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Monday, June 25, 2012

What’s My Trade-in Worth? Not Very Much at CarMax


I've written about trade-in values previously, but a recent experience drove home how scary it is for car buyers to get an accurate and fair dollar amount for their present car.

CarMax is the largest retailer of used cars in the world. They also sell new cars in a few of their locations but used cars are their forte. As a Toyota dealer for 37 years, I routinely shop my competition as do most businesses. Last week I sent my mystery shopper to CarMax in Boynton Beach. He drove there in a 2004 Mazda6 and feigned an interest in buying a 2010 Mazda6 using his old car as a trade-in. The CarMax salesman, Paul, gave our shopper a price of $14,999. That was plus a $199 dealer fee, and a $12 markup on the electronic filing fee. In addition to that was the standard sales tax and tag and registration fee. The next step was to appraise our shopper’s 2004 Mazda6 trade-in. This process takes about 30 minutes and the appraisal was for $2,000. Now, CarMax is one of the few car dealerships that truly don’t haggle over price, neither the price of the car you’re buying or the car you’re trading. Some dealers advertise that they have fixed prices with no haggle, but they will haggle if you try.  Our shopper tried to haggle, but to no avail. 

Here’s where it get interesting. More people buy used cars, sell used cars, and trade in used cars to CarMax than any other car dealer in the world. Because of their no-haggle, no-hassle one-price policy and very friendly and ethical reputation, they have grown to dominate used car sales worldwide.  CarMax doesn’t have the lowest prices, but they have the highest trust of their customers. They even have a 5 day money back guarantee on the cars they sell…no questions asked. Other dealers advertise guarantees, but it’s always an “exchange” for another car, not your money back.

We carefully appraised the 2004 Mazda6 before we visited CarMax. Three of our appraisers agreed that the wholesale market value was $3,000. One guide book, Kelly Blue Book valued it at $3,500. When I found out that CarMax had appraised it for one-third or $1,000 less than the true value, I was incredulous. I thought we might have made a mistake, but upon careful scrutiny I was reassured that the $3,000 value was accurate.

One of my appraisers was a former appraiser for CarMax and I discussed this discrepancy with him at length. Here’s what I discovered. CarMax adjusts all of their appraisals downward by a factor dictated from their central corporate office. This factor is called the “Appraisal Cost Adjustment” or ADR and it is based on an algorithm or matrix which is determined by CarMax’s central office. The local CarMax appraiser appraises a customer’s car for the true market value and then subtracts the dollar amount dictated by the ADR. The bottom line is that our mystery shopper’s trade-in was reduced by about $1,000 to just two-thirds of its true wholesale market value. I say “about” because I don’t know what the CarMax exact appraisal was and I don’t know exactly what the CarMax ADR is. However, I can tell from looking at the 2012 fiscal year CarMax annual stockholder’s report that CarMax averages $953 wholesale profit on every used car they sell. This means that they pay their customers, on the average, $953 less than the true wholesale value.

As a competitor to CarMax, this is amazing to me. Most car dealers actually lose money on the average wholesale cars they sell at auction. The goal of most dealers is to break even on wholesale profit or loss. The reason for this is that attempting to appraise a car below the true value can cause the dealer to lose the sale of the new car or used car they are retailing. This is simply because the dealers’ competitors will offer that customer higher trade-in allowances and win the business. In their last fiscal year CarMax made $300 million in profits on wholesaling cars that their customers traded in. Put another way, CarMax made “double profits” on their customers…a profit on the car they sold the customer and a profit on the car the customer traded in. Now remember, I’m not talking about making a retail profit on the customers’ trade-ins. This is something all dealers try to do, including me. I’m talking about making a wholesale profit on those trades that they couldn’t or wouldn’t retail. This kind of wholesale profit is unprecedented in the retail/wholesale auto industry.  Now, please understand that car dealers will deliberately under-appraise a trade-in when they think they can “get away” with it. The common vernacular for this is “stealing the trade”. This occurs when a customer is so focused on getting a very low price on the new or used car they’re buying that they neglect to carefully consider their trade-in allowance. Also, trade-in allowances can be inflated beyond reality through the use of artificial markups on the new car via addendum labels, or, as I call them “phony Monroneys”. But, most car dealers average about $100 loss on every trade he wholesales vs. CarMax making an average of $953 profit.  I can understand now why Warren Buffet bought stock in CarMax.

