Some individuals simply love going to a automotive dealership and spending hours haggling with the gross sales individuals. It’s virtually a sport for them.
After which there’s the remainder of us — who don’t precisely stay for the joys of the car-buying course of, but we do the negotiation dance as a result of we have now no alternative. We nonetheless want to purchase or promote a automotive, in any case.
For those who’re in that camp, there are a number of web sites which have simplified the automotive shopping for and promoting course of that we are able to examine head-to-head: Carvana vs. Carmax.
Each tout a haggle-free, less-stressful shopping for and promoting expertise for used autos, however there are some key variations which will make you select one over the opposite when deciding what to do about your automotive.
We’ll cowl these variations in additional element to assist in giving you a greater understanding of which firm you need to select to work with — whether or not you’re buying and selling in, shopping for or simply promoting your previous trip.
What’s Carvana?
Carvana is a web-based dealership that simplifies the automotive shopping for and promoting course of — serving to individuals to avoid wasting money and time. And with automobile merchandising machines throughout the county, Carvana has created a buzz that makes shopping for and promoting vehicles extra gratifying.
With out the overhead prices of an enormous dealership and paying gross sales individuals a fee, Carvana is ready to supply patrons and sellers among the finest offers on used autos on-line. As an alternative of going from dealership to dealership, you may search Carvana’s stock of greater than 50,000 vehicles, select the one you need and have your new automotive delivered proper to your door.
You should use the web site’s used automotive finder to slim down the best one for you, get permitted for financing and get a suggestion in your previous automotive in a matter of minutes. For those who’re shopping for a automotive, it’ll be delivered proper to your door (or you may choose it up on the automobile merchandising machine). For those who’re promoting a automotive, you’ll get a suggestion on-line after which somebody from Carvana will come choose up your automobile and offer you a verify on the spot.
What’s CarMax?
CarMax is likely one of the largest used automotive dealerships within the nation, with greater than 50,000 autos accessible on-line and 230+ dealerships within the US. It’s been round since 1993 and have become well-known for his or her no-haggle coverage.
Whereas CarMax does have a web-based presence, they nonetheless operate like a conventional native supplier. They’ve used automotive heaps everywhere in the nation with 1000’s of vehicles, gross sales individuals that can assist you discover the best one and the power to take a number of autos for a check drive before you purchase.
How Does Carvana Work?
Carvana is a web-based dealership with no bodily used automotive heaps — simply their merchandising machines in 30 cities across the nation. No gross sales individuals to cope with, no stale espresso within the supervisor’s workplace and no sitting round for hours attempting to barter a deal over an prolonged guarantee.
If you seek for a automotive on Carvana’s website, you’ll have all of the pricing data accessible to see upfront, together with delivery prices (if any) and estimated month-to-month funds. You’ll purchase it instantly on the positioning and might have it delivered to your door. You can too choose it up at one of many merchandising machines, if it’s close by.
You possibly can’t check drive a Carvana automotive before you purchase it, however you do have seven days to take it for a spin round city to resolve if you wish to hold it. After that, there’s a 100-day, 4,189-mile restricted guarantee in case one thing occurs to the automotive.
Promoting or buying and selling in your automobile is tremendous easy with Carvana. You reply a questionnaire about your commerce, and in two minutes, you’ll have an actual supply — not only a quote. For those who settle for it, somebody involves your own home to confirm your automotive is what you stated it was, then cuts you a verify for it proper then and there. They’ll take it away for you, too.
With Carvana, you don’t ever have to depart your own home to promote, commerce in or purchase a automotive. Plus, none of these hidden charges that gross sales individuals generally “overlook” to let you know about.
How Does CarMax Work?
CarMax is attention-grabbing in that it really works each on-line and offline.
As with a conventional dealership, you may go to the CarMax lot, stroll up and down the rows with a gross sales individual and take as many vehicles, vans and vans as you need for a check drive before you purchase. CarMax now gives you 24 hours to check drive vehicles, too.
However equally to Carvana, you too can conduct a search on-line and make a purchase order by way of the net website or app. Your automotive could be delivered on to your own home or to a close-by CarMax bodily location — after which, you might have 30 days to resolve if you happen to find it irresistible or need to return it.
As for promoting your automotive, CarMax provides sellers the chance to get a quote on-line in simply two minutes. The quote is sweet for seven days, and if you happen to settle for it, it’s a must to convey your automotive to a CarMax location for an in-person inspection.
What Are the Similarities Between Carvana and CarMax?
At first look, you won’t suppose CarMax and Carvana have a lot in widespread. CarMax seems like a giant nationwide dealership that’s been round for many years, whereas Carvana is the tech-forward web site making waves on the web extra just lately.
However every has made important strides in streamlining the automotive shopping for and promoting processes. They each spotlight their no-haggle pricing, and each put the analysis into your palms on-line — with out the stress of a pushy salesperson (although CarMax does nonetheless have salespeople at their bodily dealerships).
As for realizing your automotive’s historical past, Carvana will present a CarFax report, and CarMax offers you your automobile’s Autocheck report.
You’ve gotten 3 ways of buying your automotive by way of each of those strategies — exterior financing, financing from both of the businesses instantly or by way of money.
In addition they each have return insurance policies, which is out-of-the-norm for conventional automotive dealerships. Carvana provides you seven days, and CarMax gives a whopping 30 days to return — no questions requested.
And since issues can occur, regardless of a strong 150-point inspection from each websites, Carvana and CarMax supply related restricted warranties as effectively. Carvana’s is 100 days or 4,189 miles. CarMax’s is 90 days or 4,000 miles.
What Are the Variations Between Carvana and CarMax?
The important thing variations between the 2 automotive procuring web sites lies of their bodily presence and their car-selling choices. And, most significantly, the sum of money you can save or earn.
Carvana is 99% on-line. The opposite 1% is if you wish to choose up your automotive at a dealership and when somebody palms you a verify to your previous automobile. You’ll have already got the ultimate supply to your automotive by the point Carvana’s individuals come to select up your used automobile — then they’ll simply hand you a verify.
And whereas a big chunk of CarMax’s exercise is on-line, they do have bodily dealerships and require you to convey your automobile in earlier than providing you with a suggestion. The quote you get on-line when seeking to promote your automotive is only a quote and might change if you drive to their dealership for a last inspection.
As a result of Carvana has no dealerships, their overhead prices are understandably decrease, and there are not any commissions to pay to gross sales individuals. What does that imply for you?
Presumably decrease prices when shopping for a automotive and incomes extra money when promoting your automobile.
Which is Higher? Carvana vs. Carmax
For those who’re attempting to resolve between Carvana vs. CarMax, which automotive web site is best is dependent upon your preferences. If you need ease of use, with out ever having to depart your sofa whether or not shopping for or promoting, Carvana is prone to be a better option for you.
However some individuals nonetheless like the power to drive a automotive earlier than shopping for it — regardless of at the least a week-long no-questions-asked return coverage — and can gravitate towards CarMax if there’s one close to them.
But neither of them will get you as a lot to your trade-in as a non-public sale. Even with Carvana chopping out the dealerships, they’re nonetheless a center man (albeit, a inexpensive one than CarMax).
Both method, if you happen to’re procuring on-line for a automotive, you simply want to seek out the automotive you need inside your funds. And with 75,000 autos between the 2 web sites, you’re prone to discover it and purchase it with out having to spend hours inside a dealership.
Kari Faber is a employees author at The PNW.