When I was car shopping, CarMax was a lot more expensive then other dealers. Maybe people have finally realized their no-haggle prices were ridiculous.
From my experience in average their cars were in better shape and better taken care of than most other used cars dealers plus knowing the out the door price right away on all cars meant that many didn't mind paying a premium to buy from carmax. Now with the pricing just getting out of control and people having less money to spend means costumers are more willing to work harder to get a better deal.
@@nostradamus7648 nothing about our economy is "free market" lololol wow it's so wild to see there are people out there who still believe this fairy tale 😂
The thing we found is Carmax didn’t turn out to be a bad deal this past year because of the ridiculous add on and dealer fees at the dealers on the used vehicles. Not to mention,,,Carmax is a much more pleasant experience than haggling with salesman trying to upsell you on everything. Shopping for my daughter we were able to take our time in the lot and sit in all of their cars. Pretty much a wash I would say.
Bought our 2019 fusion new from dealer for 18,500 sold to carmax in 2023 for 20,500. Made 2000. Saved and got a cash car. Now no car payments. Thanks carmax
I went to Carmax today and they lowballed me to the point that I considered it an insult. I told them that they were selling the exact same car as mine for an $8000 markup, I walked out without selling my car to them. My car has Low miles and is in excellent condition. I will definitely shop around. Customer service was horrible and the guy helping me was a jerk too. It took an hour to get an appraisal and other customers weren’t happy too. No wonder their sales are down, according to their last earnings report
They take away half of a sales consultants pay if you have an appointment set up or have done anything online. So they’re trying to rush everything and don’t really care to provide a “iconic experience”. The appraisal specialist only get $25 if you sell them your Car, so they don’t really care, they’re not in charge of how much your car is worth. The offers are no haggle so they’re not gonna sit there and explain things or argue. It’s basically here is the offer, take it or leave it. Carmax has been trying new ways to reduce their employees pay and it’s reflecting on the customer service that you received.
Years ago CarMax was at or less than the dealership used car lot prices and with "no haggle" I didn't have to worry about "extra fees" suddenly appearing and jacking up the final cost. However, when I recently went to the local CarMax, the prices on what I was interested in were between 5 and 10 thousand dollars more than I wanted to pay for those cars and trucks. So I think I will have to look at what deals might be available through my credit union's car buying service.
I loved buying a car at Camax about 8 years ago. Car was shipped up from another state at no cost (they were opening their first dealership in Massachusetts). The no haggle is a plus. Covid screwed up everything.
CARMAX will always have a business because there is so much outright hatred for car dealers, Facebook and other used car internet outlets are so skammy (no price listed, a mystery as to who you are really dealing with, etc., etc.). When spending so much $$$, consumers are willing to pay for the safety of CARMAX. The problem CARMAX has is a backlog of vehicles that they paid too much for. They need to clear them out. I looked at a dealer ad that was competitive. They had in the fine print, $2k in REQUIRED upgrades over and above the ad price. So comparatively, CARMAX looks good.
They have competitors now like shift, vroom and caravan, and I even see a lot of mom and pop shops around me that are copying carmax. Carmax completely lowballed me so I am going to sell my car somewheee else that is going to beat carmax’s price
I used to buy/sell at the Manheim auction for a dealership. The CarMax girl would stand right at the line close to auctioneer and run her hands over every car coming down the line. She would hold her hand up on about 80% of them. Any dealer wanting to outbid her would be promptly outbid again by her. CarMax paid more for their cars and then the recon was way more than any dealer. It was like they tried to make the cars new again. The prices reflected that. They always paid more and sold higher than anyone. What they didn't foresee was Bidenomics reducing the value of the dollar making the cost of everything skyrocket. Their business model is screwed.
It serves them right as they were about 20 years ago a reasonable place to check and had good used vehicles with a bit higher mileage available under the banner "ValuMax" but now they are banking on their history and that is not going to work.
I have to call BS on this. The carmax here is crazy busy and has people sitting, waiting to be helped. Yes carmax is more expensive but not having to deal with a slimey salesman at a regular dealership is worth it. Also I have had nothing but amazing experiences with their warranty program. I would just recommend you bring your own financing.
I'd say Carmax is decent. Although their interest rates are high at 9-10%. But I've also been to mainstream dealerships lately with used cars and they're charging much more, and some are flat out charging ridiculous markup fees. So it's almost a no-win situation for consumers.
They should both go out of business, liquidate all their cars so we can have a well deserved flood of used inventory that they've been holding hostage for all these months now demanding a king's ransom for them. Gimme a break, these are not car people running these outfits, maybe Carvana more than Carmax. They have no idea what they're doing. In a capitalist society you have the right to hit it big and make tons of 💰 and you also have the right to fail if you don't know what you're doing. See ya, wouldn't wanna be ya.