Now don’t get me wrong, I’m not accusing CarMax of doing anything wrong. There’s absolutely nothing illegal or unethical about allowing a customer below market value for her trade-in…any more than it’s illegal or unethical to charge a higher price for the new or used car you retail than your competition does. CarMax does a lot of things better and smarter than most other car dealers which has allowed them to earn the trust of their customers. CarMax customers, not only trust them, but they look forward to a true haggle, hassle free buying experience. You combine all of that and it gives CarMax something called “pricing power”. Customers are willing to pay CarMax a higher price for the car they are purchasing and accept less for their trade-ins.

However, my advice to CarMax customers is to “have your cake and eat it too”. Enjoy the haggle, hassle free and trusting environment of CarMax, but shop your trade-in with at least three other sources. You will likely be able to sell your car to another dealer of the same make as yours for more than CarMax will allow you. Had all of CarMax customers done that during the last year, they would have saved an average of $953 per car, totaling $300 million! 

75 comments:

  1. This appears to be their M.O. In February I took a very good condition F250 pickup for an appraisal to purchase. KBB on the truck fair condition was $4000. Carmax picked it apart and offered $2100 dollars. I sold it on Craigslist 2 days later for $6500

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    1. yep.true and true.they offered me 1500 less than wholesale. They are counting on customers not doing their homework

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  2. Dearlerships play the same game too! My 2011 Toyota RAV4 is fully loaded and cost me a bundle, but I got a good price. Yet 8 months later I am trying to trade in and the appraisal was LOWER than Carmax!! I can't believe that Edmunds, NADA and Kelley cited $26,790, but the dealership appraised it at 22K!! Yet dealer retail will be about $30,500.
    Why don't these websites tell you the truth? I was told by the dealership that they can buy my car at auction for $22K. Gimme a break! The car is pristine with 12000 miles. And to take the cake, I have been a good customer for years. It's time for a change.

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  3. Great and accurate description of the CarMax appraisal process. I recently left CarMax after almost six years in their purchasing department (Senior Buyer) and I am currently working at a traditional franchise dealership. I'm still a shareholder and fan of CarMax. The only correction on the article is the term is not ADR, but ACR for "Appraisal Cost Recovery." Good research!

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  4. Earl - please please help me. I think I may have been totally ripped off by Toyota. But I don't know enough about trade-in values to know whether what they gave me for my car just constitutes a "healthy profit" for the dealer... or if I'm right to feel victimized here. (I almost never apply that term to myself - but, as a 61 year-old woman who's bought only 2 cars in her life... as well as someone who's 100% disabled and who has no other income than her disability payments... it probably applies.)

    Here's what I brought them: a 2011 Prius (bought 12/30/11 -- so actually a year newer than it sounds. Car is fully loaded & has literally every single upgrade one can purchase on the Prius. With the exception of two 1-inch very light scratches on fender,it was in true mint condition. PLUS - it had less than 5,000 miles.

    I went to kbb and used "good condition" to make sure I wasn't inflating my car's value. Kbb put my Prius at $22,500. The dealer gave me $17,000.

    I'm all for the guy making a profit. But he was already getting $2200 over KBB for the Mini Clubman I bought.
    Add that to the $5500 he shaved off my Prius and you've got an alms $8000 profit on my purchase of a Mini whose price tag was a mere $20,700.

    Just to add insult to injury, he also charged me $975 for "credit gap insurance" - something a friend/lawyer now tells me I could never use, since I'm already legally 100% disabled.

    Am I just being crabby - or am I right that I got taken? And if I did, what, if anything, can I do about it?

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  5. I checked with my appraiser and this is what he told me, "If it has every option then I’ll assume it’s a Prius V with every option available and with only 5000 miles it’s not a typical book appraisal. In PERFECT condition as a Prius V+++ minimum would be $19,000 or “whatever it takes” to make a deal.

