How to Finance a Car Using Carmax

How to Finance a Car Using Carmax
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Long gone are the days when auto buyers must go to a dealership or used car lot to find a vehicle. Likewise, the haggling and bartering with salespeople is also mostly consigned to the past. The information technology revolution has transformed the task of car shopping. To be sure, this brave new world saves consumers a lot of trouble.

At the same time, purchasers like to see and test-drive an automobile before agreeing to close the deal. CarMax is an example of one of the online retailers that provide both convenience and quality assurances to the clientele. Getting financing through CarMax works as follows.

Select the Desired Automobile

Before any CarMax credit application can be executed, there has to be collateral, i.e., the car itself. The company provides an easy locating tool placed front and center on its home page. Once make, model and/or year are entered, CarMax will ask to track the searcher's location and then provide distance radius filters in order to find the choice within a reasonable orbit. Upon seeing a potential purchase, the customer will find photographs of the vehicle along with the current mileage and the store location where the car is parked.

Clicking on the entry reveals additional information, like the number of previous owners, whether the tires had been replaced, price and estimated monthly payment and what sorts of warranties and offers are attached to the particular conveyance in question. From this page, the buyer can opt for vehicle delivery, store pick-up or test drive.

Applying for Financing with CarMax

Submitting a CarMax credit application begins with online pre-approval, a function accessed by selecting the "Finance" tab on the home page. This calculator requires the price of the car, the length of the loan term as well as how much money the buyer will contribute as down payment. Using it also authorizes the retailer to pull a credit report. The criterion of highest importance are:

  • Size of down payment
  • Credit history
  • Income and employment
  • Car to be purchased

Once pre-approved for a given amount, the applicant is contacted by a CarMax representative, often on the same day, about how much credit the company can comfortably extend and what documentation is needed to support the application. In many cases, these papers can be brought to the store when the customer picks up the vehicle.

How Hard Is It to Qualify?

Can anyone get approved at CarMax? No, but the company goes some extra distance to secure loans for those who want their automobiles. Those with poor or checkered credit histories may do better with CarMax than traditional auto lenders. In fact, buyers who can meet CarMax income requirements and show CarMax proof of income have a reasonable hope of getting a vehicle.

Partnering with banks like Ally, CapitalOne and Chase, the company makes sure the cash flow and down payment offset past credit misfortunes. Of course, borrowers will pay for bad credit with higher interest rates. Worth noting is that CarMax also allows buyers to bring financing from their own banks to the purchase transaction. An answer, though, might take longer than CarMax finance.

Other Details on Using CarFax

Test drives, which do not obligate a shopper to buy, can be done at a CarMax store or, if the car is delivered, can be done at the location of the delivery. Those trading in a vehicle can have it appraised online or at a store. CarMax accepted forms of payment include certified funds, debit cards, cashier's checks and cash.