Both, at the same time. Ala SVB and Signature Bank. It's gonna be wild! Massive used car pricing event incoming. Anyone who held onto metal hoping to get back what they paid for the car at auction or gross out the car for revenue goals is going to get caught with their pants down face down.
i hope both.....i always despised both of them. they always have over priced stuff on their lots thus driving the average retail prices elsewhere however, their excessive pricing is why my 2022 car that just got wrecked got paid out $1000 more than what i paid for it new.
This is what happens when your whole business model is based just on low interest rates, the good times can't last forever, it has happened in the past, it is happening now, but people never learn
What goes around comes around. When a companies marketing plan is to make profit by overcharging customers; and then adding on other charges that are nearly 100% profit those tactics will eventually be their downfall. It’s difficult to have any sympathy for failing car dealerships considering their historical tactics and track records. It’s unfortunate employees will be the ones that suffer the most.
You think $2000 profit per car on a thoroughly inspected and reconditioned vehicle that comes with a warranty is excessive? You're a fool that they don't need as a customer.
@@vincewatterlohn1474 If what you believe is true then why is Carmax, if what’s being reported is true, on the verge of bankruptcy? Here’s my story and experience with Carmax. I’m retired. I had not purchased a preowned vehicle in 30 Years. My son gave me a 1997 Jeep Wrangler TJ in 2018. It was a very basic bare bones Jeep. 4 cylinder engine 4 Speed manual transmission. My grandson is a certified mechanic so I had him customize, upgrade, and modify it. Last July I decided I wanted a more modern Wrangler with a lot of comfort options, so I gave the TJ back to my son. I searched for about 3 months for a preowned Jeep that met my lengthly list of criteria’s that it absolutely had to have. Basically I wanted a one owner, preferably locally owned, JK or JL model, accident free, never taken off road, never modified or customized, with a 3.6L engine, auto trans, with AC. After months of searching the internet the exact Jeep I was looking jumped up, and it just happened a local Carmax dealer had it. I was aware Carmax doesn’t negotiate price and you have to have an appointment to check out the Jeep. All of that was very different than any auto buying experience I’d ever had, but it wasn’t a deal breaker. Appointment or not I still had to wait nearly 30 minutes to speak to a female sales representative. She did her due diligence getting as much personal information from me that I was willing to give. The Jeep was finally brought around for my test drive. First problem: Carmax advertised a 24 hour test drive. I was given 24 minutes. I asked if the 30 day return policy for a full refund was still available. She affirmed it was. I didn’t need a 24 hour test drive to know I was going to buy the Jeep. It was in showroom condition inside and out. It was obvious this was the previous owners “baby”. Maintenance history indicated all suggested maintenance was done when recommended. It had numerous upgrades I wasn’t expecting such as leather seats, Alpine sound system, blue tooth technology, etc. I’d priced the Jeep on KBB and BlackBook before I went to the dealership. Best retail price was $26,000 for a 2015 Wrangler Freedom in showroom condition with 57,000 miles. Carmax wanted $29;995. IMO this was a one of a kind Jeep that met all of my criteria’s. I’d checked the original window sticker that’s available on line for all cars. The original sticker price was $32,000, but the price the original owner paid, coincidentally, was $29,995. Yep, Carmax wanted the original selling price for a 7 year old Jeep. Jeeps hold their value,…..but 100% of their original selling price!? No, not even a Jeep retains that kind of value. I knew they weren’t going to come off their price and I knew finding another locally owned Jeep like it wasn’t likely, so I decided to buy it knowing full well I was paying too much for it……..but their screw the customer to the hilt tactics weren’t over. I was going to trade my 2013 Mazda CX-5 bought new locally with 48,000 miles, navigation, blind side monitoring, Bose sound system, etc. Always garaged with a suggested trade value of $13,000 to $19,000. I was looking for $15,000. They offered me a whopping $5,000 non-negotiable. The sales lady couldn’t conceal her shocked reaction. I’m sure she was certain I was going to walk out and I wish now that I had, but I didn’t. The Jeep was just to good of a find to pass up. I told her that I’d keep my car and requested the OTD price for the Jeep so I could write her a check. Oh yeah, Carmax had put 5 new tires on the Jeep, so I’ll note that too. My grandson did a complete diagnostic on the Jeep and it passed with flying colors. I disposed of my Mazda on my own. I got a quality vehicle from Carmax, but that might have more to do with luck than anything they did to the Jeep. It didn’t need any repairs or reconditioning. I overpaid for the Jeep but I was aware that I was paying about $4000 too much. At least I didn’t let them screw me out of another $10,000 by attempting to steal my Mazda. A new Jeep just like the one I bought lists for $53,000. I’ve convinced myself I saved $23,000 by buying a preowned Jeep in showroom condition. The only things I take exception with in your posts, based on my experience, is that Carmax only makes $2000 profit per vehicle. That’s pure nonsense. And Carmax doesn’t want or need my business? Really? I wouldn’t want to disappoint Carmax or you, but that noted, I can’t envision me ever going on a Carmax lot again…..that’s assuming they don’t go bankrupt. Have a nice day. ✌️👍
@@larrys9879 I usually don't read long post but yours had so much truth that so many of us have experienced when making a car purchase. Channel Kevin Hunter the Homework Guy has more information on this subject matter.
