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Carmax is plain and simple a clever way to charge customers full price for used vehicles, not only that, they are more than happy to offer you less than true value on any trade-in you may have. Besides that, they will not negotiate, so, you get retail prices, less for your trade, and no chance of "working a deal", all under the guise of "we make it easy for you by not negotiating".
I wouldn't set foot in a Carmax.
I posted something similiar before and correct me if I am wrong but Carmax is the same as Carsense...
I have to disagree with you, A few years ago when I was shopping for a used car I went to several dealerships and they all were within a few hundred dollars of each other on what they would give me for a trade. WHen I went to Carsense they gave my 2k more for my trade than any other dealership I had been to and the prices on their cars seemed to be less than what I was seeing at the dealerships. I test drove a truck and I was out in less than an hour with the papers signed and everything. There was no haggling wondering if I could have gotten a better deal, etc.. It was the best car buying experience I ever had. Bringing my truck in for Service at the Ford dealership I ran into the salesman who tried to sell me a truck and said that they could not have beaten that deal. For the price of my truck with the options it has the same trucks on the lot for the same price had a lot less options.
My wife was in the market last year for a new car so we went back to Carsense, a different one and had the same luck. We had shopped around at dealers first and then went to Carsense and got way more for my trade and again a fully optioned car for the price of what dealers were selling base models for.
When dealers arent selling cars for a commision the buying experience is much less stressful and pleasant. Dealers become people instead of predators and in the end everyone gets what they want.
That's why Carmax is such a large company, they give you the feeling of no stress and pleasantness. Doesn't mean they aren't ripping you off. They just do it politely. I was in the car business for 18 years. The largest one sold around 250 pre-owned per month, my job, partly was to buy pre-owned vehicles from customers and auctions, and so I know a little about how Carmax buys and sells their cars. They are a well run company, very corporate, but if you knew how much profit was built into their deals (you'll never know that's the beauty of selling pre-owned cars), you'd think twice about the no-hassle experience and go fight for a car deal. Plus, the amount of re-conditioning that your joe-average dealer spends on getting a vehicle retail ready is probably double what Carmax tends to spend on their fleet. They have to leave a buffer of profit in there for all the amenities they offer like transporting vehicles from one state to the next to service a picky customer. When I transported a vehicle from one state to the next my costs generally were $1000-1800. Well, that's gotta come from somewhere, so it's built into the pricing of their vehicles. But what if you buy a car straight out of their inventory? Do you still have to pay the built in $1800? The answer is yes.
If you like no hassle, go to Carmax, they will smile, be nice to you, and charge you full retail. If you like to get a deal, do your homework, find a reputable dealer and build a life-long relationship with said dealer. The RELATIONSHIP will save you a ton of money in the long run. I can't tell you how many warranty issues I have had fixed for free because I'm loyal to a certain dealer. He knows not to argue with me, gives me his best price, we never negotiate, and he washes my car and fills my tank every time I'm in for service. Carmax I would argue would not offer you free warranty fixes (off the record) and gas fill-ups on your visits....
I posted something similiar before and correct me if I am wrong but Carmax is the same as Carsense...
I have to disagree with you, A few years ago when I was shopping for a used car I went to several dealerships and they all were within a few hundred dollars of each other on what they would give me for a trade. WHen I went to Carsense they gave my 2k more for my trade than any other dealership I had been to and the prices on their cars seemed to be less than what I was seeing at the dealerships. I test drove a truck and I was out in less than an hour with the papers signed and everything. There was no haggling wondering if I could have gotten a better deal, etc.. It was the best car buying experience I ever had. Bringing my truck in for Service at the Ford dealership I ran into the salesman who tried to sell me a truck and said that they could not have beaten that deal. For the price of my truck with the options it has the same trucks on the lot for the same price had a lot less options.
My wife was in the market last year for a new car so we went back to Carsense, a different one and had the same luck. We had shopped around at dealers first and then went to Carsense and got way more for my trade and again a fully optioned car for the price of what dealers were selling base models for.
