Carvana’s revenue growth is much higher (114% average annual revenue growth over the 2017-2019 period vs about 8.9% for CarMax), which explains the higher P/S multiple. Founded in 1993, CarMax is a car dealer that has a “no-haggle” policy for buying and selling used vehicles. However CarMax does have a large inventory to choose from. If you finance with Vroom, the company registers the vehicle for you and mails your registration and plates to you after your local DMV has prepared them. However, given the high quality of their cars, amazing warranties, and the painless shopping experience, this may be worth it to you. CarMax pricing Carvana’s terms are non-negotiable and based on the vehicle you want, your credit history and your income. But vehicles at Carvana and CarMax also have higher quality standards. There are more than 200 physical CarMax locations across the U.S., but you can complete most of the process of buying or selling a car with CarMax online. On the higher end, you can find Teslas, Porsches and Audis priced between $70,000 and $80,000. In the past three months, I have purchased a car twice. Unsubscribe easily. If you don't, you can return it for a full refund. Each one of those vehicles has undergone Carvana's "150-point inspection.". CarMax will also buy your car if it meets the company’s specifications. Like Carvana and Vroom, CarMax lets you browse a wide selection of new and used cars at fixed prices. You may know that CarMax and Carvana both promise to make buying or selling a used car an easy and stress-free process: They both promote "no-haggle" policies and both say you can complete most of the process online. Entering your information and completing each step extends the time the vehicle is reserved for you. Consequently, used car retailers Carvana (CVNA) and CarMAx (KMX) have been benefiting significantly. How Does CarMax Work? How the actual sale transpires is quite different between the two companies, and we'll get to that in the next section. Financing is available for people with most credit profiles. CarMax also buys cars that aren’t trade-ins. However, as we’ve mentioned, there are some slight variations. This station is part of Cox Media Group Television. Carvana has disrupted the used car industry since it launched in 2012, and it is apparent that CarMax has learned from its upstart competitor. If you're buying, Carvana will deliver your vehicle to your front door. Buying a car online should be easy, straightforward and convenient. More than half of CarMax reviews in the last year indicated the customer was “happy,” “satisfied” or “would recommend a friend.” CarMax complaints occasionally mention long wait times for vehicles to arrive. Vroom delivers to all states except Alaska, Hawaii and Massachusetts. CarMax has about 50,000 vehicles compared to Carvana… But let’s find out which of these two stocks is a better buy now. Vroom also accepts up to $500 total in total credit card payments for deposits. We value your privacy. This means that you can expect to overpay by about $1,000 for a car from Carmax. At this point, you can select additional coverage for your new car and choose whether you want home delivery or prefer to pick it up. You can browse cars online, buy your car without haggling and then it will be delivered. Want to know more about car buying sites? Founded in 1993, CarMax is a car dealer that has a “no-haggle” policy for buying and selling used vehicles. Since Carvana operates almost entirely online, the company doesn’t have the overhead of a traditional dealership or even of competitor CarMax. I'll go into more detail on my findings later in this article. All cars are certified and come with a 100-day/4,189-mile guarantee and a seven-day money-back guarantee. Carvana Co.(NYSE:CVNA): The demand for personal vehicles is on the rise because people are worried about the infection risk associated with using public transport amid the COVID-19 pandemic. If you’re financing, gap coverage is available in most states. Carvana financing If you do sell your car to CarMax, you’re not under any obligation to buy a car from them in return. We’ll start sending you the news you need delivered straight to you. You can use the table below for a quick comparison of where Carvana and CarMax get their cars, as well as what each company does with cars once it receives them. CarMax buying process The company partners with more than a dozen banks and lending partners. With their famous tagline “The way car buying should be”, CarMax has definitely built a reputation as a substantial in the used car buying and selling game. If Carvana wants your vehicle, they will make you an offer online then come to you to inspect the vehicle. Delivery is only available within 60 miles of select markets. It accepts cars, vans, SUVs, crossovers, trucks, luxury