@@johnlopez3001 I don’t normally write such long posts. Except for Carmax nonnegotiable price policy their sales tactics, IMO, are typical for any car dealer new or used. I’ve purchased more than 60 cars in my lifetime. Purchasing an automobile is the only product, I can think of, where the customer is routinely screwed because they don’t know what the lowest OTD price is. Carmax advertising has convinced the public their no hassle pricing insures the customer they’re getting a good deal….but they aren’t. Carmax cars, IMO, are over priced and then they undervalue the customers trade vehicle, assuming my experience is typical. Their 30 day return for a full refund is unique and offers some protection for customer that end up buying a lemon. I’d like to see that become a law in every state.
I never went back to CarMax when they offered me $4,300 for my 2003 Acura CL Type S 6spd back in 2012. It only had 99K miles on it and it was pristine. Low purchase offers and high sale prices, they should be raking in $$$$.
I always tell my friends/family jokingly that if you want to find out the lowest price you can sell your car for, go to Carmax. You can only go up from there while selling. They low ball like crazy.
Ah, the good ole days before Carmax, Carvana, et al siphoned up all the good used cars to keep the prices high. Win/Win for the car dealers, Lose/Lose for the public. Yet the dumbed down sheeple continue to sell their cars to these crooks.
A CARMAX dealership recently opened in my community with a large volume of vehicles on their lot. I'm unsure how they will remain in business in such a rural area.
Carmax is NOT for everyone...Higher prices than typical used or pre-owned. But with the 10 to 20% higher price also comes with more thorough inspections, Title checks, and a 5 day Return policy. There are a few ways to get around the Carmax Pricing and one is to wait for 3 weeks. Usually after 3 weeks the price will be lowered by 500 to 2k depending. Another way is if you find something wrong or you don't like about the car, you can bring it up and sometimes They will discount the car. Overall Carmax is a much better friend than the Corner used car buy here pay here.
@Ezvy It depends on the demand of the car. I had a used Hyandai Tuscon transferred to my local Carmax a month ago. It was priced at $17,998. I changed my mind when they notified me it had arrived and told them I no longer wanted it. It sat their for sale for 3 weeks and I just noticed the priced dropped to $16,998. But I still don't want it. The type of vehicle I want now (Ford Explorer Sport) would be gone in less than 2 days if I changed my mind.
Carmax was a decent company. But, like so many other dealers the past 12-15 months, whatever they’re still sitting on is a huge loss. Carmax deserves what every other dealership has coming to them. Adios…
So how is carmax at the verge of a collapse? Things go up and eventually they come down. Carmax will come out this recession stronger than ever. Lol whose their competition? Clickbait title dude.
When Carmax first started (I live in Richmond, Virginia), I bought a smaller Subaru on a Friday, decided over the weekend that it was too small and went to sell it back to them that Monday. They nicked me $500 for the honor of owning it 3 days and putting less than 50 miles on it. I raised holy hell including writing to then president Austin Ligon. They would not budge. I vowed never to shop there again and about 6 vehicles later I have not. Two things: 1) I've probably saved thousands of dollars by not buying cars from Carmax over the years and 2) You can thank me that they now will take back a car if you don't like it.
@@Hellocali1 He actually had someone contact me, but only to tell me there was nothing they could do. I think within a year they came up with their return policy. At least I learned to better negotiate with car dealers because I was hellbent on getting that $500 back (at least in my mind) when I bought my next car.
@@ld4974wow, that’s a great story! Yes, I agree with you. I agree with you. With a little haggling, I have always gotten better deals going to other places. I have saved thousands by not shopping at carmax, too.
Carmax has always been a rip-off!! It was obvious that they overpaid for cars just to get them then overpriced them to sell at their locations. Really, I never ever bought a car from them and gave advice to friends and others to not buy from them also. Now its coming back to haunt them their buying and selling prices are, and its a welcome sight!!!!
Between interest rates and the fact that car manufactures have gotten down right disrespectful with their prices, I have to assume that the car sales industry must be propped up entirely on people's stupidity and irresponsibility. The most American business model there is. Lol
Why don’t they drop their prices then? If you look at their listings the prices are still stratospheric. Used cars are like milk, they don’t get better with age.
I sold CarMax my very clean 2019 VW Tiguan R-Line with 53k miles. They gave me $21,500. That almost the same offer they made 18 months ago when I had 36k miles. My Advisor told me that if I had waited another week they may not have bought my car, she said sales are in the toilet. In fact while I was there not one single person came into the site to look at vehicles. Yet two other folks were there to sell there cars.
