North Las Vegas, Nevada
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Update by user Aug 16, 2012

Over hiring: So last year when Darren was in charge, he thought it would be a great idea to have 100 sales consultants. Well in the last year there have been 92 sales consultants, with there being about 50 left. Turnover went from 12%, to 52%. CarMax continues to say they are hiring to make investors feel like we are doing that good. Reality check, your company spends around $6-8,000 training each sales person, and when you over staff and then realize it later, and start mass firing, morale drops and people quit. Money well spent carmax.

Funny thing too, Carmax did its survey where 47% of all associates stated they will not stay more then a year from that date, due to morale and management. So two managers took initiative to try and fix it. Well both managers were forced to.transfer to other stores and another manager was told to let it go.

There was also a manager who kept stealing gas, and kept brining cars.back in horrible condition so they kept having to be re detailed. When an associated reported him, the associate got fired.

Lee is the best though. He lost the.company over $3,000 in one transaction, and his best friend of 20 years, and boss, defended him and burried it.

There have been numerous sexual harrasement complaints against the store, on the ops manager and a sales manager and to date, nothing has been done. Sadly 12 of the associates who complained have.now been fired.

More to come!!

Original review posted by user Aug 08, 2012

I am currently an employee of CarMax. I have been working at the CarMax in Duarte now for about 5 years. I have sould hundreds of cars, have been in Presidents Club, and know the ropes. Now it's time for people to know the new CarMax, and decide for themselves if it's worth buying. Enjoy this read, it's stuff no one will tell you, but I've had about enough.

First of all, CarMax has been ranked Top 100 companies to work for now for 8 years straight. Guess what guys? CarMax donates hundreds of thousands of dollars to the company that ranks them. Suprised? You shouldn't be. As the working environment at Carmax keeps getting worse and worse. When the new CEO took over, it went from customer centric, to profit and sharehold oriented. We were all about the customer, and I believe we really were the Top 100 companies to work for before. I also believed in our slogan, "The Way Car Buying Should Be." A great motto to follow. We always talked about our equaties, our statement. "To provide our customers great quality cars at great prices with exceptional customer service."

Oh, those were the days. I miss those days. We used to sell tons of cars, and were very relaxed. Our customers LOVED shopping with us, every customer, from appraisal only customers, to customers doing the entire process of buying a car as well. Our associates were happy, overall, the best company I have worked for. Our store is in shambles right now. Our morale is the lowest it has been ever. Our management is a joke. We used to have managers who cared about us, asked us how we were, and actually listened. Now we have micromanagers stressing if they are going to lose the job, which in turn causes pressure to roll to the sales consultants, who hate their jobs.

When I was first hired, I was told our turnover rate, which means the rate at which employees join the company and leave, was at a low 9%. Almost unheard of in retail, but it was amazing. Right now we are over 50%. No one wants to work here once they start. The lies that are told to get great people hooked are just horrible. Management promising new sales consultants 6 figures, consultants finding out they probably won't even hit $30,000. I feel bad. In the last year, I have seen about 12 people drop out of Presidents Club. President Club is where you sell over 15 cars a month on average for 6 months, (now changed,) they get into this club, and get paid more. ($25/car)

Commission: Most customers come in thinking we are out to get them. Guess what, we are NOW. We used to be the best, never pressured custoemrs, never lied or over promissed. Now we do, we have to, we don't want to lose our jobs. We have a requirement in our region, sell 10 cars a month or you're fired. Guess what, in Feb, only 8 people made it, March? 12. April? 11. Out of 65 sales consultants. Oh and our commission? It's $164 per car, so stop asking for discounts and thinking we say no because we want our commission. You buy a $8,000 car or $99,000 car, we make $2,000 or $15,000 on the car, I get paid $164. If I sell a warranty, another $164. And it's actually worth it, and I will tell you why later!

