Carmax ripoff ripoff business from hell Arlington Texas *EDitor's Comments

Remember, when buying a car, the sticker price is not all you're paying for. Kyle and Jane, buying from Don McGill(?), and the original reporter, must understand how that works. If the sticker price is $15,000, any fees and taxes are added to that. For instance, Maryland adds 5% sales tax and a $70 license fee, as well as other assorted fees. Texas charges even more tax, I believe, so a $15,000 car can easily reach over $16,000 with everything added in. All that can be and usually is financed with the entire deal.

The original reporter should also understand that he doesn't get a loan for free. If he gets a loan for a 12,500 car, the payoff amound will be significantly more than that, especially in the first year after buying the car. He doesn't mention anything about the loan details, but if his credit rating is low enough to significantly affect his interest rate, that will affect payoff amount as well.

I also used to work for Carmax part time. I'm not particularly enamored with their service department, but I absolutely refuse to buy a used car from anywhere else.

Remember, when buying a car, the sticker price is not all you're paying for. Kyle and Jane, buying from Don McGill(?), and the original reporter, must understand how that works. If the sticker price is $15,000, any fees and taxes are added to that. For instance, Maryland adds 5% sales tax and a $70 license fee, as well as other assorted fees. Texas charges even more tax, I believe, so a $15,000 car can easily reach over $16,000 with everything added in. All that can be and usually is financed with the entire deal.

The original reporter should also understand that he doesn't get a loan for free. If he gets a loan for a 12,500 car, the payoff amound will be significantly more than that, especially in the first year after buying the car. He doesn't mention anything about the loan details, but if his credit rating is low enough to significantly affect his interest rate, that will affect payoff amount as well.

I also used to work for Carmax part time. I'm not particularly enamored with their service department, but I absolutely refuse to buy a used car from anywhere else.

Hi -

I don't work for Carmax, haven't bought from Carmax, and don't sell cars or loans or any of that. I have test driven and dealt with Carmax, but that's the extent of my dealings with them. However I have worked for attorneys and I would offer you a bit of advice:

While it may seem taxing to read that entire legal-sized sheet of very small type and font, it's EXTREMELY important you do before you "Hancock" anything that is legal and binding.

While many people have had great experiences with this company, the company cannot be labeled based on one individual. Shame on him for sneaking that by you, and yes, it's dishonest and deplorable - but...(and here's the hardest thing to hear) you really should have sat down and read through everything together BEFORE you left and certainly before you signed.

As to the way associates are trained to "relax" the consumer into buying, since when is that wrong? Ever heard of a successful salesperson that was indifferent to the sale or purposely trying to stress out the customer?

All businesses are trying to make a buck. That's what business is. No one should fault them for trying to sell mass quantity. It's our responsibility to make sure we are educated and aware of what we are buying, not the salespersons responsibility to make sure we are.

Carmax may not be perfect. No car dealership is. However, they do inspect the cars and they will stand behind them more than any other car dealesrhip will when you purchase a used car. Whatever the purpose of the 5 day return period, it is there. If you aren't confident in the car you are buying you have 5 full days after purchase to get the car inspected elsewhere.

They are upfront about the finance charges which is more than I can say about most dealers. The interest rate comes back on the screen for you to see so you don't have to worry about someone else getting a loan that's marked up .5% while yours is marked up by 5%. Don't get me wrong I am sure Carmax makes money off of the financing but they aren't in it to scam you and they don't offer Rule of 78 loans so if this person truly only financed $12500 for the vehicle then there is no explanation for why the payoff is higher. Check your contract. If the amount truly financed is $12500 then call the finance company and inquire or call Carmax to find out what happened.

Carmax has a strict process for "guiding" customers towards buying a car. The process is intended to reduce anxiety, lower defences, and generally relax the customer (make him/her plyable). These processes must be strictly followed. Managers routinely "mentor" consultants (NOT salesmen) to improve their effectiveness at these processes. Of course, many knowledgeable consumers recognize these efforts and can resist them, but many do not.

