Carmax Experiences?

[snoopy7548]

I've been looking online for a fairly specific used car for a while, which I'm pretty set on - a Honda HR-V with a manual transmission. The manual part is killing me; up here in the Northeast, you can only find used automatic HR-Vs, as everyone around here thinks they need AWD. Cars.com shows ~50 manual HR-Vs in the entire country, mostly centered around Florida/Texas/California.

I've been checking the auto sites daily for about six months and haven't really seen anything for a low enough price that would make me want to put up with the hassle of flying to and dealing with an out-of-state dealership and mechanic for an inspection.

But this one just popped up on Carmax about 50 miles from me and I'm interested. The price, to me, is fair, at least compared to everything I've seen online.

https://www.carmax.com/car/17964053

The funny thing is, this car was listed at a dealer in NC as a CPO for $17,786 but supposedly went to auction. The Carfax, when it was available for free, showed a minor accident to the front right, but other than that it was fine.

My 10 year old car is getting a bit long in the tooth and I'm ready to move on. Anyone know of any gotchas with Carmax? I understand their prices can be high and there could be things wrong with the car that are undisclosed (hence why I'd get it inspected during the seven day trial), but this seems like a weird case in that I know it was a CPO before going to auction. The only thing I'd be missing out on is the additional 1-year warranty from Honda.

What's the worst that could happen?

 

[NutBucket]

It isn't any more less or less risky than any other used car. As long as you do your due diligence it should be fine.

 

[Greenman]

A friend of my sons worked for carmax, he didn't have anything good to say about them.

 

[mindless1]

One thing I would wonder is whether the NC dealer location was subject to flooding and it was a victim which caused it to go to auction.

50 miles away though and considering your great wait, I'd definitely make the drive and look it over, and not wait long to do so.

CPO does not mean much. It is marketing where they imply they have checked some list, while the number of people who find problems that were supposedly checked, is staggering. Granted, it can imply they reserve this marketing designation for vehicles in better condition but be sure to read the fine print, then read it again.

I would not wait to get it checked out during a 7 day trial, rather before I signed my name to it.

 

[EXCellR8]

It isn't any more less or less risky than any other used car. As long as you do your due diligence it should be fine.

Pretty much. My GF and I test drove a car at a Carmax in MA and, although the service rep was upbeat and helpful, they had little to offer in terms of insight as to the history of the vehicles that were on the lot. On one hand, I'd like to be able to get the scoop on a vehicle I was interested in but, on the other, it's much better to do the digging yourself anyway.

+1 on a manual HR-V though; I think I've only seen one or two of those advertised, ever.

 

[nisryus]

CarMax is just another used car dealer. My neighbor had nothing good to say about them since his used 2015 Yukon had engine problems twice within a year after buying it. Both time he had to pay for most of the repair work at CarMax, even within the 90 days he got the car. I didn't know the detail but he thought it was covered by their warranty.

My friend got his used car from Hertz, you can search for their inventory online too. I didn't even know Hertz sell their used rentals, but apparently many people buy used car from them.

 

[deadlyapp]

I had good luck with my car from CarMax. Their warranties are terrific as well, so they're great to get a nightmare vehicle from (eg BMW, Mercedes, etc).

Only thing I've seen is their financing is garbage compared to local CU, and their pricing structure can be very hit or miss - you're unlikely to get a "Great" deal but can often find "good" deals.

I got lucky with a great price on an explorer sport with good mileage right about at book value, but had a bunch of previous owner extras that they couldn't price up which made it a good deal.

 

[snoopy7548]

Cool, thanks for the replies everyone. Seems like it can be hit or miss, though as long as you do your due diligence (as with any used car), there shouldn't be any problems. Flood damage is certainly a concern so I'll keep an eye out for that.

I'm going to repair my exhaust next weekend, so if the car is still available then I'll check it out either Sunday or the following weekend.

 

[deadlyapp]

Cool, thanks for the replies everyone. Seems like it can be hit or miss, though as long as you do your due diligence (as with any used car), there shouldn't be any problems. Flood damage is certainly a concern so I'll keep an eye out for that.

I'm going to repair my exhaust next weekend, so if the car is still available then I'll check it out either Sunday or the following weekend.

Oh - the other thing I didn't mention is the trade in value. They will significantly undervalue your car, so if you aren't strapped for cash or ability to finance the larger loan, I would absolutely attempt to sell private party.

Offered me 11k for my truck when I bought my new car, ended up turning around and selling it for 14 easily.

 

[NutBucket]

That's actually pretty reasonable. The dealer needs to turn a profit. Comparing trade-in vs a private party sale is like comparing apples & oranges.

