How Much Does Carmax Make on Each Car

Croacka
Chicago Cubs Fan
Denham Springs
Member since Dec 2008
61222 posts

Carmax - any idea on how much they mark up a vehicle after they take it in? Posted by Croacka on 6/30/15 at 11:03 am

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I was wondering if it was possible to get a rough guess on what they'd offer on a vehicle by looking at very similar vehicles' selling price on their site

I'm sure it's not a set % or scale, but even a ballpark number would be useful.

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Chad504boy
Cincinnati Fan
Member since Feb 2005
150362 posts
Online

re: Carmax - any idea on how much they mark up a vehicle after they take it in? Posted by Chad504boy online on 6/30/15 at 11:04 am to Croacka

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BabyrayS2k
Alabama Fan
Member since Nov 2012
778 posts

re: Carmax - any idea on how much they mark up a vehicle after they take it in? Posted by BabyrayS2k on 6/30/15 at 11:04 am to Croacka

Mark up is $4k on average. Your welcome.

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LSUballs
LA-Monroe Fan
RayVegas LA
Member since Feb 2008
34819 posts

re: Carmax - any idea on how much they mark up a vehicle after they take it in? Posted by LSUballs on 6/30/15 at 11:04 am to Croacka

Not sure but it's better than regular ole chapstick

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Croacka
Chicago Cubs Fan
Denham Springs
Member since Dec 2008
61222 posts

re: Carmax - any idea on how much they mark up a vehicle after they take it in? Posted by Croacka on 6/30/15 at 11:05 am to BabyrayS2k

I would think it's more of a % of value rather than a dollar amount

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Chad504boy
Cincinnati Fan
Member since Feb 2005
150362 posts
Online

re: Carmax - any idea on how much they mark up a vehicle after they take it in? Posted by Chad504boy online on 6/30/15 at 11:07 am to Croacka

quote:

I would think it's more of a % of value rather than a dollar amount

probably but they gotta have some hardcost floor per vehicle to at least make X per vehicle.

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Croacka
Chicago Cubs Fan
Denham Springs
Member since Dec 2008
61222 posts

re: Carmax - any idea on how much they mark up a vehicle after they take it in? Posted by Croacka on 6/30/15 at 11:08 am to Chad504boy

Yeah, I figure it's a sliding scale of some sort

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BabyrayS2k
Alabama Fan
Member since Nov 2012
778 posts

re: Carmax - any idea on how much they mark up a vehicle after they take it in? Posted by BabyrayS2k on 6/30/15 at 11:08 am to Chad504boy

Mark up is $4k on average. I worked there for 4 years.

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MadDoggyStyle
Mississippi St. Fan
Member since Feb 2012
3857 posts

re: Carmax - any idea on how much they mark up a vehicle after they take it in? Posted by MadDoggyStyle on 6/30/15 at 11:08 am to Croacka

depends. They offered me $17K for a 2011 Toyota Avalon Limited with 59k miles. They were selling that same car for $22.5-$23.5 on their website.

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carlsoda
LSU Fan
B Rah
Member since Dec 2009
5697 posts

re: Carmax - any idea on how much they mark up a vehicle after they take it in? Posted by carlsoda on 6/30/15 at 11:09 am to Croacka

They probably offer less than wholesale and then mark it up back to retail value or clean trade value. Other factors are if you are purchasing too. If you are just looking to sell I" wouldn't expect anything more than wholesale and be happy to get that...

ETA: There you have it from a ex employee. Carmax makes straight cash!!

This post was edited on 6/30 at 11:11 am

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WDE24
Yale Fan
Member since Oct 2010
50131 posts

re: Carmax - any idea on how much they mark up a vehicle after they take it in? Posted by WDE24 on 6/30/15 at 11:11 am to Croacka

They buy at average wholesale minus whatever they estimate needs to be done to the car and sell at retail. They make the buying process easy on you by not negotiating down on their high prices.

This post was edited on 6/30 at 11:12 am

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BabyrayS2k
Alabama Fan
Member since Nov 2012
778 posts

re: Carmax - any idea on how much they mark up a vehicle after they take it in? Posted by BabyrayS2k on 6/30/15 at 11:12 am to WDE24

They make the buying process easy by over charging you, and not even discussing it.

This post was edited on 6/30 at 11:13 am

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BabyrayS2k
Alabama Fan
Member since Nov 2012
778 posts

re: Carmax - any idea on how much they mark up a vehicle after they take it in? Posted by BabyrayS2k on 6/30/15 at 11:13 am to WDE24

Well said.

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LeonPhelps
LSU Fan
Member since May 2008
8185 posts

re: Carmax - any idea on how much they mark up a vehicle after they take it in? Posted by LeonPhelps on 6/30/15 at 11:14 am to Croacka

They are publicly-traded. Read their 10-K.

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meeple
USA Fan
Member since May 2011
7410 posts

re: Carmax - any idea on how much they mark up a vehicle after they take it in? Posted by meeple on 6/30/15 at 11:20 am to BabyrayS2k

Since, the $4k average is the difference between what they offer to buy vs what they turn around and sell it for...

Is that to say they offer you that much less than what it's worth through a private party sale, or do they charge their customers $4k more on the back end than what the customer can get for it from a private party seller other than carmax?

I hope that makes sense.

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fightin tigers
Downtown Prairieville
Member since Mar 2008
62068 posts

re: Carmax - any idea on how much they mark up a vehicle after they take it in? Posted by fightin tigers on 6/30/15 at 11:24 am to BabyrayS2k

Is Carmax a good place to offload a car that is a piece of shit? Basically just want the check and not worry about trading in on a car.

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TigerPanzer
LSU Fan
Orlando
Member since Sep 2006
9476 posts

re: Carmax - any idea on how much they mark up a vehicle after they take it in? Posted by TigerPanzer on 6/30/15 at 11:26 am to Croacka

Try a wholesale auto dealer instead. They go out to auctions and find the car/price you specify. The one big advantage over Carmax is that most wholesalers are happy to let you have your own mechanic come to where your selected car is, so they can give it a comprehensive evaluation before you buy.

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yellowhammer2098
Alabama Fan
New Orleans, LA
Member since Mar 2013
3843 posts

re: Carmax - any idea on how much they mark up a vehicle after they take it in? Posted by yellowhammer2098 on 6/30/15 at 11:26 am to meeple

quote:

Is that to say they offer you that much less than what it's worth through a private party sale, or do they charge their customers $4k more on the back end than what the customer can get for it from a private party seller other than carmax?

Trade-in value < Private party sale value < Dealer Retail Value (Carmax)

Trade-in value is on average 4k less than dealer retail value. You could sell your car for more than they offer on the trade in but most likely less than what carmax will sell it for.

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YouAre8Up
USA Fan
in a house
Member since Mar 2011
11676 posts

re: Carmax - any idea on how much they mark up a vehicle after they take it in? Posted by YouAre8Up on 6/30/15 at 11:28 am to Croacka

Any car lot or car dealership is going to have the maximum mark up percentage on used vehicles along with giving the cheapest trade in value so they can turn around, sell the vehicle and make money off of it.

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Croacka
Chicago Cubs Fan
Denham Springs
Member since Dec 2008
61222 posts

re: Carmax - any idea on how much they mark up a vehicle after they take it in? Posted by Croacka on 6/30/15 at 11:35 am to YouAre8Up

And what question does that answer

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