When dealers arent selling cars for a commision the buying experience is much less stressful and pleasant. Dealers become people instead of predators and in the end everyone gets what they want.
Oh and when dealers aren't selling cars for a commission, that means they are screwing their sales people by not paying them what they earned. More profit for the corporation. You get hired "order takers", not salespeople that actually "sell" you the car.
That's why Carmax is such a large company, they give you the feeling of no stress and pleasantness. Doesn't mean they aren't ripping you off. They just do it politely. I was in the car business for 18 years. The largest one sold around 250 pre-owned per month, my job, partly was to buy pre-owned vehicles from customers and auctions, and so I know a little about how Carmax buys and sells their cars. They are a well run company, very corporate, but if you knew how much profit was built into their deals (you'll never know that's the beauty of selling pre-owned cars), you'd think twice about the no-hassle experience and go fight for a car deal. Plus, the amount of re-conditioning that your joe-average dealer spends on getting a vehicle retail ready is probably double what Carmax tends to spend on their fleet. They have to leave a buffer of profit in there for all the amenities they offer like transporting vehicles from one state to the next to service a picky customer. When I transported a vehicle from one state to the next my costs generally were $1000-1800. Well, that's gotta come from somewhere, so it's built into the pricing of their vehicles. But what if you buy a car straight out of their inventory? Do you still have to pay the built in $1800? The answer is yes.
If you like no hassle, go to Carmax, they will smile, be nice to you, and charge you full retail. If you like to get a deal, do your homework, find a reputable dealer and build a life-long relationship with said dealer. The RELATIONSHIP will save you a ton of money in the long run. I can't tell you how many warranty issues I have had fixed for free because I'm loyal to a certain dealer. He knows not to argue with me, gives me his best price, we never negotiate, and he washes my car and fills my tank every time I'm in for service. Carmax I would argue would not offer you free warranty fixes (off the record) and gas fill-ups on your visits....
You sound very much like a sore loser who's dealerships you worked for can't begfin to compete with Carmax, so you badmouth them..
Lots bluster, not much substance...
That's why Carmax is such a large company, they give you the feeling of no stress and pleasantness. Doesn't mean they aren't ripping you off. They just do it politely. I was in the car business for 18 years. The largest one sold around 250 pre-owned per month, my job, partly was to buy pre-owned vehicles from customers and auctions, and so I know a little about how Carmax buys and sells their cars. They are a well run company, very corporate, but if you knew how much profit was built into their deals (you'll never know that's the beauty of selling pre-owned cars), you'd think twice about the no-hassle experience and go fight for a car deal. Plus, the amount of re-conditioning that your joe-average dealer spends on getting a vehicle retail ready is probably double what Carmax tends to spend on their fleet. They have to leave a buffer of profit in there for all the amenities they offer like transporting vehicles from one state to the next to service a picky customer. When I transported a vehicle from one state to the next my costs generally were $1000-1800. Well, that's gotta come from somewhere, so it's built into the pricing of their vehicles. But what if you buy a car straight out of their inventory? Do you still have to pay the built in $1800? The answer is yes.
If you like no hassle, go to Carmax, they will smile, be nice to you, and charge you full retail. If you like to get a deal, do your homework, find a reputable dealer and build a life-long relationship with said dealer. The RELATIONSHIP will save you a ton of money in the long run. I can't tell you how many warranty issues I have had fixed for free because I'm loyal to a certain dealer. He knows not to argue with me, gives me his best price, we never negotiate, and he washes my car and fills my tank every time I'm in for service. Carmax I would argue would not offer you free warranty fixes (off the record) and gas fill-ups on your visits....
Can you explain why the no haggle sticker price on the windshield at a Carmax is usually the price you have to haggle down to at a regular dealership? Why have I been told by a dealer that they could not give me as much for a trade in nor could they find the car optioned out the way it is for the price I got it for. Sure there is a built in profit, they wouldnt be able to run a business or pay their emplyees if there wasnt but so does a dealership.
I have wasted countless hours sitting in dealerships playing back and forth games and it sucks. Dealers tell you whatever you want to hear to get your business.
