Never Buy a Car From CarMax

Never Buy a Car From CarMax


Rev up your engines,
today I’m going to talk about why not to buy a car at carmax,
now I’m a big advocate of buying used cars and carmax only sells used cars, but there’s
one main reason you buy a used car and that is to save money, and carmax their prices
are way too high, thousands of dollars more than you can find at many other places, I
had a customer a couple years ago bought a 5 year old car from carmax, it had 60,000
miles on it and they only saved $4,000 off of what a brand new one would of cost, I mean
really if you’re going to buy a car that’s 5 years old and has 60,000 miles on it, and
all your saving is $4,000 on a $25-30k car you mind as well go out and buy a brand new
one, so of my own customers they hated the prices, and I even met professionals that
said I don’t know how they do it at carmax, but they charge so much more for their cars
and get away with it, yes carmax is a big corporation, in 2018 net sales and operating
revenues of over $17 billion dollars, yes billion, so it’s a huge company, so they have
lots of cars, but there in lies a lot of the problems, those used cars have to come from
somewhere, they have to keep turning over and getting more and more, so obviously they
don’t know that much about the cars that their selling to you, that’s the big problems is
when you buy a used car you really want to know, where did that car come from and who
drove it, now I know that carmax sells cars that were previously rental cars cuz I had
customers buy them and have some problems with them, but when I tried to research what
percentages I was pretty much stonewalled, they don’t give much information on any of
that, it’s a secret company, I mean if people found out that, I don’t know what the figures
are but let’s say, 20% of the cars on their lot were rental cars, I made a whole video
on why you don’t want to buy a rental car, people drive the heck out of them, their not
maintained all that well, it’s not a good idea to buy a rental car and a lot of people
know that so their not giving any of that information out to the public, say you want
a car and their the only ones that have the one your looking for, first thing you want
to do is say, I want to see where this car came from, was it a rental car, was it a lease
car, by law they actually have to tell you that stuff, they can’t hide it from you, their
certainly not going to say it up front and say well this was a rental car, but by law
they got to tell you, so you must ask that, it’s the first thing I’d do if I was looking
at a car there, if they said it was a rental car I’d just walk, it’s their price or the
highway, if you don’t want to buy a car that you picked out at the price their asking,
they’ll say well we got some other ones on the lot look at that, that’s the price that
their going to sell it for, they are go big and they work in such massive numbers, that
they have all that stuff crunched down, and they don’t even go by stuff like the kbb value
they have their own valuation of cars, they don’t follow any of that stuff, they see what
they paid for and what they want their profit margin at, this is a big corporation all those
numbers are crunched down, you go to one see how many people work there it’s a huge place,
and being a small time guy like myself in my little garage, I know what big places create,
they create huge overhead, they got to pay for that overhead, if your buying cars from
them, your paying for their overhead, so they charge more for their cars to make profit,
as I said some people that are in the business say to me, scotty I don’t know how those guys
get away with charging those prices, but they do, well I know the main reason they get away
with it, and the main reason is this, most people these days don’t know that much about
cars, what their worth what kind of shape their in, so their selling to a pretty much
ignorant public, as I said previously I had a customer who bought a 5 year old car with
60,000 miles, and all he saved was $4,000 on a $25,000 car, heck you mind as well gone
out and bought a brand new one, but he didn’t know that until he brought it in and I was
working on the car a few months later changing the oil and just checking it out for him,
and I asked him what he paid for it and when I told him what he could have got a new one
for he just about slapped himself in the head and said, gee I thought I was getting a deal,
but no your dealing with a giant corporation, do you ever thing your going to get a deal,
these guys are pros, they buy cars and they sell cars, and they buy them low and they
sell them as high as they possibly can, and with $17 billion in sales last year, their
