Matthew, a Ford dealership salesman known online as @matthewintheshowroom, said in a video that CarMax’s generous trade-in offers combined with in-house financing can result in higher overall costs for buyers.
He argued CarMax's vehicle prices are often higher than local dealerships and that the company shifts profit into pricing and financing; he suggested using a CarMax trade quote as a bargaining chip at a traditional dealer.
NerdWallet reports CarMax Auto Finance has operated since 1993, about 70% of CarMax customers finance through CarMax or its partners, and APRs range from 5.24% to 24.35%; RateGenius says CarMax’s no-haggle prices are often higher than dealers.
CarMax still offers conveniences like 24-hour test drives and a 30-day return policy, but buyers prioritizing the lowest purchase price will typically find better deals at traditional dealerships.
This report is based on information originally published by Motor 1.
Read the full article at Motor 1.
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