CarMax Review 2026: Financing, Buying, Selling

Loan terms and requirements at CarMax Auto Finance

About CarMax: a closer look

CarMax specializes in buying and selling used cars and offers financing for the vehicles it sells. Buyers can purchase vehicles through the CarMax website or at more than 250 CarMax locations. The company provides auto loans directly to consumers through its own auto finance division — CarMax Auto Finance — and works with a network of third-party finance providers.

Borrowers can also use their own outside lender, by providing that lender's information at the start of the car-buying process. NerdWallet strongly recommends getting preapproved auto loan offers from other lenders, so that you can compare the rate with CarMax's offer.

Our team likes the flexibility CarMax offers with its three-day payoff option. If you finance through CarMax Auto Finance or one of its lending partners and find a better loan within three business days, you can switch to another lender at no cost.

CarMax says approximately 70 percent of its customers choose to finance with CarMax Auto Finance or one its lending partners, and approximately 95 percent of applicants through these sources receive an approval. CarMax encourages car buyers to apply regardless of credit score or profile.

When reviewing and rating auto lenders, NerdWallet's editorial team gathers information about customer experience, transparency, loan affordability, loan requirements and flexibility. Among those categories, CarMax scores high for customer experience with a streamlined car shopping and financing process and fast loan decisions. CarMax also has lower credit requirements than other lenders we review, enabling it to work with car buyers of all credit types. However, applicants with fair or poor credit who qualify are likely to pay a high interest rate.

This review covers CarMax financing as well as buying a car or selling a car through CarMax, but our ratings are based only on CarMax's internal financing. The information below pertains to CarMax Auto Finance, with notes where information may vary for other lenders.

Do you qualify for a CarMax auto loan?

Here are CarMax's borrower requirements to qualify for financing. Note that meeting these requirements doesn’t guarantee approval.

Compare other used car lenders.

Other CarMax financing details

• Pre-qualification and preapproval. Offers pre-qualification with a soft credit check. Does not offer preapproval with a hard credit check.

• Upfront fees. Does not charge an application or document processing fee for loans through CarMax Auto Finance.

• Interest rate discounts. No rate discount offered.

• Deferred payments. Does not offer option to defer payments at the start of a loan.

• Selected payment due date: Borrowers can select a first payment date up to 45 days from the date of purchase.

• Late payment grace period and fee: Amount depends on state law and CarMax finance source.

• Hardship plans: Yes. Available with CarMax Auto Finance on a case-by-case basis.

• Contacting CarMax. During the application process, borrowers can reach CarMax by phone, online or in-person at a CarMax store. Availability is Mon.-Fri. 8 a.m.-10 p.m., Sat. 9 a.m.-6 p.m. ET. CarMax has a dedicated Spanish-speaking servicing team.

• Mobile app to manage account: Yes.

CarMax Auto Finance may be a good fit for those who:

• Prefer a streamlined process for buying and financing a car. CarMax customers can browse and select used cars, arrange financing and schedule pickup or delivery from carmax.com. Delivery is also available within a 60-mile radius from select CarMax stores.

• Want more choices when buying a used car. CarMax provides access to an inventory of nearly 50,000 vehicles online, along with a 10-day money-back guarantee.

• Want financing flexibility. Customers can finance through CarMax Auto Finance, CarMax financing partners or their own lender, enabling them to shop rates and find the best offer. CarMax's wide range of finance sources enables the company to accommodate credit-challenged borrowers and first-time car buyers.

Before you apply for CarMax financing

Check your credit. You can get your free credit report on NerdWallet or at AnnualCreditReport.com. If you find errors, file a credit dispute to correct them before you apply for an auto loan.

Figure what monthly payment you can afford. Use an auto loan calculator to determine what APR and repayment term you need to get monthly car payments that fit your budget. When you know your maximum car payment, a car affordability calculator can help you determine a realistic car price.