    Jeff mentioned that a Prius V doesn’t come with a Roof so it might be a IV. Either way $19,000 to $20,000 would be the right number." I'm very sorry that you had such a bad experience with ths Toyota dealer.

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  6. I am realizing there are many layers of people looking to make a profit on your used car. CarMax, wholesalers and dealers. That is 3 layers that have to get paid. Do some research, leg work, get a Car Fax and take some good pictures and sell it yourself. Remind buyers they save the sales tax in a private sale. This can be thousands of $. Not the right situation for everyone but if you have a nice car with a clean in-hand title, you are a good candidate. I just got low-balled by Car Max. Not the case 6 years ago. Policies have changed.

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  7. My advice is if you want to sell your car fast take the 30 minutes, get a Carmax written offer, and then go home and think about it. Think about it, no dealer is going to give you retail value for your car nor will they pay you more than they can buy it for at a dealer auction unless they are making up the difference somewhere else.

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    Replies
    1. They're not talking about getting retail they're talking about not even getting wholesale value

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  8. Thanks for your comment, Ed.

    You're absolutely right that that would be the best way to "sell your car fast", but not necessarily the best way to get the most money for it. CarMax makes more money from used cars they wholesale at auctions that they bought from people than they do from those they retail. They are a very smart company with state-of-the-art software that tells them what to pay you for your used car. This can be good or it can be bad. If they need your car, you can expect a fair, or even good, price. If they don't need your car, you can do a lot better by shopping your used car at other used car dealers.

    You should NEVER sell your used car to CarMax or any dealership without getting at least three bids.

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  9. Thank you for this article even though its been a while since you've written it, it still helped me. I'm getting into the car auction business and I was thinking about starting off by taking my cars to Carmax for quick cash but looking at KBB says trade in should be 5600 and I am to assume Carmax would give me about 3200 which cut extremely into my profits. So I'll go to the route of Craigslist and rise that way :-)

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  10. When ever someone can give you a quick deal it will cost you money. To get top dollar for your trade you have to get more than one offer and use the ones you already have to increase the next. Always negotiate your trade separately to know what you are actually getting.

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  11. You're spot on! There's a common saying amongst car dealers, "steal the trade". It means paying the customer less than the "Actual Wholesale Value" or ACV. A car dealer will gladly sell you a new car at his actual cost if he can pay you hundreds or even thousands of dollars less for your trade-in than it's actually worth.

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  12. My mom went with me to Carmax yesterday where I traded in my red 2005 Honda Accord Coupe with 135000 miles for a white 2011 Honda Accord Coupe with 28000 miles for $17990. I was very disappointed of my trade in appraisal of only $2500! But i went ahead with the buy because I love the car, payments and apparently a good 4.5% interest rate (the dealer said it was good). Now that i look on kelly blue book, i see that the trade in value is $3800-$4200! My dad told me that i should have gotten more at CarMax and thinks it was because my mom and i were females...lol! Keep in my that i actually bought this car used years ago from the Honda dealership. Carmax was the only place i had it appraised....i wanted to take the weekend to think about it but yhe salesman said he couldn't guarantee it would still be there in 3 days. So Mr. Earl, whats your opinion, did i make a foolish mistake?

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  13. Dear brownladyRN,

    I'm sorry to say that it appears that CarMax allowed you much less than your car was worth. Not knowing whether is an EX or an LX or the exact condition, I can't be sure. But if your car was in OK condition, your car would be worth at least $1,000 to $2,000 more than they allowed you. I've very sorry, but CarMax will do that when they don't feel that they don't have a need for a particular car in their inventory. You should have gotten at least one or two more bids for your trade-in.

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  14. Thanks for the reply, i guess we live and we learn! I've considered taking advantage of the 5 day return rule and returning it (especially since my dad has to return and sign papers since my trade in was in his name too and he was absent during the transaction), but I'm wondering if its worth the hassel.

