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Ok I have read a lot of the complaints that are on here about CarMax and well after a month of working there I can truly say that they are a complete rip off! First they offer you a so called fair price on your vehicle. The reality is that they offer you way less than what they sell it for at a ratio on the dollar, basically if they offer you 5 grand they’ll sell it for 8,000. If they buy it for 11,000 they’ll sell it for 16,000, its a huge joke really. The other day an older gentleman came in with a 2007 Silverado with only 27k miles on it and he got an actual good deal getting 17k dollars for it because the car truly was immaculate. Six days later we turned around and sold it for 25,900. Ridiculous margin, this is just icing on the cake though. Then there are the auctions. The day after they bought that Silverado they went to an auction and bought 20 cars, mostly fleet vehicles. With an average price tag of 3-5k, they got a good deal. Once they hit the lot the average price selling was 12-15k! Ridiculous margins...

Now they say they spend 12 hrs with a 125point inspection examining there cars and reconditioning them for sale before they will even put them on the lot, this is the most ridiculous thing that I have ever heard and is a 100% falsity. In the service area they have rotations, once they have a dozen or so cars in the incoming inventory area they have a cleaning party, literally. To bad this party only lasts a few hours, the cars run through a gas station style car wash and comes out at the end with a line of people waiting for it. Each person in the services area rotates each time they clean to a new item to clean on the car, so one person wipes the windows and another vacuums, and then another picks up trash out of the vehicle. One person wipes off the hoods, one for one side of the car and one for the other side of the car. The reality is that not a single person gives any one vehicle any undivided attention. Notice I did not mention at any point any diagnostic checks or functional maintenance. There is absolutely no reconditioning going on here! The resulting level of cleaning is comparable to my 5year old son detailing the car. When a car comes in, it may be marked for new tires/oil change or to have a huge scratch fixed but otherwise there is no service done at all. As a salesman It is downright embarrassing, you lie to the customer and tell them how well refurbished the car is, and then you open up the door and the seats need shampooing and there are french fries in the center counsel on a 27k dollar vehicle. This happened to me today, and I cant do it anymore. Absolutely ridiculous....

Now something that they don’t want you to know is that 65% yes 65% of vehicles that they sell have issues within 90 days! And when customers bring them in for "extended service plans" the customer always ends up paying for a portion of the work going well beyond there MaxCare deductible. I was working with the Service Manager the other day and was told that the sales people needed to quit selling it, and that the deductibles should be completely removed because they were very misleading. He told me that 80% of his job was to deal with customers that were pissed because they were lied too! Absolutely ridiculous...,.

Its a scary thought to know that they sell 450K+ cars a year nationally and there customers are do discontent with there purchases. I will say though that as the market dictates and as consumers become aware, that the bull will give CarMax the horns. There parent company was a little company that we all know as Circuit City! If you remember there story, they went bankrupt after a huge expansion in 2009 and closed there doors. CarMax has just set out on the same mission, there planning on opening a new location every month for the next few years.. You think they would have learned there lesson the first time, lol.

To sum it all up, CarMax is a joke, stay away, far far away!

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Frankie S
#603614

carmax is geared for the managers to make money, not the sales consultants. Its a pretty lame operation.

I know a really good salesman from another dealership that told me this. This salesman is selling 20 - 25 cars a month and says carmax does not want to hire good sales people, and this is something that bothers me.

Anonymous
#602516

I can tell you this is BS for sure. I see the numbers that we get from every car that we sell.

Some cars sell for less than 1k that we buy them for. I have NEVER once see a car sell for more than 6K what we paid for it, but you have to consider the money put into that vehicle!

Shipping the vehicle for free as many times as people want, state inspections, and mechanical or cosmetic repairs, paying the sales man that sold it and everyone that worked on it, and then paying the general bills. It's not cheap to run Carmax everyday.

Frankie S
#602596
@Worker

Worker, most of this complaint is not BS. Yes, there are some good things about carmax, but not many.

I agree with you that trade-ins that go to the auctions, sometimes lose money. Trade-ins that go to carmax lots though, make a great profit. The 125 point inspection does not mean carmax fixes EVERYTHING wrong. You cant compare another dealers "Certified Used Vehicle" to a carmax 125 point inspection!

carmax does offer free shipping within so many miles for the customer, but many dealers do that also. As far as paying the sales associate, $160 is peanuts, so dont even go there. Used car profits are much larger than NEW car sales profits, so carmax definately fails in that catagory. I wonder how much profit carmax makes on a $90,000.00 Porsche?