Regardless of how friendly you are treated, the bottom line is to convince you to buy a car. The five day full refund policy is used to close a sale where the customer wants to check financing or another dealer, or talk to a friend or relative. Its purpose is not to insure the consumer buys a satisfactory and quality vehicle!

The best way to determine the true motives of any organization is to examine their treatment of employees who deal with the consumer. CarMax consultants are paid $150.00 per car sold, with a $100.00 bonus if they add an "Extended Service Contract". After a training period (determined by local management) the consultant must sell at least 10 cars per month and 6 extended service contracts per month or he will be terminated. They are not paid a salary. This puts extreme pressure on the consultant to convince consumers to buy a car, any car. This is the first place where I heard the phrase "Whatever it takes!", and really mean it in every sense of the words.

Also note that consultants are not paid for any of the highly touted customer service supposedly proveded by CarMax (no salary). Service consultants are also rewarded primarily based on the dollar amount of service they wrote in a month.

Organinzations pay people to produce what they want. CarMax pays people to sell cars in volume, and has sales levels similar to those at Amway, with each increasing level receiving a greater "piece work" amount.

All I can end with is the phrase from a children's book, "Come into my parlor, said the spider to the fly."

The original reporter claims to have paid $338.40 over the last year, and later claims ot have paid $5,000 towards the car.

Well, multiplication will tell you that $338.40 times 12 does not equal $5,000. The reporter is about $1,000 too high in their estimate.

I have bought from CarMax in the past. They do not haggle, so any account claiming they did is suspect. They also do not have prepaid finance charges on their financing.

Are they the perfect company? Heck, no. The car I bought from CarMax had terrible wiring in the rear speakers, held in by ratty duct tape. But caveat emptor - they didn't lie to me, and they sure didn't rip me off.

It seems to me that the issue is one about understanding how consumer lending works, not about a dishonest company.

The original reporter claims to have paid $338.40 over the last year, and later claims ot have paid $5,000 towards the car.

Well, multiplication will tell you that $338.40 times 12 does not equal $5,000. The reporter is about $1,000 too high in their estimate.

I have bought from CarMax in the past. They do not haggle, so any account claiming they did is suspect. They also do not have prepaid finance charges on their financing.

Are they the perfect company? Heck, no. The car I bought from CarMax had terrible wiring in the rear speakers, held in by ratty duct tape. But caveat emptor - they didn't lie to me, and they sure didn't rip me off.

It seems to me that the issue is one about understanding how consumer lending works, not about a dishonest company.

The original reporter claims to have paid $338.40 over the last year, and later claims ot have paid $5,000 towards the car.

Well, multiplication will tell you that $338.40 times 12 does not equal $5,000. The reporter is about $1,000 too high in their estimate.

I have bought from CarMax in the past. They do not haggle, so any account claiming they did is suspect. They also do not have prepaid finance charges on their financing.

Are they the perfect company? Heck, no. The car I bought from CarMax had terrible wiring in the rear speakers, held in by ratty duct tape. But caveat emptor - they didn't lie to me, and they sure didn't rip me off.

It seems to me that the issue is one about understanding how consumer lending works, not about a dishonest company.

The original reporter claims to have paid $338.40 over the last year, and later claims ot have paid $5,000 towards the car.

Well, multiplication will tell you that $338.40 times 12 does not equal $5,000. The reporter is about $1,000 too high in their estimate.

I have bought from CarMax in the past. They do not haggle, so any account claiming they did is suspect. They also do not have prepaid finance charges on their financing.

Are they the perfect company? Heck, no. The car I bought from CarMax had terrible wiring in the rear speakers, held in by ratty duct tape. But caveat emptor - they didn't lie to me, and they sure didn't rip me off.

It seems to me that the issue is one about understanding how consumer lending works, not about a dishonest company.

