1. How do I obtain specific information about my account(s)?
You can access your account information online through MyCarMax. You’ll be able to view account details and history, update personal information, and make payments. You can also obtain your account information by calling (800) 925-3612.
2. How are finance charges calculated?
All retail installment contracts with CarMax Auto Finance are "simple interest" contracts. This means that finance charges, often referred to as "interest," accrue daily, beginning on the date of your contract. Each time you make a payment, the payment amount is applied first to accrued finance charges. The amount of finance charge that accrues is calculated by multiplying the number of days between the last payment and the next payment by your individual daily per diem. The per diem is the amount of finance charge incurred "per day." The formula is as follows:
Per diem = (current principal balance) x (finance rate) / 365 (Number of days in a year)
Current principal balance of $10,000.00 and a finance charge rate of 10%: ($10,000.00) x (.10) / 365 = $2.74 daily per diem.
That means $2.74 in finance charges accrue each day. If a payment is received on 6/1/13 and another is received on 7/1/13, thirty days of finance charges accrue. That means, $82.19 of a payment would be applied to the accrued finance charges and the remainder to other amounts, including the principal. If the payment in this example was $250.00, $82.19 would be applied to finance charges, and the remaining $167.81 would be applied to the principal balance.
3. How is my payment divided between principal and finance charges?
In accordance with applicable law. If there is no applicable law, payments are applied first to finance charges and then to other amounts owed, including late charges, principal, and other fees. Remember, as the principal balance is reduced, the daily per diem also decreases. So, as long as the principal balance is reduced with each payment, the amount of finance charges that accrue daily decreases too. That’s why the amount of finance charges paid at the beginning of a contract is higher than the amount paid at the end.
4. What is a grace period?
It’s the time after a payment is due and before a late charge is assessed. Grace periods vary based on applicable law, which in turn depends on where you purchased your vehicle and signed your retail installment contract. We recommend mailing your payment 7-10 days in advance to allow for timely receipt. Despite grace periods, your monthly payment is still due by the due date.
If you fail to make a payment within the grace period, a late charge will be assessed. If we receive a payment near the end of the grace period, allow 1-2 business days for the payment to be processed and credited to your account. If, in such a case, a late charge is assessed, it will automatically be removed upon our processing and crediting your payment.
5. Can I have my payment automatically deducted from a checking or savings account each month?
Yes. Register with MyCarMax to set up recurring payments.
6. Can I send in half my monthly payment today, and the other half by the end of the month?
Yes, so long as the FULL amount of the monthly payment is received by the monthly due date. If the FULL payment amount is NOT received by your due date, your account will become or remain past due.
7. If I make a payment for more than my monthly payment amount, how will the additional amount be applied to my account?
Any additional amount is applied to future payments, up to the next 3 payments, unless otherwise required by law. Any remaining amounts will be applied to the principal balance owed on your account.
If you have a $100 payment due February 1st, and you send in $500 on February 1st, your payment will satisfy your February 1st $100 payment, your March 1st $100 payment, your April 1st $100 payment, and your May 1 $100 payment. The remaining $100 is applied to your principal account balance, and your next payment will be due June 1st.
8. Can I refinance my contract with CarMax Auto Finance to reduce my payments and/or interest rate?
CarMax Auto Finance does not offer refinancing at this time. If you decide to refinance with another financial institution, there’s no penalty for paying off your account early.
9. Why is my final payment larger than my regular monthly payment amount?
The amount of your final payment can vary depending on your payment history, and may include any amount past due, plus other previously assessed unpaid fees.
This amount is also impacted by your payment history. Your account is based on a "simple interest" retail installment contract, which means that finance charges, or "interest," accrue on your account each day based on the unpaid principal balance. If you regularly made payments before your due date, fewer finance charges would have accrued during the term of your account. If you regularly made payments after your due date, more finance charges would have accrued and the final scheduled payment is likely larger than the regularly scheduled amount.
10. Why did CarMax Auto Finance send me a text message? How do I opt out?
In providing the best customer service possible, CarMax Auto Finance may use text messaging to communicate with you about your account status. Please note, if you receive text messages from CarMax Auto Finance, you won’t be charged.
CarMax Auto Finance sends text messages only if you have provided prior express consent by providing your mobile phone number in your credit application or during the account relationship.
If you do not wish to receive text messages from CarMax Auto Finance or have additional questions, please contact Customer Service at (800) 925-3612.