Carmax Appraisal

[The Critic]

I took my Prius to Carmax today for an appraisal.

These are the details of my car, so that you can gauge what the price was based from.

2011 Prius Three
30,000 miles.
No exterior blemishes at all. No chips, no scratches.
Interior is 9.5/10, misty grey cloth was freshly steam cleaned.
New tires all around
SET Fog Light kit
TRD springs, TRD rear sway bar.

Their offer was $20,500.

I was surprised by how strong the offer was. Edmunds' value for a "clean" car of these specs are as follows:

Trade-In: $18,478
Private Party: $19,747
Dealer Retail: $20,705

So, they are offering $200 under the Dealer Retail value. My car is essentially "frontline ready." No detailing is needed at all. I'm sure Carmax will list it for 24k.

Point is, I am surprised how well the Prius has held its value. I paid near MSRP for it last June and I would only lose 20% after 1 year and almost 30k (essentially 2 years of mileage). In addition, I was surprised by how strong Carmax's offer was for it.

Has anyone else had a positive Carmax experience?

 

[Lead Shoes]

That is a pretty strong offer from Carmax vs the Edmunds price on the vehicle, If you are considering trading it off on a newer car, that may be your best bet.

 

[daves87rs]

It's small, and good on gas. And I forgot to add popular. Why the surprise?


What scary is that once I fix the dent in my 8 year old cavalier, I could still sell it for nearly 70% what I paid for it....

When I see 15 year escorts able to sell for nearly 3 grand, that tells me all I need to know about the used car market...

 

[gathermewool]

Back in '06 I received a quote for my '05 Focus ST that was more than a grand less than what I eventually received from the dealer as a trade (including tax benefit.) I watched the whole inspection and test drive process. I waited 30 minutes after I saw the tech finish and walk back in before I began asking around about the status -- they'd forgotten about me. By the time I was sat down and shown the offer I was pretty peeved. I literally laughed, crumble the quote up and tossed it in the trash before leaving.

It wasn't necessarily the quote that upset me, but the part where they forgot about me.

 

[JHZR2]

You may take super care of your car in a way that others do not (we know this to be the case

), but this substantiates how poor of values used cars can often be, and also indicates to me that carmax does not have the best of deals on their lots.

 

[MaximusD]

It's amazing how many people flock to Car Max. It's a used car lot, with over priced vehicles. Their "no haggling" strategy caters to a specific crowd, namely the people that don't want the "pressure" to negotiate a better deal. I've seen cars advertised there that are listed for 3-4K more than comparable vehicles at other dealers.

 

[The Critic]

Originally Posted By: MaximusD
It's amazing how many people flock to Car Max. It's a used car lot, with over priced vehicles. Their "no haggling" strategy caters to a specific crowd, namely the people that don't want the "pressure" to negotiate a better deal. I've seen cars advertised there that are listed for 3-4K more than comparable vehicles at other dealers.


Carmax may not have the most aggressively priced cars, but they definitely lead the industry in terms of inventory control, uniformity in reconditioning processes, and providing a transparent business model that caters well to the average joe. They should be commended on those attributes alone.

 

[mechtech2]

I have used and recommend Carmax for many. Why?
They are not the highest or the lowest for trade ins, but they are fair, and you don't have to deal with and people to sell it yourself out of your home. And you are done in less than an hour. This is worth a lot.
Yes, max gains will be had with time and selling it yourself.

 

[rjundi]

Supply and demand, supply is limited used for this type of car and condition.

Is that a cash offer or simply trade-in? I ask because you pay inflated prices on the buying side (non-negotiable) so offer may be trumped up a little to cover that side of equation.

 

[bretfraz]

Thanks for having your car appraised, Mike. I'm glad you like the offer.

CarMax may not be everyone's cup of tea, but $10Billion in annual revenue and 400,000+ cars sold last year means they are doing something right. The comments about our process and transparent business model are the keys to our success.

Nice thing about today's automotive retail market is that for those people looking to grind out the lowest price, the traditional dealer business models exists to serve them. CarMax's passion for transparency means they lay out all the numbers upfront, so shoppers can decide for themselves which dealer experience they prefer.

 

[The Critic]

Originally Posted By: rjundi
Supply and demand, supply is limited used for this type of car and condition.

Is that a cash offer or simply trade-in? I ask because you pay inflated prices on the buying side (non-negotiable) so offer may be trumped up a little to cover that side of equation.