Is this a Carmax location you are talking about? Carmax does not haggle on their prices so if you are referring to Carmax then I sincerely doubt you are being honest with everyone.

My boyfreind Kyle, went to Don Mcgill to purchase a 2002 Toyota Camery .The internet price was 15000 for the car he was interested in . Kyle tried to talk them down to 14,000, then 14,500 and they said that was the rock bottem price, they would not go any lower than that. So kyle and I discussed on the phone and decided we would settle for 15,000.

Then Kyle went into the finance department to complete the deal.He got the bumper to bumper and low jack for 1,870. He came home so happy and excited. Then he showed me the paper work. When we looked over it we could not believe our eyes. We just couldnt believe it.They made the sale for 16,700.The finance manager said if he puts down 6,000, around 10,000 would be financed. Instead 6,000 was put down and 14130.30 was financed. I told him to go up there immediately and get this straightened out. I said this could all be an honest mistake. Well it wasnt a mistake.

When kyle went up there and told them there was a mistake, the agreement was for 15,000 not 16,700, all the finance manager said was verbal agreements dont matter, written agreements do. How can they both agree to 15,000 and then have the finance manager dishonestly put 16,700. When kyle saw the 16,700 he thought that included the bumper to bumper and low jack. When we went down the page we saw the charge of 1,870 for the bumper to bumper and low jack. We saw it was not included. I dont see how they get away with such deceptive behavior, further more I dont see how they sleep at night.

I worked for Carmax for only two months last year. I never saw any customer get ripped off - but then, that was my impression. All I can say is, that what Rob from Greenville stated is true. Carmax is extremely different from all other dealers and make it their business to make you feel better about buying a car. So much so, that I always recommend them to others. I never saw any customer coming back complaying. They don't play the game that other dealers play and put you on the defensive and they truly do offer very good cars at reasonable prices, including the extended warranty. The ext. warranty is the best thing they offer, other than good vehicles at good pricing and good service.

They DO act honestly with you. The salesman will go through the financing possibilities with you and show you (on their own computer monitors) what banks they're using and their respective rates with the different payments and terms. It's all in front of you. The warranty terms are available prior to purchasing the vehicle and the sales manager would tell us "Show the customer a sample warranty so they know what they are getting!". Maybe Hank was not given all the information, but I'm sure Carmax offered him the extended warranty.

As for fast-talking recruiters and salesmen, I mostly disagree. I was interviewed 3 times AND tested prior to my employment AND offered training for three days (I never got that far). The training is not to show you how go for the jugular, rather it's for showing you how to handle people in a way so they feel comfortable and how the entire Carmax works using their automated system, financing, service, warranties, products/accessories, etc. Although there may be some sly or fast-talking salesman at Carmax, there are several reasons, but try to understand that the commissions are very small (for me it was $250.00 per car). Hank, if you buy at Carmax again, take the warranty! Remember, it's a USED car. Good luck.

Car-Max may be a reputable company for selling the largest VOLUME of cars, but that still doesn't take away the fact that they did not try to iron out this mess and "cater" to this customer.

If Car-Max wants to keep their A rating in a business aspect they need to put the customer 1st and make sure they walk away feeling like they didn't get the short end of the stick.

Come on Car-Max act like you care and work with the customer and not against them!!!!!

First off, Carmax does not recuit "fast talkers who doen't give you a chance to speak." The actually do there best to hire people that don't represent a traditional dealer. Carmax is one of the most open and honest companys i've ever worked for.

Secondly, i mentioned the volume of sale to show the fact that carmax gets alot of customers, many of whom had outstanding experiances before and came back to buy again. We also get alot of referrals from satisfied customers who in turn send there freind or family over. i mean think about it, when a company as a whole sells over a hundred thousand cars a year and only gets 9 complaints, they must be doing something right.