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  15. If I were you, I would return it and tell them why you did. Feel free to use my name and if the CarMax people would like to call me, they can call me on my cell phone anytime, 561 358-1474. When you get your trade-in back, call two Honda dealerships and tell the used car manager you want to sell your car to them. Tell them you aren't going to buy another car; if you do that they might not give you as real price on your car. If you want, you can bring it to my dealership in North Palm Beach and we will offer you a fair price.

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  16. Appraisers at CarMax could care less if you're female, black, white, male, or alien. It's about that your car is worth. Maybe you recieved less for your trade in than you would down the street, but there is a good chance you could have paid less for the "new' car or paid a lot less in fees.

    To an earlier point, you still owe tax to the state even when buying private party. They charge you the tax when you go to register no matter if bought from a dealer or private party. At least in the three states I've lived.

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  17. Dear anonymous, I don't understand why you raised the "racial issue"; of course CarMax does not discriminate by race on appraisals. My whole point is that they discriminate based on how the "supply and demand index" for the specific year/make/model car you are trading in fits with CarMax. If they have too many "white 2013 Camrys" and you come in to trade-in an identical Camry, you will get substantially less than you would from a Toyota dealer that was short of supply on that car. I also don't know where you got the idea that I said you don't have to pay sales tax when you buy from a private individual. Of course you do. Your blog response makes me wonder if you read another blog article.

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  18. Dear Anonymous re CarMax and racial profiling. I apologize. Another blog reader just pointed out my mistake:

    I think the fellow was attributing some reader comments to you……

    1. AnonymousMarch 22, 2014 9:09 PM
    I am realizing there are many layers of people looking to make a profit on your used car. CarMax, wholesalers and dealers. That is 3 layers that have to get paid. Do some research, leg work, get a Car Fax and take some good pictures and sell it yourself. Remind buyers they save the sales tax in a private sale. This can be thousands of $. Not the right situation for everyone but if you have a nice car with a clean in-hand title, you are a good candidate. I just got low-balled by Car Max. Not the case 6 years ago. Policies have changed.

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  19. 2007 Nissan Murano SL with 135,000 miles- good condition.. how much would you say it's worth?

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    Replies
    1. Hi Amanda, you're probably looking around $5,500 - $6,000 for 2WD, add about $500 for AWD. Hope this helps!

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    2. What about a 2008 Chrysler town and country LX $123,000 miles. Trade in value?

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  20. Are online sources like Kelly Blue Book and Edmunds an accurate source of information to appraise a car's value?

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  21. Johnny, these online sources are not very accurate. Wholesale values of cars are very regional and somewhat subjective. You can start with an online source like Kelly or Edmunds, but the most accurate value of a used car is what a car dealer will pay you for it. Take your used car to at least three car dealers who sell the make you own. Take it to their used car managers and tell them you want to sell them your car. Tell them you have no interest in buying their car. Let them know you are getting 3 bids and will sell your car to the dealer who is highest. That's the best way to get an accurate value for your used car.

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  22. I've never considered selling my car to a dealer with no intention to purchase other than CarMax. Competitive bidding is really the true way to obtain market pricing. Thanks for the advice.

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  23. I have a 2006 Toyota Sienna XLE limited addition 2wd in fair condition with 200,000 miles want to sell for a car brought it brand new 8 years ago. Going to carmax today for an appraisal.

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    1. That's a good idea. CarMax is a good place to get one of at least 3 bids. If you would like one from my wholsale manager, Ted Kabboush, please feel free to call him on his cell phone at 561 635-2622. Of course his price can only be an estimate until he sees and drives your Sienna.

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  24. im going to carmax today i have a 2007 toyota tacoma v6 access cab 128000 miles KBB bookes it around 14000 how much do you think i will get apraised at carmax Earl stewart?

    thanks
    Colby

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  25. Call my wholesale manager Ted Kabboush at 561 635-2622.

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  26. Dear Earl, thanks for your useful insight. I am planning on selling my Porsche Boxster 02 with 95,068 miles. The car is in great shape! Privately, I could sell it for ~$9,000 but I do not feel like dealing with that hassle.

    A local dealer gives me $6,000 for it. Autonation's online appraisal offers $6,500 (valid for 7 days). KBB dealer's trade-in goes for $6700. I was planning on taking it to Carmax. However, it is a 3 hr drive from my current location. I have some questions...

