Carmax Loan

[corymcd88]

How good of a score do you need with Carmax? Who do they pull?

[Anonymous]

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@corymcd88 wrote:

How good of a score do you need with Carmax? Who do they pull?

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I believe Carmax pulls EQ. As for score, I think they work with a large range of scores. I've seen someone get an approval with a score in the low 500s but the loan was with another bank, not Carmax Auto Finance. For true Carmax financing, I think you have to have a higher score. Last thing, I would receommend looking elsewhere. IMO Carmax tends to be overpriced and has loans with generally higher interest rates. But if you must go there, I think its a little easier to get a loan through Carmax

[Dj4Money]

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@Anonymous wrote:

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@corymcd88 wrote:

How good of a score do you need with Carmax? Who do they pull?

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I believe Carmax pulls EQ. As for score, I think they work with a large range of scores. I've seen someone get an approval with a score in the low 500s but the loan was with another bank, not Carmax Auto Finance. For true Carmax financing, I think you have to have a higher score. Last thing, I would receommend looking elsewhere. IMO Carmax tends to be overpriced and has loans with generally higher interest rates. But if you must go there, I think its a little easier to get a loan through Carmax

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  CarMax works with -

  Captial One, Wells Fargo, Santander and another sub-prime lender that escapes me.

  If you have sub-600 FICO score the loan will be with Santander usually high interest (whatever your state limit is), a sign here and drive sort of deal. Even if you have low 600 scores this might happen, it did to me.

 To get Car Max in-house financing your score I think needs to be about 650 or so.

 This is not your only choice if your not limiting yourself to certain things.

 I was told I could only spend about $16,000 with Car Max and there was nothing I wanted (about $12,000 before TTL) for that price. I found a Hyundai Dealer up in Washington state that would sell me a New 2015 Accent for $2,000 off sticker which made it $15,295.

 Needless to say I flew up to Washington to get it and drove it back. 

 I had some problems with my TU so Hyundai would have financed it but I signed the papers with the other lender which was sub-prime (18.23%).

 That was Jan 2015, I re-fi'ed in August of 2015 down to 4.49% and shorten the term from 72 months down to 48 months.

 IMHO getting used cars with high interest loans is a formula to be upside-down forever until you pay it off as almost nobody will let you trade out of it or re-finance it.

 Getting a new car with high interest, most banks will re-fi you out of that because the car is worth something still. Most used cars with high interest loans are also high mileage and worth less than even it's deprecated value.

 Use Car Max if you must, but you do have other options.

[Creditaddict]

Carmax pulls EX not EQ... They use a straight Fico which is nice sometimes vs auto.

Santander, Wells Fargo, Carmax Finance, Ally, and Exater or something super subprime... the only lender I have seen request documents with it's loan.

If Carmax Finance Arm picks up the loan they won't even send it out to the others, they lock it in and that is your only choice from them... of course you always have 7 days or 14 days to obtain your own financing after the fact or refinancing later.

[undrtkr65]

That's why I bought a Toyota they hold value really well and a lot easier to refinance. I purchased a 2012 Toyota Corolla s series from Carmax. Only owe 14571 on it and it's worth 14200 and I've only made 2 payments. My interest is 20% but I will refinance with my credit union once I make 6 payments on it as I'm rebuilding off a repo from December 2014.

[Dj4Money]

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@undrtkr65 wrote:
That's why I bought a Toyota they hold value really well and a lot easier to refinance. I purchased a 2012 Toyota Corolla s series fromCarmax. Only owe 14571 on it and it's worth 14200 and I've only made 2 payments. My interest is 20% but I will refinance with my credit union once I make 6 payments on it as I'm rebuilding off arepo from December 2014.

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   I bought my 2015 Accent for $15,295, MSRP $17.295, value according to my credit union who re-financed it $14,600. The same depreciation as a Ford Fiesta and a little less than a Honda Fit.

  What do you mean it's easier to refinanced a Toyota or Honda? Several people on this board have bought high mileage Honda or Toyota and there were too upside-down to refinance.

  Most banks will not go beyond 120% LTV regardless if it's new or used.

[Creditaddict]

They key word in your statement is high mileage!

[Dj4Money]

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@Creditaddict wrote:
They key word in your statement is high mileage!

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 Exactly, usually high interest means bad credit and then limits the amount a bank will allow you to borrow. My case was $16,000 from Car Max which meant about $12,500-$13,000 + TTL

 I went out of state, paid no taxes up front which allowed me to get the Accent. I may could have gotten an Elantra but I didn't try.

[EddieK]

He's stating the obvious...Honda's and Toyota's have high resale value, Hyundai's don't.  Of course you can make an argument stating that someone with a high interest, high mileage Honda or Toyota will still be upside down, but use those same specifics on a similar Hyundai and you are further in the hole.