And as for the wildly irresponible assurtions, i mearly wanted to know what the EXACT problem was with the "major motor work", because there are exclusions to the warranty, and the examples i gave were just that, examples of some things not covered. If it was one of the exclusions, then he has no complaint, if it was a covered part, was it caused by neglagence? If, so, he has no complaint. If it was a covered part that broke by no fault of his own, then it should have been fixed for $25, and he has a valid complaint. Major motor work is kinda vague.

This shill assumes a great deal in his assertions. CarMax, as well as other car dealers, recruit fast-talkers that don't give you a chance to think, but what you need to do is exam his argument closely.

In addition to the wildly irresponsible assertions, the issues are not stuck to. Additionally, the argument switches to the volume of sales as proof of what? He doesn't explain that one.

But here is the real lesson to all who would be scammed by these scoundrels is: Look at his attitude. Do you really want to do business with a company is represented by this sort of business posture? If you have a problem, do you want a "million" excuses why it's YOUR fault and not their problem? I will let you answer that question.

ED Magedson
EDitor@RipoffReport.com
badbusinessbureau.com
www.ripoffreport.com

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What was this motor work that you refer to. If you bought the warranty, it should have only been a $25 deductable. The only time that a part is not covered is if it was damaged by neglagence. for example, if you throw a rod because you never changed the oil, or if you warp a head by overheating the engine because the radiator was low on anti-freeze. If that was the case, then you deserve to pay for the repairs.



Or was it wear and tear parts? Those are also not covered. That would be things like belts, clutch, pressure plate, throwout barring, etc. Those parts are also not covered by the warranty. All of the exclusions are spelled out in your warranty booklet.



As for the financing, who did the loan. was it thru one of the online lenders, or did you get your own loan outside of carmax. All loans that carmax does are simple intrest, no pre-payment penalty loans. I can only think of 2 ways that you payoff could be that high after a year. One is you got a Rule of 78 loan somewhere. Thats when you pay ALL the interest up front before you pay on the car itself. or two, the price of the car was $12500, plus $1500 for the warranty, plus $99 doc fee, plus taxes and tags. I dont know about where you are, but here thats $329, plus any negitive equity that you rolled over. Thats the only way that your payoff would have been that high.



Does any of that ring a bell. If your going to bash a company for ripping you off, give ALL the facts, because i know there is more to it than your letting on.



Just for the record, Carmax is a great company to buy from and to work for. I have NEVER seen them try to rip anyone off in any way. Its not by accident that Carmax sells more cars per month than some dealers sell per year.

What was this motor work that you refer to. If you bought the warranty, it should have only been a $25 deductable. The only time that a part is not covered is if it was damaged by neglagence. for example, if you throw a rod because you never changed the oil, or if you warp a head by overheating the engine because the radiator was low on anti-freeze. If that was the case, then you deserve to pay for the repairs.



Or was it wear and tear parts? Those are also not covered. That would be things like belts, clutch, pressure plate, throwout barring, etc. Those parts are also not covered by the warranty. All of the exclusions are spelled out in your warranty booklet.



As for the financing, who did the loan. was it thru one of the online lenders, or did you get your own loan outside of carmax. All loans that carmax does are simple intrest, no pre-payment penalty loans. I can only think of 2 ways that you payoff could be that high after a year. One is you got a Rule of 78 loan somewhere. Thats when you pay ALL the interest up front before you pay on the car itself. or two, the price of the car was $12500, plus $1500 for the warranty, plus $99 doc fee, plus taxes and tags. I dont know about where you are, but here thats $329, plus any negitive equity that you rolled over. Thats the only way that your payoff would have been that high.



Does any of that ring a bell. If your going to bash a company for ripping you off, give ALL the facts, because i know there is more to it than your letting on.



Just for the record, Carmax is a great company to buy from and to work for. I have NEVER seen them try to rip anyone off in any way. Its not by accident that Carmax sells more cars per month than some dealers sell per year.