 

[deadlyapp]

That's actually pretty reasonable. The dealer needs to turn a profit. Comparing trade-in vs a private party sale is like comparing apples & oranges.

Not saying it isn't- but if I had gone to lets say, a ford dealership, I was looking at at least another couple of thousand more. I just couldn't find a dealer with a vehicle that met what I was looking for and at a good price.

I guess in the end, it all balances if you get a lower trade in value and low purchase value but I'm stubborn so I made my life more complicated to maximize savings. shrug.

 

[TXHokie]

I've bought a truck from CarMax 8 yrs ago and then traded it in for an SUV from them last year. Yes you are paying a bit more and get a bit less in trade-in but the cost is in not having to deal with the hassle of selling it yourself or negotiation. To me time and stress is money so you pay one way or another. Also they are just like any used car dealer so cars can have hidden issues. Hopefully any issues you find within 30 days will be covered by them. Otherwise hope your car is still new enough to be covered by the manufacturer warranty. The first truck I bought had a bad AC after a week and CarMax fixed it up no questions asked and even replaced things like a scratched vent and a cracked rear light cover. The second SUV had an oil leak after 4 months and that was fixed by the dealer at no cost under warranty. I just don't have luck with cars as I've owned Honda and they gave me all kind of issues as well.

The thing I liked about CarMax was I could test drive a bunch of cars I was interested in and narrowed it down to the one I liked in one place. Once I've picked a model I liked, went online to search all the other CarMax nearby and find the one with the color and with the options I wanted and it got delivered to my local CarMax for no cost. Then it was a quick in and out paperwork visit and done. The rep we worked with was pretty laid back and didn't pressure us to buy at all and was more than accommodating in letting us test drive a bunch of cars over two weekend visits.

All that being said, we went the negotiating route with a local dealer on the last used car and got a car with lower mileage and about 8% less than what we found at CarMax. But I just didn't enjoy that whole wheeling and dealing part and spending more than half a day there. Did that whole walk away thing and they called us back agreeing to the deal.

 

[snoopy7548]

The thing I like about Carmax is they don't have ridiculous dealer/documentation fees, or at least they're simply rolled into the advertised price. Around here, documentation fees average around $400-500; I've seen dealerships disclaim $700-900 documentation fees in NC or FL.

Reading about selling a used car to Carmax, it seems like the more valuable/newer the car, the more likely you're gonna get ripped off. Most experiences I've read about where somebody traded in an older car in fair condition got way more than they thought - somewhere between dealer and private party value. That's alright with me; my car is 12 years old, has some rusting on one of the quarter panels, is missing a hubcap, and needs new TPMSs. Other than that, it runs perfectly fine; I'll be happy with anything over $1k.

 

[snoopy7548]

Just wanted to give an update... I went to CarMax yesterday to test drive the car and I liked it. It drove well without any weird noises or problems, and the shifting felt smooth - I'm used to a heavy clutch in my Versa, but I guess Hondas are known for their light clutches. To be honest, I like a heavy clutch when driving around backroads, but a lighter one will be great in traffic. I almost missed the entrance to CarMax on the way back from the test drive and had to brake hard from ~60mph down to 15mph quickly, and there wasn't any shuddering or movement in the wheel so at least I know the brakes and rotors are in good shape.

I spent a few minutes looking everything over. I peeked under the car and in the engine bay and saw no signs of rust or corrosion (possible flood damage), same with the brake discs. Looked over and in all seals and inside the spare tire comparment - same deal. The AC worked fine, as did the heated seats (which are really nice). I couldn't find any scratches or dents/dings on the exterior either, or any signs of paint touch-up.

They certainly lowballed me on my trade-in, though I really don't care. I was offered $700 and I said fine. I really don't have the time to deal with selling my car privately, where I'd realistically get less than $1500, and it'll be nice to just drive there in my old car and drive out in the new car.

I signed all the paperwork but didn't submit the payment yet. I'm going back next Friday to pay them and take delivery of the car. I'll have my mechanic check it out the following week, as I have a week to return it for a full refund. They said their limited warranty (90 days in MA) covers anything I find wrong with the car.

The only downside is if I decide to return the car, I won't be able to get my old car back. I figure in that case, I'll bum rides to work for a week or so and spend like $6k on a used Miata to hold me over (which I want to buy at some point).

Between the test drive and filling out the paperwork, I was in an out in under 2.5 hours. They also don't charge dealer/documentation fees (though I'm sure they make it up by the higher prices), and I never got that salesman vibe from them.

The only problem is I thought I had my car's title, but it's the title that was signed over to me from my dad in the original state it was bought in. I'll have to order a replacement and hope it gets here before next Friday, but I'll give CarMax a call and see what they say. I guess worst-case is we delay the sale a day or two but maybe they'll be OK with it.