    Do you think it is worth the three hour drive to Carmax? In your experience, would you say Carmax would give me more or less for it?

    Also, do you think Autonation's online appraisal would be honored? Like I said, the car is impeccable but I am not sure if they can lowball their online appraisal.

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  27. Guerra, why not call CarMax and ask them for an estimate with the understanding that you will bring the car to them for inspection if it would be worth the drive? I would say that AutoNation would honor their online appraisal if you represented your car to them accurately. AutoNation is a public company and most likely would be forthright on something like this. Good luck.

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  28. Dear Earl, I am going to sell my 2007 Nissan Altima 2.5S with 66,000 miles- good condition. how much would you say it's worth? I will drive to CarMax for appraising as well. Thank you for your amazing article!

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  29. Dear Earl, I have a 2013 Toyota Rav4 XLE AWD with almost 24K miles on it. The vehicle has Navigation and Remote Start. I bought the car new, how much do you think it'll appraise at Carmax? Thanks

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    1. Hi Janet - you're probably looking at about $21,000. The mileage is good; the appraisal will mainly depend upon condition.

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  30. Dear Earl,

    I have a 2014 Camry LE with 17k miles on it. I installed after market fog lights on it. Should I remove them since they are aftermarket or that does not matter. Also how much do you think it will appraise at Carmax for? Thanks.

    Moiz

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  31. Dear, Moiz, your fog lights do not enhance the value of your Camry to CarMax. You can remove them if you like, but if this will leave holes in your bumper, you'd be better advised to leave them on. The approximate wholesale market value of your Camry is $14,000 to $14,500. Be sure to get bids from 2 or 3 Toyota dealers too.

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  32. Hi Earl,

    I'm looking to trade-in/sell my 2013 Honda Fit Sport. It has an automatic transmission and about 27900 miles. Selling it to Carmax would be the easiest way to get rid of it. What do you think it's worth?

    Thanks,
    Dan

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  33. Hi Earl, I am looking to sell my 2009 RAV 4 with 85,000 miles in good condition, 4 wheel automatic,how much us it worth if i sell it to Carmax.

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  34. Hi,
    Im looking to sell my 2015 Jeep Wrangler Sahara Unlimited,, Its fully loaded w/navigation and leather. Its hard top with same color as jeep top, It only has 2606 miles on it. I paid cash three months ago, and I realize now I need something bigger. I do not want to get ripped off and I feel like I will not get a fair offer anywhere. What do you think? It top of the line and I drove it off Showroom floor. Asking price was 45,000, however I only paid 38,000 three months ago. Any ideas....please help~

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  35. If your Jeep is in perfect condition, you can expect to get around $33,000 for it

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  36. What do you think about a 2008 Chevrolet Silverado 2500HD diesel Allisen transmission with 50,000 miles. It's been involved in one collision but looks new.

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  37. Earl, I have bought several Toyotas from your dealership and have always received a good to great price. I have a black 2011 Camry LE with 62K mi. but I'm in the market for a Ford truck. Can one expect to get more for the trade from CarMax or a Toyota dealer? What do you think I can expect for my Camry? Thanks!

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  38. Dear Anonymous, Your Camry is worth $8,000 to $8500 depending on condition. My recommendation is to get a bid from CarMax. They buy cars based on a computer algorithm that values cars depending on CarMax's current ability to sell that car. If CarMax has too many 2011 Camry LE's, the price they offer you will be too low. I would then get 2 more bids from Toyota dealers.

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  39. Hi Earl.
    Need your help with an estimate for my parents 2012 Honda civic lx , very good condition with 9500 miles. It's on a lease ending this December 2015. Residual is $11,800 and dealership where it was purchased said low mileage isn't worth anything and car has no equity. I was thinking of bringing to carmax. Your advice, please. Thanks

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  40. You should bring it to at least two (preferably three) appraisers, including CarMax, to make sure you're getting fair value for your Civic. Based on the current wholesale market in south Florida, you should get somewhere in the neighborhood of $12,000 for it.

