CarMax presents a hassle-free used automobile procuring expertise that provides you extra choices, extra confidence and extra comfort. However it’s additionally dearer.
So is CarMax value the price? Scroll on for our thorough CarMax assessment.
The common automobile cost in america has hit a file excessive — greater than $700 a month ($730, to be actual), per a current examine by Cox Automotive. That’s $8,544 a 12 months on automobile funds alone, however drivers additionally must consider 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 automobiles are trying extra enticing.
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 learn 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.
In case you’re pondering of shopping for a used automobile however have little belief in used automobile sellers (and even much less for personal sellers), procuring at CarMax or Caravana could have crossed your thoughts. However is CarMax dearer than shopping for from a standard dealership, and what’s the course of like?
In our CarMax assessment, we’ll break down the professionals and cons of buying a used automobile on the automobile retailer and discover whether or not it’s value the price.
Shopping for a automobile could be a anxious, overwhelming job, particularly in the event you want a automobile ASAP. Our procuring suggestions and automobile comparability spreadsheet could make the expertise a bit simpler.
CarMax Evaluation: Extra Cash However a Higher Deal?
For our CarMax assessment, we analyzed the standard of automobiles, their price in comparison with the market, the promoting course of, the comfort of the procuring expertise, the general automobile choice on-line, the benefit of financing, warranties and the general buyer expertise.
Till late 2021, you could possibly purchase new and used automobiles at a CarMax retailer. Nonetheless, the retailer has since moved completely into the used automobile area.
Automobile High quality
The primary motive to purchase a used automobile by CarMax is the standard of the automobile. Every automobile undergoes and should move a radical inspection — greater than 125 particulars checked — by an ASE-certified mechanic earlier than CarMax will purchase it. CarMax flat out rejects any automobiles or vehicles which have flood harm, body harm or salvage historical past.
And if the extremely educated technicians uncover potential defaults throughout an inspection, CarMax will repair these earlier than the mannequin hits the gross sales flooring, 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 automobiles 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 in the event you 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 possibly can convey it again for a full refund.
Plus, each CarMax automobile comes with a free AutoCheck automobile historical past report.
Automobile Price
If automobile high quality is CarMax’s North Star, then price is the thorn in its aspect. CarMax makes cash by promoting automobiles above their honest market worth, plain and easy.
Whereas it might fluctuate from automobile to automobile, automobiles 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 presents extra sensible perks which you could simply acknowledge, like higher warranties, an easy-to-use on-line platform, and applications that mean you can get a greater really feel for the automobile earlier than making a choice.
Purchaser beware! If the automobile comes from one other CarMax location, you may pay a switch charge, which is nonrefundable. In case you resolve to not buy after your take a look at drive, you possibly can’t get the cash again.
Promoting Course of
In case you are promoting a automobile, it’s at all times value it to attempt CarMax to see in the event that they’ll offer you a greater deal than what a dealership is providing to your trade-in. Nonetheless, dealerships usually pay retail worth whereas CarMax pays wholesale; retail will put more cash in your pocket.
Promoting privately, although it’s much less handy and extra time-consuming, is usually the way in which to take advantage of cash off your used car.
Although the worth is probably not as enticing, the method of promoting your automobile to CarMax is straightforward — and you are able to do most of it on-line. You’ll simply want some primary information like your automobile’s automobile identification quantity or your license plate and registration information 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 grow to be essentially the most handy means to purchase and promote automobiles in a post-pandemic world. With out ever leaving your sofa (or placing on pants), you should purchase a automobile on-line — together with making use of for financing, producing a trade-in supply 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.
In case you’d love to do a take a look at drive in particular person (extremely advisable), you possibly can nonetheless deal with many of the different particulars at dwelling. And in the event you’re a traditionalist who needs 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 price, so that they aren’t incentivized to promote you quicker — or to improve you to a dearer mannequin you don’t need.
Choice
CarMax has the biggest stock of used automobiles in america. Whether or not you’ve a set price range or particular automobile in thoughts, CarMax might be the best technique to discover what you’re searching for.
Buying on-line or within the cellular app could be very easy. Potential automobile consumers can punch in some numbers — down cost, desired month-to-month cost and credit score rating vary — to generate an estimated price range, then solely see automobiles that match their price range.
It’s also possible to 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 accessible in your worth vary.
