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CarMax is one the places to find great deals on used cars; you can also sell your old car to CarMax at a good price. But CarMax isn’t only a used car dealership website, it also offers car purchase financing, which means you can get financed for the next new car you’d be buying from CarMax.
A lot of used car shoppers seem to be cool with CarMax financing rates, but are these rates negotiable? Is CarMax negotiable?
Well, you can’t negotiate the price tag on the vehicle you selected to buy, but you can haggle the prices of other services that CarMax may want to sell to you too, such as extended warranty coverage, car loan, insurance, and others.
In this article, you will more about CarMax, how it works, and how to negotiate on CarMax!
Who is CarMax?
Founded on September 1993 by Richard L. Sharp, CarMax is currently the largest used car retailer in the United States that offers various car financing options to its customers.
The company offers quite a lot of perks that make many people come to buy from them pretty always. CarMax can also buy off your used car after evaluating it, and resell the car to another customer.
The CarMax inventory boasts of over 50,000 cars of different models and makes. Each vehicle available in CarMax’s inventory has its price clearly written out, and this price cannot be changed. Of course, there are many benefits attached to buying your next car from CarMax.
First, the cars listed by CarMax are thoroughly tested to confirm they are in perfect condition, secondly, CarMax allows you to search through their inventory to pick the perfect choice of car you want.
CarMax sells different kinds of vehicles, including sedans, trucks, vans, convertibles, SUVs, hatchbacks, and coupes. To purchase a car from CarMax, you have to make a down payment, then subsequently pay monthly charges until you completely pay for the car.
This method works for quite many people who don’t have the complete budget to purchase their dream car.
Is CarMax Negotiable?
The price tag you see on any car on CarMax’s lot is non-negotiable, and quite some people love the “no-haggle” pricing model.
This means, as you’re walking into a CarMax store, have in mind that you’re expected to pay the exact amount you see attached to your desired vehicle – no one is ready to negotiate the prices.
With CarMax’s price model, you will spend less time in the dealership and drive out with your desired car. But then, if you’re getting additional packages – such as extended warranty, insurance, or car loan – to the car, you can haggle the prices of those packages.
CarMax’s car financing plans are negotiable, but the cars’ asking prices are not.
Since its founding in 1993, CarMax has sold over nine (9) million vehicles to customers across the US states. Apparently, its pricing pattern works well for the company, and they definitely are not looking to change that.
Truly, buying a car from CarMax is seamless and straightforward; more so, CarMax offers perks that no other dealership may offer you.
How to Negotiate CarMax Prices
CarMax already has lots of loyal customers, and the company still acquires new customers daily. Some of these new customers seek to know if they can cut down on the final price they pay to drive a car off CarMax’s lots.
Well, there are ways around these things, but none of them will reduce the asking price for the vehicle you selected; instead, you’d get some cuts off other plans.
1. Don’t Buy CarMax’s Extended Warranty
One of the ways to reduce the final cost you’d pay CarMax is to avoid the extended warranty the salesperson may want to sell to you.
Basically, every car bought from CarMax comes with a standard limited warranty, which covers the car’s major systems of up to 90 days or 4,000 miles, whichever comes first.
This limited warranty is pretty enough to drive the car to your satisfaction and then decide if you’d want to extend the warranty, or even get coverage from another provider. But then, if you’re getting an extended warranty with CarMax, you can negotiate the price for the coverage plan you select.
That your old rickety car could save you some reasonable amount of money for your next new car from CarMax. Yes, CarMax accepts trade-ins, so, you can sell them your old car and then add up to buy a new one.
This implies to say that if you’re about to buy a $30,000 car from CarMax, you can sell them your old car for about $18,000 and only need to balance #12,000 – nice deal?
But sometimes, CarMax may price your old car so poorly that you won’t want to do the trade-in with them; in such cases, you can sell the car to another person and come to buy a new one from CarMax. You may also use the old car as collateral to get a loan to buy your new car – then keep the two cars.
3. Interest Rates
Although CarMax offers in-house car financing plans, they also partner with third-party car financing service providers.
So, if you’re about to finance your new car and CarMax’s in-house plans seem to have much higher interest rates, you can request to go with any of their partners that offer seemingly lower rates.
How Does CarMax Works?
Let’s say you just walk into a CarMax store, select a car from its inventory, test drive it for up to 24 hours, and then pay the price you see on the tag. Yes, it’s that easy and straightforward. The problem most people have with CarMax isn’t the purchase/trade-in procedures, but the “Pricing.”
CarMax has about 225 stores across US states; you either walk into any of these stores to pick up your new car, or have it delivered to your home (if you qualify for such).
Before you purchase a car from CarMax, you can use the official CarMax website to apply for preapproved financing. Financing is available through CarMax Auto Finance or its partners. You can also finance your new car through your credit union or bank if supported.
If you want to sell or trade in your car, you must take the car to a CarMax store for inspection. CarMax vehicles receive a 125-point inspection and have an AutoCheck vehicle history report.
Also, CarMax vehicles are sold with a Love Your Car Guarantee, 24-hour test drives, and 30-day returns – along with the CarMax Limited Warranty for 90 days or 4,000 miles.
CarMax has made a name for itself, even if they overprice their cars, a lot of people would still prefer to buy from them.
Also, CarMax offers a number of perks that most other dealerships do not offer, and generally, buying from CarMax is seamless. Is CarMax negotiable? No, you can’t haggle CarMax vehicle prices.