I have been employed at Carmax for over 10 years, and I have heard all of the complaints. The "car-buying process" is the 2nd most stressful purchase in your life, so I understand why some of you are upset. Here's how Carmax comes up with an appraisal value: each individual vehicle is researched and a value is reached based on CURRENT wholesale market value. Condition, mileage, options, as well as expected reconditioning costs are considered. The offer Carmax gives is based on that number. Now think about it, if Carmax can buy that car at an auction for $10,000...why would another dealer give you $12,000 for the same car? Because they are just moving the money around!! It's monopoly money to them....They will charge more for the car you are buying, pack profit into your "perceived" low interest rate (e.g. selling your loan at 7.00% when you really qualify for 6.0%). The Carmax appraisal is a contract to buy your car, even if you don't buy a car from Carmax. THAT IS NOT OFFERED ANYWHERE ELSE. Try taking your car to Tom Ripoff's Mega AutoMall and get a written appraisal. They will look at you like your fly is unzipped.
You might also like to know that the dealer down the street that is giving you such a great deal on that car might have bought it from Carmax. Carmax will not sell a car that has been in a major accident, has frame or flood damage, or has a branded title due to salvage history or possible odometer rollback. The dealer down the street loves coming to Carmax wholesale auctions and buying these cars to sell to unsuspecting shoppers like YOU who are only concerned with price or value of your trade-in and not the overall cost to the consumer. If you think your dealer is giving you more value for your trade in, see how much your monthly payment is. If the dealer is offering more money for your trade in on the same term loan for the same price car, your payment should be lower. I talk to customers everyday who finds out how the traditional dealer is playing with the numbers and they can't wait to come back to Carmax
Try financing car at Carmax and see how upfront the whole process is. Once your loan application is submitted, you will see the financing offers at the same time we do. You just pick which one suits you best. Try getting that at the Jack Shadys Flood and Frame Damage Outlet. The lenders decide what interest rate you qualify for, not Carmax. There are several other options offered other than Carmax Auto Financing. If you are unhappy with your rate, go ahead and buy the car using Carmax's financing.....you can come back in up to three business days and redo the deal with your financing at no charge. That is not offered anywhere else either.
You also get a five-day return policy and up-front pricing.
Cars are machines people....they do break. Our inspection process is second to none. I have seen cars fail the Carmax inspection for issues that 99% of the population would not notice. You can purchase an extended warranty at Carmax, and all repairs are covered for the first 30 days at no charge. Try to sell the big picture people!