One draw back of the broad number of automobiles accessible: CarMax gross sales workers are much less more likely to be educated concerning the particular automobile you’re after. If you would like an knowledgeable gross sales particular person, procuring the used automobile lot at a dealership that focuses on a particular model is the way in which to go.
Shopping for tires to your new trip is inevitable. Right here’s how one can discover the very best low-cost tires on-line and in-person.
Financing Choices
CarMax lets you pay money for automobile purchases or convey your individual financing out of your most well-liked monetary establishment. However you may also reap the benefits of a 3rd possibility: a CarMax mortgage.
In actual fact, you may get pre-approved for a mortgage on the CarMax web site in the event you allow them to drag your credit score report. Whereas CarMax isn’t clear about its credit score rating minimal — a minor sticking level in our assessment — customers with low credit or no credit score can usually get authorised.
In case you get authorised, you possibly can simply handle the mortgage by a CarMax Auto Finance account on-line. Nonetheless, it’s a wise concept to maintain looking for a greater mortgage in the event you’re not glad along with your price. CarMax Auto Finance has a straightforward three-day payoff program in the event you discover higher financing.
Guarantee
Each automobile at a CarMax retailer robotically comes with a 30-day (1,500-mile), money-back assure. That’s instantly higher than what most different used automobile retailers supply.
Even higher is the usual 90-day or 4,000-mile restricted guarantee.
However in the event you’d want an prolonged guarantee, CarMax sells the moderately priced MaxCare prolonged service plan. Pricing varies relying on the mannequin and protection chosen.
Practically 4 million clients have opted into MaxCare since its inception in 2009, and it’s coated over $1.5 billion in claims. Plans are versatile, with deductibles as little as $50 and protection extending to programs and components just like the engine, transmission, drivetrain, electronics, cooling programs and electrical programs.
Each MaxCare prolonged service plan contains:
- Emergency roadside help
- Safety in all places within the U.S. and Canada
- Rental reimbursement for coated repairs
- $50 low cost on deductibles when servicing at a CarMax Service Heart or RepairPal Licensed store
- No-contract cancellation (with prorated refunds)
Buyer Expertise
CarMax prides itself on a streamlined, simple 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 stated, not each buyer leaves CarMax glad. A fast google seek for “CarMax critiques” will pull up tales of low-quality automobiles and unfair pricing. It’s simple to deal with the destructive ones, however you’ll additionally discover hundreds of optimistic CarMax critiques that replicate the standard expertise that CarMax ensures.
In mid-2022, CarMax had a 3.6-star score with Shopper Affairs and a 4.2-star score with Google.
Sadly, you possibly can’t really uncover how you’re feeling concerning 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 in the event you discover the shopper expertise to be missing. Most different automobile shops can’t make that promise.
CarMax shouldn’t be your solely possibility on this area. 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. In case you’re trying to spend as little as attainable on a used automobile, attempt a personal vendor or a used automobile dealership (however purchaser beware). However in the event you worth comfort and a extra thorough inspection to ensure automobile high quality, CarMax could possibly be for you.
Take a fast have a look at these CarMax execs and cons earlier than making a choice:
Execs
- Increased-quality automobiles
- Nice prolonged guarantee possibility
- 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 presents
- 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.
In case you worth the benefit of shopping for on-line, all kinds of automobiles to select from and a dedication to higher-quality used automobiles, then CarMax is the most suitable choice.
However in the event you can’t abdomen paying a number of thousand greater than you’ll elsewhere for probably the identical automobile, then CarMax shouldn’t be best for you.
Often Requested Questions (FAQs)
CarMax is nice for individuals who need higher warranties and higher-quality used automobiles. Nonetheless, CarMax’s costs are usually increased than used automobile dealerships, which could make it a non-starter for frugal automobile customers.
Does CarMax negotiate costs?
You can’t negotiate the worth at CarMax. What you see is what you get. This could alleviate the standard stress of high-pressure gross sales techniques, however it might additionally make it tougher to discover a automobile in your price range.
What are the professionals and cons of CarMax?
A few of the greatest execs of CarMax embrace the massive number of used automobiles, the extra stringent inspection course of, the 30-day trial, the net car-buying expertise and the no-pressure gross sales setting. The most important con of CarMax is the upper price of the automobiles, 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 FinanceGrabber. His work has been featured on Debt.com, The Ladders, Glassdoor, WDW Journal, Angi and The Information Wheel.