CarMax offers a hassle-free used car shopping experience that gives you more options, more confidence and more convenience.

But its also more expensive.

So is CarMax worth the cost?

The CarMax sign is lit up at night.

Until late 2021, you could buy new and used cars at a CarMax store. However, the retailer has since moved exclusively into the used vehicle space.

Scroll on for our thorough CarMax review.

And with some new car orders still being delayed by several months, used vehicles continue to be attractive.

Used car prices are currently high themselves, but they still offer tremendous savings over buying new.

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No Interest Til Almost 2027?

Shopping at CarMax orCaravanais one potential solution.

But is CarMax more expensive than buying from a traditional dealership, and whats the process like?

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CarMax flat out rejects any cars or trucks that have flood damage, frame damage or salvage history.

Some used car dealerships also perform inspections, though not all dealerships are as meticulous as CarMax.

Namely, CarMax allows used car shoppers to take vehicles home for a 24-hour test drive.

If its not, it’s possible for you to bring it back for a full refund.

Plus, every CarMax vehicle comes with a free AutoCheck vehicle history report.

CarMax makes money by selling cars above their fair market value, plain and simple.

For that cost, youre paying for intangible benefits like convenience and confidence.

There are 244 CarMax locations nationwide.

And forget high-pressure sales tactics from the sales staff.

Selection

CarMax has the largest inventory of used vehicles in the United States.

Shopping online or in the mobile app is very straightforward.

But you could also take advantage of a third option: a CarMax loan.

If you get approved, you’re able to easily manage the loan through aCarMax Auto Financeaccount online.

CarMax Auto Finance has an easy three-day payoff program if you find better financing.

Thats immediately better than what most other used car dealers offer.

Even better is the standard 90-day or 4,000-mile limited warranty.

But if youd prefer an extended warranty, CarMax sells the reasonably priced MaxCare extended service plan.

Pricing varies depending on the model and coverage selected.

That said, not every customer leaves CarMax happy.

A quick google search for CarMax reviews will pull up stories of low-quality cars and unfair pricing.

CarMax doesnt perform so well on major consumer review sites, however.

In mid-2023, CarMax had a 1.6-star rating with Consumer Affairs and a 1.5-star rating with DealerRater.

Most other car stores cannot make that promise.

Pros and Cons of CarMax

CarMax is not for everyone.

You cannot negotiate the price at CarMax.

What you see is what you get.

The biggest con of CarMax is the higher cost of the vehicles, including the hidden transfer fees.

Contributor Timothy Moore is a writer and editor in Cincinnati.

He focuses on banks, loans, insurance and automotive stories for The Penny Hoarder.

His work has been featured on USA Today, Forbes, LendEDU, Angi and Retirement Living.

(Can you sense my millennial sarcasm there?)

You know which ones were talking about: rent, utilities, cell phone bill, insurance, groceries…