Human Resources: What a joke. Open-Door policy at CarMax truly means, the door is left open, so other managers and associates can hear. Anything that is reported to Store HR, District HR, or Regional HR, gets sent back to the store management, which means easy retaliation. I have now seen multiple associates terminated after they reported a manager for breaking laws. Yes, for BREAKING LAWS. CarMax HR should be hired by the military, HR can do a better cover up of things. Need people to forget about Area 51? Call Karen, Regional HR, she can do it!

Management: Even bigger joke. Our old store manager, Darren, was promoted after they kept reporting him. This guy cheated on his wife at a Presidents Club dinner, and expected no one to find out. Really?? And the Operations Manager, Ben, cheated on his wife with an ASSOCIATE! He has also had a ton of sexual harrasement claims brought against him, but for some reason the people who do that end up unemployed. Lee, Darrens best friend, is here harrasing people until they quit or he can try and fire them. Micromanage much CarMax? Oh and Steve, the new GM, he loves telling the managers who were reported against who actually submited the report. Retaliation is the game, don't report anything, enjoy being treated like a dog!

Appraisals: Oh you guys will love this! Before, we used to be really good on buying cars, but CarMax got smart! You see, when you go get an appraisal, a Buyer will look at the car, and how much they are buying/selling for. They usually mark the car down $1-2k below what we pay at auction. Now here's the kicker, the system where they enter a price actually marks a car down AGAIN. Yup. It's called ACR, or, appraisal cost recovery. The system marks cars down an additional $250-3,000. So for example, if a buyer searches for a Mercedes C300, and the exact car is selling on our lot for $29,000, and selling at auction for $25,000, the appraisor will drop the price to about $23-24,000. Now the system will also add some money, so for a car like this, maybe an additional $2,000. So a Mercedes we will sell for $29,000, we will offer you about $22-23,000. Yup, $6-7k markup. Ready for the next kicker? They say they need to mark it up that much because of reconditioning. Well, for example, on this car, they will detail it, which will cost about $60, and that will probably be it. Don't get me wrong, we are pretty good on appraisals. But honestly, a lot of people are now competing with us an offer more. START with CarMax, like their commercial says, but shop around. Anyone and everyone will jump at the chance to beat our offer. EVERYONE.

Reconditioning and repair: So once we buy a car in, we put it through an inspection. Guess what, most cars fail a techs standards, but pass managements. For example, tires and brakes. Management HATES replacing them. Brakes cost $30 for Carmax on most vehicles, but if it meets our standards, which is about the line of where the car starts squeeking because it hit the wear pad indicator, they don't care. Tires? Managers won't properly measure them so most the time they are below standards. Now if your car is under $17,000, they don't care if the tires match. So you can have bridgestone on the front and michellin on the back. But don't worry, they won't be expensive tires like that. We are cheap. I remember an associate went to go pick up a car from Ontario and all 4 tires blew out on the way to our store. Now if a part is bad on a car that will go retail, we have a huge wholesale lot, which are auction cars, to take parts from. Yup, those high mileage, or cars that don't meet our standards, which are low now, will have parts taken from them and put into your Carmax car. Enjoy!

High Output stores: Our store is a regular reconditioning store, and it's bad. Cars look horrible. What do you expect? CarMax is pushing the higehr profit valuemax cars. But there are stores that are high output stores, which means they spend less time on them, which makes them look worse and have MORE mechanical problems. Ontario is one. Avoid cars from this store unless you love waiting in the service lane.

Gas: This one stumps me. I know Carmax is cutting cost to make more profit to make their investors, and only their investors happy, but this is a low. CarMax hires people to go to the wholesale cars, and take the gas out, and put them in our tanks. That means cars with 87, 89, and 91 octane are mixed together and put in your car. That will be the thumping you hear from your engine. It's not normal. Even in expensive $70-100k BMW, Porches, Mercedes, they will get that ***. Tell them not to fill it, or enjoy! Up to you.