I am willing to bet they make more than $6,000.00! I also agree that is not cheap to run carmax everyday, BUT, that does not justify a sales associate working for free!

That does not justify so many unhappy customers that have to return their vehicle for issues! I see the big picture, and carmax has complaints from customers AND employees for good reasons.

Anonymous
#616326
@Frankie S

You're a disgruntled employee. You have NO idea what you are talking about and you don't know what margins hey have.

Do you know the difference between margin and profit? Of course you do, you know everything. And Carmax only has to pay a sales rep $160 per vehicle? Try this...

$160 per car + FICA + SUI + FUI + Workmens Comp + vacation/sick/personal days + family benefits + 401K plans, etc, etc. but, I'm sure you took this all into consideration.

How about this... Stop ***, work hard, get promoted to a position that requires you to build and execute a business budget then speak of your "knowledge".

Frankie S
#616981
@CarMax ***sumer

I understand all that, but I work for FREE! I have worked an entire weekend and made NOTHING!

I am supposed to be ok with that? carmax takes full advantage of sales consultants, and you carmax consumer live in the same world politicians live in.

Anonymous
#618072
@Worker

liar liar

Frankie S
#642699
@Worker

Worker, another fact is Folliard got a 7.2 million dollar package! So it can't be THAT EXPENSIVE to run a carmax! Jesus Christ Worker, numbers speak louder than words.

Anonymous
#949262
@Worker

Since when did Carmax ships or transfer vehicles for free? I have to pay $999 to ship a vehicle from FL to CA! Free shipping or transfers my *** ***

Anonymous
#602505

Dear Ringleader,

Have you ever heard of diluting your own brand? By commenting several times on every single post people stop paying attention after awhile. Please, go hump someone else's leg; people are tired of hearing you yap.

Frankie S
#602857
@R***ader's Mother

Hey ma, nobody is forcing you to read my posts. Your the one with the issue, so I recommend you stop reading them.

I believe constant talk will eventually sink into the minds of the potential buyer. It's kind of like watching the same commercials that are on TV all the time, people get sick of them, but they will remember what is being said.

I want to make sure all the new complaint people read my posts to you know, not just you! :grin

Frankie S
#602859
@R***ader's Mother

One more thing I want to add about working at carmax, is that sometimes carmax will "hold" vehicles in certain situations for customers. It all depends what mood the managers are in that day, and that is not being consistant or fair in my opinion. Like I said in an earlier post, carmax is a very contradicting company.

Anonymous
#616094
@R***ader's Mother

:upset :upset :upset RINGLEADER NEEDS TO GET A J.O.B.

EVERY COMMENT ON EVERY COMPANY, ON EVERY PRODUCT!!!!!

GER A JOB YOU SO CALLED "RINGLEADER", GET OFF YOUR MOTHERS COUCH...AND GET A LIFE!!!!

Frankie S
#616982
@NO KIDDING

FYI, I have never complained or commented on any other company except for carmax. Thats how bad carmax is, I am very reasonable but whats right is right.

What you just said is not only a lie, but very childish, which makes sense if you work for carmax. ,)

Frankie S
#600423

Circuit City went bankrupt selling brand new products, how can carmax stay in business selling used vehicles!

Anonymous
#599058

This 100% true.

Frankie S
#598602

Is it me, or am I just imagining upset customers? lol

Frankie S
#598601

Isn't it amazing all the @$$kissers that are rating these posts as *** That just goes to show you that corporate and managers are in total denial! As long as they make a paycheck and can sleep at night, they will kiss *** This is a perfect example of carmax mentality.

Frankie S
#598405

carmax has so many problems because there are so many stores and they want to build more stores! Complaints continue to pile up against carmax.

How greedy can a company get? How can a company succeed with the turnover rate of employees? Its just a matter of time before the ship sinks. Those who defend carmax are parasites, and those that have morals and ethics, get out fast.

Its a shame to say, but its true. Sometimes the truth hurts.

Frankie S
#598124

Good morning all, its carmax time again. I am delighted to see employees and former employees post thier experiences at carmax.

I am sure our VOICE is being heard, and rightfully so. I also bring the topic of carmax up at social gatherings, and social media sites.

It's almost like handing out business cards! Its actually fun for me, because its the way I go about it.

Frankie S
#597732

I absolutely 100% agree with this post! Just because carmax sells so many cars, that does NOT mean they are a good company!

The problems after the sale is whats important, NOT how many cars carmax sells.

So when carmax advertises they sold millions of vehicles, this data means squat. People are reading these posts and carmax will eventually be out of business.

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