- Report: #115756
Complaint Review: Carmax - White Marsh Maryland
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Carmax
10201 Philadelphia Road White Marsh, 21162 Maryland, U.S.A.
Phone:
888-604-9898
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Carmax - Dishonest Sales Practices. Rip-off! Deceptive unfair not transparent chicanery misleading! White Marsh Maryland
On October 12th, my fiancee and I decided to buy a used van. We searched online for various models and searched various vendors. One of them was carmax.com. Carmax was offering a 2001 Durango for 12,998. For the mileage, it seemed like a fair price so we decided to call carmax to set things up.
After receiving approval for a loan, which we were excited about, we thought safety might be an issue and decided to go with the Honda Odyssey (At about 4K more).
The salesman said he would run our credit again to see if we were to be approved. I called back after about half an hour and much to our happiness, we were. The Oddysey was in Atlanta and I paid the $400.00 fee to get it up to Maryland.
We wanted to trade in our van. During the appraisal, I asked the salesman to provide me with numbers. I asked directly as to how much I was approved for, and he said "About $17,500." I was disappointed as to no hard number given. I then asked for a price breakdown which he readily gave me.
Price of car: $17,000
Taxes/Title/Registrations/Fees: $1141.85
Which would bring it to $18,141.85
Plus the warranty ($1599): $19,741.00
After the downpayment of 20% of $18,141.85 (About $3600): $16141.00
I'm very wary of being under, then over then back under the supposed loan amount. I asked him as to why that was and he just re-explained the breakdown.
Needless to say, the carmax buyer came back w/ a quote of $900.00 to trade-in. I told them I expected about $2800 - $3000 and they explained to me about how they could not make money off of the car. Granted, I really don't care about that part of the business.
Carmax had put the Kelly Blue Book reference on their website as to what we can expect on our trade-in value. Carmax did not follow through.
We tried to see if they could do better, but they refused to budge, stressing that they'd have a hard time selling the car. I was not impressed and very agitated.
A few calls were made to corporate by my fiancee and I ended up talking to the buyer manager at the White Marsh branch. He re-explained the whole process of not making a profit on the car if they bought it and that $900 was a fair price. I told him that the website provides a Kelley Blue Book reference. He said that corporate put it out there because consumers asked for it.
Is that the only reason? I think this is misleading if carmax says to go to Kelley and then come in severely under, and then try to excuse it saying that they have databases running wholesale prices. Then why refer me to Kelley? Why not give me access to carmax's database so I can see how much they're going to screw me over?
In any case, he challenged me to sell the van for about $3000, in a short tone. I asked him to have the selling manager call me.
The selling manager called me a few hours later (this was all on October 26th. I told him of the situation and he couldn't find me in the database until he searched back on October 12th. I asked him what my approval amount was. $12032 was the number approved for the Durango. The credit was never run for the Odyssey.
Why was I told it was run? Why was I told I was approved for the Odyssey? He said because if I was approved for the Durango, then more than likely I would be approved for the Odyssey. So I had paid a transfer fee for a car I wanted to buy but was not approved for. He said he couldn't approve it until the Odyssey was in the lot. This I don't understand.
During this whole course, I did have my $400 transfer fee refunded but there are still unanswered questions. For instance, with the price breakdown, how do I end up way under the supposed approval amount? Why did the salesman just tell me some arbitrary number I was approved for?
If Carmax says to refer to Kelley for a trade-in value, can I not expect that dollar amount from carmax? And what is the deal with pumping the total price of the car PAST the supposed approval amount and then diminishing it with the down payment?
Shouldn't the final price be the amount of the loan approved? Not, here it is then we'll add on some and then subtract the down payment? I will be talking to the sales manager shortly. And keep everyone updated.
Joseph
Joseph
Whiteford, Maryland
U.S.A.
Click here to read other Rip Off Reports on CarMax
After receiving approval for a loan, which we were excited about, we thought safety might be an issue and decided to go with the Honda Odyssey (At about 4K more).
The salesman said he would run our credit again to see if we were to be approved. I called back after about half an hour and much to our happiness, we were. The Oddysey was in Atlanta and I paid the $400.00 fee to get it up to Maryland.
We wanted to trade in our van. During the appraisal, I asked the salesman to provide me with numbers. I asked directly as to how much I was approved for, and he said "About $17,500." I was disappointed as to no hard number given. I then asked for a price breakdown which he readily gave me.
Price of car: $17,000
Taxes/Title/Registrations/Fees: $1141.85
Which would bring it to $18,141.85
Plus the warranty ($1599): $19,741.00
After the downpayment of 20% of $18,141.85 (About $3600): $16141.00
I'm very wary of being under, then over then back under the supposed loan amount. I asked him as to why that was and he just re-explained the breakdown.
