursday 7/28, I went over to Carmax in Dulles Va, just to look at their Jeep Grand Cherokees. I knew this is what I wanted but was open to others. I was greeted by the salesman, told him what I was looking for and we went out their lot which was overflowing with cars. He pointed me in the direction of the Cherokees and asked if there was anything specific in the way of features I wanted. I told him 4 wheels, 4 doors, a working engine and an ipod connection. Long and behold they all had that and more.

So looked around at the first few which were the Limited and Overland editions, so they were loaded with every feature you could want, but also had a lot of miles, one had as much as 58K miles. So I was ready to give up when we spotted one more, a Laredo with some nice features and less than 20K miles and a price tag right up my alley. So we test drove it, the entire time the salesman was no pressure at all, just letting me enjoy this moment. In the meantime the car I was trading in (an 07 Ford Focus), was being appraised.

After the test drive we found an office and started to hash out figures including my dpwnpayment, how much was left on the Focus, etc. The appraisal came back and they gave me about $500 less than what KBB offered but more than I thought they would. So I was pleased with that. Talked it over with my wife and she said yeh go for it. That's what I wanted. Did the whole credit thing. The lenders came back, my payment would be lower than what I had on the Focus (I had messed up credit when I got the Focus).

Next he asked me how I wanted to pay my downpayment. I had a check, at home, which I had not deposited yet from a rather substantial amount, and was told that their system takes a "capture" of your bank account so the money would have to be in my account if I was paying by check or debit card. Well we realized that there was no way my bank was going to clear the amount of the check in one day and since I did not have the check on me there was no way for them to verify I had the funds. BUT the salesman did work with me and we realized that if the check was drawn from a bank in the area I could cash it there and give them the cash deposit the following day. So he gave me his cell number for me to call him when I got home and checked to see where the check was dfrawn from. Thankfully it was in fact drawn from a a bank around the corner from me. So I let him know this and called him again in the morning once I had the money in hand.

My appt to meet him at Carmax was at 2:30 p.m. He had some personal errands to run and would get into Carmax at that time. He called me about 1:30 to see if I wanted to come in earlier since he got everything he needed to do finished ahead of time. Which was perfect for me. So with cash in back pocket. I headed over there. We looked at the car one last time to make sure I was happy with it and went over all the features again, then I drove my Focus to their "trade in" section on the lot and made sure everything was taken out, while the Cherokee was being washed and cleaned. I also informed the salesman my wife had forgotten to give me her copy of my car and asked if it was ok to drop it off later since I would be in the area again later in the evening. He said that was fine.

After that went into their "Financing section." The salesman stayed for a portion of it and then I was left in the friendly hands of one of their financial associates. She went over everything, including the MaxCare plan I took out. For once I actually understood and paid attention to all the numbers. Everything checked out and I just went to the waiting area for my clean "new to me" car to pull up. I had asked the salesman to make sure they took off the Carmax decal and he did in fact make sure they took it off. I drove off the lot, went back later in the day to drop off the second copy of my old Focus' key and that was that.

I'm just monitoring to see when they put my old Focus up for sale and when my old lender receives the check for my Focus. All in all I could not be happier with the service I received. The salesman was no-pressure, non-judgmental, he paid attention and remembered subtle little nuances about things I said which really pleased me. Others may have different opinions about their experience. But my experience was great.

:shades:

mrstevenjkelly · September 2011

I went to Carmax yesterday to get a price on my trade in and look at a 2010 tundra as shown on the website. I was approached by a sales person. Upon informing him of why I was there, we worked on getting my car inspected and checked on the availability of the Tundra.

We went over my trade in and an appraiser was given my car to inspect it and take it for a test drive. During the intervening time, we went out to look at the Tundra. The vehicle condition was that of a used rental that had never been cleaned. We returned to his office and he showed me other vehicles that I might want to purchase from them on his computer screen. I have purchased 3 vehicles from Carmax in the last 6 years and this was not the same quality or experience.

After 30 minutes the computer showed my vehicle had completed the trade in evaluation and then I was shown several screens of what they looked at. The offer was 5 thousand less that KBB trade in avg condition rating and $9,995.00 less than what they are selling this car for. The history showed no accidents but the inspector noted that the drivers side had been repainted . This was listed as each door and each fender.I know the car has not been repainted unless done at the dealership. Unfortunately they where using the "repainted panels" as the basis for the low price.

I have read several unhappy experiences at Carmax and was thinking that you can't keep everybody happy. But I now know they are not the same company. The quality of product and sales has dropped considerably. The trade in process is a scam and they no longer show you the Kelly Blue Book pricing for comparison.

My recommendation to others was to start your car shopping at Carmax. You (used to ) get low pressure , good selection and a price on your trade in that can be used when shopping for your next vehicle.

Now its a waste of your time and an insult.

rming · November 2011

Went to a local Carmax buying center in Atlanta a couple of weeks ago. I was not seriously intending to sell to them but thought that their offer would be a little low and would be a starting point to work my trade on my new car at the dealership. As expected it was at the low end of the trade range for my vehicle. Trade range was $6000 to $8000 depending on what site you use and they offered $6500. What really steamed me was that on their web site they were selling a car almost exactly like mine for $12000. I know they have to make a profit, but that is insane.

Dealership really low balled my trade at $5800 (I guess since I was basically stealing the new car at $2750 below invoice). Used the Carmax sheet to get them up to $6500. The trade also saved me about $500 tax versus selling to Carmax. So i ended up with a fair trade, nothing great. But saved the hassle of the private sell.

