Carmax and bad credit ?

[Anonymous]

Um, Carmax sells new cars. They're all over their website. Interestingly, while you can request and pay to have most used cars transferred from one Carmax dealer to the next, you usually cannot transfer new cars but they absolutely do sell them.

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@willhbauto wrote:

How did you buy a "new" Corolla at Carmax? Carmax only sells preowned vehicles.

Anyways, you screwed up by allowing that vehicle to get reposessed, it takes almost 120 days late for a bank to decide they're going to take it from you and they usually contact you many time first. You can still get approved for financing but you'll have to prove you crawl before walk all over again. You'll get approved at a sub-prime rate on a small dollar amount. Usually between 10-15K. You said you do investing correct? Then how come you don't realize how bad of an investment a $40,000 car loan is at 12%-15% interest rate? Not to mention you'll be paying mortgage like car-payments, a dumb decision. 

There is a good reason Warren Buffett still lives in the modest house in Oklahoma that he lived in before he made his billions.

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[Anonymous]

Well I think they even transfers the used cars,well I am not sure,as i wanted to transfer a used car.

[webhopper]

I saw a Volvo c30 at carmax with only 2k miles that was listed as non transferrable... so on the used cars I think it just depends on how newish the car is...

Seems like carmax has some pretty sweet deals and a fairly large selection.

[Anonymous]

hey everyone speaking of carmax,

my younger sister just financed a car with them let me tell you how this deal went.

so my sister had never ever applied had her credit ran or applied for anything her whole life but was in desparate need of a new car and had no avail cosigners. so we called carmax and I explained we are not ppl who want to waste time so run all of her info via phone, so that we are not waiting around a dealership for 5+ hours. he runs her credit report and her score comes back as "0" score. as we expected. so we go down there and the guy says:

Carmax can approve you at 11% APR 1k down with reliable prooof of income.

AmeriCredit can approve you at 16% APR 3k down with reliable proof of income.

AmeriCredit can approve you @26% APR 3k down, no proof of income requested.

My sister did not have really steady income and nor was it really a decent amount. So we had a reasonable down payment and the salesman advised us to take the no proof of income choice. She put the 3k down. and chose a 2010 toyota corolla. which is what she wanted and it was priced at $14,900.00

What i like about them was they gave her choices, and were ale to tell her an amount before going up there.

walked out in 2hrs.

[Irish1]

Thank you for that info. What state were you in? I just got denied from Capital One.My plan was to go to Carmax.  Low FICO's but I just paid all CC off.....not sure if I just need to wait a couple of weeks.

[Anonymous]

We are in California. Speaking of Capital One, I just got approved by them but the APR is extremely which is expected my credit is not the greatest. I thought about going to Carmax but I'm trying to limit my inquires. Also Carmax yuu have to put down decent down payment for they're cars. 😞

[Chrisla2077]

I'm in Maryland and just got a car through them.....no complaints from me. If you're in abad situation they are willing to help if they can. Easy buying process.

[Anonymous]

Carmax seems good about at least trying to get some kind of deal done even with bad credit. A friend got a car from them with scores in the 500s and a little bit down. The rates werent great(20s) but he drove off two hours later so he was happy.

[Creditaddict]

1. Carmax has practically become to be known for pushing HIGH interest rate bad credit loans because they do so well with bad credit BUT they do sell $100k+ cars and can get rates under 2% so I wish people wouldn't forget that.

2. to the poster that said Carmax employee told him next to impossible to get approved (I think said friend was talking about CarMax and it's OWN Financial (they are a little more prime, will not touch anyone with baddies, etc. but CarMax works with some terrible credit finance companies (i.e Santander, Exeler)

3. I purchased a car from Carmax 1 day after my credit reports updated my Chapter 13 BK Dismissed and was financed with Santander at 17% with $1k down.

4. just purchased a Prius last month and was approved for $0 down = I carried $2k negative equity and had over $2k taxes that they added into the loan, NO DOCS of any sort required

I have never had to give income with Carmax and when you apply for financing and the different companies come back with approvals it will say right next to the terms what if any docs they want from you... some want proof of address, or proof of funds if you are putting money down and some will want paystubs, but rarely!!

The other great thing about them is you can apply with no money down and if you don't get approved or rates are high you can go back in and just run the approvals again but with money down and see if that changes anything... As long as you do it same day and with the same car they won't run credit again, it just runs back through all the banks again with the same credit... you change car it will pull credit again... not that big of a deal since it's for auto... super easy and most ALL decisions come back in under 5 minutes, usually under 1 minute!

[Anonymous]

FYI, the original post and first several responses in this thread date back to 2008. The climate for subprime auto loans has changed greatly since then, and they are much easier to get now than just a few years ago.