Retail Vs Wholesale Vs Private Party Pricing
Before you decide how youre going to sell your used car, its important to understand the difference between its retail value and its wholesale value.
Retail value is what your car is worth on the open market. In other words, its the maximum value of the vehicle its best price. When a used car is sold by a dealership, it is always priced at its retail value. However, if you sell your car to a dealer like Carmax or Carvana or trade it in on another vehicle, you will receive its wholesale value, which is always lower.
Wholesale values and trade-in values are essentially the same thing. They are lower than retail values because the dealer who buys your car at wholesale then plans to resell it at the higher retail price. Remember, this is their business, and the price difference between wholesale and retail equates to their profit. And as we all know, businesses try to maximize profits, so most will try to buy your car for the lowest price possible and then sell it to someone else for the highest price possible.
Recently I experienced this first hand. I bought a 2012 Volkswagen Tiguan. Most on the market in my area had a retail price of about $10,000. After some searching, I found a very clean example with about 83,000 miles on it for less, and after some negotiating, I paid $8250 for the car, a deal I was happy with.
Carmax Review: 5 Things To Know Before You Buy Or Sell
CarMax promises to make buying or selling a used car an easy and stress-free process through its no haggle policy. But is CarMax right for you?
Team Clark has explored the process of buying and selling vehicles with CarMax compared to other methods.
In this article, well look at how CarMax works and what the process is for buying and selling cars. Well also look at how CarMax compares to its competitors on price. And well give you the pros and cons of buying and selling cars there.
Why Wouldnt You Just Trade Your Car In
If youre going to buy a new car, it seems like it makes a lot more sense to just trade your car in. But, this isnt always the best idea. Car dealerships want to get you into a new car fast. They try to pressure you to buy a car the same day you come into the shop. This means they may offer you a low-ball trade-in offer knowing you want to leave in a shiny, new car.Dealerships also inflate the trade-in value of your car just to get you into a more expensive new car. For example, they may offer you $1,000 more than your car is worth to get you into a car thats $5,000 more than what you planned to spend. This makes sense for them but not a lot of sense for you.
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Will Carmax Buy My Car If I Owe On It
Yes. You’ll need to provide loan information so CarMax can pay off the lender. If you owe more than your offer, you will need to cover the difference. In some cases, the amount can be included in your financing or paid directly to CarMax. CarMax will accept a personal check for amounts under $250. For larger amounts, CarMax stores accept cashier’s checks, certified checks, certified funds, cash, and debit cards.
What About Junk That Car
CarMax has its pros and cons, but it may not be the best option for every person selling a car. Luckily, there are alternatives out there. Much like CarMax, Junk That Car will purchase used cars of any make, model, and condition. The difference is, Junk That Car will give you a quote right after receiving all the basic details.
On top of that, Junk That Car strives to be as transparent as possible about its buying process. We dont do hidden fees and fine print. Our services are available nationwide, and sellers can enter into negotiations with Junk That Car knowing theyll receive a good price. We offer free too.
One thing Junk That Car does have in common with competitors like CarMax is our goal to make the process hassle-free for sellers. Just give us a call or submit a form on our website to begin the process. From there, well handle all the stressful aspects of the sale, saving you time and energy better spent elsewhere.
Not only does Junk That Car handle the paperwork, but we pay in cash. Junk That Car also arranges to have cars picked up at your convenience, and can schedule a free tow if necessary. If youre looking for a simple, stress-free alternative to CarMax, reach out to our experts today.
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Sell My Car Sell Your Used Car Online For Cash Today
Selling your car has never been easier or faster. Sell my car online Set the right price and you will quickly get the full value of your vehicle.Is CarMax a good place to sell your car?How can I visit a CarMax location during the COVID-19 pandemic?
Sell your car to Carvana, or Vroom, or CarMax CarMax pioneered the marketing of wed like to buy your car, please sell it to us many years
Jun 3, 2021 As a dealership, CarMax exists to make a profit by buying and selling cars. Thats pretty much business 101 right there.
Should You Sell Your Car To Carmax
Buying used cars is such a large part of Carmaxs business that its the subject of many of the companys television commercials. Carmax wants to buy your used car, and it makes the process just about as quick and painless as possible.
