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For used car buyers who want to choose from a large inventory and finance a car online, the best At a CarMax location, vehicles can be delivered or picked up.
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$4,000-Max. not disclosed
Min. credit score
Min. credit score
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Min. credit score
How does CarMax work?
With an average inventory of more than 55,000 vehicles that can be seen at carmax.com, CarMax is the largest used car retailer in the United States. com. Customers can arrange for home delivery within 60 miles of a store in some markets or pick up a vehicle at one of more than 220 CarMax locations.
Even if they choose to shop at a CarMax location, prospective car buyers can apply for preapproved financing on the CarMax website. A hard credit inquiry is necessary for preapproval, which may temporarily lower your credit scores. CarMax Auto Finance and other lending partners offer financing options. Additionally, CarMax enables customers to obtain financing from their bank or credit union.
Every vehicle listed online by CarMax has undergone a 125-point inspection and has an AutoCheck vehicle history report. Additionally, vehicles come with a Love Your Car Guarantee that allows for 30-day returns and 24-hour test drives. A 90-day or 4,000-mile CarMax Limited Warranty is also included with every vehicle.
CarMax also buys cars and accepts trade-ins. (Saving money on sales taxes by trading in a car (You must bring your vehicle to a CarMax store if you’re trading with or selling to CarMax.
This review first examines the financing options at CarMax before examining purchasing or selling at CarMax.
CarMax’s own auto finance division, CarMax Auto Finance, provides auto loans directly to consumers. Additionally, it arranges loans through additional funding channels like Ally Auto, Chase Bank, and Capital One.
Customers of CarMax can also use their own lender, and when they start the car-buying process, they should provide that lender’s information. NerdWallet also strongly advises obtaining preapproved auto loan offers from additional lenders so that you can contrast their rates with CarMax’s offer.
You can benefit from a three-day payoff option if you finance with CarMax Auto Finance or a CarMax lending partner and later discover a better loan offer. You can replace your CarMax loan with financing from a different lender without paying any fees within three business days of its closing.
Whether customers finance their car through a CarMax finance source or a different lender is not how much money sales consultants at CarMax are paid. However, about 80% of CarMax’s customers finance through CarMax Auto Finance or another one of CarMax’s financing options.
CarMax claims its variety of financing sources enables it to serve customers across the credit spectrum and has no minimum credit score or credit history requirements. This includes car buyers with poor credit who might struggle to find car loans elsewhere (typically FICO scores below 630).
Co-signers are not permitted for loans at CarMax, but co-buyers or co-borrowers are, which can aid in loan approval. Unlike a co-signer, a co-borrower is a joint legal owner of the vehicle with the primary borrower.
CarMax encourages car buyers to apply regardless of credit score or profile because it claims to approve about 95% of its applicants through CarMax Auto Finance or one of its lending partners. Shopping around and comparing loan rates is always a good idea, especially for loans for car buyers with bad credit, which typically have a much higher APR.
CarMax may be a good fit for those who:
CarMax financing at a glance
CarMax Auto Finance is a direct lender, but it also finances vehicles through lending partners and third-party lenders. As a result, the following information relates to CarMax Auto Finance, with a note that some information may be different for other lenders.
Buying a car from CarMax
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The majority of the used cars and trucks sold through CarMax have low mileage and have passed safety, mechanical, and cosmetic inspections.
Car prices are non-negotiable. Vehicles have been repaired and put through a 125-point inspection in preparation for sale. Each car listing’s details section includes a free AutoCheck vehicle history report that can be viewed. Listings include 360-degree photos and detailed photos of imperfections. CarMax has more than 220 stores in 41 states. Alaska, Arkansas, Hawaii, Montana, North Dakota, South Dakota, Vermont, West Virginia, and Wyoming are the only states without stores for it.
Does CarMax sell new cars?
CarMax is an auto dealer that specializes in selling late-model, low-mileage used cars.
Can buyers negotiate with CarMax?
No. The company does not negotiate pricing.
Does CarMax take trade-ins?
Yes. If you want to sell your used car to CarMax or use the equity as a down payment on a CarMax vehicle, the CarMax offer is the same.
Costs and fees
If the vehicle needs to be moved between CarMax locations, a non-refundable shipping fee will be charged. The fee ranges from zero to $1,999, depending on location. Shipping fees to your store of choice are posted online. By choosing a car from a nearby CarMax location, you can avoid paying the fee.