selling a lot of cars for a lot of money, for your advantage of a carmax I do have to
admit they have a very wide choice, because with all that money that their making they
have some intelligent people working there, they know which cars are popular, which cars
aren’t, so when they get a popular car their going to sell it for the highest price they
possibly can, if they got a 3rd tow suv they know people are looking for those their going
to get top dollar for it, really older cars they actually sell at auctions every once
in a while at their stores, but these auctions are only open to professional people that
are in the car business, so they might get a decent deal on a 8 year old car that’s got
120,000 miles that they don’t want to sell at their store, or I even had a customer trade
in this bad mercedes they had, at it was falling apart, $6k for the car I wouldn’t of even
given him $600, and I ask them and said, what are you gonna do with this mercedes it needs
all this work, they said we’re not gonna even sell it here in the US, we ship those down
to South America, down in South America cars go for a fortune, the like mercedes so they’ll
probably fix it up down there and get a profit on it, in the US if they would have fixed
it up and tried to sell it they would have spent so much money fixing it, it wouldn’t
have made any sense, these guys know how to make money there’s no arguing that, but being
a large corporation the guys are always trying to sell you stuff, when you do buy the car
there, they do the tax, title, license and they charge a premium for that, they don’t
do that stuff for free, and of course they try to sell you those extended warranty policies,
which is more profit that’s in their pockets, I mean it’s a big company, they make a lot
of money, if you think your going to get a really good deal from them, your living in
lala land, these guys are the white sharks of the car business, their the biggest used
car dealer in the US, your not going to get any kind of a great deal with them, now yes
it’s easy because they have stores all over the place, and if they have a store say your
in Houston and they got one in New Mexico that you want, they’ll ship it to you, now
you got to pay the shipping cost that’s not free, and they do have a rather wide choice
cuz their so large, and they do give a 5 day money back guarantee, if something weird happened
and you really got a lemon that passed though their check system, you will get your money
back, you are not going to get a good price, and the whole thing about buying used cars
is to save money, I mean if your only going to save a little money of a few thousand dollars,
you mind as well buy a new car and have the security of it’s brand new, it’s got the full
brand new warranty, I had a customer 5 years ago buy a carmax car, after big rain storms
which happened much after the 5 day warranty was over, he found out that the trunk leaked,
so I took it in to his body man and the guy said oh this thing has been wrecked that’s
why the trunk is leaking, I got to bend things back and re seal it so it doesn’t leak, so
they got a car that had been in a wreck, they didn’t tell him it had been in a wreck, but
it obviously had been in a wreck, things like carfax to check if a car has been wrecked,
their not that accurate these days, I’ve seen them where they were in big wrecks and there
was nothing on the carfax even customers of mine that had cars of their own in wrecks
and the carfax said no they hadn’t been wrecked and the knew it was wrecked cuz they drove
the car, your going to buy a used car you want to save a bunch of money, if your only
saving a little bit of money and your still taking the risk of buying a used car, buy
a new one instead then, and as most people who are buying a car are also getting rid
of their old car, they pay really low value on your car when you trading it in, as an
example I had a customer who had a car on the street the thing was worth about $10k
they gave him $5k for it, so right there, their making $5k, carmax’s asking price of
the car their selling you is higher than everybody else, their making $5k taking your car, and
their making at least 10% more than what the car is worth, that’s kind of an average of
the figures that I’ve seen but a lot of times it’s a lot more than 10% of what the car is
worth that their selling you, so it’s a pretty sweet deal for them, they pay you half of
what your car is worth if your trading it in, then they charge you 10% or more for the
car that your buying, no wonder these guys had $17 billion in sales last year, so know
you know if you really want to get a good deal on a quality used car stay away from
carmax, so if you never want to miss another one of
my new car repair videos, remember to ring that bell

