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CarMax only offers financing on its cars.
Carmax/Insider
The bottom line: CarMax Auto Loan auto loans are a great option for borrowers looking for used cars. The company allows you to shop for a car on the web and get it delivered to you. However, it only offers financing for CarMax cars, and its prices are non-negotiable.
Pros and cons of CarMax auto loans
Pros
Accessible to borrowers with bad credit. CarMax says on its website that it accommodates “most credit profiles,” including those of borrowers with poor credit scores. Other lenders may have more stringent eligibility requirements. Low minimum loan amount. CarMax will provide as little as $500 in funding, which is a great option for borrowers who only need a small amount of money to finance their purchase. Able to complete the car buying process entirely online. Use CarMax’s website to shop for the car and arrange for the financing all in one place. Then get it delivered to your door or schedule a pickup.Fast funding decisions. The lender should approve you for financing within 20 minutes — quicker than some competitors.
Cons
Only used car financing available. You won’t be able to get a new car, refinance a loan, or buy out your lease with CarMax. If you want one of those options, you’ll need to go with a different company. Can only finance cars sold through CarMax. CarMax won’t finance a car you purchase from any other source. If you find a used car you like outside of the company, you’ll need to find another financier. Unavailable in nine states. You won’t be able to get a loan if you live in Alaska, Arkansas, Hawaii, Montana, North Dakota, South Dakota, Vermont, West Virginia, or Wyoming.Prices are non-negotiable. Other lenders may allow you to haggle for a better rate or leverage other offers you’ve received. CarMax sticks to the listed price on its website.
Who is CarMax best for?
CarMax is best for borrowers who want to complete the car-buying process from the comfort of their homes. The company makes it easy for you to pick out a car online, finance it, and get it delivered to you.
However, if you don’t want a used car, CarMax isn’t the right choice for you — it doesn’t offer new cars, refinancing, or lease buyouts. Additionally, borrowers in nine states won’t be able to get a loan from CarMax.
How CarMax auto loans compare
Chase has an undisclosed minimum credit score to apply, while Carvana and CarMax have no set minimum score they consider. It may still be worth applying with Carvana and CarMax even if your score isn’t high.
You can’t buy out your lease or refinance with Chase, and you’re only able to get a used car with Carvana and CarMax.
See our ratings methodology for auto loans »
Frequently asked questions
Is CarMax trustworthy?
CarMax has an A+ grade from the Better Business Bureau, a nonprofit organization focused on consumer protection and trust. The BBB evaluates businesses by looking at their responses to consumer complaints, honesty in advertising, and transparency about business practices.
CarMax hasn’t been involved in any recent controversies. You may feel comfortable getting a car from CarMax between its excellent BBB grade and clean history.
Is it easy to get financing through CarMax?
It may be easier to get a loan from CarMax than another lender, as it is accessible to borrowers with bad credit. That said, you’re more likely to qualify for financing if you have a higher credit score.
What bank does CarMax use?
CarMax offers financing through several different avenues, including CarMax Auto Finance, its captive lender (also known as an in-house lender). The company also partners with some third-party lenders, including Ally, Chase, and Wells Fargo.