CarMax is going crazy!

[Saddle Tramp]

As you all know, used car prices are way up, but CarMax has taken it to a whole new level.

Check out this tweet.

 

[Blmpkn]

Last I knew, they gave dirtman 12,250 for his 2010 he bought new for 12,900 and put 100k on lol.

 

[ryan]

they were going to give me 10k over what i owe on my truck, it was really tempting

 

[Curious Hound]

The Ukraine War is making things difficult also. Not sure about Ford, etc. But here at BMW, we use parts made in Ukraine and Russia. The supply chain is experiencing a large "hiccup" to say the least. And that's in addition to continuing chip shortages.

 

[Roert42]

I was just playing around on their website, it looks like they are paying out based on KBB numbers.

 

[ryan]

I was just playing around on their website, it looks like they are paying out based on KBB numbers.

We traded my wife's durango in there, and the website number was spot on to what they gave us for it. This was before used prices got real silly

 

[09fx4guy]

Jesus, if they would pay me that much money for my truck, I would actually consider selling it. Plus mine only has 47000 miles.

I really can't see a Ranger that is over ten years old selling for almost what they are asking for two year old Rangers.

 

[Shran]

I am tempted to sell off my F250. I am sure I could get WAY more than the $4000 I paid for it, even though it has been rolled and has a huge dent in the roof. It's been such a good truck that I kinda hate to part with it...and then I'd have to replace it...

I just can't imagine being in a situation where I would want to buy a vehicle right now. Prices are only high because people are paying high prices...for some reason... it's weird. My old boss just bought a 2020 F150, I told him to wait a year, but he just had to have it.

 

[bilbo]

I saw an article a few weeks ago about a guy that sold a Honda Fit to Carvana for more than he paid for it brand new. Apparently they let the software take the wheel there and don't check on it too much, figuring they'll lose money on some cars but make it on others, and save money on paying humans to keep things in check. It seems to be working for them.

 

[lil_Blue_Ford]

I saw an article a few weeks ago about a guy that sold a Honda Fit to Carvana for more than he paid for it brand new. Apparently they let the software take the wheel there and don't check on it too much, figuring they'll lose money on some cars but make it on others, and save money on paying humans to keep things in check. It seems to be working for them.

Carvana and the others also spend money to correct problems with vehicles. Sometimes they spend as much or more than what it’s worth, but where they get you is if you buy through them and take their interest rates, they make money or get the car back.

 

[superj]

yup, like 10 or 12% interest rate from those guys.

 

[bilbo]

Carvana and the others also spend money to correct problems with vehicles. Sometimes they spend as much or more than what it’s worth, but where they get you is if you buy through them and take their interest rates, they make money or get the car back.

Interesting, I didn't look into or think about that side of it. The cost of convenience I suppose? I would imagine they will take cash, but do they accept others' financing?

 

[racsan]

maybe the inflated prices have to do with the gas in the tank being worth more.

 

[Eddo Rogue]

Interesting, I didn't look into or think about that side of it. The cost of convenience I suppose? I would imagine they will take cash, but do they accept others' financing?

When I bought my F150, they offered me a better deal if I financed it instead of paying cash. The rate was very low, so I took their financing. You can you use other financing, but they will probably negotiate a higher price for that.

In my case paying 3% interest to use their money was better that using my money, which was earning 5% interest. Coming from a real estate and mortgage banking background, I always factor interest and other fees/costs etc when crunching numbers for purchases.

My credit card has no annual fee, and I pay it off every month interest free, and earns points from purchases.....which I then cash in for home depot gift cards. So I'm technically profiting off of them.

 

[lil_Blue_Ford]

Interesting, I didn't look into or think about that side of it. The cost of convenience I suppose? I would imagine they will take cash, but do they accept others' financing?

Dunno much about it, but I would imagine. The big thing is that they will finance almost anyone and rate, I’m assuming, is based on what they view as the risk.