AGARubberDuck

So I strongly though about having CarMax bring in a 2011 turbo they have for sale in Reno. I got so far as driving to the local location, talk with a sales guy, and for kicks, see what they would offer on my 04 turbo with 171k miles.
The 'appraisal' came back good, with the exception of "leaking fluid." The valve cover gasket needs to be replaced and I just don't feel like doing it.

Well, according to their 'expert appraiser' with more than 10,000 appraisals under his belt, I was offered $2500. Yes. 1/4 the price of the absolute lowest price cayenne (let alone ctt) I've seen for sale in my area in the past year.

I get that they won't put a ctt with 171k miles on their lot, but they could have just said they didn't want my business without the insult.

Guess I'm doing valve cover gaskets this weekend.

Budget M3

Sorry to hear that. My experience with CarMax is mixed. They will offer a better value than a normal trade in at any dealer--but only on a late model car that they can resell on their lot(s). I got "almost" kbb private party value for my 05 Cayenne when I sold it to them in 2008. Anything they will not resell themselves, however, will be wholesaled just like any other used car. I was recently offered $4k for my 03 BMW X5 4.6is which kbb retails for $10k. CTT is a special vehicle, too, and they just didn't want the hassle, hence the insulting price.

deilenberger

They actually don't want one on their lot - and are likely basing the trade-in value on what auction results have been for a 171k, 12 year old expensive German vehicle. My WAG - the auction values haven't been anywhere near $10,000. While you might see CTT's selling for $10k in your neighborhood, were they ones with 171,000 miles, with an obvious leak?

Fix the valve cover gaskets and keep on driving it. It won't get worth any less at this point.

v10rick

^^^Agree with all above^^^

Over the years we sold CM 8 vehicles. All were valued higher than a dealer trade offer, a few by a substantial amount. All the cars were marketed on their local lots.

One exception...they valued a 10 yr old Dodge SUV in pristine condition at 1/3 the retail value. They mentioned it was the auction value, too old to sell on their lots.

You could try webuyanycarusa.com. I sold them my 04CS. and thought the price was fair. No need to go to their location for their valuation but be warned if they spot body work etc. the price will be reduced. They scanned the entire truck using a paint thickness meter.

goin2drt

Carmax sucks. I have taken in 5 cars to get appraised and they have always been an insult. So low that on 3 or the occasins I actually got better deals from the dealer that was going to send them to auction. CarMax was actually below that. These were not dealers that I was buying cars from either so it wasn't like they just gouged me on the new purchase.

Maybe it is just my local Carmax but I will never go to another one, ever.

OP it does not suprise me about your story.

rpm's S2

If you take a car in to CM with less than 80K they may give you a strong offer - if they need that car in inventory. If not, or its over 100K, then they are only going to give you what they think they can get for it at the local auctions they run + their costs and a bit of profit to make the transaction worthwhile.

You can't really expect them to do otherwise, can you?

As for the OP... a 150K+ vehicle that is expensive to repair may only be worth $2-5K at auction, with the buyer accepting the risk that repairs could quickly outpace any sales price they may get. There are standard tables for estimating reconditioning cost. One can only imagine what the estimate is for a 171K Porsche Cayenne TT. That deal may have insulted you, but it was probably fair.

Business is business.

Spyerx

Key with CM is more recent cars and cars that move some volume on their lots. You do that you will get a strong offer.

I've been offered (and sold) above dealer offers and above private party sales offers on 2 cars. (a BMW and a Mini)

AGARubberDuck

That's a fair point, but then what is the purpose of NADA and KBB's 'trade in' value? Further, the supposed value has a range describing the condition of Excellent (perfect, no 12yr old car will be) all the way down to Rough (requiring repairs to mechanical and/or body.) In what frame of mind is it not offensive when the dealer offers 1/3 the 'rough' value? They took it for a drive, it's not like I had it towed to the appointment.

Business or not, I was willing to plunk down $50K for a car from them, almost certainly over paying with their no-haggle pricing. This was an insult.

zirrah

I've never seen them over better than another dealer. In my experience with them, they always offer the low end of KBB trade in pricing, regardless of condition of the car.

deilenberger

A more accurate question might be "what the use of.." - and they actually are fairly useless with about one exception - and that's "difference" price. You don't care what the new car costs, you don't care what they are giving you for the trade in - it's the "difference" between new and old that you DO care about, and you can calculate that using either of those guides, and it will be reasonably close to reality.

Dealers actually use two things to determine a price - auction results (and they can get the latest from a number of auctions as a dealer,) and a dealer-only book like the Black Book or Gails. And you won't find either of those open to the public on-line.Difference price? Was that unreasonable - then there is a reason to walk away..No - it was as others have said - business. They know what a vehicle is worth to them and what potential problems and profit they can expect. In this case with the mileage they have to plan on a low profit and some amount of problems (especially since it was dripping oil) so a smart business will make a low offer since they probably would rather you not trade it in to them.

DWPC

The number of Cayennes that cross the regional wholesale auction block is low, making valuations used by appraisers highly susceptible to being dragged down dramatically by a couple Cayenne beaters or salvage cars. CM isn't going to putting any 12 year old SUV on their lot, so they can offer you only wholesale less overhead and the cost of the auction. Even though it reflects moderate use (15K/yr), 171k miles is the kiss of death for most non-collector cars.

rpm's S2

They are not in business to do anything beyond make a profit. To expect them to give you more money to make you feel better is interesting.

Now, to be honest, I find Carmax vehicles to be overpriced, and the no-haggle pricing model annoying. If you know how to buy a car you can generally get a better deal elsewhere. That said, for people who want a good, fairly-priced car without having to go through the nonsense that most dealers do it is a good model. And they do work hard to inspect cars prior to sale - since they will offer a very good warranty on every car.

As for NADA and KBB... dealers don't use them. They use NADA 'Black Book.' Much more specific and regional, updated I think monthly.

Full disclosure - I worked at Carmax in the 90s for a bit. Back then it was a good company that did business honestly.

AGARubberDuck

That's not what I'm getting at. They want to make money and that's all fine and good, but good business would be breaking even on one low-dollar deal to grease a far more profitable deal, instead of attempting to rip someone off.

I've continued my car search and have been offered $5100 and $7300 from one big name domestic dealer and one import dealer. These dealers are within 20 miles of the CarMax location.
I appreciate the input from everyone here. I am continuing using to have a hard time thinking very highly of carmax.

zirrah

They lowball you. Plain and simple. But since they'll cut a check on the spot, it works for some people.

deilenberger

No one should expect to think highly of any car dealer.. not until they prove they are worth it.

As far as the other dealers - again - figure out the "difference" price to see if you have a good deal. I've taken to approaching dealers with that question - it cuts through most of the BS.. I'll say - you get this car, I take that one home, what is the difference I'd owe you? That way you get entirely out of the vehicle negotiation crappola they are really good at and get to a simple dollar difference equation.

As they used to say on TV.. "Try it! It really really works.."

BTW - if the dealer won't go along - it's simple - walk away. There will be a dealer who will.