Financing: CarMax financing SUCKS. It's not competitive. If you get a Caf (carmax auto finance) approval, take it to your bank. Your bank will destory our offer. I've seen customers get 16% and go to their bank and get 3%. It happens daily!

Warranty: Please please please buy this if you buy a CarMax car. I've seen people with it saves thousands of dollars, because it's used so often. Our comeback rate, which is the rate at which cars are brought back within the 30 day warranty, has sky rocketed. It went from one of the lowest in the industry, around 18%, to it's amazing rate of around 30%. Almost 1/3 of cars are coming back for repairs within 30 days. 30 days! Our warranty is probably the only thing CarMax offers that isn't a total rip off.

Pressure: CarMax used to be against pressuring customers to buy cars. Now if we don't do it, we get in trouble. We have Professional selling princaples that tell us exactly how to overcome your objection, if not we have a micro manager around who will do it for us and scare our customers.

So to wrap this up, you, as a customer, don't matter anymore. It's all about the investor, and our profits. Profits, profits, profits, *** you customer, you DON'T MATTER. Thank you Tom Folliard for pointing that out. Now, when should we take down our signs that say "The Way Car Buying Should Be?" You tell me? My email address is truecarmax@gmail.com if you have any questions ask. It might take a while, I'm hiding my IP so carmax doesn't fire me.

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Frankie S
#719938
@Disillusioned

I am laughing my *** off. carmax really has the bs stories down pat!

I mean I really have a hard time believing that any carmax store has a 15% turnover, AND avg weekly sales is $750 to a $1000. I just dont believe people in the used car business.

Frankie S
#718232

I recently read that George Zimmerman worked for carmax. I wasn't surprised at all, actually I figure he would have fit right in.

I think carmax should regire him again, because he may be the kind of guy that doesn't take no for an answer. He may work out best in management, and I dont think he would need much training at all to "bully" sales people around.

Frankie S
#716388

This is another great post.

Frankie S
#697752

It's just not believable to earn $160 per vehicle! We are not talking about cell phones here, we are talking about MOTOR VEHICLES for Christ sake.

Frankie S
#697186

If anyone is getting annoyed with all my comments, I am just turning the tables and letting everyone know how annoying carmax is with all their micro-managing. It's my job now to micro manage carmax.

Frankie S
#696210

In my opinion, it's not worth working at carmax. There is too much BS to put up with for an average of $35-$40k per year.

You basically are earning just above poverty wages, and will never be able to afford a home. On top of it, you have to work 5 of 6 weekends so any time for family or friends is not going to happen. I just don't see anything positive working for this company.

As a matter of fact, it's pretty *** frustrating having a vehicle make noises and vibrations after just explaining the 125 point inspection! When I first experienced this situation for the first time, I truly felt like a scummy used car salesman!

Frankie S
#693394

carmax overhires because they know people will not stay for long. They also overhire to make it look good for such a top 100 company to work for! I propose that corporate and service work 5 of 6 weekends like the sales dept does.

Frankie S
#692805

I have noticed carmax is advertising much more lately with their commercial ads. A sign that business is very, very slow this time of year.

But I think they are not using enough discovery and PSP (Professional Selling Principles)! I think this because there is never, ever any excuse for a sales person NOT TO SELL 10% (of total customers) according to carmax.

The managers and their superiors don't want any excuses not to sell. carmax is not a fun place to work at all especially during the summer.

Anonymous
#691503

you cant spell, so I cant trust you

Frankie S
#691582
@Anonymous

You are so pro-carmax that your reply about mis-spelling is totally arrogant and ignorant! I really despise people like you, and it just goes to prove what type of personalities work for carmax.

Frankie S
#684211

If carmax thinks that working 5 out of 6 weekends is a good work/life balance, someone at carmax is not very good at math. As a matter of fact, carmax really isn't good at anything.