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  41. Earl:
    How about 2004 Toyota Corolla LE 121k miles, auto, cruise. Lots of paint chipping, decent condition inside, runs fine. Been getting dealer offers $1500-$2k. One started at $1500 but jumped to $3500 to effectively reduce cost of a new car. Thoughts?

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    Replies
    1. Hi Ryan - $1500 is probably a fair value based on your description. You're doing the right thing by getting multiple bids. Be careful when someone offers you a lot more than what you've been seeing (like the $3,500 offer). To keep them honest, ask them if they would write you a check for the appraised amount even if you don't buy a car from them.

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  42. Hi Earl:
    I have Lexus Rx 350 with luxury/premium packages with navigation and everything like upgraded wheels/lights/stereo. Current mileage is 12k and the condition is like-new. How much should i trade it for?

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    Replies
    1. Hi There! You should expect $29,500 - $30,500 if it's never been in an accident and truly "like new" and a high demand color like white or silver.

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  43. Honda CRV 2002, 2WD. current mileage 165k, condition-fair. Entire AC system has been renewed a year ago. What should be its trade-in or private sale value?

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    Replies
    1. On trade, you should get $1,500 - $2,000 ... depending on real condition.

      Add a $1,000 for retail/private sale

      Delete
  44. Hi Earl,
    I have a 2012 VW Golf with 51000 miles on it. It is a 4 door Golf sedan with convenience package. I recently visited a Honda Dealer in Plano, TX and he low balled me with 7500$ figure. I looked up on KBB and other used car sites , it says i should atleast get 10.5 K + for the same car.. Would Car Max appraise closer tothis value? Just curious. Thanks in advance..

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  45. CarMax "might" give you a better price and it's worth trying. What they offer you is based on an a computer algorithm which calculates precisely how "valuable" a 2012 VW Golf as you describe is to CarMax. The offer can vary from very high to very low.

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  46. I have a 2005 honda odyssey EXL w/ DVD with 128,000 miles. I was thinking of getting an appraisal at Car Max. I had not thought about asking the local dealer to buy since I don't plan to buy. KBB says 4285 is average trade in price for good condition. The range is 3389 to 5134. Any thoughts on what to expect.

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    Replies
    1. It sounds like KBB is in the right ballpark with their figure of $4,285. Mannheim Market Reports (which shows actual auction transactions) show values of $4K - $5K for that model with similar mileage. The condition of the van will determine if you're going to find yourself on the low or high end of that range. Color and equipment will play a smaller (but not negligible) factor.

      Delete
  47. HI Earl, I just purchased a 2016 Kia Sorrento, White, LX with heated seats, power seats, after market leather, uvo e services, back up camera for quite a bit of money. Long story short, I was a sucker and bought this big car I don't need with money I'd rather not part with. Question 1 ) How long does loan paper work/ registration paperwork take so I can re-sell my car and Question 2) how much do you think I should expect to get when I see it at that time? I know I'm losing money due to buying a new car and instant depreciation, however at this point I am so sick over this I want to get rid of it asap. Thank you in advance for your help and advice, it is appreciated.

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    Replies
    1. Hi! That's a tough one! First let me address the time frame. I think I understand you to mean you just purchased the Sorento and you're not sure if the registration (or even the funding of the contract) is complete. If it's just been a few days, I would recommend speaking with the general manager of the dealership and ask about returning the vehicle for a refund or at least the option to exchange it for a smaller, less expensive vehicle. It shouldn't take the dealership more than 30 days to complete the registration and the loan funding should take more than a week.

      As far as the value of the Sorento, goes you are likely lookung at a major hit. A current model year with little or no resale history may be worth as little as $2,000 to $3,000 below the dealer's true net cost when it was new.

      If you're unable to get a refund or an exchange, you should get several bids from different dealers to get a good range of values.

      If you email me some more specifics, I can do my best to come up with what we think it's worth. I need to know if it is an all-wheel-drive or a front wheel drive, a V6 or a 4 cylinder, and current miles. Please email me at earl@earloncars.com

      Thanks!

