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 over the phone by calling us at (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:
Current principal balance multiplied by your finance charge rate and divided by 365 (number of days in a year)
Finance charge example:
If your account has a current principal balance of $10,000.00 and a finance charge rate of 10%, your daily per diem is approximately $2.74, calculated from ($10,000.00) x (.10) / 365. This means that $2.74 in finance charges accrue each day. If a payment was last received on 6/1/07 and another was received on 7/1/07, thirty days of finance charges accrue during that time. Therefore, $82.19 of a payment would be applied first to these accrued finance charges and the remainder to other amounts owed, including 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?
Payments are applied in accordance with any applicable law. Absent any applicable law, payments are applied first toward finance charges and to other amounts owed, including any late charges, principal, or other fees. When the principal balance is reduced with a payment, the daily per diem will also decrease. Therefore, the amount of finance charges that accrue daily will decrease each time a payment is made, as long as the principal balance is reduced with each payment. This is why the amount of finance charge paid at the beginning of a contract is higher than the amount paid at the end of a contract.
4. What is a grace period?
A grace period is the time after the payment is due and before a late charge is assessed. Grace periods on accounts with CarMax Auto Finance vary based on applicable law, which depends on where you purchased your vehicle and signed your retail installment contract. We recommend that you mail your payment 7-10 days in advance to allow for timely receipt. Despite grace periods, your monthly payment is due by the due date.
If you fail to make a payment within the applicable grace period, at the close of the final day of the grace period, a late charge will be assessed to your account. If we receive a payment near the conclusion of the grace period, please allow 1-2 business days for the payment to be processed and credited to your account. If in the interim we assess a late charge to your account, we will automatically remove the late charge upon our processing and crediting of your payment.
5. Can I have my payment automatically deducted from a checking or savings account each month?
Once you register with MyCarMax, you can set up recurring payments to be deducted from your checking or savings account.
6. Can I send in half my monthly payment today, and the other half by the end of the month?
CarMax Auto Finance requires a full monthly payment by your due date each month. Any amounts received in between payment due dates will go towards satisfying your monthly payment. If, however, the full payment amount is not received by your payment due date, your account will become or remain past due.
7. If I send a check for more than my monthly payment, how will the additional amount be applied to my account?
If you pay more than your monthly payment amount, we will automatically apply the additional amount to any fees owed and then to future payments, up to the next 3 payments. We will apply any amounts remaining after that to reduce the principal balance owed on your account.
For example, if your payment is due February 1st for $100 and you send in $500 on February 1st, assuming there are no fees on your account, 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. We will apply the remaining $100 to reduce 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. Should you pursue refinancing with another financial institution, there is no penalty for paying off your account early.
9. The last coupon in my book does not have a payment amount. Do I send in the regular monthly payment amount?
The last coupon in your book does not have a payment amount because that amount may vary depending on your payment history. As you approach your final payment, please contact our Customer Service Department at (800) 925-3612 for the amount required to pay off your account in full with your last payment.
10. Why is my final payment larger than my regular monthly payment amount?
The amount of your final scheduled payment will vary depending on your payment history. The final payment amount assumes you make your remaining payments on the scheduled due date. The final payment amount includes any amount past due, plus any other unpaid fees that may have been previously assessed to your account. This amount is also impacted by your payment history. Your account is based on a "simple interest" retail installment contract. This 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.
11. Why did CarMax Auto Finance send me a text message? How do I opt out?
As part of providing excellent customer service, CarMax Auto Finance uses text messaging to communicate with customers regarding account status. Please note that customers receiving text messages from CarMax Auto Finance will not be charged.
CarMax Auto Finance will send text messages only to mobile phone numbers of customers who have provided prior express consent. Customers give prior express consent by providing their mobile phone number in their credit application or during the account relationship.
If you do not wish to receive any text messages from CarMax Auto Finance or have additional questions, please contact our Customer Services Department at 800-925-3612.