You can sell your car to Carmax in less than an hour, and no appointment is necessary. Just bring the car and all of the necessary paperwork to a Carmax dealer, and after an inspection of the vehicle, youll be handed a written offer for the car, which is good for seven days. Take it home and think about it if you wish. Theres no hard sell. No pressure. This option also includes leased vehicles.
Although Ive never bought a car from Carmax, I have sold several cars to my local Carmax dealer in Los Angeles. Ive never had a troubling or stressful experience. The people are always pleasant, they dont waste your time, and they make the transaction easy.
However, there are two disadvantages to selling a car to Carmax. The first is that their monetary offer to buy your car is not negotiable. Its take it or leave it. This also the case for the prices of the cars that they sell. Many people hate to haggle, of course, so you may feel that their fixed price policy is actually an advantage.
Second, like any other dealer, selling or trading in your car to Carmax means selling it for its wholesale value, which is less than you would likely get if you took the time to sell it privately.
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Will Carmax Buy Junk Cars
Possible CarMax takes a variety of cars, including junk cars. However, you aren’t necessarily going to get the best price by using a dealership like CarMax. Instead, it might make more sense to find a business that specializes in damaged cars. You should also look for benefits like free towing and guaranteed offers.
Carmaxs Appraisals Depend On The Car And The Market
I have some personal experience in getting my own car appraised at Carmax and I can tell you that the process is really easy. The first time I went to Carmax for an appraisal, I had them check out my 2007 Honda Element since I was planning to sell it anyway. I knew I could get more by selling it to a private party, but I always heard that Carmax gives great offers, so why not? For reference, my Elements retail value at the time was between $5,000 to $6,500 according to KBB, so with that in mind, my hopes were high. But alas, they hit me with an offer of $3,500.
That offer was a bit of a slap in the face but the Carmax employee was quick to tell me that their offer depends not only on the KBB value but mostly on the market and what they can sell the car for. I cant blame them, but it also explains why I fared much better years later when I got my 2019 Subaru Forester appraised by Carmax.
This time, the Carmax I went to appraised my Forester at $26,000, which was right about where it should have been for the market and it put a smile on my face because I owed $24,900 on the car. However, I didnt end up selling it to them, I went with Carvana instead.
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Where Can I Sell My Car
CarMax: If you got an appraisal online or from one of their stores, you can sell your car to any CarMax locations with the said written offer.
Carvana: There are two options for Carvana. You can bring your car to one of their offices/ vending machines or you can choose for them to come and pick up your car with their touchless delivery/pick up service.
How To Beat Carmax’s Offer Every Time
Since 1993, Carmax has become The Auto Superstore’ with 195 locations and more than 8 million used vehicles sold throughout the United States. In fact, Carmax’s annual sales exceeded 1 million units for the first time in 2016. That makes them America’s biggest used car dealer group.
There is no question Carmax is good at what they do, but the million dollar question is, “when I need to sell my car, is there a way to beat Carmax’s offer without giving up convenience?” Before answering that question, it is helpful to understand how Carmax really works.
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Can You Negotiate Carmaxs Price
CarMax has a No Haggle system when buying cars. This means sellers wont be able to negotiate once the company determines a price.
The inability to negotiate is one-way CarMax differs from selling to dealerships or private buyers. Its part of their no-stress selling model, but it emphasizes how important it is to do research beforehand. This way, youll at least know if what theyre offering is in the ballpark of what your car is worth.
Can I Sell A Car With Outstanding Finance
Yes, you can as long as the valuation we give you is higher than the outstanding finance amount. Were unable to buy cars that are valued at less than the amount you owe your finance lender, unless you part exchange.
Simply complete a free car valuation and let us know the correct settlement amount when you book your handover. Youll also need to request a settlement letter from your finance lender and send a photo or an upload of the letter by email before your handover. You can email us at .
If you have any questions, simply give us a call on and well be happy to talk you through it.
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Does Carmax Buy Junk Cars
CarMax can buy junk vehicles. In some cases, you may be required to bring your vehicle to their lot to schedule a pickup. If your vehicle must be towed, you may need to pay for towing.
To confirm whether you have to bring your vehicle in or not, you can contact your local CarMax office and ask about their policies for offering appraisals. There are currently 224 CarMax locations throughout the United States.
