CarMax affords a hassle-free used automobile purchasing expertise that provides you extra choices, extra confidence and extra comfort. But it surely’s additionally costlier.
So is CarMax price the associated fee? Scroll on for our thorough CarMax evaluate.
The typical automobile cost in the US has hit a document excessive — greater than $700 a month ($730, to be precise), per a current research by Cox Automotive. That’s $8,544 a 12 months on automobile funds alone, however drivers additionally have to think about rising automobile insurance coverage prices, rampant gasoline costs, routine automobile upkeep and even charges like automobile registration and annual inspections in some states.
And with some new automobile orders being delayed by a number of months, used autos are trying extra engaging.
Shopping for a Used Automobile in 2022: What You Ought to Know
Shopping for a used automobile comes with its personal set of drawbacks: Drivers are rightly involved about questionable reliability, much less environment friendly engines, shorter warranties and lack of current security options.
And the concern of being swindled into shopping for a lemon — i.e., a automobile with defects they didn’t find out about — could be very actual.
To not point out that used automobile costs hit an all-time excessive on the finish of 2021 and proceed to hover close to their new peak. Costs have dropped a bit this 12 months.
When you’re considering of shopping for a used automobile however have little belief in used automobile sellers (and even much less for personal sellers), purchasing at CarMax or Caravana might have crossed your thoughts. However is CarMax costlier than shopping for from a standard dealership, and what’s the course of like?
In our CarMax evaluate, we’ll break down the professionals and cons of buying a used automobile on the automobile retailer and discover whether or not it’s price the associated fee.
Shopping for a automobile generally is a hectic, overwhelming job, particularly if you happen to want a automobile ASAP. Our purchasing suggestions and automobile comparability spreadsheet could make the expertise a bit of simpler.
CarMax Evaluate: Extra Cash However a Higher Deal?
For our CarMax evaluate, we analyzed the standard of autos, their price in comparison with the market, the promoting course of, the comfort of the purchasing expertise, the general automobile choice on-line, the convenience of financing, warranties and the general buyer expertise.
Till late 2021, you could possibly purchase new and used vehicles at a CarMax retailer. Nevertheless, the retailer has since moved completely into the used automobile house.
Automobile High quality
The primary motive to purchase a used automobile by CarMax is the standard of the automobile. Every automobile undergoes and should cross a radical inspection — greater than 125 particulars checked — by an ASE-certified mechanic earlier than CarMax will purchase it. CarMax flat out rejects any vehicles or vans which have flood harm, body harm or salvage historical past.
And if the extremely skilled technicians uncover potential defaults throughout an inspection, CarMax will repair these earlier than the mannequin hits the gross sales ground, generally spending hours changing components, eradicating dents and scratches and even detailing the automobile.
Some used automobile dealerships additionally carry out inspections, although not all dealerships are as meticulous as CarMax. As a result of CarMax franchises signify a big family model, they’re usually underneath extra stress from company to solely choose and promote high-quality cars.
Past the inspection, CarMax takes extra steps to make sure drivers are extra assured within the high quality of their buy. Particularly, CarMax permits used automobile customers to take autos dwelling for a 24-hour take a look at drive.
Take the automobile to a trusted mechanic throughout your take a look at drive and pay for a primary automobile inspection. In the event that they discover any issues ask CarMax to cowl the repairs or stroll away from the sale.
And if you happen to signal on the dotted line after the take a look at drive, you’ll additionally get a full 30 days (or 1,500 miles) to resolve if the automobile is best for you. If it’s not, you may convey it again for a full refund.
Plus, each CarMax automobile comes with a free AutoCheck automobile historical past report.
Automobile Value
If automobile high quality is CarMax’s North Star, then price is the thorn in its aspect. CarMax makes cash by promoting vehicles above their honest market worth, plain and easy.
Whereas it could possibly fluctuate from automobile to automobile, autos at CarMax are usually $1,000 to $3,000 greater than you’d discover them at a automobile dealership.
For that price, you’re paying for intangible advantages like comfort and confidence. However CarMax additionally affords extra sensible perks that you would be able to simply acknowledge, like higher warranties, an easy-to-use on-line platform, and applications that let you get a greater really feel for the automobile earlier than making a call.