It is a cash offer. You have 7 days to accept it.

 

[Scott_Tucker]

Critic, where is this Carmax place? I know we live in the same area. My father has a 2009 Prius w 10k miles that he wants to sell. My mom decided she didn't like it so she got a new Highlander. He doesn't need the money, its just taking up space in his driveway and he's got too many cars sitting out there. The dealer sent him one of those 'our Prius inventory is low and they have super high demand, come in, we'll give you top dollar for it' fliers and he almost fell for it out of convenience. I would like to help him sell it but he doesn't want to do private party because he's already had bad experiences with Craigslist buyers.

Is this the type of place where you put your car on consignment? I'm not sure what its worth but its in perfect shape and only has 10k miles on it.

 

[KrisZ]

Originally Posted By: The Critic
New tires all around
SET Fog Light kit
TRD springs, TRD rear sway bar.

Point is, I am surprised how well the Prius has held its value. I paid near MSRP for it last June and I would only lose 20% after 1 year and almost 30k (essentially 2 years of mileage). In addition, I was surprised by how strong Carmax's offer was for it.


Does that 20% of your loss include new tires, fog light kit, TRD suspension components and your clear bra?
Only if the car was completely stock, with no extras and with nothing but routine maintenance and maybe those new tires, would I consider this a good offer. You have to consider everything you've put into the car, not just the purchase price, and if you do, you'll see that trade in, especially on such a new car, is not a good financial proposition.

 

[MaxPilot]

Originally Posted By: rjundi
Supply and demand, supply is limited used for this type of car and condition.

Is that a cash offer or simply trade-in? I ask because you pay inflated prices on the buying side (non-negotiable) so offer may be trumped up a little to cover that side of equation.


I agree. Every trade offer I have ever received from a dealer has been a low wholesale figure, even though my cars have been in very good condition. I tried CarMax once and got a low wholesale offer. I'm a firm believer of selling a car myself.

 

[Hokiefyd]

I've had three different appraisals from CarMax, two of which resulted in me selling them the vehicle. Both vehicles were Chrysler minivans. The offers were fair...one was even what I'd call "more than fair", and I didn't think they could turn that vehicle for a big profit. I was very satisfied with the process on both of those.

The third appraisal I had done resulted in out loud laughter. I had them appraise my 2001 Cadillac STS. Granted, this was in 2008, when gas prices were $4.00/gallon. But clean trade on it was $9,500 and private party was something like $11,500, so I was hoping for at least $8,500 or $9,000. They gave me a written offer for $2,000. I'm serious, $2,000. I said that if they didn't want to buy my car, just tell me. I'm a big boy. But $2,000? I laughed out loud at that.

I eventually traded it for $7,500 when I bought the 2007 Corolla.

 

[morris]

had negative experience with carmax.

 

[morris]

had negative experience with carmax.

 

[4ever4d]

Originally Posted By: The Critic
Originally Posted By: MaximusD
It's amazing how many people flock to Car Max. It's a used car lot, with over priced vehicles. Their "no haggling" strategy caters to a specific crowd, namely the people that don't want the "pressure" to negotiate a better deal. I've seen cars advertised there that are listed for 3-4K more than comparable vehicles at other dealers.


Carmax may not have the most aggressively priced cars, but they definitely lead the industry in terms of inventory control, uniformity in reconditioning processes, and providing a transparent business model that caters well to the average joe. They should be commended on those attributes alone.

I agree!

 

[MrCritical]

The car is understood to have good tires, and mods like suspension upgrades you usually eat. On a Corvette or a Porsche they will cost you big time. The offer is way more than fair. A 2012 Prius base is not much higher.

 

[L_Sludger]

Originally Posted By: The Critic
Originally Posted By: MaximusD
It's amazing how many people flock to Car Max. It's a used car lot, with over priced vehicles. Their "no haggling" strategy caters to a specific crowd, namely the people that don't want the "pressure" to negotiate a better deal. I've seen cars advertised there that are listed for 3-4K more than comparable vehicles at other dealers.


Carmax may not have the most aggressively priced cars, but they definitely lead the industry in terms of inventory control, uniformity in reconditioning processes, and providing a transparent business model that caters well to the average joe. They should be commended on those attributes alone.

Car max is THE place to go, if you're looking to buy used cars at new-car prices.