Needless to say, the carmax buyer came back w/ a quote of $900.00 to trade-in. I told them I expected about $2800 - $3000 and they explained to me about how they could not make money off of the car. Granted, I really don't care about that part of the business.
Carmax had put the Kelly Blue Book reference on their website as to what we can expect on our trade-in value. Carmax did not follow through.
We tried to see if they could do better, but they refused to budge, stressing that they'd have a hard time selling the car. I was not impressed and very agitated.
A few calls were made to corporate by my fiancee and I ended up talking to the buyer manager at the White Marsh branch. He re-explained the whole process of not making a profit on the car if they bought it and that $900 was a fair price. I told him that the website provides a Kelley Blue Book reference. He said that corporate put it out there because consumers asked for it.
Is that the only reason? I think this is misleading if carmax says to go to Kelley and then come in severely under, and then try to excuse it saying that they have databases running wholesale prices. Then why refer me to Kelley? Why not give me access to carmax's database so I can see how much they're going to screw me over?
In any case, he challenged me to sell the van for about $3000, in a short tone. I asked him to have the selling manager call me.
The selling manager called me a few hours later (this was all on October 26th. I told him of the situation and he couldn't find me in the database until he searched back on October 12th. I asked him what my approval amount was. $12032 was the number approved for the Durango. The credit was never run for the Odyssey.
Why was I told it was run? Why was I told I was approved for the Odyssey? He said because if I was approved for the Durango, then more than likely I would be approved for the Odyssey. So I had paid a transfer fee for a car I wanted to buy but was not approved for. He said he couldn't approve it until the Odyssey was in the lot. This I don't understand.
During this whole course, I did have my $400 transfer fee refunded but there are still unanswered questions. For instance, with the price breakdown, how do I end up way under the supposed approval amount? Why did the salesman just tell me some arbitrary number I was approved for?
If Carmax says to refer to Kelley for a trade-in value, can I not expect that dollar amount from carmax? And what is the deal with pumping the total price of the car PAST the supposed approval amount and then diminishing it with the down payment?
Shouldn't the final price be the amount of the loan approved? Not, here it is then we'll add on some and then subtract the down payment? I will be talking to the sales manager shortly. And keep everyone updated.
Joseph
Joseph
Whiteford, Maryland
U.S.A.
Click here to read other Rip Off Reports on CarMax
3 Updates & Rebuttals
Jr
Rocklin,California,
U.S.A.
KBB
#2Consumer Comment
Wed, November 22, 2006
If you look at carmax's website you will notice that if you look at their cars for sale, most of them are significantly below kelly blue book. My question is how do you expect to pay less then kelly blue book retail for a car, but expect to recieve kelly blue book trade in value. Is it possible that kelly does not really know the market value for vehicles perfectly. Have you ever seen a kelly blue book dealership? I know I haven't. And with financing, dont you think it would be better to get your own financing with your own bank before you get to the dealership? I have purchased several cars with carmax, and I wasn't always satisfied with their offers, but I was completely satisfied with their prices and quality.
Rick
San Antonio,Texas,
U.S.A.
Some thoughts about your Report
#3Consumer Suggestion
Sat, November 27, 2004
Based on what I have read, you seem to be confused about trade in value and financing approval. Kelley Blue Book is just a reference point for giving you an idea of what you can expect for trade in. Carmax is only equipped to give you what their appraisal team deems a fair price based on several factors including exterior, miles, tires, internal parts,etc. They are on the losing end if they cannot re-sell your vehicle. I think its easier to go there and drop it off and collect a check than trying to sell it on your own. On the other hand, when you get approval for a loan it is your job as a consumer to get all the facts involved. Ofcourse you will have TT & L plus document fees and registration fees that need to be added to the Sales Price. So ofcourse your price goes up and comes back down with your down payment. Nothing unethical there, just do the math. Now I had a good experience with getting two vehicles from Carmax but a not so good experience with their so called "Service Department." But the experience would have been unpleasant in the sales end of things if I was an uneducated consumer. Do some research first next time.
J
Whiteford,Maryland,
U.S.A.
Carmax, WhiteMarsh MD Update
#4Author of original report
Thu, November 18, 2004
I have already filed a report with the Better Business Bureau concerning this information. In any case, a week after I filed my complaint, I received a denial of credit letter from Wells Fargo Bank, the very same creditors that the sales person said I was approved by. Now what gives? I was completely led on by the whole sales staff that I was actually approved, receive and then to give me a $900 estimate for a Kelly Blue book value of at least $2700? Give me a break. I will be calling Carmax Corporate to settle things while I wait for the Better Business Bureau to respond to my complaint.