Purchaser beware! If the automobile comes from one other CarMax location, you would possibly pay a switch price, which is nonrefundable. When you resolve to not buy after your take a look at drive, you may’t get the cash again.
Promoting Course of
If you’re promoting a automobile, it’s all the time price it to strive CarMax to see in the event that they’ll provide you with a greater deal than what a dealership is providing to your trade-in. Nevertheless, dealerships sometimes pay retail value whereas CarMax pays wholesale; retail will put extra money in your pocket.
Promoting privately, although it’s much less handy and extra time-consuming, is usually the best way to take advantage of cash off your used vehicle.
Although the value is probably not as engaging, the method of promoting your automobile to CarMax is simple — and you are able to do most of it on-line. You’ll simply want some primary data like your automobile’s automobile identification quantity or your license plate and registration data to get began.
As a result of CarMax is extra rigorous in its inspection, you is probably not profitable in promoting your automobile to CarMax if it has many defects or is in poor situation.
Comfort
CarMax has shortly turn out to be probably the most handy method to purchase and promote vehicles in a post-pandemic world. With out ever leaving your sofa (or placing on pants), you should buy a automobile on-line — together with making use of for financing, producing a trade-in provide and having the auto delivered to your private home.
That’s proper: You don’t even have to go to a close-by CarMax location to choose up your new set of wheels.
When you’d love to do a take a look at drive in particular person (extremely advisable), you may nonetheless deal with a lot of the different particulars at dwelling. And if you happen to’re a traditionalist who desires to do all of it in particular person, CarMax workers can be found within the retailer and able to assist. There are greater than 235 CarMax areas nationwide.
And overlook high-pressure gross sales techniques from the gross sales workers. All of them make a flat charge, in order that they aren’t incentivized to promote you quicker — or to improve you to a costlier mannequin you don’t need.
Choice
CarMax has the biggest stock of used autos in the US. Whether or not you may have a set finances or particular automobile in thoughts, CarMax might be the best method to discover what you’re in search of.
Buying on-line or within the cell app could be very simple. Potential automobile consumers can punch in some numbers — down cost, desired month-to-month cost and credit score rating vary — to generate an estimated finances, then solely see vehicles that match their finances.
You may also search by automaker, mannequin and even mannequin 12 months to slim your search and set the best distance you’re keen to journey. The farther you’re keen to drive for a used mannequin, the extra choices you’ll discover obtainable in your value vary.
One draw back of the broad number of autos obtainable: CarMax gross sales workers are much less more likely to be educated in regards to the particular automobile you’re after. In order for you an knowledgeable gross sales particular person, purchasing the used automobile lot at a dealership that focuses on a selected model is the best way to go.
Shopping for tires to your new journey is inevitable. Right here’s how you can discover one of the best low cost tires on-line and in-person.
Financing Choices
CarMax means that you can pay money for automobile purchases or convey your individual financing out of your most popular monetary establishment. However you may also benefit from a 3rd choice: a CarMax mortgage.
In truth, you will get pre-approved for a mortgage on the CarMax web site if you happen to allow them to tug your credit score report. Whereas CarMax isn’t clear about its credit score rating minimal — a minor sticking level in our evaluate — customers with weak credit or no credit score can sometimes get authorized.
When you get authorized, you may simply handle the mortgage by a CarMax Auto Finance account on-line. Nevertheless, it’s a wise thought to maintain purchasing for a greater mortgage if you happen to’re not blissful along with your charge. CarMax Auto Finance has a straightforward three-day payoff program if you happen to discover higher financing.
Guarantee
Each automobile at a CarMax retailer routinely comes with a 30-day (1,500-mile), money-back assure. That’s instantly higher than what most different used automobile retailers provide.
Even higher is the usual 90-day or 4,000-mile restricted guarantee.
However if you happen to’d choose an prolonged guarantee, CarMax sells the fairly priced MaxCare prolonged service plan. Pricing varies relying on the mannequin and protection chosen.
