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Report: #138207

Complaint Review: Carmax - Orlando Florida

  • Submitted:
  • Updated:
  • Reported By: Orlando Florida
  • Carmax 6375 S Semoran Blvd Orlando, Florida U.S.A.

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I took my 95 Honda Civic to Carmax. They'll "buy mine, even if I don't buy theirs". National advertsing. Major Network TV.

I first researched on Carmax's site, the national retail selling price. It was about $7900.00 for my car.
I then used CarMax's blue book valuation. I was a little concerned when the "Trade-in Value" was only $2500.00. I thought "Wow! What a huge spread. Huge mark up."
I was more concerned when I realized I would get even less for a cash sale (wholesale).

So I went. Got the pitch. Trade your car. Get cash back. Take the payments for newer car and sell in a couple years or trade.
No thanks, just want to sell Honda. OK.
$1200.00 cash with clear title.
Are you joking?
You'll steal my car for $1200.00 and sell it for $7900.00
$6700.00 Margin?
It was explained CarMax doesn't buy at auctions or from other dealers, this is how they get their massive inventory.
They have in-house repair shops.
They have in-house financing.
They have in-house warranties, extended, but use remainder of national manufacturer's new car and powertrain to effect some repairs.
I was 'schooled" that car payments are a way of life now, everyone will always have one and that's all anyone cares about.

You have to be an idiot or desperate to buy a car from Carmax at these outrageous prices.

I did the right thing.

I left.

Not mad, just incredulous. Just left.

Tried again with my 2000 Ford F-150 S/C.

Selling price $17999.00

Trade in $5500.00

Cash $4000.00

Are you joking now? Surely!

$14,000.00 Margin?

Just some advice. Don't buy from places like this. Shop around. Your car is worth what the market will pay. Period. If you don't get satisfaction, keep shopping.

Adjust your expectations to what you find in the marketplace, but don't be taken advantage of.

Trust your instincts, when the deal is right and you are satisfied, then close the deal, but get all promised in writing, including warranties. Do this BEFORE you sign your name.

Once you sign your name, you have agreed and authorized EVERYTHING that has or will occur.

The only way to change bad practices and close bad business is to affect the business economically. DON'T BUY!

Don't become emotionally attached to an object. There are thousands more out there just exactly like the one you want.

Car purchase is the second most expensive purchase with a long term payment commitment. If it's not right, WALK AWAY!

Hope this helps someone. By the way, didn't sell either ride, just keep and pay to fix when needed. Much cheaper.


Jim
Orlando, Florida
U.S.A.

This report was posted on Ripoff Report on 04/09/2005 04:57 PM and is a permanent record located here: https://www.ripoffreport.com/reports/carmax/orlando-florida-32822/carmax-ripoff-maxgouge-maxprofit-orlando-florida-138207. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year. Ripoff Report has an exclusive license to this report. It may not be copied without the written permission of Ripoff Report. READ: Foreign websites steal our content

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REBUTTALS & REPLIES:
0Author
8Consumer
0Employee/Owner

#8 Consumer Comment

If you want to know your vehicle's value

AUTHOR: Thomas - (U.S.A.)

POSTED: Sunday, August 06, 2006
consult NADA as a good start. Visit your library. Even better is a regional guide. Here, it is The Carolinas Black BOok. Forget CarMax 'pricing'.

Average loan value is the most you will get for a trade. Average wholesale is about the best you will sell for privately. All buyers want a bargain, and a private seller is not a dealer.

Remember, selling anything expensive can be a pain, and there are a lot of miricle seekers, curosity seekers, and people with little better to do with their- or your- time. If you only attract solid buyers you are doing very well.
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#7 UPDATE Employee

Exactly...get your info right

AUTHOR: Joe - (U.S.A.)

POSTED: Sunday, August 06, 2006
Carmax offers a FREE appraisal for your vehicle, be happy it's at least that. Tons of people sell their vehicle to carmax every day, you either like the offer or not its cut and dry. The way they price your vehicle is purely on the market. If they can buy your rink a dink 10 year old car for 1200 at an auction, they're not going to pay you 5,000 for yours, get realistic. and a 1986 honda accord for 3 grand? your VERY fortunate you got that much out of it.

Yes carmax is also a lender, they also use wells fargo, citi financi, triad, capital one, bank of america, etc etc...customers have the option of going to any bank, but typically carmax auto financing carries the best rate, so it's solely up to the consumer weather they want to pay more or less a month. and theres no possible way there would be a 14,000 gap between us buying a vehicle and selling it.

If we price a vehicle at a price then we may lose money on it, if a car doesnt sell within a time frame we must lower the amount. Be realistic to your expectations is all i have to say, theres customers that come in expecting retail for their vehicle, get a clue...

p.s. if your car is a stinker we auction it off anyways especially if its topping over 7 years old we're careful
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#6 UPDATE Employee

Exactly...get your info right

AUTHOR: Joe - (U.S.A.)

POSTED: Sunday, August 06, 2006
Carmax offers a FREE appraisal for your vehicle, be happy it's at least that. Tons of people sell their vehicle to carmax every day, you either like the offer or not its cut and dry. The way they price your vehicle is purely on the market. If they can buy your rink a dink 10 year old car for 1200 at an auction, they're not going to pay you 5,000 for yours, get realistic. and a 1986 honda accord for 3 grand? your VERY fortunate you got that much out of it.

