At a glance
- Availability
- Affordability
- Customer Experience
- Transparency
About CarMax
-
Loan amount
$500 to $100,000
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Min. credit score
Not specified
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APR from
Not specified
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Funds available in
As soon as the day you apply
CarMax: 2024 auto loan review
Published 2024-07-31 16:00:00
Written by
Edited by
CarMax auto loans are best for a fully remote purchase
Borrowers who feel confident handling their finances online may love the ease of having their new car show up at their doorstep. CarMax offers financing on its site with rates presented following prequalification in as soon as five minutes.
CarMax works with multiple lenders, including Capital One, Chase and Westlake Financial, to secure funding for borrowers. With over 230 brick-and-mortar stores across the country, CarMax is also a great option if you want to check out your vehicle in person before purchasing.
CarMax offers used auto loans
- APR: Not specified.
- Loan amounts: $500 to $100,000.
- Loan terms: Not specified.
CarMax only offers used auto loans for its vehicles. These loans can be through its direct financing arm or one of its partners. CarMax works with an extensive used lending network, which makes it beneficial for those who want to compare auto loan options. This is especially helpful because these lenders all cater to a range of credit profiles, giving you a better chance of finding a fit.
Where CarMax stands out
- Remote purchasing: While CarMax has brick-and-mortar offices across the country, borrowers who are sure of the vehicle they want can purchase it without having to step foot in an office.
- Return program: CarMax boasts a return program if the vehicle has issues within a 30-day or 1,500-mile window. If you find better financing within three days of buying, you can replace the loan with no extra fees from CarMax.
- Fast financing decision: CarMax encourages borrowers to prequalify for its financing. This does not affect your credit and, according to the site, should take less than five minutes.
Where CarMax falls short
- Limited inventory: Unlike the offerings of a more traditional auto loan lender, CarMax loans are reserved for those who are purchasing a vehicle from one of its lots.
- Range of fees: CarMax charges a $399 processing fee and shipping fees. The partner lender that you are matched with may also charge additional fees. These are all on top of registration fees based on the state you reside in.
- No negotiation: Although some borrowers might be comforted by avoiding the process of negotiation, it is a downside for most. CarMax has a no haggling policy, but that does not mean that you will be offered the lowest available price.
CarMax customer resources
Customer support
CarMax has an easy-to-navigate website and customer service via chat, phone call or in-person appointment. Phone support is available Monday to Friday from 8 a.m. to 10 p.m. ET and Saturday from 9 a.m. to 6 p.m. ET, and its app provides assistance 24/7.
Digital experience
CarMax boasts an easy-to-navigate website suitable for drivers who want to check out available vehicles from the convenience of their computer. Borrowers can filter by ZIP code or vehicle type to find the right fit. Those who plan to trade in or sell their vehicle ahead of purchase can also easily handle this online.
How this lender compares
CarMax only serves borrowers purchasing a used vehicle. If this does not suit your needs, it is worth exploring other similar lending options. However, CarMax does offer loan prequalification, so you can always check if it is a good fit before submitting a full application.
CarMax vs. Carvana
Like CarMax, Carvana is an online used car platform offering funding through lending partners that cater to a range of credit profiles. Buyers can have vehicles delivered or pick them up from one of 39 “vending machines” scattered across the U.S. Carvana’s loan terms start at an unusually low 12 months.
Both offer similar limited warranties — 100 days for Carvana and 90 days for CarMax. But CarMax has the advantage for buyers who want extra time to decide whether to keep a car. Carvana’s return period lasts only seven days, while CarMax’s stretches to 30. Additionally, CarMax offers in-person shoppers the option to test-drive a car for 24 hours before purchasing it. Carvana has no equivalent program.
CarMax vs. CarsDirect
Like CarMax, CarsDirect serves consumers looking to shop and finance for their next vehicle from the comfort of home. Both lenders work with an extensive network of lenders, which can help those with fair or poor credit secure good rates and terms. Unlike CarsDirect, CarMax has brick-and-mortar offices nationwide for those who want to couple the online and in-person experience.
Do you qualify for a CarMax auto loan?
CarMax offers financing for used car loans through its direct lending platform, CarMax Auto Finance, or through one of its many partners. This means that requirements vary based on which lender you are matched with.
CarMax is also not available in all states. The company doesn't have store locations in nine states: Alaska, Arkansas, Hawaii, Montana, North Dakota, South Dakota, Vermont, West Virginia and Wyoming.
How to apply for a loan with CarMax
The online application process is fairly simple with CarMax. You can find a vehicle from its online inventory by searching for type, brand, style or ZIP code, or apply for financing before you shop. Either way, take advantage of a car payment calculator to estimate your potential monthly cost. And if you are trading in your vehicle, CarMax lets you see potential offers either in person or online.