Gather your information and documents. CarMax requires the following to submit an initial application: Social Security number, valid driver's license, phone number, vehicle information, loan amount, down payment amount (if making one), employment information, income and co-buyer information (if purchasing with a co-buyer).

How to apply for a CarMax Auto Finance loan

• Pre-qualify on CarMax’s website. Start your CarMax auto financing application online. At this point, you can pre-qualify with no impact to your credit scores. CarMax’s finance-based shopping tools let you browse vehicles using the personalized loan terms you pre-qualify for, helping you shop inventory that fits your budget. These tools and pre-qualification are supported by CarMax Auto Finance and multiple third-party lenders, and you’ll see estimated rates, loan terms and monthly payments within minutes. To pre-qualify, you’ll need a CarMax account and will be asked for your preferred down payment along with basic personal, income and housing information. This step uses a soft credit check, so there’s no hard inquiry yet.

• Submit a formal application. If you decide to purchase a vehicle through CarMax, you can complete an application online for final offer terms and upload documents. The application requires a hard credit inquiry, which can impact your credit scores. Final loan approval offers are valid for 30 days.

Return to About CarMax

Buying a car from CarMax

CarMax mostly sells low-mileage and late-model used cars and trucks. All vehicles sold through the retailer are CarMax Certified quality, which means there is no flood or frame damage and no salvage history (meaning it hasn't been damaged and declared a total loss by an insurance company. CarMax vehicles come with a free AutoCheck vehicle history report, which can be viewed in the details of each car listing. Vehicle listings include 360-degree photos as well as detailed photos of certain cosmetic imperfections.

CarMax trade-ins

Additionally, CarMax accepts trade-ins. The offer you receive for your used car from the retailer is the same whether or not you buy a car at CarMax. Note that the company does not negotiate pricing.

CarMax has more than 250 stores in 42 states. It does not have stores in Alaska, Hawaii, Montana, North Dakota, South Dakota, Vermont, West Virginia and Wyoming.

Costs and fees

If you decide to transfer a car from another location, CarMax may charge a non-refundable shipping fee. The fee ranges from zero to $1,999, depending on location. Shipping fees to your store of choice are posted online. You can generally avoid the fee by selecting a car from a nearby CarMax store.

Guarantees and warranties

Vehicles purchased at CarMax can be returned within 10 days for a full refund provided the condition of the car is consistent with when it was purchased. Note that any shipping fees paid to transfer the vehicle are nonrefundable. NerdWallet strongly recommends you pay for a vehicle inspection during this period. All CarMax cars come with a limited warranty for 90 days or 4,000 miles, whichever comes first.

Other car-buying details:

• Is extended warranty coverage available? Yes. CarMax offers MaxCare extended service plans on every car it sells. MaxCare plans include emergency roadside assistance and rental reimbursement. Coverage options and prices vary.

• Can I buy a car online? Buy online and pick up your car at the nearest CarMax store. When available, delivery is free within 60 miles of some stores.

• What if the online car I want is not at my nearby CarMax store? CarMax will ship almost any car in its inventory to another CarMax store. Shipping can take up to 21 days. You will not be obligated to buy the car before seeing it in person. However, you may be charged a non-refundable shipping fee. Shipping fees can be paid with a credit card.

• Is buying online the only way to buy a car at CarMax? You can purchase a car in a CarMax store or online.

• Can I take a test drive? CarMax offers customers several different test drive options, including solo test drives, test drives with associates, and 24-hour test drives. You'll need a valid driver's license to take a test drive. Solo and 24-hour test drives are also subject to other requirements and restrictions.

• Does CarMax resell damaged cars it has bought from customers? CarMax does not sell retail cars with flood or frame damage or salvage history.

Return to About CarMax

Selling or trading in a car with CarMax

CarMax buys cars from customers who reside in any state. For customers who live in a state without a CarMax store, you will need to bring your vehicle to a state with a store to complete the transaction. The following states do not have CarMax stores: Alaska, Hawaii, Montana, North Dakota, South Dakota, Vermont, West Virginia and Wyoming.

