CarMax’s transparency and dealership structure have made it one of the biggest and most successful used car retailers in the United States of America. Today, it has over 195 superstores across the country. Over 8 million cars have been sold since the company started to date.
Now, does CarMax Negotiate?
No, you can negotiate with a private seller but not with CarMax. They have a no-haggle pricing policy. However, when selling a used car to the company, you can negotiate the price. It’s left for them to accept your new price or not.
Continue reading to find out more about this topic on CarMax.
What CarMax’s No-Haggle Policy Means
CarMax has been in the used-car retail business for donkey years, and its no-haggle pricing system still stands. The company’s successes over the years indicate that its pricing policy is working. Its no-haggle price appeals to most of its customers across the country.
CarMax’s no-haggle price means you don’t get to negotiate the cost of the car you wish to buy. You walk in, check out the car, pay the stipulated amount, and head back home.
How did CarMax come about its no-haggle pricing policy and car buying procedure? CarMax makes its policies and pricing decision based on real data. That’s something that differentiates it from most of its competitors.
CarMax came about its used car buying procedure in 1991. The decision was reached after an in-depth survey.
From the survey, what CarMax discovered was that;
Customers don’t enjoy wasting time when buying a car.
Negotiations take far too much time, and most customers aren’t ready for that. They prefer to walk in, pay the agreed amount after a thorough inspection of the car.
CarMax’s no-haggle pricing system means all cars have fixed rates. But one thing that sets the company apart is that the used car selling and buying prices are decided based on real data.
Customers want security.
A reputable brand should be aware of the security concerns customers may have. With that knowledge, they can structure their business to make customers happy. CarMax is mindful of its customers’ security concerns, thanks to the in-depth survey conducted.
Consequently, they allow customers to test drive cars they wish to buy. If interested, you can contact the company and indicate interest in any of its vehicles. CarMax’s sales consultant will arrange a convenient time to assess and test-drive your car of choice before buying.
Again, CarMax does not sell cars that will put customer’s life at risk. So, they don’t buy certain used cars. These include vehicles with a salvage history and those damaged by flood or with frame damage. The company is cautious about the quality of vehicles sold to customers. Hence, they conduct thorough background checks on every used car before buying.
Customers don’t enjoy being pressured by salespeople.
When buying a used car from a private party, anything goes. Some can coax you to increase your budget for a car, not minding your financial capacity. They are more interested in making more money.
At CarMax, you can’t experience such. All their workers get paid, irrespective of a car’s price point, so they do not need to pressure customers. CarMax’s salespeople are willing to help you choose a vehicle that suits your need and budget-size. They put customer satisfaction above every other thing.
Why People Enjoy Buying And Selling Used Cars To CarMax Despite The No-Haggle Pricing Policy
Not all used car buyers are comfortable with the no-haggle pricing system. Some believe they can get a great deal when they have the chance to negotiate the price. But if you’re such a person, CarMax is not for you.
Many people still enjoy doing business with CarMax despite their fixed price policy, and here’s why;
1. Included warranty
Cars sold at CarMax have limited warranty. It’s between 30 to 90 days, depending on the state. In Massachusetts, CarMax’s used car warranty is 90 days, 60 days in Connecticut, and 30 days in other parts of the country.
The warranty is evidence that the used car retail has fate in what it is selling. Otherwise, they won’t be bold enough to offer such.
2. CarMax buys a wide range of used cars.
CarMax can buy your used car, whether it’s in top shape or not. The only categories of damaged vehicles they won’t buy are cars destroyed by flood or those with frame damage. Also, cars with salvage history are in this category.
CarMax also pays attention to the car’s age before buying it. They prefer to buy used cars that are less than ten years old.
3. CarMax’s car buying and selling process is transparent.
Transparency is one of the factors behind CarMax’s rise to success. It’s the reason many customers are still attracted to the company. CarMax lets you purchase a car without hidden charges and for the best price. Another interesting fact is that most of its stores don’t request dealer fees.
On its website, CarMax states that it offers customers the best retail price upfront, and they don’t have to negotiate for it.
4. Offers customized support
CarMax’s employees are top professionals who enjoy doing what they do. It’s evident in how they treat and assist customers, whether online or at their physical store. You will receive the necessary support throughout the buying process, whether you know something about buying used cars or you don’t.
The in-person support and advice CarMax gives to customers make their dealership structure one of the best in the business.
5. CarMax offers five days for customers to reclaim sold cars.
Buyer’s remorse usually happens. Most people are so attached to their cars and feel bad once sold. CarMax understands this. Hence, they have made provision for sellers to get back their car without breaking a sweat. But you need to act fast because the return window is just five days.
6. Online shopping is hassle-free
CarMax’s digital inventory contains a wide variety of used cars. Therefore, you can open an account and make your purchase online. Save your favorite cars and set up an alert.
Setting up an alert means you will get notified once your vehicle of choice gets added to CarMax’s inventory. Additionally, if there’s a car you like that’s available in a different location, you can have it transferred to the company’s store nearest to you.
Note: You need to visit CarMax’s store in-person to inspect and test-drive the car you wish to buy. That’s how the company operates.
CarMax’s Hidden Charges
The no-pressure buying environment CarMax creates makes them attractive to buyers. However, the hidden charges are a concern for many buyers. The costs include transfer fees, dealership or processing fees, and other state fees. The fees vary and may not be applicable in most of CarMax’s stores.
Here’s a brief look at the various hidden charges at CarMax
1. Transfer fees
You need to pay a transfer or shipping fee if you want a car to be transferred from a different state. Let’s assume you live in Virginia and want a Mercedes Benz from Pennsylvania moved to a CarMax local store nearest to you. For that to happen, the company will ask you to pay a non-refundable transfer fee.
The distance the car will travel will also determine the amount you are going to pay. You also don’t need to pay a transfer fee if the vehicle you wish to buy from CarMax is in the same state.
Note: The transfer fee is non-refundable. However, when the car gets to the requested location, CarMax won’t force you to buy it.
2. State fees
Examples of state fees are registration fees, sales tax, title transfers, and others. They vary from state to state. You can visit the nearest CarMax or your state’s DMV website to learn about the various state fees you need to pay. Knowing them will help eliminate any surprises.
3. Processing fees
The processing fees are also termed dealership fees, document preparation fees, or documentation fees. They are charges most dealers would request for handling a car’s paperwork.
Also, not all CarMax dealerships are charging these processing fees. For those that request processing fees, keep in mind that the fees will be included in the final price of the car you wish to buy. These fees are also non-refundable.
CarMax’s no-haggle pricing policy hasn’t changed. There’s also no indication that the company is planning to change it. What this policy means is that you can’t negotiate the price of cars sold at CarMax. Just walk in, assess the car of interest, and make payment. That’s it. However, if the car you wish to buy is too expensive, the best you can do is to hold on for a while. In no time, the price might drop. But this doesn’t always happen, so there’s no guarantee that it will happen for the car you wish to buy.