When I took my trade to a new car dealer, they would send me to car max to get an offer. Then I would take the offer back to the new car dealer and that would be how much they give me for my trade. They would then take the car to car max and sell it to them. Bad idea on car max part.
Alot of youtube reviewers are able to test and review new cars at present so they resort to doom and gloom stories. Every other notification I'm getting from this channel isn't a car review but one of these op ed pieces. I'll be unsubscribing for now and check back towards the end of the year
On the retail side carmax was the “ steal your trade and no negotiation all the money pricing “ that was never going to be permanently sustainable . By the by , a recession has to conform too certain economic indicators that are not reality at this point so I’m not sure what your talking about
I was looking at the cars they are selling and compared the price they are selling vs the blue book value, and is about 5 to 8 thousand more of the blue book value what they are selling cars for. Way over priced!!! That is a lot of profit for a single car. And then I checked how much they would buy my car for and they offered me 9 thousand. So I went to see how much they were selling the type of car I have on their lot and same accessories, miles and conditions for 16 thousand. I know there is expenses but that's about 7 thousand profit they would make for buying my car for 9 k. Not happening. 😂
Carmax pisses me off. Auto check had a car with no accidents, I buy a carfax myself, 2 prior accidents. Like what in the actual F. Shady. I hope they fail.
They’re making it difficult for their sales team to make any money. Many of the experienced sales reps have left. So the ones that are still there have low morale and don’t really care to provide great customer experiences. Their attitude is basically “do you wanna buy the car or not” . Half their pay gets taken away if a customer goes online and sets a “browse appointment” they’re doing 99% of the work for 50% of the pay. Many customers now have done something online, and reps are still spending hours with people. Carmax is literally taking away their money for nothing. Customer experience will suffer as it did with circuit city.
When I was car shopping, CarMax was a lot more expensive then other dealers. Maybe people have finally realized their no-haggle prices were ridiculous.
True dat
From my experience in average their cars were in better shape and better taken care of than most other used cars dealers plus knowing the out the door price right away on all cars meant that many didn't mind paying a premium to buy from carmax. Now with the pricing just getting out of control and people having less money to spend means costumers are more willing to work harder to get a better deal.
@@Cornelius87 why are people wearing costumes
@@FreeThink1984 lol give me a break man it's been a long day
@@Cornelius87 haha 😂
A lot of UA-cam videos keep say doom and gloom and the sky is falling. So when are the prices going to actually drop?
Agree, they keep saying doom is just around the corner but it never happens.
@Razor Sharp That's not Government's job.
It's a free market economy.
@Razor Sharp govt caused the problem to begin with, they cant fix it.
@@nostradamus7648 nothing about our economy is "free market" lololol wow it's so wild to see there are people out there who still believe this fairy tale 😂
The thing we found is Carmax didn’t turn out to be a bad deal this past year because of the ridiculous add on and dealer fees at the dealers on the used vehicles. Not to mention,,,Carmax is a much more pleasant experience than haggling with salesman trying to upsell you on everything. Shopping for my daughter we were able to take our time in the lot and sit in all of their cars. Pretty much a wash I would say.
Bought our 2019 fusion new from dealer for 18,500 sold to carmax in 2023 for 20,500. Made 2000. Saved and got a cash car. Now no car payments. Thanks carmax
@@Acer_TriplexNow you still have no car!
I just went to my local Carmax this past weekend and the lobby was full of customers with sales people. You wouldn’t think they were doing bad there.
Unfortunately content creators push false narratives. Everywhere I go I see people spending money.
I guess it just varies from store to store, ya know? I literally work at CarMax, and it has been BUSY for months now.
Location may very but we're looking overall
@@sociolocomtsac okay 👌
When I worked for CarMax most of the employees including myself bought our own cars from other dealerships, because their prices were too high.
YES. This is very true. The majority of CarMax employees don't buy from them.
Usually Scammed Associates
What you talking about? Carmax sells over 10,000 cars via their dealer auctions every week.
So the ad I saw before the video was a Carmax ad. So this vid, espousing the end of Carmax, was sponsored by Carmax. Lol.
They deserve what's to come.
Why?
I went to Carmax today and they lowballed me to the point that I considered it an insult. I told them that they were selling the exact same car as mine for an $8000 markup, I walked out without selling my car to them. My car has Low miles and is in excellent condition. I will definitely shop around. Customer service was horrible and the guy helping me was a jerk too. It took an hour to get an appraisal and other customers weren’t happy too. No wonder their sales are down, according to their last earnings report
They take away half of a sales consultants pay if you have an appointment set up or have done anything online. So they’re trying to rush everything and don’t really care to provide a “iconic experience”. The appraisal specialist only get $25 if you sell them your Car, so they don’t really care, they’re not in charge of how much your car is worth. The offers are no haggle so they’re not gonna sit there and explain things or argue. It’s basically here is the offer, take it or leave it.
Carmax has been trying new ways to reduce their employees pay and it’s reflecting on the customer service that you received.