Yes carmax is also a lender, they also use wells fargo, citi financi, triad, capital one, bank of america, etc etc...customers have the option of going to any bank, but typically carmax auto financing carries the best rate, so it's solely up to the consumer weather they want to pay more or less a month. and theres no possible way there would be a 14,000 gap between us buying a vehicle and selling it.

If we price a vehicle at a price then we may lose money on it, if a car doesnt sell within a time frame we must lower the amount. Be realistic to your expectations is all i have to say, theres customers that come in expecting retail for their vehicle, get a clue...

p.s. if your car is a stinker we auction it off anyways especially if its topping over 7 years old we're careful
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#5 UPDATE Employee

Exactly...get your info right

AUTHOR: Joe - (U.S.A.)

POSTED: Sunday, August 06, 2006
Carmax offers a FREE appraisal for your vehicle, be happy it's at least that. Tons of people sell their vehicle to carmax every day, you either like the offer or not its cut and dry. The way they price your vehicle is purely on the market. If they can buy your rink a dink 10 year old car for 1200 at an auction, they're not going to pay you 5,000 for yours, get realistic. and a 1986 honda accord for 3 grand? your VERY fortunate you got that much out of it.

Yes carmax is also a lender, they also use wells fargo, citi financi, triad, capital one, bank of america, etc etc...customers have the option of going to any bank, but typically carmax auto financing carries the best rate, so it's solely up to the consumer weather they want to pay more or less a month. and theres no possible way there would be a 14,000 gap between us buying a vehicle and selling it.

If we price a vehicle at a price then we may lose money on it, if a car doesnt sell within a time frame we must lower the amount. Be realistic to your expectations is all i have to say, theres customers that come in expecting retail for their vehicle, get a clue...

p.s. if your car is a stinker we auction it off anyways especially if its topping over 7 years old we're careful
Respond to this report!

#4 UPDATE Employee

Exactly...get your info right

AUTHOR: Joe - (U.S.A.)

POSTED: Sunday, August 06, 2006
Carmax offers a FREE appraisal for your vehicle, be happy it's at least that. Tons of people sell their vehicle to carmax every day, you either like the offer or not its cut and dry. The way they price your vehicle is purely on the market. If they can buy your rink a dink 10 year old car for 1200 at an auction, they're not going to pay you 5,000 for yours, get realistic. and a 1986 honda accord for 3 grand? your VERY fortunate you got that much out of it.

Yes carmax is also a lender, they also use wells fargo, citi financi, triad, capital one, bank of america, etc etc...customers have the option of going to any bank, but typically carmax auto financing carries the best rate, so it's solely up to the consumer weather they want to pay more or less a month. and theres no possible way there would be a 14,000 gap between us buying a vehicle and selling it.

If we price a vehicle at a price then we may lose money on it, if a car doesnt sell within a time frame we must lower the amount. Be realistic to your expectations is all i have to say, theres customers that come in expecting retail for their vehicle, get a clue...

p.s. if your car is a stinker we auction it off anyways especially if its topping over 7 years old we're careful
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#3 Consumer Comment

that the car business

AUTHOR: Kyle - (U.S.A.)

POSTED: Tuesday, July 26, 2005
I dont think any other dealership actually will buy your car if you dont buy one from them. I dont know why you would get so upset from a free offer to sell your car with a no questions asked policy. All you wasted was the time it took to get it appraised. As far as the financing you can get outside financing from your own bank and take it to a dealership but if you dont you can always use the dealers and if you dont like the rate use a credit union.
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#2 Consumer Comment

The Truth to the Game - Carmax also have their own "bank" or what is known as a captive lender.

AUTHOR: Jim - (Afghanistan)

POSTED: Tuesday, June 07, 2005
What I have found out is this. Dealers like Carmax also have their own "bank" or what is known as a captive lender.

These lenders will finance just about anyone under certian conditions and will "loan" way way above standard values for the vehichles of theor preferred dealer.

The result is Carmax can sell a $1200.00 wholesale valued car for a "no-haggle, final national average selling price" of $7995.00!!

After the consumer has paid on this car for 3-4 years and has taken it to try to trade at every dealer in town, they find out they are so "upside-down", owing much more than the car is worth, there is no choice but to go right back to Carmax!

And the Game continues.
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#1 Consumer Comment

Good research! Once upon a time

AUTHOR: Fritz - (U.S.A.)

POSTED: Friday, May 27, 2005
Once upon a time we had an' 86 Accord in A- condition. NOTHING wrong mechanically. Wanted a new CR-V. Knew trade-ins never pay what the car is worth. Asked anyway. Was offered $800. Sold the car a week later after a careful wash and detail job for $3000 through the newspaper.

Bought our new CR-V and immediately regretted the payment (where our old car was paid for). Still have the CR-V 6 years later and 108K miles later. Still perfect never any repairs, just change the oil, 1 set of brake pads, 2 sets of tires. Shooting for 300K miles.

CarFax wasn't being dishonest, just par for the course. Trade-ins are a money maker for any car lot and a convenience for anyone who doesn't mind forgoing half the resale value of their car in the name of convenience. Frankly for the amount of time I spent selling our cars over the years I was making about $1K an hour to clean, advertise and show them to buyers. Think I stick to private sales.
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