If you want to prequalify first, you can apply for a specific vehicle or a general dollar amount. You will then be matched with a lender from one of CarMax’s partners or its in-house option, CarMax Auto Finance.
How Bankrate rates CarMax
| Overall score | 4.0 | |
|---|---|---|
| Availability | 4.4 | CarMax scores high for its state availability and repayment options but restricts drivers to shop only at network dealerships. |
| Affordability | 3.3 | You’ll have to apply to learn what APR and fees you could face when financing through CarMax. |
| Customer experience | 4.4 | With an easy-to-use website and chat function on its app, CarMax ranks high for overall customer service. |
| Transparency | 4.0 | Rates and fees are not disclosed but prequalification is available. |
Methodology
Bankrate's trusted auto loans industry expertise
48
years in business
37
lenders reviewed
18
loan features weighed
666
data points collected
The Bankrate team assessed more than 35 auto lenders, including this one. Bankrate considered 18 criteria, such as acceptance criteria, loan amounts and APR range. These scores are broken into four categories.
Editorial disclosure: All reviews are prepared by Bankrate.com staff. Opinions expressed therein are solely those of the reviewer and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in the review is accurate as of the date of the review. Check the data at the top of this page and the lender’s website for the most current information.
What customers think
What people across the web are saying about CarMax
CarMax has fairly poor online reviews. Its Trustpilot page has an average of 1.8 stars out of 5. However, the 74 percent of 1-star reviews primarily mention issues with the vehicles purchased, not financing. Some found that the vehicle they received looked different from the one they saw photos of or had major mechanical issues.
Here’s what one reviewer shared, in part:
“Bought a car from carmax within 4 years was having issues and broke down. Got it fixed and tried to sell it back to them. Called the store they said I had all the right information came in and waited an hour for them to check my car to verify offer. Got offer they said they couldn’t do sale because system was down. I had the offer for a week and I should have plenty of time to do offer. Called today and I have to do the process all over again because their system is not up.”
Those who did secure financing with CarMax noted a frustrating online payment process and unrealistic rates and terms.
Outlinked content may contain views and opinions that do not reflect the views and opinions of Bankrate. Please see the issuer’s website for updated terms and conditions.
Community Carmax scores
AUTO LOAN
CarMax
Dive into community reviews below and see what others think about CarMax.
4.1
25
ratings
In July 2024, Bankrate collaborated with a third-party vendor to survey 1.3K loan borrowers nationwide. Bankrate and our vendor collected and summarized borrower responses to five questions on a 5-point scale, three yes/no questions, as well as open-ended reviews of their loan experience. Responses are unedited and have not been reviewed or approved by the associated lender.
Score breakdown
5 stars
32%
4 stars
44%
3 stars
24%
2 stars
0%
1 star
0%
Score by category
Overall rating
4.1
/ 5
Fees & closing costs
3.6
/ 5
Funding time
3.9
/ 5
Customer service
3.8
/ 5
Application process
3.9
/ 5
Online portal or mobile app
3.4
/ 5
In July 2024, Bankrate collaborated with a third-party vendor to survey 1.3K loan borrowers nationwide. Bankrate and our vendor collected and summarized borrower responses to five questions on a 5-point scale, three yes/no questions, as well as open-ended reviews of their loan experience. Responses are based on individual borrower’s product details, and therefore cannot be verified for accuracy. User ratings are unedited and have not been reviewed or approved by the associated lenders, nor do these ratings reflect Bankrate’s own expert review of these loan products.
Community Reviews
See what users like you are saying about CarMax.
Anonymous Borrower
August 20, 2024
Describe why you selected this lender
They seem like the right choice for me to begin with
Loan purpose
New car loan
Score by category
Fees & closing costs
4
/ 5
Funding time
4
/ 5
Online portal or mobile app
4
/ 5
Customer service
4
/ 5
Application process
4
/ 5
Key Questions
Would you recommend this lender to a friend or family?
Yes
Was the lender responsive/professional?
Yes
Did this loan meet your financial needs?
Yes
Anonymous Borrower
August 20, 2024
Describe why you selected this lender
Purchased a car there
Describe your experience with customer service
Not needed
Loan purpose
Used car loan
Score by category
Fees & closing costs
3
/ 5
Funding time
5
/ 5
Online portal or mobile app
NA
/ 5
Customer service
3
/ 5
Application process
3
/ 5
Key Questions
Would you recommend this lender to a friend or family?
Yes
Was the lender responsive/professional?
Yes
Did this loan meet your financial needs?
Yes
Loan purpose
Score by category
Key Questions
We wanna know what you think about CarMax
Have experience with CarMax? Let us know your thoughts
Written by
Rebecca Betterton
Writer, Auto Loans and Personal Loans
Rebecca Betterton, a Certified Financial Education Instructor℠, is a writer for Bankrate who has been reporting on auto loans since 2021.