Years ago CarMax was at or less than the dealership used car lot prices and with "no haggle" I didn't have to worry about "extra fees" suddenly appearing and jacking up the final cost.
However, when I recently went to the local CarMax, the prices on what I was interested in were between 5 and 10 thousand dollars more than I wanted to pay for those cars and trucks.
So I think I will have to look at what deals might be available through my credit union's car buying service.
I loved buying a car at Camax about 8 years ago. Car was shipped up from another state at no cost (they were opening their first dealership in Massachusetts). The no haggle is a plus. Covid screwed up everything.
I heard they are charging for the shipping now
I liked CarMax about 15 years ago. I'm sorry to hear the used car market price-gouged if that is what happened.
So 15 years ago you liked getting ripped off?
CarMax was never good.
CarMax was crazy high even then. I have no sympathy for them.
Still waiting on the cheap new and used cars. Seems like dealers are holding on for dear life. If I were them, I'd be cutting deals like crazy.
CARMAX will always have a business because there is so much outright hatred for car dealers, Facebook and other used car internet outlets are so skammy (no price listed, a mystery as to who you are really dealing with, etc., etc.). When spending so much $$$, consumers are willing to pay for the safety of CARMAX. The problem CARMAX has is a backlog of vehicles that they paid too much for. They need to clear them out. I looked at a dealer ad that was competitive. They had in the fine print, $2k in REQUIRED upgrades over and above the ad price. So comparatively, CARMAX looks good.
They have competitors now like shift, vroom and caravan, and I even see a lot of mom and pop shops around me that are copying carmax. Carmax completely lowballed me so I am going to sell my car somewheee else that is going to beat carmax’s price
I used to buy/sell at the Manheim auction for a dealership. The CarMax girl would stand right at the line close to auctioneer and run her hands over every car coming down the line. She would hold her hand up on about 80% of them. Any dealer wanting to outbid her would be promptly outbid again by her. CarMax paid more for their cars and then the recon was way more than any dealer. It was like they tried to make the cars new again. The prices reflected that. They always paid more and sold higher than anyone. What they didn't foresee was Bidenomics reducing the value of the dollar making the cost of everything skyrocket. Their business model is screwed.
BIden is just another sold out puppet of the small hat banksters (FED) behind the inflation....
It serves them right as they were about 20 years ago a reasonable place to check and had good used vehicles with a bit higher mileage available under the banner "ValuMax" but now they are banking on their history and that is not going to work.
I have to call BS on this. The carmax here is crazy busy and has people sitting, waiting to be helped.
Yes carmax is more expensive but not having to deal with a slimey salesman at a regular dealership is worth it. Also I have had nothing but amazing experiences with their warranty program.
I would just recommend you bring your own financing.
No haggling = get pre-screwed passively. If it's more expensive, that defeats the purpose.
I'd say Carmax is decent. Although their interest rates are high at 9-10%. But I've also been to mainstream dealerships lately with used cars and they're charging much more, and some are flat out charging ridiculous markup fees. So it's almost a no-win situation for consumers.
I like there business model but the prices are too high.
I’m in Arizona and I’m blown away by the price drops on high end luxury cars
What they pay their sales reps is criminal, especially if it's from the CEC dept.
I think you meant to say that their gross profit is $2,200 per unit, not $220 per unit
220 is nothing. 2,200 should be right
Ha. More like $7k-10K profit once you add on the transfer and adminstrative fees and extended warranty (and not even including the banker interest).
I only feel sympathy for the employees!
Which goes out of business first? Carvana or Carmax?
Carvana
They should both go out of business, liquidate all their cars so we can have a well deserved flood of used inventory that they've been holding hostage for all these months now demanding a king's ransom for them. Gimme a break, these are not car people running these outfits, maybe Carvana more than Carmax. They have no idea what they're doing. In a capitalist society you have the right to hit it big and make tons of 💰 and you also have the right to fail if you don't know what you're doing. See ya, wouldn't wanna be ya.
Both, at the same time. Ala SVB and Signature Bank. It's gonna be wild! Massive used car pricing event incoming. Anyone who held onto metal hoping to get back what they paid for the car at auction or gross out the car for revenue goals is going to get caught with their pants down face down.
i hope both.....i always despised both of them. they always have over priced stuff on their lots thus driving the average retail prices elsewhere
however, their excessive pricing is why my 2022 car that just got wrecked got paid out $1000 more than what i paid for it new.
I’d say Carvana. They just seem sketchy.
This is what happens when your whole business model is based just on low interest rates, the good times can't last forever, it has happened in the past, it is happening now, but people never learn
they can't think along with SILICON BANK==same result
What goes around comes around. When a companies marketing plan is to make profit by overcharging customers; and then adding on other charges that are nearly 100% profit those tactics will eventually be their downfall.
It’s difficult to have any sympathy for failing car dealerships considering their historical tactics and track records. It’s unfortunate employees will be the ones that suffer the most.
