Choices:
We use a wide variety of nationally recognized finance companies. You make the
choice!
Competitive Rates:
No matter whether you have excellent credit history or have some problems in
the past, we can offer some of the most competitive rates in the industry (with
approved credit).
Speed:
Online financing with most approvals received in minutes.
Convenience:
Three days to compare our financing offer after you take delivery with no
penalty or finance charge.
Flexibility:
Finance offers with attractive terms and down payments designed to fit your
budget.
No Haggling:
You’ll get the best rate and term available based on your application and
credit history. You will get our best offer the first time!
1. Why finance at CarMax?
CarMax Auto Financing is among the most consumer friendly in the industry. Our
no-hassle, no-haggle options focus on what’s best for you, our customer.
You’ll find:
- A wide variety of financing options with world-class financing companies
- Options tailored to fit our customers’ needs
- Transparency with your financing. We don’t play pricing games like many traditional dealers.
- Advanced technologies “behind the scenes” to support our processes
2. What should I expect from the Financing Process at CarMax?
The CarMax Financing process is quick and easy:
- Most approvals in minutes
- Haggle and hassle-free; no need for negotiation
- See your options when we do, right from the finance company, choose the option that suits you best.
- Competitive offers, with no hidden fees or commissions
- We give you three business days to find a better financing offer with no fees or finance charges.
- Friendly Sales Consultants and Business Office Associates will answer all your questions.
3. How do finance companies make credit decisions?
Finance companies take four major factors into account when making credit decisions:
- Income, Job, and Residence Information
- Credit history
- Vehicle selection
- Down payment / trade equity
4. I have excellent credit. What can CarMax do for me?
CarMax has many options to help you obtain the financing that’s right for you. You’ll find:
- Highly competitive rates
- Flexible terms and advances
- Reduced time and effort
- Options and choices
- World-class financial institutions
5. I have had credit problems. What can CarMax do for me?
CarMax has many options to help you obtain the financing that’s right for you. You’ll find:
- A broad range of finance companies with customized programs to serve most credit profiles
- Competitive terms and payments
- Enjoy the same low CarMax vehicle price and exceptional customer service.
- Seamless and easy transaction
6. How can I find out more about my credit history?
There are three major credit-reporting agencies in the United States.
Each one can provide you with a copy of your credit report, including
your credit score. They may charge a fee for this service. You can
contact them via the Web or call toll free:
Equifax:
- Web: www.equifax.com
- Toll-free number: 800-685-1111
TransUnion:
- Web: www.transunion.com
- Toll-free number: 877-322-8228
Experian:
- Web: www.experian.com
- Toll-free number: 888-397-3742
7. What is a credit score?
Credit scores are generated from statistical models designed to help
financial institutions predict the risk associated with loans, financed
purchases such as cars, and issuing credit cards. You should know:
- The score is expressed as a number.
- The higher the number, the less risk that the debt will not be repaid.
- The models take into account several factors from your credit report. Some examples are
- Timeliness of payments
- Number and severity of late payments
- Number and age of accounts
- Type and amount of debt
- Public records
- Inquiries created by applying for credit
8. What finance companies do you work with?
CarMax works with many finance companies, including CarMax Auto Finance
(CAF), which services only CarMax purchasers. CAF supports sales at CarMax
and has helped nearly a million people finance vehicles.
Other finance companies we work with are among the largest financial
institutions in the world, and leaders in the auto industry. With the large
selection of companies we work with, we can meet the needs of customers with
a wide variety of credit profiles.
9. What factors impact monthly payment the most?
Several factors can impact your monthly payment, including:
- Amount financed (most important)
- Term (next most important)
- APR – Annual Percentage Rate (least important)
To illustrate, use the base example of $15,000 financed at 10.00% APR,
for a 60-month term. Change each item by about 10%. In the chart below,
you can see the difference each makes.
| Amount Financed |
Term |
APR |
Monthly Payment |
| $15,000 |
60 |
10.00% |
$318.70 |
| $13,500 (10% change) |
60 |
10.00% |
$286.83 (10% drop) |
| $15,000 |
66 (10% change) |
10.00% |
$296.30 (7% drop) |
| $15,000 |
60 |
9.00% (10% change) |
$311.37 (2% drop) |
The best way to control your monthly payment is through a combination
of down payment and vehicle price that fits your budget. Our highly
competitive finance offers will help you take care of the rest.
10. Will I need any additional documentation to complete the finance transaction?
In most cases, we only need the documents relevant to the purchase of your vehicle:
- Valid driver’s license for all buyers
- Your title and/or registration (if you are trading a vehicle)
- Insurance information
In some cases, an individual finance company may require additional documentation.
Generally, these requirements include (but are not limited to) the following:
- Proof of income:
- Most recent pay stub, or
- If self-employed, tax returns
- Proof of residence:
- Generally satisfied by a utility bill with your name on the address on the application
Your Sales Consultant will be glad to let you know what, if any, additional documents are needed.
11. What about special financing on new cars?
Special APRs sound good, but can actually cost you money.
Some of the reasons why include:
- Higher vehicle prices; there are no free rides:
- Special APR programs cost new car manufacturers money, and they pass that to the customer. Finance costs are no different than other costs, including marketing and manufacturing costs.
- Prices on new vehicles reflect all costs including finance, rebates, marketing, manufacturing, etc., and special APRs often mean higher vehicle prices.
- Their benefits may be lost over time:
- On average, most people trade or pay their finance contracts in full long before the end of the financing term. That means the average person will not receive the full benefit of the special rates. This benefits the manufacturer because the cost is less to the manufacturer if you do trade or payoff your financing early. The full value from special APRs can only be realized if you keep the vehicle full term.
- Often, a choice between a rebate and special APR is offered. Usually, the rebate is at a lower monetary value than the actual calculated finance savings, so more people choose the APR even though choosing the rebate would save them more money.
- The perceived or marketed value is usually greater than the actual value for many customers.
- What if you need or want a different model? Do you choose a car you didn’t need just to get the full value of the special APR? You may absorb more cost than expected.