About the Author: Michael Flood

100 Comments

  1. Join the movement and help make this non-sponsored independent channel become the top subbed car channel on YouTube, instead of corporate channels like Top Gear, subscribe to scotty: https://www.youtube.com/channel/UCuxpxCCevIlF-k-K5YU8XPA?sub_confirmation=1

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  2. My daughter is low income and she is a associate teacher for preschoolers. She is still going to college and living with me too.

  3. Lack of information lmao they actually have pretty cheap cars and get built till it runs perfect and provide all information of it.

  4. I had a really good experience at carmax. I got a 2013 honda cr-z with 16k miles for less than 14,000 before financing. I pay 227 a month and have their insurance plan so the car could explode and I'm paying 50 bucks for it to be fixed lol

  5. I sold my Honda S2000 to carmax for a reasonable price, found it 2 days later being sold for about $4k above market value. Literally around $30k.

  6. We have bought our last two cars from Carmax, they are always friendly, easy transactions, and have been wonderful cars for us with very little issues. Also, you can view the cars history on their website, it's not like they are keeping it a secret.

  7. Don’t do business with these stealerships! They buy your car for less than half it is worth and sell it 5 times what yours is worth!

  8. I just bought a 2018 Civic EX-L with 6k miles, from Carvana. According to Scotty, firstly, I shouldn't have bought a car online. Secondly, I shouldn't have bought a modern Civic with a GDI turbo engine. CarFax report says it was a 1 owner personal use vehicle. Wish me luck!

  9. Two words bad credit are you going to finance these people Scotty 🤦🏾‍♂️🤦🏾‍♂️🤦🏾‍♂️

  10. I can't say enough great things about all the info you put on youtube. I want to buy a used Class B camper van under 20,000. I'm a female traveling alone and want something reliable! Thanks to you NO Mercedes for me! Thank You Scotty!!

  11. Check out the Prices of their "Toyota FJ Cruisers". They cost,more now than they did new when they discontinued sales in 2014 in the United States

  12. Scotty I'm running out of cars I can buy. Every time I listen to a video another one gets crossed off the list. What can I buy for 10K or less that isn't embarrassing and doesn't use too much oil.

  13. As in ASE certified mechanic with experience I will tell you that Scotty has been right about everything he has said on every video so far. There's only a couple of things that I would say ar judgement calls that I might vary from him on for instance I won't use 0-20 oil in a hot climate even if the car says to use it because I think it offers no protection for the engine and I don't believe that the Corolla and Prius 1.8L piston rings are bad because they're made in America because the Prius has the same problem as the Corolla and that engine is made in Japan. I see it as a design flaw that was recognized in'14 and fully rectified on '15 engines in Prius. I probably watched over 100 of his videos and with these two judgement call exceptions I will tell you that honestly he is right about every single thing he has to say.

  14. Gee I got the best financing option, a sharp well maintained car that was thoroughly reconditioned, 7 days or 1000 mile return policy, 90 day or 4.000 mile warranty and an extended warranty almost no one can touch. My new to me Toyota avalon is awesome and I know carmax will 100 percent stand behind the car. Better than most any used car dealer out there
    I’ve bought 7 cars from carmax and only been displeased with one.
    Oh and I’ve sold a number of cars to carmax. Often they don’t give you a great number, but they’ve taken a couple complete piles off my hands and given far more than you could imagine

    Scotty no offense, but I’ve bought/sold/traded over 125 cars and I’ve wanted to disagree with a person on every aspect of automotive knowledge more than you.

    Please understand I’m not mad but you really just seem to rage at things with no clue. Time to start my channel

  15. Wanna know why people buy cars from carmax? Bumper to bumper waranty, especially if u buy a 2006 range rover

  16. Carmax can provide a good deal, but if you buy a high demand model the price will be higher. They mark down cars they need to move. The real money is being made on trade in cars, and the shop via their warranty sales and other services. Like anything else in the world you have to shop and compare. There may be a good deal at Carmax, maybe not for you, but you need only shop and compare. I had a good experience there, but it was eyes wide open. I knew what I was buying. I avoided the trade in and skipped the warranty.

  17. I learned this lesson years ago. They sold me a Honda with a bad transmission that was slipping gears. The transmission shop they used under warranty did NOTHING. I ended up losing sooo much money because of those bastards. Never again!