Can you explain why the no haggle sticker price on the windshield at a Carmax is usually the price you have to haggle down to at a regular dealership? Why have I been told by a dealer that they could not give me as much for a trade in nor could they find the car optioned out the way it is for the price I got it for. Sure there is a built in profit, they wouldnt be able to run a business or pay their emplyees if there wasnt but so does a dealership.
I have wasted countless hours sitting in dealerships playing back and forth games and it sucks. Dealers tell you whatever you want to hear to get your business.
You missed the point.... Re-read and then argue your side...
My average deal is usually around a $2500 loss for the dealer on the front end on new cars, on the back end I will usually buy Gap insurance and an Extended Service Plan that covers Road Hazards.
This allows the dealer to recoup a little of their front end loss.
On pre-owned I pay $1000 over what the true cost to the dealer is, I'm allowed to see the gross screen by the dealer and I trust him not to hide any packs or fees. He's very upfront with me.
Same as with new I buy Gap and Extended Warranty.
I haven't negotiated in probably 10 years more than which bank I want to use..
I get service that's above and beyond anything Carmax can even offer because (if you had read my posts)
I HAVE A WONDERFUL RELATIONSHIP WITH MY DEALER
I am loyal, and he's loyal. If I want a Ford and he doesn't have it, he will go buy it. Same as Carmax would.
My suggestion is this. Find three dealers, walk in and ask to speak to the Sales Manager, tell him/her that you are interviewing them to be your life long dealer, and ask him/her if he has 10 minutes to have a cup of coffee and get to know you.
Tell him what's most important to you and ask him what's most important to him/her and then see if it's a good fit.
Let them know what you're expectations are from your life-long dealer ($1k under invoice, loaner car service, free oil changes, etc etc) and see if he/she is willing to provide those services.
If so, hold up your end of the bargain by being loyal, not shopping and becoming a partner with that said dealer.
The reason people get screwed by dealers is because dealers know you won't be coming back, you aren't loyal, don't trust them, and will bad mouth them, this allows for a lot of mistrust. They figure you that as soon as you leave they will never see you again so they try to make profit for short term results, not the long haul.
SECRET: Dealers don't give a crap about what they sell the car for. The profit they make or don't make off the sale of the car is pennies compared to earning your service business. Service and parts is the most profitable part of the dealership. They can charge $150 per hour to work on your car (even if it's warrantied) and if they are busy can easily make tens of thousands a week in the service dept. If a dealer knows he will get your long term business, you will find that the deals you get will be amazing!
The reason it's hard for you to go to a dealership and get a good deal is because YOU have made it hard with distrust, and the wrong approach.
RELATIONSHIPS ARE THE KEY
Last edited by WiseManOnceSaid; 04-04-2014 at 02:14 PM..
You sound very much like a sore loser who's dealerships you worked for can't begfin to compete with Carmax, so you badmouth them..
Lots bluster, not much substance...
And I made mid six figures my whole career with my employers.... So I'm not complaining one bit, just trying to help you see the other side of the fence my friend.
Sometimes I think it would be best selecting a few posters who have a good history of answering questions and who won't be so difficult.
I knew what you meant by Carmax vs dealer, op. And I know you know that Carmax is a dealer, too...it's just...different.
At Carmax, you are not supposed to haggle. At a regular dealer, you can haggle away.
At Carmax, the employees are from age 16 (just kidding, kinda) to 88 and they don't seem to hustle as hard for your business. At dealerships, the hustle is real.
I am trying to hold off from purchasing another car so I don't have much first hand knowledge on the advantages of either option at all.
I prefer going to repo lots for my cars. Easy Breezy!
At "regular" dealerships, you don't have to have the "hustle" is all I'm saying. It's all in how you approach the dealer and the relationship you start with said dealer.
You know, if you went to say Joe Smith Ford and paid full sticker, then you wouldn't have to haggle and it would be much easier and pleasant experience as well. That's what Carmax is asking you to do. Why do we allow for different standards because they tell you that they're different?
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