vehicles, sports cars, boats, classic cars, commercial vehicles, fifth-wheel campers, fleet vehicles, motorcycles, motorhomes, and RVs. This is America and im never buying from Carmax &Carvana. The deductible is per visit, not per repair. CarMax vs. Carvana. CarMax vs. Carvana: Is One Better Than the Other? In trying to determine whether CarMax or Carvana is the better place to buy or sell a used car, it’s helpful to look at the pluses and minuses of each. I shopped for a used car with both Carvana and CarMax. Vroom is an online marketplace to buy, sell and trade in used vehicles. But is one better than the other? If CarMax is interested in purchasing from you, they will ask you to bring your car into the closest store for inspection. If you’re financing, the gap policy can waive covered losses up to $50,000. As of publishing, CarMax is our top-rated online car buying site. It depends on who you ask. Most financing decisions are available in about 20 minutes or less. You can drive your vehicle to any CarMax location to have it inspected and get an instant offer. The contents of this site may not be republished, reprinted, rewritten or recirculated without written permission. Our content is intended to be used for general information purposes only. log in to manage your profile and account. Carvana warranties Listings don’t offer an estimated monthly payment like Carvana, but Vroom might offer more flexible payment options for some buyers. It is very important to do your own analysis before making any investment based on your own personal circumstances and consult with your own investment, financial, tax and legal advisers. CarMax also gives you a full week to drive the car to make sure you like it. However, CarMax… You should note that if the car requires shipping, those costs must be paid separately from the vehicle purchase. Keep an eye out for cars marked with a “Keep Moving Price” — those are around $1,500 lower than their suggested Kelley Blue Book value. Since Carvana operates almost entirely online, the company doesn’t have the overhead of a traditional dealership or even of CarMax. If you live near a local store, CarMax doesn’t charge an extra fee for home delivery. There’s no minimum credit score requirement, but you must make $21,600 per year to qualify for financing. Interestingly, customers who were “happy,” “satisfied” or “would recommend to a friend” also frequently mention customer service, which makes it difficult to say if the company’s customer service representatives are consistent. Vroom pricing Just bring the car and all of the necessary paperwork to a Carmax dealer, and after an inspection of the vehicle, you’ll be handed a written offer for the car, which is good for seven days. If added, CarvanaCare coverage begins the day you get your vehicle. The process can be done almost entirely online, and Carvana will come to me to pick up the car. As of publishing, CarMax is the top-rated online car buying company on our website. Bob D'Angelo, Cox Media Group National Content Desk, Bob D'Angelo, Cox Media Group National Content Group, I'll go into more detail on my findings later in this article, has around 50,000 used cars to choose from, Carvana said it had more than 15,000 vehicles to choose from, Carvana Review: 5 Things to Know Before You Buy or Sell, This article was originally published on Clark.com, LA police officer accused of stealing truck from dealership, Firings upheld for 3 Colorado officers who posed in photo near Elijah McClain memorial, Easy-to-use interface for shopping used car inventory, Potentially higher prices than private purchase because of middle man factor and overhead, May have to pay extra to have a car shipped to your location, Offers a wide variety of makes, models and model years, When selling, offer may be less than you can get in a private sale, Seven-day return policy + 90-day or 4,000-mile limited warranty on purchases, Prices may be slightly higher than a private sale, No overhead that comes with owning physical car lots, No opportunity to test drive before purchase, Seven-day return policy + 100-day or 4,189-mile limited warranty on purchases. After you get the car, you have a week to decide if you want to keep it, exchange it or get a refund. You can search for vehicles by make, model or keyword and filter the results by type, brand, price or year. The biggest difference between CarMax and Carvana is that CarMax has physical lots spread out across the country. On the flip side, it also means CarMax has more overhead than Carvana, which could translate into higher prices. If Carvana does make an offer and you accept, someone will come to your home or office to inspect your vehicle. Compare ratings, reviews, salaries and work-life balance to make the right decision for your