  18. CarMax stays in business because of single women. That's it. Oh and the son's they raised fatherless.

  19. Carmax from my research isn't doing anything different from anyone else.
    Yes they are in the car sales business to make money – and not all rental cars have had the he'll driven out of them. I found a great VW at a Carmax well within Kelly blue book range with low miles.
    Doesn't a private seller even want to turn a profit in a car they have for sale?
    Buy low sell high? Of course! But anyone who does they're homework before buying can get a good deal from Carmax, any dealer or private seller.
    What I'd really be suspicious if is having my car worked on by somebody who takes the time to make a YouTube video to shame a car dealer for doing what everyones in business for. Doesn't mean a great car and car deal can't be made. Just do your homework before buying.

  20. I always buy used motorcycle and new car. I run the cars to grave but ride motorcycle for 15k miles and sell them

  21. CarMax makes an AutoHistory Report from Experian available on every vehicle on their website..you can see if the vehicle was a rental/lease/etc

  22. This is simply not the case. I’m a former employee of Carmax. When you buy a used car you never know what you’re getting, that’s no different than any other dealership…Carmax has no idea how the previous owner treated the car, they inspect the car and if it passes it sells. I can tell you that the profit on these cars are near to none and that Carmax rely on selling many cars to next to nothing off of them to make a profit. I have followed you up to this point, but now I know that you don’t know what you are truly talking about. Get a better inside scoop next time. They are the biggest in the business because they are the best at honoring and treating their customers right.

  23. The only people that buy from CarMax are people with average to shitty credit scores that can’t get a loan from anywhere else. Sadly, me 😪 can’t wait to refinance honestly

  24. I have bought everyone of my cars from there, I couldn't be more pleased with my choice, sometimes your opinion is absolute bullshit.

  25. I wish I had seen this video sooner Scotty I bought a car from them and have been paying the price, literally !  Broken down again for the fifth time in three years and they just refused to honor my extended warranty !

  26. The worst car I ever had I bought from Carmax. It was a 3 year old BMW with decent miles. I have never had as many issues with a car as I did with this one. I swore off Carmax a long time ago but this video was just confirmation for me.

  27. Just KBB my car an it gave back the same price I’m paying for my car😂😂😂 this guy is smoking crack

  28. look at the Car fax and the report will tell you where the first owner is. next how long the car has sat on CarMax lot. all those things are open to you

  29. Bought my truck there with an extended $2,000.00 warranty. A few months later, the transmission died. Went back to Carmax
    and spoke to some lady that chewing on something like a cow. She sent me to Toyota. This was the one on Broad street in Richmond, VA.

  30. Okay I bought my Toyota Highlander Limited 2005 from CarMax in 2011 and paid the $19,800 car stickers for a 31000 CarMax gave me a 30-day warranty and 3-day return for any reason warranty the car at 42000 Miles was 6 years old when I bought it and I have no problems with it except for the rear motion sensor so far today it's got a hundred thousand miles on it. The Blue Book value was $19,800 for my car they charge me Kelley Blue Book value Naperville CarMax goes by Kelley Blue Book values here in Illinois I don't know about other CarMax dealerships but I feel like I got a fair deal on my car that was eight years ago

  31. But don't ever sell them I used car because they will rip you off I had a 2002 Pontiac Trans Am WS6 Ram Air with 60,000 Mi I tried to sell to them once they only wanted to give me $6,500 for this car this sticker that $32,000 this was seven years ago I turned around and sold the car one week later for $15,000 cash!!! Don't ever sell a used car to CarMax you will get ripped off the worse than a dealership!!!

  32. … buy a new car??? But a new car is stupid expensive …… and a used car dealership only have 100k mileages. And carmax has about 30k-60k mileages and they have their inspection….

  33. I agree Scotty , people now day dont know much about cars. Or washing machines or plumbing.. Holly crap we are living in a whole new period in history . Im calling it the gulabus dufiscus century!