You think $2000 profit per car on a thoroughly inspected and reconditioned vehicle that comes with a warranty is excessive? You're a fool that they don't need as a customer.
@@vincewatterlohn1474 If what you believe is true then why is Carmax, if what’s being reported is true, on the verge of bankruptcy? Here’s my story and experience with Carmax. I’m retired. I had not purchased a preowned vehicle in 30 Years. My son gave me a 1997 Jeep Wrangler TJ in 2018. It was a very basic bare bones Jeep. 4 cylinder engine 4 Speed manual transmission.
My grandson is a certified mechanic so I had him customize, upgrade, and modify it. Last July I decided I wanted a more modern Wrangler with a lot of comfort options, so I gave the TJ back to my son.
I searched for about 3 months for a preowned Jeep that met my lengthly list of criteria’s that it absolutely had to have. Basically I wanted a one owner, preferably locally owned, JK or JL model, accident free, never taken off road, never modified or customized, with a 3.6L engine, auto trans, with AC.
After months of searching the internet the exact Jeep I was looking jumped up, and it just happened a local Carmax dealer had it. I was aware Carmax doesn’t negotiate price and you have to have an appointment to check out the Jeep. All of that was very different than any auto buying experience I’d ever had, but it wasn’t a deal breaker.
Appointment or not I still had to wait nearly 30 minutes to speak to a female sales representative. She did her due diligence getting as much personal information from me that I was willing to give. The Jeep was finally brought around for my test drive. First problem: Carmax advertised a 24 hour test drive. I was given 24 minutes. I asked if the 30 day return policy for a full refund was still available. She affirmed it was.
I didn’t need a 24 hour test drive to know I was going to buy the Jeep. It was in showroom condition inside and out. It was obvious this was the previous owners “baby”. Maintenance history indicated all suggested maintenance was done when recommended. It had numerous upgrades I wasn’t expecting such as leather seats, Alpine sound system, blue tooth technology, etc.
I’d priced the Jeep on KBB and BlackBook before I went to the dealership. Best retail price was $26,000 for a 2015 Wrangler Freedom in showroom condition with 57,000 miles. Carmax wanted $29;995. IMO this was a one of a kind Jeep that met all of my criteria’s. I’d checked the original window sticker that’s available on line for all cars. The original sticker price was $32,000, but the price the original owner paid, coincidentally, was $29,995.
Yep, Carmax wanted the original selling price for a 7 year old Jeep. Jeeps hold their value,…..but 100% of their original selling price!? No, not even a Jeep retains that kind of value. I knew they weren’t going to come off their price and I knew finding another locally owned Jeep like it wasn’t likely, so I decided to buy it knowing full well I was paying too much for it……..but their screw the customer to the hilt tactics weren’t over.
I was going to trade my 2013 Mazda CX-5 bought new locally with 48,000 miles, navigation, blind side monitoring, Bose sound system, etc. Always garaged with a suggested trade value of $13,000 to $19,000. I was looking for $15,000. They offered me a whopping $5,000 non-negotiable.
The sales lady couldn’t conceal her shocked reaction. I’m sure she was certain I was going to walk out and I wish now that I had, but I didn’t. The Jeep was just to good of a find to pass up. I told her that I’d keep my car and requested the OTD price for the Jeep so I could write her a check.
Oh yeah, Carmax had put 5 new tires on the Jeep, so I’ll note that too. My grandson did a complete diagnostic on the Jeep and it passed with flying colors. I disposed of my Mazda on my own.
I got a quality vehicle from Carmax, but that might have more to do with luck than anything they did to the Jeep. It didn’t need any repairs or reconditioning. I overpaid for the Jeep but I was aware that I was paying about $4000 too much. At least I didn’t let them screw me out of another $10,000 by attempting to steal my Mazda.
A new Jeep just like the one I bought lists for $53,000. I’ve convinced myself I saved $23,000 by buying a preowned Jeep in showroom condition.
The only things I take exception with in your posts, based on my experience, is that Carmax only makes $2000 profit per vehicle. That’s pure nonsense. And Carmax doesn’t want or need my business? Really? I wouldn’t want to disappoint Carmax or you, but that noted, I can’t envision me ever going on a Carmax lot again…..that’s assuming they don’t go bankrupt.
Have a nice day. ✌️👍
@@larrys9879 I usually don't read long post but yours had so much truth that so many of us have experienced when making a car purchase.
Channel Kevin Hunter the Homework Guy has more information on this subject matter.
@@johnlopez3001 I don’t normally write such long posts. Except for Carmax nonnegotiable price policy their sales tactics, IMO, are typical for any car dealer new or used. I’ve purchased more than 60 cars in my lifetime. Purchasing an automobile is the only product, I can think of, where the customer is routinely screwed because they don’t know what the lowest OTD price is.
