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The only advantage is the fact they have a very nice selection of used cars, and there was no pressure. We did buy from them, and at the time, 2007, they were competitive on pricing. I did get an extended warranty, but didnt use it there, took it to the dealer! We did go back last year, just to look at different cars without having to drive all over the place.
Only advantages I see at Carmax are selection and relatively cheap extended warranties are available even on notoriously unreliable and expensive-to-run luxury vehicles. Otherwise their cars are hideously overpriced.
the whole idea behind "no-haggle" seems to me to favor the dealer.
Went to buy a used BMW wagon the other day. The dealership would haggle their new car prices, but not their used car prices. They told me as much. When it came down to it, it simply wasn't the right for me at that price, even though it was fair. Had they been willing to show a little movement, especially when it comes to a tire discussion, I would have bought that day.
FYI, the tire issue was that the 2007 BMW 328 wagon did not come with a spare, nor did it come with run-flat tires. It came with a "mobility kit :rollseyes: ".
That car didn't even have that, and they weren't going to throw one in. Pass.
I have bought 3 vehicles in the last 3 years from Carmax and will not go anywhere else when I buy another one.. The prices were not much different than anywhere else in our area.. And the "not being held captive" part of buying a car at a dealer was great.. It was the most enjoyable car buying experience I have EVER had....
I also liked the part where I got Gap insurance and a warranty with the car whereas at dealers I either couldn't get 1 or the other or both....
I also was able to buy 2 vehicles that do not normally show up on dealer lots and if they do I have to drive all over to find them....
And taking it in for the warranty work is hassle free and even comes with a rental car should they have to keep it more than 1 day...
But again, why would one just not go to any used car dealer and pay sticker price (without negotiating) which is usually still 1-2k less then CarMax?
You wouldn't, but that assumes that the used cars are the same. Drive it and see; it might stink, have more door dings, not be as tight, worse tires, etc. But otherwise, buy from the dealer down the road.
Quote:
Originally Posted by Checkered24
If all else were equal, then there would be little incentive (other than still working with non comission, no pressure sales people).
That said, the question at hand is "all else equal."
Carmax will lower their prices as vehicles rot on their lot. So if that car is $2000 more today and doesn't sell, in a couple weeks it won't be $2000 more. Although the prices are no haggle that day for the consumer, they are not set in stone either in comparison to the general marketplace.
Right; they typically set the price high for a couple weeks, lowering to market and then below if they need to.
Quote:
Originally Posted by Checkered24
Along this line of thought too, however, why would anyone buy from any dealer when the private party down the road is $2000 cheaper than the dealers?
Because you can't make a stink with a private seller. Many people feel extremely uncomfortable. As bad as dealership reputations are, they will work to make something right if something comes up right after purchase of a used car.
It depends upon the car and the market as to the price of the vehicle, I have found, with Carmax. Friends purchased a gently used Civic for their nanny that was perhaps $500 more than the Honda dealership was asking on a similar car, but it did not have the features that they wanted in the Civic, so it was not identical, but close, and the Carmax warranty was actually an inexpensive option to cover the vehicle for 75k additional miles from the date of purchase, not first use, so the car is covered until about 100k miles. The dealer would CPO the Civic at a higher price, so it would have been in line with the Carmax pricing, but warranty extension is from date of first use, so the warranty product is not the same. For what my friend paid, I told her to buy it, and she is very happy with the purchase because it was a fast transaction to get a late-model, reliable vehicle for their nanny to use that was not significantly overpriced with respect to the CPO offerings from Honda.
Some models are a tad overpriced, but people pay for the convenience, selection, and the ability to return the car if they don't like it within 5 days, something that other dealerships do not offer, as well as a very good warranty that offers no deductible if brought to Carmax and a nominal deductible if brought directly to the dealership for any warranty-related work. As with any vehicle, I would shop around, and the competitiveness of Carmax is proportional to the number of dealers in a market, although they do sometimes mark down vehicles that are not selling well. You also have access to all of the Carmax inventory that can be shipped to your dealership of choice, excluding some of the older/higher mileage vehicles, so while the model on the lot may be priced higher for whatever reason, you can have another shipped for free or a relatively low cost that may be a better value, not obligating you to the purchase if you don't like it, so it can be a benefit with a car shipped for free. As with any dealer, shop around and see which offers the best total value, not solely price, for what you plan to buy. Carmax is just one dealership group in the market.
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All the world's a stage, and all the men and women merely players: they have their exits and their entrances; and one man in his time plays many parts, his acts being seven ages.
~William Shakespeare (As You Like It Act II, Scene VII)
Do people not understand that the only thing haggling with a used car is going to do is get you the car for less? Carmax uses marketing of "no haggling" instead of saying, we're not dropping the price for you and people think this is great?!?!? The warranty and return of vehicle are good things, but their marketing team deserves some giant award for fooling people.
Okay, they have a no-haggle policy but their "no haggle" prices are significantly higher than most dealers' listed prices (which can often be negotiated down). Can someone explain why anyone would buy a car there if the prices are so high? To be fair, maybe it's just the vehicles I'm looking at. Is the CarMax price the out-the-door price?
and on top of that the expensive sales tax too. Enterprise also sucks.
Do people not understand that the only thing haggling with a used car is going to do is get you the car for less? Carmax uses marketing of "no haggling" instead of saying, we're not dropping the price for you and people think this is great?!?!? The warranty and return of vehicle are good things, but their marketing team deserves some giant award for fooling people.
In some cases, yes. With the example I posted, the dealer was going to add to the price for certification and the warranty, which would have put it on par with Carmax, give or take a couple of hundred, not counting that Carmax offered better warranty coverage. One has to evaluate the prices from competing dealerships to determine if Carmax offers a fair value or if it is overpriced.
__________________
All the world's a stage, and all the men and women merely players: they have their exits and their entrances; and one man in his time plays many parts, his acts being seven ages.
~William Shakespeare (As You Like It Act II, Scene VII)
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Carmax uses marketing of "no haggling" instead of saying, we're not dropping the price for you and people think this is great?!?!? The warranty and return of vehicle are good things, but their marketing team deserves some giant award for fooling people.