I was also leery of the bank draft versus a check. Seemed strange to me. Of course I hate how businesses always have everything written in their favor and the consumer is left to fend for themselves. (Written all over my new car financing contract was the the statement "There is no cooling off period. This contract is valid from the moment that you sign it.")

fushigi · November 2011

(Written all over my new car financing contract was the the statement "There is no cooling off period. This contract is valid from the moment that you sign it.")

FYI: If your state's laws provide for a cooling off period, then the law overrides the contract.

Contracts cannot have clauses that violate the law. If they do, that clause is unenforceable and is legally null and void. In a dispute, inclusion of such clauses by one party can also be used by the other party to try and void the entire contract (with varying degrees of success).

kyfdx · November 2011

I'm guessing that the states that allow a cooling-off period for car sales could be counted on one hand...

dwynne · November 2011

Never heard of one for a car sale or lease. Man, that would be a tough state to be a car dealer in. Way too many second thoughts later for so many folks...

Kirstie_H · November 2011

In contrast, the number of people who incorrectly BELIEVE there is a cooling-off period is probably uncountable. My state (Missouri) certainly doesn't, but I've had numerous people try to tell me that we do. I'm not sure where they're getting this info, but it must be from the same source, as all of them "know" the cooling-off period is exactly 3 days.

dwynne · November 2011

Probably from home purchases and refinancing, I think in most states there is a period after a real estate contract is signed or real estate refinanced / financed when you can change your mind.

Some used car dealers offer to take your car back in x days if you don't like it. Some limit it to a credit toward another car (not cash back). You would not find too many new car dealers offering that deal as they would have a lot full of "used" cars in no time.

kyfdx · November 2011

Agreed.... home refinancing is one that applies here..

The big one: Sales made in a customer's home...

I've heard Minnesota's cooling-off period laws are pretty liberal... but, that's just anecdotal..

fushigi · November 2011

Here's what gets a cooling off period in Illinois: http://www.ag.state.il.us/consumers/3dayright.html And the Illinois consumer info for buying & repairing autos: http://www.ag.state.il.us/consumers/autobuy.html. The first PDF linked on that page explicitly states Illinois does not have a vehicular cooling off period.

snakeweasel · November 2011

One has to remember that cooling off periods for contracts are usually allowed only when both parties can be made whole if the contract is cancelled. Once a car is driven off a lot its value diminishes and undoing the contract puts undue hardship on the dealer as the asset they get back would be worth less.

I suppose that if you press it hard enough in a court the judge may (and I say may) have a kind heart and offer to order they deal unwound on condition that you reimburse the dealership for any diminished value in the returned car. But I wouldn't count on that.

spunkyblond · November 2011

rming, Carmax issues bank drafts rather than check to allow time for thwir paperwork w/ dmv to go through. Should they have issues w/ legitimacy of transferring ownership , then they can cancel the draft. You would get your car back. There have been a couple occasions in their 20 yrs of buying/selling cars, where they took a stolen car without their knowledge. They're not dumb asses!

You did steal your new car. The dealership should've called the police! The poor sales person made NOTHING off your sale and they do that for a living. Nothing wrong with making a little money off of you, just don't have to make all of it off of you.

As far as what the dealer sold a similar car as your trade, they spend money reconditioning it before selling it. Doesn't matter if you took excellent care of it. Iy's a used car! If a dealer didn't buy your trade for wholesale and sell it retail, they'd go out of business. Why do I have to explain marketing 101 to you. LoL

Instead of being greedy and gotta have it all, a fair deal is when you get a fair price and the sales associate gets a fair commission. The dealership most likely gave you the deal you begged and pleaded for b/c they made enough off of other customers that month to take a loss.

I'm in sales but not automotive sales. The economy is so bad that people think they shouldn't have to pay retail for anything these days. First words out of their mouths are "do I get a discount?" Then I hear their sob story.
Everyone can afford more than they say they can. It's okay for the consumer to get all the savings but the retailer shouldn't get anything??

Anyone in sales would understand where I'm coming from and would agree I'm sure. That's all I'm going to say. Lol

spunkyblond · November 2011

There isn't any such law regarding a cooling off period or rescission period.

bolivar · November 2011

I agree.

The Federal law everyone thinks covers car sales is actually only for something like in-home sales with a company based more than 150 miles away. Then you get 3 days to cancel.

Or some complicated circumstances such as these.

In most states, you buy a car and drive it onto the street, it's yours.

silveradoking · January 2012

On 12/26/11, I purchased a 2006 Chevy Silverado from Carmax in Houston, TX. On 1/2/12 (conveniently outside the return period) I began noticing a grinding in the accelerato pedal at around 45 m.p.h. (1100-1200 rpm.) I took it back to the closest dealer to have it checked out. After wasting my entire day, they told me there was no apparent mechanical problem and sent me on my way, truck with a clean bill of health. Then I moved to San Angelo, TX for an internship. Shortly after my move, the noise began presenting itself again. I set up an appointment to have the vehicle checked out on 1/19/12 so I could get in under the 30-day warranty. I had to drive to the nearest Carmax in Austin, TX which is over 3 hours away. On Thursday, the service manager(?) called me an said his technician thought the issue was in the transmission and was sending it to their trusted transmission shop. He then told me I would hear from him by noon on Friday. At 2:30 p.m. on Friday, I called him to get some news about my vehicle. He told me that the transmission shop had found no issue and was towing the truck back to them and he would not be able to work on it again until Monday. In this time frame, I did get a loaner and was assured by the service manager (?) that I would not be charged for anything since the work began within the 30 day timeframe. So, no I am going to have to waste another 6+ hour roundtrip to get my truck back. I am seriously considering looking into all of the class-action suits and seeing if there is a way around their 5 day return limit. Clearly, this vehicle would have failed an inspection at the hands of a competent technician. I am less than enthused about this purchase.

Carmax - What's Your Experience?

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