Carmax advertising has convinced the public their no hassle pricing insures the customer they’re getting a good deal….but they aren’t. Carmax cars, IMO, are over priced and then they undervalue the customers trade vehicle, assuming my experience is typical. Their 30 day return for a full refund is unique and offers some protection for customer that end up buying a lemon. I’d like to see that become a law in every state.
the gross profit per unit is usually an average of $2300 to over $5k for pickups and SUVs.
They're bulding one down the street from me.
Solution: CarMax ,lower your prices before doomsday.
I never went back to CarMax when they offered me $4,300 for my 2003 Acura CL Type S 6spd back in 2012. It only had 99K miles on it and it was pristine. Low purchase offers and high sale prices, they should be raking in $$$$.
I’ll buy that from you immediately for $4300 lol
@@austinfrazier7325 Totally, agree
I always tell my friends/family jokingly that if you want to find out the lowest price you can sell your car for, go to Carmax. You can only go up from there while selling. They low ball like crazy.
I wouldn’t mind seeing private party used car sales only.
Ah, the good ole days before Carmax, Carvana, et al siphoned up all the good used cars to keep the prices high. Win/Win for the car dealers, Lose/Lose for the public. Yet the dumbed down sheeple continue to sell their cars to these crooks.
The used car business has been tough on everyone in the business the last couple of years, especially the shortage of cars available at auction.
A manufactured "shortage"....all by design.
Call Max of one of the oldest and the wealthiest big box dealers the us they did the same thing back in 2008. They always tone it down in shaky times.
A CARMAX dealership recently opened in my community with a large volume of vehicles on their lot. I'm unsure how they will remain in business in such a rural area.
Where did they open
You say soaring recession. Can you give examples.
I plan to drive my 2016 Honda Accord LX, until the wheels fall off!
Awe..this kinda makes me sad, I got my current car thru Carmax, and it was a good experience for me, and I LOVE my car.
Eh I’m sure they’ll be fine. Terrible credit and people who don’t know Jack about vehicles aren’t going anywhere.
Carmax is NOT for everyone...Higher prices than typical used or pre-owned. But with the 10 to 20% higher price also comes with more thorough inspections, Title checks, and a 5 day Return policy. There are a few ways to get around the Carmax Pricing and one is to wait for 3 weeks. Usually after 3 weeks the price will be lowered by 500 to 2k depending. Another way is if you find something wrong or you don't like about the car, you can bring it up and sometimes They will discount the car. Overall Carmax is a much better friend than the Corner used car buy here pay here.
@Ezvy It depends on the demand of the car. I had a used Hyandai Tuscon transferred to my local Carmax a month ago. It was priced at $17,998. I changed my mind when they notified me it had arrived and told them I no longer wanted it. It sat their for sale for 3 weeks and I just noticed the priced dropped to $16,998. But I still don't want it. The type of vehicle I want now (Ford Explorer Sport) would be gone in less than 2 days if I changed my mind.
Carmax was a decent company. But, like so many other dealers the past 12-15 months, whatever they’re still sitting on is a huge loss.
Carmax deserves what every other dealership has coming to them.
Adios…
When I win the lottery jack pot, then I can buy me one of those everpriced cars
full of sensors, chips and computer.
This guy’s title is ridiculous.
Thank you.
So how is carmax at the verge of a collapse? Things go up and eventually they come down. Carmax will come out this recession stronger than ever. Lol whose their competition?
Clickbait title dude.
Got rid of my car to them just on time!
Music to my ears. They were misrepresenting and overpricing from the start.
When Carmax first started (I live in Richmond, Virginia), I bought a smaller Subaru on a Friday, decided over the weekend that it was too small and went to sell it back to them that Monday. They nicked me $500 for the honor of owning it 3 days and putting less than 50 miles on it. I raised holy hell including writing to then president Austin Ligon. They would not budge. I vowed never to shop there again and about 6 vehicles later I have not.
Two things: 1) I've probably saved thousands of dollars by not buying cars from Carmax over the years and 2) You can thank me that they now will take back a car if you don't like it.
Did the president ever write back to you or no?
@@Hellocali1 He actually had someone contact me, but only to tell me there was nothing they could do. I think within a year they came up with their return policy. At least I learned to better negotiate with car dealers because I was hellbent on getting that $500 back (at least in my mind) when I bought my next car.
@@ld4974wow, that’s a great story! Yes, I agree with you. I agree with you. With a little haggling, I have always gotten better deals going to other places. I have saved thousands by not shopping at carmax, too.
Click bait,...CarMax is not on the verge of collapse.
Carmax has always been a rip-off!! It was obvious that they overpaid for cars just to get them then overpriced them to sell at their locations. Really, I never ever bought a car from them and gave advice to friends and others to not buy from them also. Now its coming back to haunt them their buying and selling prices are, and its a welcome sight!!!!
their prices sucked each time i compared them to competitors ...and they also offered less than others for my cars
Between interest rates and the fact that car manufactures have gotten down right disrespectful with their prices, I have to assume that the car sales industry must be propped up entirely on people's stupidity and irresponsibility. The most American business model there is. Lol
Well if they stopped putting on that market adjustment 😢on cars they might survive. I walked out on a tiguan for that reason.
