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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?
I think the only advantage to the buyer is the no haggle and no pressure sales experience.
Thats not much of an advantage for some people, but for those individuals who hate, fear, or loathe the process at the normal dealers and are apt to be fleeced anyway, then they may feel paying a little more for an "easy" transaction is worth it.
I think the only advantage to the buyer is the no haggle and no pressure sales experience.
Thats not much of an advantage for some people, but for those individuals who hate, fear, or loathe the process at the normal dealers and are apt to be fleeced anyway, then they may feel paying a little more for an "easy" transaction is worth it.
But still...If a vehicle is already listed 2,000 LESS than CarMax at the local Ford dealer and you're willing to pay the asking price, what is the incentive to buy at CarMax?
I think the only advantage to the buyer is the no haggle and no pressure sales experience.
Thats not much of an advantage for some people, but for those individuals who hate, fear, or loathe the process at the normal dealers and are apt to be fleeced anyway, then they may feel paying a little more for an "easy" transaction is worth it.
+1
The process is easy for those who don't see the sport in negotiating a deal.
But still...If a vehicle is already listed 2,000 LESS than CarMax at the local Ford dealer and you're willing to pay the asking price, what is the incentive to buy at CarMax?
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.
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?
Location: Stuck on the East Coast, hoping to head West
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I bought from Carmax years ago, when they first opened a branch nearby. I think this was around 2006 or so. Then, the prices actually were competitive and I was unloading a vehicle that had weird electrical issues (I'd be driving down a highway and interior lights would start flashing, locks locking and unlocking---people thought it was haunted, lol).
They offered to do 2 separate transactions: selling my used car and then buying a new one. I liked that.
They were making their money on financing. Talk about stong-arming, I felt like I could only buy the car if I used their financing which was horrible.
I ended up buying the car (it was a great price), used their financing and then came back with a check from credit union that same day. Back then, it was all about the price.
Incidentally, they may advertise no haggling, but there was definitely bait-and-switch games going on.
I'd never do it again, especially now as their prices are ridiculous.
Carsense (same concept as CarMax) was the best buying experience I ever had. Prices were less than dealers, they gave me more for my trade, they gave be a better interest rate and the entire process took maybe an hour and a half if that. The salesman don't work on commission so there isn't any pressure or competition. For me it doesn't get any better than that.
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?
1. Volume and variety of selection - There are thousands of vehicles available to choose from that Carmax can ship between stores (granted, at transportation fee at the expense of the customer over 100 miles).
2. As people have mentioned, some people like the no-haggle concept, even if they are paying more for a vehicle
3. Extended Warranty - whether it's a Civic or Range Rover, Carmax will offer extended warranties on any vehicle it sells
4. Fairly reliable products - I have driven 5 vehicles purchased from Carmax since I was 16. No major issues with any one of them.
All that said, it is a more expensive experience compared to going to a dealership and looking at their used lot inventory. The prices you see online on Carmax are set in stone; conversely, those you see on Cars.com usually have a fair amount of wiggle room (i.e. I bought a used 2012 Jeep Wrangler Unlimited that was listed online at 30k, ended up getting it for 27k after negotiating at the dealer.)
There are pros and cons to each option for sure. I am by no means suggesting one is superior to the other. It depends on how confident you are in your negotiating abilities, how confident you are that a non-Carmax dealership isn't selling you a used lemon, and how long you're willing to wait for a specific used car to enter your specific geographic market. I have purchased vehciles from both Carmax and regular dealers alike.
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Easy way out