To sell your vehicle to CarMax, you'll need to get an appraisal online or at a CarMax store. For an online appraisal, enter your car's 17-digit VIN or license plate number along with the mileage and vehicle options. You must also provide your ZIP code, email address and fill out a brief vehicle condition questionnaire. In some cases, you may also be asked to take photos of your vehicle.

CarMax will provide you an offer in two minutes or less, and the offer is good for seven days. If you decide to accept the offer, you have the option to take your car to a CarMax store or schedule an appraisal pickup. With the pickup, CarMax will come to your home or work to get the vehicle.

If your car's condition, use and history match the information you provided, you will receive a bank draft on the spot for the quoted amount.

CarMax also has a feature called Offer Watch that can help you track your vehicle's value over time, with monthly updates and personalized insights through a dashboard and your inbox.

CarMax will buy almost any car regardless of age, mileage or condition, but cars acquired through CarMax’s appraisal processes must meet CarMax standards to be sold retail. Cars that do not meet CarMax’s retail standards are sold to licensed car dealers through wholesale auctions.

Vehicle restrictions

CarMax buys vehicles that are not paid off. To sell a car you still owe money on to the retailer, you must provide loan information so CarMax can pay off the lender. If you owe more than your offer, you will need to cover the difference. In some cases, the amount can be included in your financing if you're purchasing a new vehicle, or paid directly to CarMax. CarMax stores accept cashier's checks, certified checks, certified funds, cash, and debit cards. You can also pay via a personal check for amounts under $250.

The company also buys leased vehicles, as long as the leasing company allows sales to independent dealers at the time. If not, you can buy out your lease at its residual price, obtain a new title in your name, and get a new offer.

Other car-selling details:

• Do you have to buy a car from CarMax to sell your car to them? No. Whether you buy a car from CarMax or not, your offer is the same.

• Does CarMax have restrictions on the vehicles it will buy? CarMax will purchase damaged cars, including those with flood damage. If a car is undrivable, you can have it towed to CarMax for an appraisal. However, some states restrict CarMax's ability to purchase salvage vehicles.

• What is needed to complete a sale? Requirements can vary by state, but in every state, you will need your car's title or loan information, a valid registration, and all keys and remotes. In addition, anyone named on the title should be present and provide a valid state-issued photo ID.

• Will CarMax pick up my car? CarMax does offer appraisal pickup at your home or work in certain locations.

• When am I paid? As soon as you sign over your car, CarMax will hand you a bank draft. A bank draft must be deposited and can take a few days to clear before a withdrawal.

• Will I be charged any fees? There are no fees to sell a car to CarMax.

• Can the online offer price change? CarMax will only adjust online offers if a car's condition, use or history is found to differ from the information a customer originally provided.

• What if someone else's name is on the title? CarMax will walk you through selling a vehicle that has a lost title, has someone else's name on the title, or belongs to someone deceased.

Return to About CarMax

• How we collect and maintain auto loan ratesHow we collect and maintain auto loan rates

  How we collect and maintain auto loan rates

  The auto loan APR range NerdWallet displays is provided by the lender or aggregator. We make every attempt to keep rates updated, by sending out bimonthly rate surveys and encouraging auto loan providers to send us updates when rates change. We also compare these rates to APRs on the company's website, if available. The accuracy of our rates depends on the information provided to us. It’s always a good idea to check average auto loan interest rates, and compare to similar lenders, to determine if a lender’s provided rate seems realistic.

  We ask auto loan providers for their lowest possible rate, without including any potential rate discounts. The lowest rates shown are typically available only to borrowers with good or excellent credit (a FICO score of 690 and above).

  We also ask for their highest rates, which typically reflect rates available to borrowers with fair or bad credit (a FICO score in the mid-600s or below). The highest interest rates result in higher monthly payments and more total interest paid.

  Actual rates received by a company's auto loan borrowers may be different from the rates shown in its review.