      Delete
  48. Hi Earl,
    I just took my 2008 Pontiac Solstice in yesterday to be appraised. They looked at it and came back saying they saw no issues with anything on the car and gave me an appraisal of 5K. Not only is this over 2K under the KBB average value, but the same day I saw my identical car: same year, features, milage, even interior color scheme, listed at 13K. Here's the link if you're interested: http://www.carmax.com/enus/view-car/default.html?id=12734935&AVi=14&No=0&Rp=R&D=90&zip=23218&N=4294963068+4294962999&Q=d56a7998-1896-46bc-8202-9402c3a37a0a&Ep=search:results:results%20page
    Is this normal markup for them? Obviously I won't be selling them my car, I'm just curious. Thanks!

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  49. You were very smart to compare what they are selling the same car for. You should get at least two more bids on your car. As I said in my article, CarMax can give you a very good price or a very bad one...depending on their computer algorithm telling them how much they need that car in their inventory...apparently they have too many now.

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    Replies
    1. Thanks, Earl! That makes a lot of sense. Now that I think of it selling a convertible in January may not be the easiest thing. :) I"m going to take your advice and get at least two more offers.

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    2. Thanks, Earl! That was extremely helpful. Now that you mention it, I'm guessing that selling convertibles in January is not a terribly profitable business. I will take your advice and get some additional bids!

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  50. Earl,

    I have a 2013 Lincoln MKS with 19,800 miles. It does not have AWD or Adaptive Cruise Control, but has everything else.

    I relieved two offers from two dealerships: one was for $16,000 and one was for $19,000. Do you think it would be wise to see what Carmax would offer?

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    Replies
    1. I think it would a be a good idea to have them take a look at it. Average auction prices are right around $19,000, so the $16K appraisal is pretty low.

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  51. Earl, can you tell me how much a 2013 audi a5 prestige with sports / s-line / convenience / plus trims would carmax give me for the car. immaculate condition with 33400miles on it. it has all the bells-and-whitles you can buy for this car.

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    Replies
    1. hey there! You're looking around $21,000 to $22,000 with those miles and in immaculate condition :)

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  52. Hi Earl, hoping to get your insight like others have. I'm wondering what Carmax might give me for my current car. It's a 2013 Prius 4, but the miles are kind of high at around 70k. My car is very clean, no accidents, and the tires are new. Guess I'm just hoping that will mitigate the high miles. Thanks in advance!

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    Replies
    1. You’re right that the miles hurt the value some… You’re probably in the neighborhood of $11,000

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  53. I currently have silver 2015 Mazda 6 Grand Touring sedan (leather, nav, moonroof) and it's comes fully equipped except the tech package. It has 16,000 miles and I'm looking to sell it to obtain something smaller. How much do you think it's worth to a dealer?

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    1. In perfect condition - no damage or repairs - you should get $21,000 - $22,000 from a dealer. Definitely try to get more than one appraisal before you sell it or trade it in.

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  54. Earl, can you tell me how much carmax would give me for a 2011 Toyota Corolla LE with about 39500 miles? It had a couple of accidents that required to get front bumper fixed. All necessary repairment have been done and all 4 tires are new. Thank you in advance!

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    1. Hi there! If it’s just the front bumper and there’s no other damage that was fixed then you're looking around $9,000. But this is important: if the vehicle did suffer unibody damage or had paint worth then it could be worth up to $2,000 less than that, $7,000 or so.

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  55. Hi Earl. I bought a 2013 Acura TSX, 44,000 miles, great condition, tech package, navigation, all bells and whistles. I bought it for $19K - traded in my Honda 2003 Accord - so they probably got me on that one - it had significant body damage - about $150K and I got about $2K. I've had the car for less than two months. I knew right away it was wrong for me - uncomfortable after driving more than an hour. They said they would do a trade, but not sure I want another Acura. I'm aware that if I sell to CarMax or another party instead of trading in to say Lexus, I lose the tax credit. What are your thoughts on all of this. I'm hoping I won't have to take a real bath. Thanks.

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  56. Hello Earl,
    I currently have white 2015 Subaru WRX Limited with CVT. It has 21,000 miles. How much do you expect I can get from a delear?

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