Frankie S
#683028

It's funny how the sales consultant is constantly micro-managed and watching training clips, and they are the ones who have to be out in this 100 degree weather going on meaningless test drives (for the most part) because carmax has it written in stone that 1 in every 10 customers will purchase a vehicle (recession, depression) It's no wonder why nobody wants to sell vehicles for a lousy $160! Free Labor is what carmax specializes in.

Frankie S
#681861

Wow! Did everyone see the carmax commercial right before the All-Star Game.

carmax paid THOUSANDS OF DOLLARS TO GET WHAT THEY WANT! Why didnt carmax explain all the negative issues they deal with on a daily basis? Why didn't carmax explain the EXTRA COST a customer would have if they bought their vehicle to a repair shop of their choice? Why didnt carmax explain that 65% of their vehicles sold end up coming back within the first 30 days?

carmax wants to fool people into thinking thats the place to start to buy a vehicle! Don't be fooled by advertising people, because advertising and T.V is the all evil in this country.

Anonymous
#680648

im a fairly new associate. ive been at carmax almost 6 months now.

it is so nice to see that im not the only one who feels the way i do. Im getting so tired of lying to customers and being embarrassed publicly.

I tell customers that each vehicle has gone through a 125 point inspection and then the car won't start? My God, i must find another job fast!

Frankie S
#681121
@boom

boom, your not the only one that feels like that. More and more asscociates need to speak up and comment on here and any other social media sites.

This site is more like the real SURVEY for carmax, rather than that other kompass krap folliard FORCES every employee to take. That kompass survey is the most RIDICULOUS survey I have ever seen. They do it that way so the employee cannot give their honest feedback. I think legally carmax DOES the 125 point inspections, BUT they don't repair everything they find so they really aren't lying to the customers.

They are pretty sneaky and slimy though! *** EM!

Frankie S
#680292

Truecarmax posted in his post that carmax donates hundreds of thousands of dollars to fortune magazine, does anyone know how this really works? Does carmax or any other company do this in return for positive feedback?

Frankie S
#680260

People, wake up! carmax is opening another store in California, going to make more money, and still no change in sales consultants commission!

This company must reward their employees big time, and if they dont, they are basically saying we dont give a krap about you. It's about profit, shareholders and corporate taking their share of the pie. It's so pathetic how anyone in sales continues to put up with the BS at carmax! I guess thats a sure sign about the education system in this country.

YOU DONT GET A GOOD EDUCATION. Corporate America WANTS it this way.

Frankie S
#679803

In the Wonderful World of carmax, many sales consultants are working this weekend. Corporate does not have to work.

Corporate gets the weekends to spend time doing what ever they want to do. Their paychecks are well inflated, and their paychecks are reflected on the performance of the sales people and managers. Many, many times a sales person will work an entire weekend, and make $0.00 ! Just think about that for a minute.

It should be illegal for that to happen. The law should be changed to a minimum pay per day, instead of per week.

It's just unethical for corporations that make millions of dollars annually to be able to get away with this. And to say your a "Top 100 Company" is pure good ole American BS!

Frankie S
#678731

"Most cars fail techs standards, but pass mamangements"! Can you imagine that?

So to me, truecarmax, carmax is not fixing or replacing what they SHOULD BE! That explains why so many customers are returning vehicles shortly after purchase. Your also right about how carmax explains "our cars go through a 125 point inspection, AND HOURS OF RECONDITIONING"! Lets be real here, it doesnt cost that much.

A customer once used the word "detail" and a manager quickly responded, "we don't detail." This complaint tells a lot about how carmax runs their stores, then there is an entire other side of how they treat their employees. There are many other posts on how that is.

Frankie S
#675571

A friend of mine works as a waitress Fri sat and Mon nights at a restaurant. The restaurant is nothing famous, just all repeat customers.

Well, my friend worked Friday night from 5 until 8:30 and made $114.00! Pretty good for 3 and a half hours.

There are days at carmax where you make ZERO dollars, and carmax is suppose to be nationally known and a top 100 company to work for! My point is, why waste working full time and 5 of 6 weekends for just above poverty pay!

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