career. The post Carvana vs. CarMax: Which Is Better? Deals vary from person to person and usually depend on the current market value, but on average Carvana and Vroom are quite comparable to each other, even with … As a member of the ConsumerAffairs Research Team, Kathryn Parkman believes everyone deserves easy access to accurate and comprehensive information on products and businesses before they make a purchase, which is why she spends hours researching companies and industries for ConsumerAffairs. Wholesale contributes nicely to gross profit at CarMax making up $431 million of the $2,481 million total. CarMax warranties We like that all … Carvana vs. Vroom vs. CarMax comparison Carvana, Vroom and CarMax offer similar inventory selections at comparable prices. The company also offers an optional extended CarvanaCare protection plan for most vehicles. Carvana provides car shoppers a better way to buy a car. If you’re looking for a one-stop-shop and an easier car buying experience, but don’t mind paying for it, then CarMax might better suit you. Unsubscribe at any time. Risk. Alternatively, you could avoid financing altogether by paying in full, in which case funds must be transferred directly from your bank account. Carvana sources cars from auctions, trade-ins, partnered dealerships and customers who sell or trade in their vehicles. There’s no minimum credit score required — as long as you are 18 or older, make at least $10,000 per year and don’t have any active bankruptcies. MaxCare, an optional extended service plan, is also available — you can purchase it upfront or include the cost in your regular car payments. Carvana also promises low prices on well-maintained used vehicles by cutting dealerships out of the car-buying process altogether. Each of these online used car websites is user-friendly and has some great offerings. - How CarMax reacted to Carvana entering Raleigh in 2015 - The offline vs online sales progression - Challenges for CarMax selling vehicles online and through the hybrid model - How to incentivize sales staff between offline and online sales - How CarMax looks at managing both slow and fast moving inventory - CarMax in-store reconditioning efficiency - Advantages Carvana could have over CarMax Positive CarMax reviews frequently mention good deals, an easy-to-navigate site and helpful customer service. Warranty & Return Policies: CarMax: Normally, CarMax only has a 90-day warranty or 4,000 miles.Due to the current situation, CarMax also provided an extension on the duration of its 90-day limited warranty. Browse used cars online and get approved for financing. Get a comparison of working at CarMax vs CARVANA. Unfortunately, not everyone has that experience. ConsumerAffairs is not a government agency. However, there may be extra fees involved if you select a car that’s located some distance away from you. I completed the paperwork in my driveway in less than 20 minutes. In addition to complimentary coverage, Vroom’s warranty options include gap policies, tire and wheel coverage and vehicle service protection (VSP) plans. This not saving these tips are how to get half way ripped off not full ripped off. Carmax & carvana anger me. As of publishing, CarMax prices start around $6,599 (the estimated monthly cost is $90 with financing, assuming a 72-month loan term at 7% APR and $2,000 down). You also have the option to pick up your vehicle at one of Carvana's Vehicle Vending Machines located throughout the country. Customers’ complaints about Vroom are sometimes related to the company’s return policy or problems with customer service. Shipping fees vary by location but are clearly displayed on each car’s detail page. If you choose to finance elsewhere, you will likely need additional paperwork, such as a preapproval letter. If you have your eye on a specific make and model, find one at your local traditional dealership or CarMax and take it for a spin to make sure you like it. The biggest difference between CarMax and Carvana is that CarMax has physical lots spread out across the country. With Carvana, you can buy or sell a used vehicle from the comfort of your home on your computer or smartphone with no haggling involved. One of the first differences between Carvana VS CarMax is that Carvana doesn’t have any physical location; they work entirely online. If you’re not comfortable putting down thousands of dollars before you get … That offer is good for seven days from the time it’s made. Ultimately, with their no-haggle, no-pressure philosophies, both CarMax and Carvana are must-visits if you’re looking to buy or sell a car. Most pickup or delivery appointments take about an hour. People seem to like that the site is easy to navigate. But if you like the idea of selling your car without having to participate, CarMax is a better option.