Its important to confirm whether there is a CarMax location in your area when deciding whether selling to CarMax makes sense. Some states have more locations than others. For instance, there are 24 CarMax stores throughout Texas, but just one in Michigan, located in the greater Grand Rapids area.
Carmax Vs A Private Sale
There are some drawbacks to selling your car to CarMax. They set the price, and the inspection process is rigorous. People who have old vehicles on their hands may find that CarMax isnt interested in their clunker.
People in this spot are advised to call a junkyard.
There are plenty of benefits to selling a used vehicle to CarMax, though.
- Negotiation is not part of the equation. The price is the price, and thats that!
- You dont have to deal with a revolving door of interested parties who never actually sign on the dotted line. In other words, its less of a hassle.
- The paperwork is handled by people who are experienced in title and registration laws and policies. Nothing gets signed in the wrong place.
- If you owe money on the car, this is a great way to get out of the loan as they handle the paperwork.
Some people go to CarMax because they are upside down on their loan. They owe more than the car is worth. This can be a great way to break the pattern, but the seller must be prepared to make up the difference with the car loan.
For example, if you owe $10,000 on a car loan, and the car is only worth $8,000 at CarMax, you will have to pay the loan provider the balance. Sometimes, however, this payout is worth it for the individual. Every case is different.
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How To Use Retail My Ride
Use Retail My Ride to find a Consignment Pro near you specializing in selling your type of vehicle, then contact the Consignment Pro to discuss their specific program details and requirements. You can search by Zip code, City, County, State, and filter your search by vehicle type, including Autos , Classics, Exotics, Antiques, Vintage, Custom, RVs, Motorcycles, Wheelchair accessible, Commerical, or Trailers.
You can also request a free no-obligation consignment valuation quote for your vehicle before contacting the dealer.
How Much Does Carmax Pay For Cars Does Carmax Give Fair Appraisals
But does CarMax give fair appraisals? How much does CarMax pay for cars? When you are selling your car to CarMax, trust that the process will be quick and easy. You should also be able to get a fair appraisal. Although we cant tell you any specific figures as to how much does CarMax pay for cars, know that CarMax is known to give reasonable prices for it.
The offer for your car can vary depending on the car you own, such as its make, model, age, mileage, accident history, and its interior and exterior conditions. The appraisers will evaluate your car, inspecting it, to determine how much your cars worth is.
How will your car be appraised? Like mentioned earlier, you can either have your car appraised online or in-person by taking your car to your nearest CarMax outlet. If you have your car appraised online, you will have to get an online offer from CarMax. You can do this by providing honest and accurate details or information about the car you are selling. Many of the details needed will be automatically recovered when you give either your cars VIN or your license plate number.
You will then have to provide a list of all the options your car is equipped with. CarMax will have to know if your car has leather upholstery, sunroof, or any other features. You will also have to provide its current mileage and answer a list of questions about your car, like if it has been in an accident before or if it has been flooded, or any other issues that CarMax need to know.
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How Do You Get Paid
CarMax: Can pay you after appraising the car if in case you agreed with their offer. They pay with a bank draft that must be deposited and cannot be cashed. Before you attempt to draw on the bank draft, check with your bank to see if they have a specific hold policy on deposits. For trade-ins, you can apply any positive equity from your current car to the down payment on your next car.
Carvana: You will be paid by check on the spot as per the agreed amount or offer.
Whats The Difference Between The Various Sale Options
When it comes to selling your car, you have a few options. If your car is already paid off, you can sell it privately, trade it in, or sell it to a company like Carmax. If you still have a loan on your car, then selling it privately isnt really an option.
Regardless of how you sell your car, youre going to need a few things:
- You need to get an appraisal. Anyone who buys your car is going to want to see how much its worth. And, you need to know what its worth so you know how much to ask for. The buyer is also going to do their own appraisal so they know youre charging a fair price.
- You are going to need a clean title. Believe it or not, some people lose their title and when its time to sell their car, they cant find it. If this happens, youre going to need to go to the DMV and get a duplicate title. Keep in mind a lot of private buyers wont be satisfied with a duplicate title. They just dont trust it.
- You must have your registration. It has to be valid and current. It also has to be in your name only. If anyone else is on the title or registration, they will have to agree to the sale and sign off on any sale papers.
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