 

[manly]

Not saying it isn't- but if I had gone to lets say, a ford dealership, I was looking at at least another couple of thousand more. I just couldn't find a dealer with a vehicle that met what I was looking for and at a good price.

I guess in the end, it all balances if you get a lower trade in value and low purchase value but I'm stubborn so I made my life more complicated to maximize savings. shrug.

That's interesting, if anything franchise/new car dealerships are notorious for low balling trade-in values. Since it's a separate negotiation, they'll roll over on the car sale and recapture some of the profit on the trade-in. Obviously CarMax isn't going to buy a car off you for a significantly higher value, but you can walk in and get the value appraised whether or not you're buying a car.

As for the OP, I would just get a PPI before going through all the trouble of a purchase but I guess that depends on if CarMax allows you to borrow the car for a couple hours.

Yikes, OP's 10 year old car is worth just $700? I just read an article the other day that beater cars are in short supply, making it hard for poor folks to buy a cheap car (i.e. under $2k). It's a consequence of the Great Recession when U.S. automakers were insolvent, and production was slashed. Also, cars are more reliable and last longer than ever, and new cars are terribly expensive to buy. (Consumers are sitting on a mountain of auto loan debt, and the next recession will trigger a lot of loan delinquency.) As an aside, is the old car reliable? Most 10 year old Japanese cars, for example, cost peanuts for upkeep and much of the depreciation has already occurred.

 

[snoopy7548]

I was wrong in the OP... my car is 12 years old. KBB puts trade-in at ~$900 average and private party around $2k, but again, I really don't have the time or energy to deal with it. It's worth it to me to get rid of it as easily as possible.

It is reliable but from being in the Northeast for 12 years, it has a lot of rust.

EDIT: I also ran my car through Carvana's online estimator, and they offered me $200.

 

[someone16]

Yea, usually dealers don't like older cars. They also have to factor all the potential problems it might have and have to give a low ball price. I would just sell it through Craigslist. Like others have said I have noticed values for older cars have been increasing, so it may be worth a shot. Where I live you wouldn't be able to get anything running for under $2,000 unless it was like 20-30 years old.

 

[Scarpozzi]

I bought a Jeep from them in 2000 or so. Experience was pretty easy at the time. Car was clean, damage free, low miles. Price wasn't great, but was decent enough. I don't have other recent experience, so keep that in mind. My understanding is that some CarMax dealerships are also new volume dealers and you can get some decent pricing through them on occasion....especially when there are promotions from the manufacturers.

The no haggle price cuts both ways. They price so they make money, but you're not dealing with dealer tricks and inflation that are too high above KBB. You won't walk out of there with a great deal, but it's possible to get ok deals on cars through Carmax.

 

[snoopy7548]

I'm heading off to Carmax this afternoon to wire the payment over and take delivery. I'm pretty excited; I'll update once I have the car!

Before I wire the money, I'll do a final (closer) inspection. When I checked the car out last week, I forgot to unravel the seatbelts to check for signs of flooding, though everywhere else I looked seemed OK.

I'll call my mechanic before I head out and see if I can make an appointment for a full inspection early next week.

BTW, I took out the spare key for my current car. I'm surprised my main key still works!

 

[NutBucket]

Funny that did happen with my dad's truck. One day he had a hard time unlocking the door as I recall. A fresh key solved the issue.

 

[snoopy7548]

I promised an update so here it is. I went on Friday to pay (did a wire transfer thinking it would be quick and save me a trip to the bank for a cashier's check). I wired the money over before 3p.m. but after waiting two hours to the cutoff time, they still hadn't received it so I went home.

Still nothing on Monday, but yesterday they received it, so I picked up the car last night and gave them my old one. I guess their bank wanted to sit on the funds for a couple of days to make a few bucks on the interest.

Anyways, I have the car now. It drives very well and I love it. Last night I spent about an hour closely inspecting everything, from the engine bay to the seat rails to up under the dash, and it all looked perfect. I'm having my mechanic do an inspection on it Friday morning, but I'm sure it'll be alright.

I'll certainly consider Carmax again if I ever buy another used car. Not having to deal with negotiations or any pressure, spending hours at a dealership, having dealer/extra fees tacked on, etc. is certainly worth the $1000-1500 increase in price to me, especially considering they'll fix any little thing during the first 90 days.

If you're thinking about trading in, it's probably worth it to sell privately if you have the time.

They are offering home test drives, where they bring the car to your house so you can drive it around for a while, and they can also deliver the car after you buy it, all for free.

Also, they put a bow on it which was pretty cool...

 

[NutBucket]

Looks Good!