CarMax Review: 5 Things To Know Before You Buy or Sell (2024)

CarMax promises to make buying or selling a used car an easy and stress-free process through its “no haggle” policy. But is CarMax right for you?

Team Clark has explored the process of buying and selling vehicles with CarMax compared to other methods.

In this article, we’ll look at how CarMax works and what the process is for buying and selling cars. We’ll also look at how CarMax compares to its competitors in terms of pricing. And we’ll give you the pros and cons of buying and selling cars there.

Table of Contents:

  1. How Does CarMax Work?
  2. How Do You Buy a Car Through CarMax?
  3. How Do the Prices at CarMax Compare to the Competition?
  4. How Do You Sell a Car Through CarMax?

1. How Does CarMax Work?

CarMax is a used car dealer that has a “no-haggle” policy for selling and buying used vehicles. That policy is intended to simplify the process for people who don’t want to spend hours at a dealership haggling over prices.

CarMax has 246 physical locations located across the U.S., but you can do most of what’s involved in buying or selling a car with CarMax online.

At any given time, CarMax has around 50,000 used cars to choose from, according to the company’s website. So the chances of finding a vehicle that suits your needs are pretty good. The company also offers you 30 days (1500 miles) to drive the car to make sure you like it. If you don’t, you can return it for a full refund.

CarMax will also buy your car if it meets their specifications. You can take your vehicle to a CarMax location to have it inspected or get a quote online if your vehicle is eligible. If it passes muster, you’ll get an instant cash offer. That offer is good for seven days from the time you get it. If you do sell your car to CarMax, you’re under no obligation to buy a car in return.

2. How Do You Buy a Car Through CarMax?

Start the process at CarMax.com. You’ll be able to search for the vehicle you want.

You can search by make, model or keyword. That means you can search for a specific vehicle or a more general category like “Small SUVs.”

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This search gives you access to CarMax’s entire inventory. If the specific car that you want isn’t located in your area, CarMax will bring it to you. Depending on the vehicle’s distance from your location, you may have to pay a transport fee.

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If you’re not sure what you’re looking for, you also have the option to browse available vehicles by clicking “Search Cars.”

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Once there, you’ll find plenty of options to filter your search.

Those filtering options include:

  • Distance & Shipping
  • Make
  • Body Type
  • Fuel Type
  • Year
  • Price
  • Mileage
  • Features
  • Drivetrain
  • Exterior Color
  • Interior Color
  • Transmission
  • Cylinders
  • MPG Highway
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Once you narrow down your choices and select a vehicle that interests you, you’ll be taken to that car’s profile page.

There, you’ll get an interactive 360-degree view of the actual vehicle in stock, along with multiple photos of the interior. You’ll also see the car’s Vehicle Identification Number (VIN), which you’ll want to look up to see the vehicle’s history. You can do that for free.

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If you decide you like a vehicle, you can schedule a test drive at the vehicle’s location, purchase it and pick it up at the lot. Or you can buy it and have it shipped to the CarMax location closest to you. In some cases, CarMax offers delivery to your home. If that’s the case, you’ll see it as an option.

Just remember that if the vehicle you settle on is located some distance from you, you may incur transport costs. If that’s the case, it will be disclosed.

At this point, you’ll also have the option to get pre-approved for financing on your purchase.

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Of course, you’ll want to compare any financing offer you get from CarMax with other options, especially those from credit unions.

Don’t forget that if you buy a car from CarMax, you have thirty days(up to 1500 miles) to change your mind for any reason. You also get a 90-day or 4,000-mile (whichever comes first) limited warranty that covers your car’s major systems.

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While you can’t beat shopping and buying online for convenience, some people may be more comfortable doing everything in person. If that’s true in your case, you can always head to a CarMax store for a more traditional experience.

3. How Do the Prices at CarMax Compare to the Competition?

To see how the prices at CarMax stack up to the competition, we compared three vehicles of different makes and model years at the time of writing. Obviously, these are not the exact same vehicles, so we’ve noted the mileage for each one to account for minor discrepancies.

Vehicle CarMax Price (Mileage)Carvana Price (Mileage)Autotrader Price (Mileage)
2019 Toyota Camry SE$24,998 (54K)$22,590 (52K)$22,990 (50K)
2020 Toyota Highlander LE$32,998 (21K)$29,990 (33K)$31,398 (31K)
2022 Chevy Tahoe LT 4WD$62,998 (34K)$50,990 (48K)$54,498 (42K)

As you can see, with the first two vehicles, the prices are similar. But with the newer, more expensive SUV there is quite a spread. That’s why it always pays to comparison shop — especially with a major purchase.

4. How Do You Sell a Car Through CarMax?

Selling a car through CarMax is a less automated process, but it’s considerably easier than going through a traditional dealer or conducting a private sale.

If you’re interested in selling your vehicle, head here. You’ll find a brief form where you enter your car’s VIN number or license plate number, state and zip code.

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If CarMax is interested in your vehicle, you’ll get a message like this:

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At that point, you can schedule a time to take your vehicle in for an inspection. If CarMax makes you an offer, you’ll have seven days to decide whether you want to accept it.

That weeklong period to decide is a big deal: It lets you shop your car with other dealers like Carvana or even test the private sale waters with a sure-thing offer already in hand.

If you think you might want to accept the CarMax offer right away, you should be prepared with your:

  • ID
  • Registration
  • Keys, fobs, and remotes
  • Loan payoff information (if any)
  • Vehicle title

Some states may require additional documents, but CarMax will alert you to those in advance if applicable.

