Okay, first things first. I worked as a lot boy at a car dealership in college. I sold cars for a year after college at another dealership. A brother, a brother-in-law, and a nephew of mine have sold cars as a career for a time. My best friend worked his way up from sales to become a general manager of a dealership, his wife was a finance manager at the same dealership. Bottom line: I know the car business, I'm not at all uninformed about the way the business works. They want to make money. On the car they sell you, and on the car you trade in. I get that. I expect that. I drive there knowing this will happen, and realize that it's okay. That being said, on with the review...
Two months ago I saw a car on their website that I've been looking for. Unfortunately, it seemed priced very high and as Carmax is a no-haggle dealership, there wasn't any negotiation to be had. How high was their listed price? $4100 more than KBB wholesale, the price they would have paid for the car, if they knew what they were doing. They definitely allowed themselves a LOT of profit, considering the current state of the economy, their no-haggle pricing policy, and the fact that this was a 6 year old car. So I called them and said... "Look, I like the car, but that's high for me, so if you don't sell it at that price, I know your policy is to lower the price and try again... if it comes to that, here's my number, give me a call, at a lower price I'm a player on the car..." They took my number and that was that.
Two months pass, and this morning my friend sends me a link... to that same car. Note attached; "What about this one?". I look. It's the same car. Discounted $1500 from the original asking price. But nobody called me from the dealership. Strike one, boys.
I call and set up an appointment to look at the car this afternoon. Part of me didn't want to because of principle, but I really liked the car. I drive down, twenty LA miles which, of course, takes a lot of time. I arrive, announce myself to the receptionist, then wait TEN MINUTES to be greeted by the salesperson. A long wait, especially when I had an appointment and I was on time. Strike two.
We drive the car, and it's really nice. I'm excited. It's the one I've been looking for. My friend, the aforementioned general manager at the dealership, calls me and asks me information on the car, so he can advise me properly. I direct him to the link on the website which worked five minutes earlier. He clicks and it says that the car is no longer available. The salesperson apparently took it offline when I was looking at the car. A bit presumptive, don't you think? I do.
We go inside and the salesperson goes into predator mode. I hit the brakes on him. He starts reciting the script which was obviously part of the corporate culture of Carmax. I'm now starting to get a little annoyed, but realize it's his job. I inform him of my earlier career in the car industry, the lack of necessity of explaining everything in such detail to me when I know the stuff inside and out, and tried to connect with him so that he knew that he should ease off on the heavy-handed close. He didn't. Before I even got a number on my trade-in, he tried to close me on the warranty, on their financing, on the advantages of Carmax. I fired warning shots at his head over and over... ease off, man... just get me the numbers then we'll talk. Calm down, I have a warranty company I've used over and over, they've been good to me, quit trying to convince me they're not. Don't tell me how expensive your competitors are when I can tell you the actual numbers. You're higher. Just... relax... you're bugging me now... Let's just get the data and have a conversation from there. That's reasonable.
Didn't matter... he stuck with the script, and pushed and pushed until I had to get verbally assertive with him to get him to stop. I would have left at this point, except again, I really liked the car.
Then they came back with a number on my car. And they had lots of reasons why my car was worth $4200 LESS than KBB wholesale. Basically, they would have made $8300 profit on this deal if I said yes. And then they tried to convince me to buy their car today and sell my car myself in the future, after I owned both cars.
Hey, at least they offered me 9.95% financing with my Tier 1 credit score. Oh, wait, that's terrible. Never mind. I can get 4.99% through my credit union in five minutes. He tried to convince me to use them then get a check through my credit union and bring it to them so they can re-do the contract. Then he tried to convince me that it's a lot easier than it sounds. Though I never did hear why this was advantageous to me. (Hint: It's not).
Factor in their huge profit margin, the negative equity their lowball number would have created in the sale, and the double-my-credit-union's APR... I would have had nearly a $600 monthly payment on a $20K car.
Tempting... and yet... no. read more