CarMax is the leading used vehicle retailer in the United States. It is one great alternative to find used vehicles in good condition, especially if your budget does not permit you to get a brand new one. You can also sell your own vehicle to them, but you may wonder if they do buy leased or financed cars. In this article, we have researched and scoured the internet for the answer, and here's what we found out.
Yes, CarMax buys leased or financed vehicles. What they don't allow is for you to lease a used car from them. You are only allowed to finance a used vehicle in their selection of line-ups through a bank or any other lending platform. CarMax also offers the option of buying brand new cars. But CarMax is more known for used cars and is not the first option when buying one.
Are you interested to learn more about CarMax's leasing and financing? Continue reading as we discuss other related topics such as buying a vehicle through CarMax, brand new vehicles vs second-hand ones, and many more. We will also be suggesting other related articles at the end of this write-up. So finish reading.
Does CarMax buy leased or financed cars?
You cannot only buy from CarMax, but you can also sell your car to them. This is where they get the used vehicles that they sell on their websites and physical locations.
If you decide to sell a leased car to CarMax, the balance of the lease will be paid off by CarMax. This will require you to make up for the shortfall of the payment. For example, if the lease buyout has a residual amount of $20,000 and you have 6 payments of $400, the total residual would be $22,000.
This means that you would owe $22,000 to the leasing bank or company for the vehicle to be sold or bought. If CarMax buys the vehicle from the leasing company for $21,000, you will need to pay $1,000 to CarMax. If CarMax buys the vehicle at $24,000, which is $2,000 more than the residual, those two grand differences would then be credited to you.
Leasing and financing can be a very confusing subject, especially if you are a novice when it comes to it. That is why we highly recommend that you consult with a financial expert to help you iron out the technical details.
CarMax also offers assistance when it comes to frequently asked questions regarding this matter and other related inquiries that you might encounter.
Why doesn't CarMax allow you to lease vehicles from them?
The risks are higher when it comes to used cars because of the fact that they are already used. The value of the vehicle has already depreciated.
Leasing a used car is also a huge disadvantage to a customer; many dealerships like CarMax require you to follow a strict maintenance schedule for the car. This includes changing the engine oil, tire maintenance, brake, and transmission fluids.
This will also give the company a hard time appraising the total value of the vehicle after the lease and as many variables have already changed. Examples of these are its mileage and cosmetic conditions. If you will be leasing, it would be better to lease a new vehicle to avoid paying over the value of the car as it depreciates.
Is it recommended to buy a vehicle through CarMax?
In general, the company has received positive reviews from buyers in their experience when interacting with CarMax. The convenience of shopping for a used car online is one of the biggest selling points of many prospective buyers.
The worry of buying a botched car or an illegal used car is also massively decreased as CarMax is already a well-known and established institution. Before you can sell a car to them, you would have to undergo their process in order to identify if your car is qualified and meets their standard.
Not only is buying from CarMax a good experience but selling to them is as well. CarMax gives you a standing offer of seven days for you to decide if you will be taking their appraisal or not.
Selling your car at CarMax also puts your listing on a nationwide reach as their website is one of the leaders when it comes to selling the pre-loved vehicle. The payment also comes immediately and you can leave the store with cash on hand.
Should I buy a brand new vehicle or a second-hand vehicle?
There are many things to consider when choosing whether or not you should go for a brand new or a used vehicle. What it really boils down to is what exactly do you need out of the vehicle and do you have the means to get it?
Understandably, a used vehicle is much cheaper and budget-friendly compared to a new one of the same model. The tradeoff to a cheaper price is mostly the condition and history of the vehicle.
A used car will have more mechanical problems or is close to having one. This is especially true if the vehicle has already logged thousands of miles on the road. The way the car was used by the previous owner also plays a huge role in the condition of the car will be. If the owner was reckless with the vehicle, you can expect that it will have parts that are broken.
On the other hand, a brand new vehicle will save you all of that trouble. You can be assured that you will have a spotless vehicle that has all of its features and amenities working. On top of that, you get to experience the feel of a brand new car. The drawback is that you will be paying a larger amount.
If you are on a budget, there are still a lot of used cars that are still in great condition, sometimes even as good as new ones. you just have to be meticulous when picking.
Have a vehicle in mind and look for one that is in good condition. If you choose to buy a brand new one, then just make sure that you will have fun with it.
What brands of used vehicles should you buy?
Brands are completely subjective to the type of vehicle you will go for. Some brands are better when it comes to their pickup trucks, while others are better with their sedans and SUVs.
If you are going for a daily commute city driving car, cars like the Toyota Corolla, Hyundai Sonata, and Volkswagen Jetta all make the list of some of the best-used vehicles that you can find on the market.
These brands are all notorious for having great reliability. A great example is Toyota as it has scored a high rating in consumer reports ranking of various vehicle manufacturers.
What should you consider when buying a used car?
Before buying a used vehicle, one must scrutinize the prospective vehicle. It is wise to ask for repair history, crash history (if any), legal history (if any), and ownership history. In these parameters, you can gauge if a car is worth buying or not.
Knowing if the vehicle has ever been involved in any major crash that required a massive repair will tell you if the vehicle will have problems. Maintenance history as well will tell you if the car was well kept and maintained, if so, you can expect the car to last you a long time.
Another important thing to consider is legal history, has the car ever been used in a crime, is the car stolen, etc. All of this will help you to avoid any scuffle with the law. And lastly, ownership history, how many owners has the car have? This will also tell you if there is a problem with the vehicle as you can learn why the vehicle is being sold in the first place.
After considering all of this, the final step would be having a legitimate and qualified mechanic to check up and diagnose the vehicle for any problems that could've slipped the untrained eyes. This will ensure that every penny spent in buying that used vehicle will be money well spent.
In Closing
You can sell your leased or financed car to CarMax, what you can't do is lease a car from them. They are the country's biggest used car retailer, but you can get brand new vehicles as they sell them too. CarMax is a great place to find used vehicles as the cars being sold are already inspected and checked by professionals. You can also get financing to buy a vehicle through CarMax, whether it be new or old.
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