Almost 4 million prospects have opted into MaxCare since its inception in 2009, and it’s lined over $1.5 billion in claims. Plans are versatile, with deductibles as little as $50 and protection extending to techniques and components just like the engine, transmission, drivetrain, electronics, cooling techniques and electrical techniques.
Each MaxCare prolonged service plan consists of:
- Emergency roadside help
- Safety all over the place within the U.S. and Canada
- Rental reimbursement for lined repairs
- $50 low cost on deductibles when servicing at a CarMax Service Middle or RepairPal Licensed store
- No-contract cancellation (with prorated refunds)
Buyer Expertise
CarMax prides itself on a streamlined, straightforward car-buying expertise. With no-pressure gross sales, a 30-day trial and the power to finish the whole buy course of on-line, CarMax’s buyer expertise is clearly higher than that of a dodgy used automobile dealership.
That mentioned, not each buyer leaves CarMax blissful. A fast google seek for “CarMax evaluations” will pull up tales of low-quality vehicles and unfair pricing. It’s straightforward to deal with the detrimental ones, however you’ll additionally discover hundreds of optimistic CarMax evaluations that mirror the everyday expertise that CarMax ensures.
In mid-2022, CarMax had a 3.6-star ranking with Client Affairs and a 4.2-star ranking with Google.
Sadly, you may’t really uncover how you are feeling in regards to the buyer expertise till you’ve handled CarMax your self. The upside? You may check out CarMax — even purchase a automobile — and nonetheless get a full refund inside 30 days if you happen to discover the shopper expertise to be missing. Most different automobile shops can’t make that promise.
CarMax shouldn’t be your solely choice on this house. Take a look at our CarMax vs. Carvana comparability to see which automobile retailer makes extra sense to your wants.
Execs and Cons of CarMax
CarMax shouldn’t be for everybody. When you’re seeking to spend as little as doable on a used automobile, strive a personal vendor or a used automobile dealership (however purchaser beware). However if you happen to worth comfort and a extra thorough inspection to ensure automobile high quality, CarMax might be for you.
Take a fast have a look at these CarMax professionals and cons earlier than making a call:
Execs
- Increased-quality vehicles
- Nice prolonged guarantee choice
- Largest number of used fashions
- No-pressure gross sales course of
- 24-hour take a look at drive
- 30-day/1,500-mile trial run
- Free automobile historical past report
- Nice buyer expertise
- Ample financing choices
- 235+ areas
Cons
- Excessive used automobile costs
- No haggling for a lower cost
- Extra stringent necessities for sellers
- Low trade-in affords
- Much less educated gross sales workers
- No clear credit score rating coverage for financing
- Nonrefundable switch charges
Ought to You Purchase a Automobile from CarMax?
In the end, deciding whether or not to purchase a automobile from CarMax, different sellers or a personal vendor is as much as you.
When you worth the convenience of shopping for on-line, all kinds of vehicles to select from and a dedication to higher-quality used autos, then CarMax is the best choice.
However if you happen to can’t abdomen paying a number of thousand greater than you’d elsewhere for doubtlessly the identical automobile, then CarMax shouldn’t be best for you.
Regularly Requested Questions (FAQs)
CarMax is sweet for individuals who need higher warranties and higher-quality used autos. Nevertheless, CarMax’s costs are sometimes increased than used automobile dealerships, which could make it a non-starter for frugal automobile customers.
Does CarMax negotiate costs?
You can not negotiate the value at CarMax. What you see is what you get. This will alleviate the everyday stress of high-pressure gross sales techniques, however it could possibly additionally make it tougher to discover a automobile in your finances.
What are the professionals and cons of CarMax?
Among the largest professionals of CarMax embrace the big number of used autos, the extra stringent inspection course of, the 30-day trial, the web car-buying expertise and the no-pressure gross sales surroundings. The largest con of CarMax is the upper price of the autos, together with the hidden switch charges.
Contributor Timothy Moore is a author and editor in Cincinnati. He focuses on banks, loans and insurance coverage plus automotive tales for The PNW. His work has been featured on Debt.com, The Ladders, Glassdoor, WDW Journal, Angi and The Information Wheel.