Great news about time
Why don’t they drop their prices then? If you look at their listings the prices are still stratospheric. Used cars are like milk, they don’t get better with age.
People protect yourself because pain is coming.
They been selling way over priced higher mileage cars for way to long, hope they burn......
Fun fact, CarMax was spun off of Circuit City 🤔
LOL! I still have stock in Carmax form when I worked at Circuit City!!!
Really? Never knew that!
What goes up, must come down. Leverage works both ways.
they want 45 60k for a truck with 80-100k miles on it.. yea no thanks
I sold CarMax my very clean 2019 VW Tiguan R-Line with 53k miles. They gave me $21,500. That almost the same offer they made 18 months ago when I had 36k miles. My Advisor told me that if I had waited another week they may not have bought my car, she said sales are in the toilet. In fact while I was there not one single person came into the site to look at vehicles. Yet two other folks were there to sell there cars.
yup way to high prices
Carmax stick to your guns. I am looking forward to your bankruptcy and whole sale of your inventory at pennies on the dollar.
Sell the repo's to John Q public instead of auction places. Might do better.
Carmax will go bankrupt before lowering their prices.
CarMax and inexpensive don't go together
Ha, best thing is getting a carmax ad.
Every single new commercial, is in Spanish only, they’re clearly targeting an influx of Hispanic people.
Economy definately slowing.
I don't like CarJacks, I mean CarMax
Carmax is owned by Best Buy....both are in serious trouble
It was started by ex Circuit City executives and isn't owned by Best Buy. Unless, this just happened?
Man don’t listen to this cat. Carmax is one of the best companies around.
Meow
Carmax is kind of dishonest, I’m trading in my vehicle with another dealer.
When I took my trade to a new car dealer, they would send me to car max to get an offer. Then I would take the offer back to the new car dealer and that would be how much they give me for my trade. They would then take the car to car max and sell it to them. Bad idea on car max part.
Alot of youtube reviewers are able to test and review new cars at present so they resort to doom and gloom stories. Every other notification I'm getting from this channel isn't a car review but one of these op ed pieces. I'll be unsubscribing for now and check back towards the end of the year
On the retail side carmax was the “ steal your trade and no negotiation all the money pricing “ that was never going to be permanently sustainable . By the by , a recession has to conform too certain economic indicators that are not reality at this point so I’m not sure what your talking about
Car max will tank
I hope they go outta business.....
Or they could just stop ripping people off and charge fair market value
I think carmax charge to much for the vehicles. Even before the pandemic.
I was looking at the cars they are selling and compared the price they are selling vs the blue book value, and is about 5 to 8 thousand more of the blue book value what they are selling cars for. Way over priced!!! That is a lot of profit for a single car. And then I checked how much they would buy my car for and they offered me 9 thousand. So I went to see how much they were selling the type of car I have on their lot and same accessories, miles and conditions for 16 thousand. I know there is expenses but that's about 7 thousand profit they would make for buying my car for 9 k. Not happening. 😂
Good 😊
There are too many issues with titles and licensing a Carmax car.
Greed does not pay. They are going to have to close. They charge too much for cars that are not reliable.
Fascinating.
There profit is only 200 per unit. Seems low.
If they’d stop overcharging, they would do a lot better
Fake news
Carmax about to go Bankrupt and their "Super High" Prices are the downfall. bye bye.. we wont miss you. Greed did them in
Bankruptcy!
pass the popcorn. if they want to sell cars drop the price.
Carmax needs to go away to get rid of the floor on used cars.
Carmax pisses me off. Auto check had a car with no accidents, I buy a carfax myself, 2 prior accidents. Like what in the actual F. Shady. I hope they fail.
If carmax doesn't lower prices, they will be bankrupt by end of 2023.
Only a mug buys from these places
I have one word for all car dealers Bailout
Govt bails out rich punshes poor
REALLY
JUST DESSERTS THEY ARE VERY OVERPRICED AND OVERRATED
carmax over priced cars did them in
I don't buy from Carmax for the same reason I don't eat out of the toilet!!!😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂
CarMax founders made Circuit City fail by refusing to change with the times. Now they're doing the same to CarMax.
What should carmax do differently in your opinion?
They’re making it difficult for their sales team to make any money. Many of the experienced sales reps have left. So the ones that are still there have low morale and don’t really care to provide great customer experiences. Their attitude is basically “do you wanna buy the car or not” . Half their pay gets taken away if a customer goes online and sets a “browse appointment” they’re doing 99% of the work for 50% of the pay. Many customers now have done something online, and reps are still spending hours with people. Carmax is literally taking away their money for nothing. Customer experience will suffer as it did with circuit city.
🎉1st!🎉
maybe not😢