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You are under no obligation to buy a vehicle from CarMax if you sell them yours.

5. What Are the Pros & Cons of Doing Business With CarMax?

On the whole, if you’re looking to buy or sell a used car, you really can’t go wrong giving CarMax a shot. But it’s always a good idea to consider the pluses and minuses:

ProsCons
Easy-to-use interface for shopping used car inventoryWhen selling, the offer may be less than you can get in a private sale
No-haggle, no-pressure environmentMay have to pay extra to have a car shipped to your location
Wide variety of makes, models and model yearsWhen selling, offer may be less than you can get in a private sale
24-hour test drives and 30-day returns up to 1500 milesMust visit store to sell car if it isn’t eligible for an online quote
In-house financing available

CarMax turned the used car market upside-down when it opened 30 years ago. Today, the company is working hard to keep up with the competition (chiefly Carvana) and remains a great option for easily buying or selling a used car.

Have you bought or sold a car with CarMax? Tell us about your experience in our Clark.com Community!

CarMax Review: 5 Things To Know Before You Buy or Sell (2024)

FAQs

Does CarMax negotiate selling price? ›

CarMax has a no-haggle policy, which means you can't negotiate the price. This can be a benefit, though, because you know you're getting CarMax's best rate first instead of a lowball offer. You can still sell your car to CarMax after the seven-day period, but you'll need to get a new offer.

What is the advantages of buying at CarMax? ›

A major advantage of buying from CarMax is that it only sells cars that meet its high standards. To give customers peace of mind when purchasing used cars, CarMax inspects and reconditions all of their cars, and the company offers warranties and protection plans.

What is the strategy of CarMax? ›

CarMax Inc (NYSE:KMX) leverages a strong omni-channel platform to drive customer engagement and sales. Strategic initiatives aim to grow market share and expand the used electric vehicle segment. Conservative capital structure approach to maintain flexibility in volatile market conditions.

What is better, Carvana or CarMax? ›

Both Carvana and CarMax advertise no-haggle pricing, but Carvana offers a seamless selling process that helps it come out ahead in our rankings. We give Carvana the edge over CarMax as a car selling website. Our team rates CarMax just slightly ahead of Carvana for its car buying services.

Where to sell your car for the most money? ›

The best websites to sell your car online for the most money include Cars.com, Carvana, CarBrain, Peddle, TrueCar, Copart, CarMax and CarGurus.

What is the commission at CarMax? ›

The California pay plan, implemented beginning in 2005 for CarMax's California sales consultants, paid sales staff under a formula yielding the same uniform payment per vehicle, approximately $154. In essence, the identical reward was provided for sales consultants regardless of the price of the vehicle sold.

What are the weaknesses of CarMax? ›

High Operational Costs Due to Physical Stores: Unlike online-only used car retailers such as Carvana, CarMax incurs significant expenses associated with maintaining and operating physical locations. The costs include real estate, maintenance, staffing, and inventory management.

Does CarMax give you the most money? ›

However, selling a car through CarMax or any used retailer will not get you as much money as you'd get by selling your car privately through iSeeCars.com, Craigslist, or Autotrader. However, CarMax is a lot more convenient and you're guaranteed a prompt offer.

How does CarMax determine your offer? ›

How do you determine my offer? We analyze your car's specific year, make, model, mileage, and features.

Who is CarMax biggest competitor? ›

CarMax competitors include Carvana, Penske Automotive Group and AutoNation. CarMax ranks 1st in Overall Culture Score on Comparably vs its competitors.

How is CarMax different? ›

Carefully chosen. Millions of cars are ruled out by our vetting process, and we never sell cars with flood damage, frame damage, or salvage history.

What makes CarMax successful? ›

1. A disciplined, efficient, technology-driven vehicle purchase process. Dealers and their buyers sometimes marvel at how much CarMax buyers seem willing to pay in the lanes for vehicles.

Can I negotiate at CarMax? ›

The short answer is no, you cannot negotiate with CarMax. However, discover other ways you can bring down the costs and learn about the benefits of buying a car with CarMax — even if you can't negotiate the price in a traditional sense.

Does CarMax sell cars older than 10 years? ›

No, carmax is a nationwide flipper and they do as any business does, buy low, sell high. Not much profit margin in old worn out cars. They deal in cars less than 10 years old and able to pass their inspection.

What is the CarMax return policy? ›

CarMax offers a 10-day Money Back Guarantee so you have plenty of time to decide if the car you buy is right for your life. As long as the vehicle's condition is consistent with when you purchased it, you can bring it back within 10 days to the store where you purchased it and we'll help you complete your return.

Does CarMax have no-haggle pricing? ›

As the original disruptor of the automotive industry, our “no-haggle” prices transformed car buying and selling from a stressful, dreaded event into the honest, straightforward experience all people deserve. We've been raising the bar on customer experiences ever since.

Can I sell my car to CarMax if I still owe money on it? ›

In some cases, the negative equity can be included in your financing if you buy a CarMax car. If not, we'll calculate the difference between your payoff and our offer to you and you can pay CarMax directly. If the amount you owe is less than $250, we will accept a personal check.

Can you negotiate CarMax interest rate? ›

You can't barter for the actual vehicle's cost when buying through CarMax. Instead, you negotiate the back end of the deal. To do this, negotiate the interest rate that the dealer offers you, as it's likely they've included a markup.

Can you negotiate with Carfax? ›

A car fax is an estimated value of a vehicle, it is not binding on either party. It's like a Zillow listing for a home. You can use a car fax to negotiate a price but you cannot force a sale, just like a dealer cannot force a purchase based upon a listing.

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