Guarantees and warranties
Within 30 days (or 1,500 miles, whichever comes first), CarMax vehicles can be returned for a full refund minus any shipping costs. You should pay for a vehicle inspection during this time, NerdWallet highly advises. A limited warranty for 90 days or 4,000 miles, whichever comes first, is included with every CarMax vehicle.
Selling or trading in a car with CarMax
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You must obtain an appraisal for your vehicle either online or at a CarMax location before selling it to CarMax. Enter your car’s 17-digit VIN or license plate number, along with the registration details, mileage, available options, and any loan information, to obtain an online appraisal. A short questionnaire about the condition of the vehicle and your ZIP code and email address are also required.
CarMax will email you an appraisal offer within seconds. CarMax does not finalize sales remotely, however. Within seven days, you must bring your car to any CarMax location for a vehicle inspection. Some stores may require that you make an appointment. If you don’t want to enter your information online, you can also have the appraisal performed in-store. If the inspection reveals no significant hidden damage, you will immediately be given a bank draft for the quoted sum.
CarMax will buy vehicles of any age. CarMax either sells the vehicles it purchases at auction to wholesalers or restores them before selling them to retail customers. CarMax opened its first store in 1993 in Richmond, Virginia. It acquired approximately 383,000 vehicles from consumers in the third quarter of 2021. Of those, 194,000 were bought using an online instant appraisal.
Where does CarMax buy cars?
Except in the following states: Alaska, Arkansas, Hawaii, Montana, North Dakota, South Dakota, Vermont, West Virginia, and Wyoming, CarMax buys cars directly from customers.
Is my offer from CarMax negotiable?
No. All offers are firm and are good for seven days.
Will CarMax buy my car if I owe on it?
Yes. Information about your loan will be required so that CarMax can reimburse the lender. You must pay the difference if you owe more than your offer. The sum may occasionally be financed by you or paid directly to CarMax. CarMax will accept a personal check for amounts under $250. Cashiers checks, certified checks, certified funds, cash, and debit cards are accepted for larger sums at CarMax locations.
Does CarMax buy leased vehicles?
Yes, provided that the leasing company at the time permits sales to independent dealers. If not, you can obtain a new title in your name, buy out your lease at its residual value, and receive a new offer.
NerdWallet contacted company representatives after sending CarMax a survey asking for more than 60 data points in order to evaluate the company. The data was contrasted with that of other businesses that target the same clientele or provide comparable goods.
Save on Your Car
In Richmond, Virginia, CarMax opened its first used car dealership in 1993. CarMax now has more than 220 locations across the country, and you can view its typical inventory of more than 55,000 used cars at carmax.com. com. In 2021, CarMax sold more than 750,000 used vehicles. More than 25,000 people work for CarMax, which has been named one of the Fortune “100 Best Companies to Work For” for 16 years running. More than $75 million has been donated to different community causes by the CarMax Foundation.
Customers have access to a range of financing options from CarMax Auto Finance and other sources through CarMax. Since its founding in 1993, CarMax Auto Finance has provided financing exclusively to customers purchasing cars from the company.
Additionally, CarMax collaborates with financing sources to accept customers with all types of credit. CarMax third-party lending partners include:
When it comes to any car purchases, sales, or trade-ins, CarMax advertises “no-haggle” pricing and does not provide price matching or negotiation services.
CarMax doesn’t require a down payment for financing, but it is a good idea to do so when purchasing a vehicle. You will have to borrow less money as a result, which could lead to a lower APR and lower total interest costs for the loan. CarMax also takes trade-ins, allowing you to borrow less money.
Shannon Bradley covers auto loans for NerdWallet. She worked as a financial education content writer for more than 30 years in the banking industry. Read more.
Can you sell a financed car to CarMax?
If I owe money on my car, will CarMax still buy it? Information about your loan must be provided so that CarMax can reimburse the lender. You must pay the difference if you owe more than your offer.
Can you sell a car that is not paid off to CarMax?
In most circumstances, CarMax will purchase a vehicle with a loan on it. CarMax will probably buy the vehicle from you unless you’re significantly overdue on the loan. Schedule a meeting or drop by a nearby branch if you want to sell a car to CarMax that still has a loan on it.
Can you trade your car into CarMax if you owe it?
The short answer is yes, you can, but whether it’s a wise move depends on how much your car is worth when you trade it in and how much you still owe on the loan.
Does Carvana pay off your loan when you sell your car?
Current-lien trade-in vehicles will be paid off after the sale is complete and you’ve used your 7-day money-back guarantee. When your second 7-day money-back guarantee expires, we will pay off your trade if you decide to return your vehicle and exchange it for a new one.