CarMax Auto Loan Review

CarMax auto loans at a glance

CarMax offers a unique, hassle-free car-buying experience with flexible financing options. Whether buying online or in store, their straightforward process makes securing an auto loan easy for buyers of all credit types.

• Complete online buying and financing: You can select, purchase and finance a vehicle entirely online, with a home delivery or pickup option.
• No-haggle pricing: CarMax offers fixed pricing, making the buying process straightforward but leaving no room to negotiate.
• Prequalification without impacting your credit: Use CarMax‘s prequalification tool to check your potential rates and terms without affecting your credit score.
• 3-day financing change option: If you compare CarMax interest rates with other lenders and find a better financing deal within three days, you can switch your loan at no extra cost.
• 10-day return policy: You have up to 10 days after purchase to return the vehicle for a refund. Keep in mind that terms and fees may apply.
• Best for buyers seeking online financing for a used car: Buyers can enjoy a simple online process with no minimum credit score requirement.

CarMax auto loan requirements

CarMax doesn’t disclose specific auto loan requirements. However, it considers a range of credit profiles and offers financing options for buyers with good, fair or even bad credit.

The best way to find out if you’re eligible is to use CarMax’s prequalification tool. This lets you check your personalized CarMax interest rates without impacting your credit score and gives you a better idea of your approval odds.

CarMax pros and cons

CarMax makes the car-buying process convenient and straightforward, but buyers should consider a few factors before committing. Here are the key pros and cons of CarMax auto loans:

CarMax financing offers several advantages, including purchasing a vehicle entirely online, with free delivery for those living within 60 miles of select stores. If you want to take the vehicle for a spin before purchasing, the lender offers a 24-hour test drive for some cars.

Buyers also have up to 10 days after purchase to return the vehicle if they change their minds. Once you are all set with your financing, you can manage your payments on the mobile app.

The notable drawbacks include shipping fees when moving a car between locations and limited availability in several states. Additionally, CarMax’s no-haggle pricing may not appeal to buyers seeking price flexibility.

CarMax company overview

CarMax, founded by Circuit City, opened its first location in Richmond, Virginia, in 1993. Today, it is known as one of the nation’s largest retailers of used cars, with over 240 stores across 41 states.

Its seamless, convenient car-buying process allows buyers to shop online, in-store or through a combination of both. And with its no-haggle pricing, CarMax offers car buying as a more transparent experience.

CarMax auto loan types offered

CarMax offers flexible auto loans in-house and via third-party partners, including:

• Ally Bank
• American Credit Acceptance
• Capital One
• Exeter Finance
• Santander Bank
• Westlake Financial Services

With either option, you’ll also have access to a large inventory of used cars, with a wide selection of makes and models to choose from.

If you move forward with the financing process, you have three days to back out of your loan if you find a deal better than CarMax financing rates, with no penalties or fees.

Additionally, CarMax provides a 10-day return policy for a full refund, and each vehicle comes with a 90-day/4,000-mile limited warranty. But if you want to purchase an optional MaxCare extended service plan, you’ll get extra coverage and peace of mind.

How to get an auto loan with CarMax

You can buy a car in person at a CarMax store or online, have it delivered to your home or pick it up at your preferred location. Here’s how the process works:

• Get prequalified: Use CarMax‘s prequalification tool to check auto loan rates. You can also get an online offer if you want to trade in your car.
• Choose your car: Select a vehicle and request delivery or express pickup from the car’s detail page if you’re making an online purchase. You can buy your car online or in person at a CarMax store. If you choose the online route, you’ll have to create a MyCarMax account.
• Upload required documents: Provide the necessary paperwork to complete your purchase. You may need to provide the following:
  • A valid driver’s license
  • Proof of insurance (this is required for all car sales)
  • Proof of income
  • Proof of residence
  • Address verification (if the address on your application is different from your credit report)
  • Contact information
• Review and sign electronically: Once your financing is approved, review and sign your paperwork online.

Is a CarMax auto loan right for you?

CarMax is a strong option for buyers looking for flexible financing with no minimum credit score requirement and a straightforward online process. Its starting APR of 5.75% and loan terms of 24–72 months are competitive.

But it’s important to shop around and compare rates, as some lenders may offer lower APRs or longer terms, depending on your credit profile.

How CarMax auto loans compare

CarMax offers competitive auto loan rates and terms, with flexibility for a range of credit profiles, even offering bad-credit auto loans. Its starting APR of 5.75% is comparable to others, and the lender provides flexible loan terms ranging from 24 to 72 months, which are in line with industry standards.

Below, we’ve compared CarMax auto financing to its competitors.

If CarMax doesn’t seem like the best deal, check out our reviews for Carvana and Bank of America to find a better fit.