CarMax haggle and shopping experience

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JHZR2

JHZR2

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In the past I've been against these no haggle places, but I've not really given them a shot at seeing what could be done. Since we're shopping minivans and a new CarMax opened up not too far away, we went there. Nice lot, nice facilities, friendly (though not knowledgable) sales people.

We wanted to see minivans, they had a few on the lot. We found an odyssey LX (low end) which we preferred over the fancy ones. We drove it. Not a bad car, but the pricing was about $2k over where it should be. I mentioned that the price was a bit high, and that the salesman should talk to his boss, but they said the prices were the prices.

I walked around and saw a Lexus rx hybrid, which is a 30MPG SUV which I've had my eye on for a while. It was really new, only 12k miles. Its price was decent.

So for kicks I made an offer on the van where I thought the price would be. Not accepted. Ok, fine. So then for kicks I made an offer on the RX and the van, at the place I thought the price should be on the van, plus the price of the other one. Keep in mind were talking over $60k of vehicle here. I didn't say anything about financing or cash or warranties, they had every chance from that point to upsell and try to finance me. No dice.

So Carmax missed out on $60k worth of sale over their minivan being $1-2k over the edmunds price?!? I guess that's working for them... They would not budge. The salesman went to the boss. No dice.

I will say that we went to another similar place, who does the same sort of business model. The no haggle pricing really just equates to a worse price for the buyer. CarMax had nicer cars than the other place, in terms of upkeep, damage, cleanliness, etc. but their business model just is poor.

Shopping autotrader later, I found vans from brand new to 15k miles (the one we liked at CarMax had 29k), for within $2k. What amazes me is that a brand new one outfit the same was less than $3500 more than one with 30k at CarMax. So why would I buy used?

They thrive off of duping people into believing that MSRP is what they will pay at the dealer. Crazy.

Not sure if I'll go back. I've never been a fan of used cars, and our pricing experience here confirms it. What is nice is that you can see and drive lots of cars on one lot.
 
FWIU, CarMax has pretty nice used cars on their lots.
Where do they get them from, since these are exactly the kinds of used cars new car dealers want on their used car lots?
I'm guessing that CarMax has more money in their inventory than would the typical new car dealer getting trades and lease returns.
CarMax is therefore probably locked into a relatively high retail pricing structure.
For those lacking the skills, the smarts or the time to seek out a good used car, CarMax probably represents a resonable alternative at a somewhat higher price point.
At least the buyer knows that he's getting something decent.
OTOH, any buyer with decent credit can get close to free financing on many new cars, which at least come with a manufacturer's warranty and are typically available for well below sticker and sometimes for well below original invoice, all of which makes a late-model used car seem like a bad bet to me.
I used to think that paying cash for a car was the only way to go. Given the really cheap financing currently available on a wide range of models, keeping your cash invested and taking the cheap loan might make more sense, at least for those who can qualify for the really low rates.
 
Originally Posted By: JHZR2

They thrive off of duping people into believing that MSRP is what they will pay at the dealer. Crazy.

This is 100% correct. So many people still don't realize how much they can haggle on any commonly available new car. I've seen countless friends and family buy used and not realize they paid thousands more with their "good value" used car than they would have on a brand new car if they just haggled and did a little bit of research.
 
Originally Posted By: Ramblejam
Originally Posted By: mrsilv04
I have no use for CarMax. None.


http://jalopnik.com/the-six-best-unreliable-cars-you-can-buy-from-carmax-1687770994


Yep, Carmax is a horrible place to buy a normal car but thanks to their wonderful warranties a great place to buy a money pit!

They had a CLK63 Black Series for about $60k not to long ago, buy that instead of a minivan!

That S65 AMG is a steal, a CE light on that car and your out $3k at a MB dealer. The repair costs of a big V12 S are enough to drive a small country bankrupt.
 
Last edited:
Originally Posted By: Mr Nice
I would avoid CarMax since they have set pricing, non negotiable.

JHZR2

Why not just buy a new minivan?


I believe that's what he's looking at based on some comments made near the end of the post.
 
Originally Posted By: Mr Nice
I would avoid CarMax since they have set pricing, non negotiable.

JHZR2

Why not just buy a new minivan?


That's probably what we will do.. Low mileage used cars are a horrible value for as far as I can tell. And deals on new ones are quite good.

But being able to walk a lot with an example of vans from many manufacturers,,which all are clean, shiny and decent, is a nice thing.
 
For many years, buying a Japanese two year old vehicle has made no sense at all. For less than 10% over, you can get similarly equipped brand new car. I thought everybody knew that.
 
Carmax is nothing but a bunch of rip off artists. You're MUCH better off going to a proper dealership.
 
Originally Posted By: Vikas
For many years, buying a Japanese two year old vehicle has made no sense at all. For less than 10% over, you can get similarly equipped brand new car. I thought everybody knew that.


They do. Ive argued against buying low mileage used for years.

Had they taken the deal where I set the price, it would have been decent. It wasnt and we walked. Just as it should go down - were in no rush or have no critical need.

Originally Posted By: JHZR2
What is nice is that you can see and drive lots of cars on one lot.


I thought everybody read that.
 
You probably won't find too many on this forum, but there are people out there that just walk into a dealership and pay MSRP. Carmax is great for those people who don't know how to negotiate. Not everyone is good at it like the people here. A good trick that still works is to make an offer near the end of the month. For some reason the last day or two of the month trick still works. They also offer good warranties. I think you're better off researching the car first to pick a model that might not need one and just do the maintenance.
 
When my oldest son came back from overseas, he needed a car fast. He picked up a nice looking Ford Taurus, not the newer design but the one before, at Carmax. Only had about 50k on it. It looked well-maintained on the outside. He thought they really give cars they sell a thorough inspection and fix any thing before they sell it. WRONG! That car was a money pit from the word go. Electrical, fuel pumps, etc... Mercifully it was totaled the winter before this one. He bought a Toyota Corolla, new, for just a few grand less than what he paid for the Ford Taurus and that included all taxes and fees. He learned his lesson the hard way.
 
One reason for the one-price deal is that the salespeople don't have to be trained in the fine art of negotiating. There's no need for salespeople to know what's in the car for sale and what the profit will be. All they have to do is greet the potential buyer, point at a car for sale and call the closer. This keeps the control at the top where the talent resides and turnover among salespeople becomes a non issue.
 
Originally Posted By: OneEyeJack
One reason for the one-price deal is that the salespeople don't have to be trained in the fine art of negotiating. There's no need for salespeople to know what's in the car for sale and what the profit will be. All they have to do is greet the potential buyer, point at a car for sale and call the closer. This keeps the control at the top where the talent resides and turnover among salespeople becomes a non issue.


I appreciate the description of the business model, but I couldnt care less whats good for their business approach. If theyre profiting from it, then they could easily hand off $1-2k on the sale of what could have been two cars, and probably still netted a profit in the end (note I was willing to accept the price on the RX). Its not my job to provide or assure their profit, its my job to obtain the best value to my bottom line. They said no, I said no, done.

But in the end they lost it all. My money is still green and they rely upon sales. Such is retail I guess.
 
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