  34. I've heard CarMax owned circuit City once . Well Mr kilmer I agree on the lack of quality on some used cars from rental fleets that are often sold by dealers I see in my line work at a dealer they are in rough shape when we get them I wouldn't buy these they are 💩 crap and not worth it

  35. I don’t like the broad brush approach to the opinion on CarMax. A lot of factors have to be considered regarding what Scotty’s customer paid for the car. What was he guys credit score? What was his down payment? The benefit to CarMax is not having to spend all damn day haggling, the value of the warranty, and the wide selection.

  36. I bought my last two cars at CarMax. Paid both of them off within 1 1/2 yrs. of the purchase date. No problems with either car both cars were right at the price point of cars at other dealerships.

  37. Scotty your the man i am indebted to you brother you save my backside a bunch from a bunch of your videos ..God bless you! ..
    For God so loved the world, that he gave his only begotten Son, that whosoever believeth in him should not perish, but have everlasting life.
    John 3:16 KJV

  38. OMG Scotty is SO RIGHT!! CarMax will sell you a car for $30.000 and its value is $20.000
    NEVER EVER EVER EVER GO TO CarMax !!

  39. Yeah, that customer got ripped off. For most normal cars(not new models or high demand vehicles like a new model sport or muscle car) if you can wait for either the summer holiday sales or when the new model year comes out you can definitely find one that's $4000 below MSRP.

    I'm looking at a kind of hard to find used car right now. There's one on a dealer lot halfway across the country from me with under 70,000 miles. I have two concerns. The car came from Ohio before being sold to the current dealer at auction. So it might be rusted and a 15 hour drive is not something easily done just to check out a car. The second concern is apparently these guys think their "stuff" smells like roses. They are asking almost 3 times Blue Book. And I'll admit this car carries a premium because it's kind of hard to find, but a 27,000 mile example sold recently for $3000 less. And all the reviews say these guys fancy themselves as a Carmax type where they don't negotiate. So I don't even feel like making an offer beuse they'd have to come down about $4000 to get in line with market values(if the thing isn't rusted out). Plus their Yelp reviews are so terrible. They have people drive off the lot and not make it 30 minutes down the road before breaking down. So, I'll search on somewhere else.

  40. CarMax will ruin your credit whatever way they can just to sell that car. They definitely rob you for your trade in & will take advantage of your situation. Never will buy from them again!

  41. I brought a rental car a Chevy lumina with 33,000 miles. I put a total of 247,000 miles on that care. So rental cars are not bad. All car dealers have used cars even the major car dealership, and to a certain extent all try to rip you off.

  42. That's weird. They tell you what the history of the car was. Either rental, fleet, personal. It's right there on the web page attach to each car advertised. Based on auto check by Experian. No secret. If its rental find another one.

  43. Best car I ever had is from Carmax. Betsy still can still 4×4 the same as at the day I got her about 15 years ago. Bangs over stumps great! The tow loop broke one day while trying to pull down a 40ft ham radio antenna. Still after 16 years, she starts with no problem and I call her the YARD CAR because she mainly just bangs around the property but is street legal and never complains even at 100mph not even a shutter. Betsy is a 1998 4 door tan Saturn DOHC though so thats double HC!

  44. Scotty. You are mostly ALWAYS buying cars from massive corporations. Car buying is always going to yield profit for someone.

  45. Right before I filed bankruptcy I bought one, drove it 500 miles south, locked it up, took the GPS out, (they freaked out minutes after I disconnected it) then never paid one single car bill. I still drive it everyday. Free car for me

  46. What are Ford, FCA, GM, Tesla, Mercedes Benz, BMW but HUGE corporations with overhead cost, selling marked up new and used cars. Why would that be a reason for people not to buy from CarMax? "Get a new car, but not BRAND new and stay away from used cars. Oh and never buy any vehicle sold in the continental US. Those are all junk." You're car buying advice seem contradictory at best lol.

  47. Car max beat the stealership prices. No haggling and less fees. I loved my experience there. My brother and his wife have bought their last four vehicles there and loved it!

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