Selling an Upside Down Car to CarMax | What Does it Mean?

Selling an Upside Down Car to CarMax
Source: partsmarket.com

CarMax is a nationally used car retailer. They can buy any kind of car, from damage to an upside-down car.

Going “upside down on your car” means when you owe more on the loan than your car currently worths. Or better still, it means when the market value of your vehicle is less than the amount you owe.

For instance, if you’ve got an $18,000 car loan and your car is valued at $9,000. That means you’re $9,000 upside down.

Yeah, that’s huge, right?

Most people who want to sell their car get options to either trade it or sell the car privately.

Often, this method fails them. This is where CarMax comes in.

Let’s what it really means by “selling an upside down car to CarMax.”

A CarMax offer can help you measure your vehicle’s worth or fill in as a decent backup if other plans to sell or trade your car didn’t work out.

As a public trade-in vehicle retailer, selling your upside down car to CarMax can be snappy and simple.

Here’s the way to get a CarMax evaluation and transform your vehicle into money rather than trading it at a business or attempting to sell it yourself.

What is an Upside Down Car Loan?

Having an upside down car loan means you owe more on the loan than your car is worth.

For example, if you still owe $20,000 on a car that you’d like to sell or trade in, but the most you’ve been offered is $15,000. That’s $5,000 in negative equity you’ll have to deal with.

But you’ve to pay it up eventually, right?

Let’s see how to achieve that below.

See Also: Can you Sell a Car on Craigslist? Easy Hacks in 2021

Will CarMax Buy an Upside Down Car?

Yes, CarMax will buy your car even without you buying any car from them.

If your loan is upside down, it’s much more difficult to catch up on your repayments because your car’s value continues to decline over time.

Unfortunately, this stressful financial situation does not have a one-size-fits-all solution.

Upside down car owners can find themselves torn between two unwanted options: making regular payments while potentially losing equity, or selling the car and eating the losses.

If you’re an “upside-down car owner”, then you can sell your car to CarMax rather than trading it or selling it yourself.

You might never get a buyer or lose so much, even if you eventually land a dealer.

So, to sell your upside-down car to CarMax, you’ll have to write them a check for the difference. CarMax will then pay off your loan.

Read Also: 10 Ways To Make Money Renting My Car Out | Full Guide

Is it Worth Selling Your Upside Down Car to CarMax?

In case you owe cash on your vehicle, selling your upside down to CarMax or another seller might be simpler than tracking down a private purchaser who will look out for the title to show up after result.

For the individuals who are deep into a car loan debt, a CarMax or similar proposal to purchase your vehicle totally offers a chance to end a negative equity cycle.

However, you should get ready to find the funds to pay the amount between what CarMax gives you and what you owe.

While the CarMax offer might not worth much like when you sell to a private dealer, selling it to the pre-owned car dealers offers these benefits:

It totally removes the cost of advertising your vehicle and the issue of showing your vehicle to outsiders.

CarMax costs are generally higher than those that dealers offer.

The workers that got training from the registry laws take care of all paperwork.

With these advantages, hopefully, the CarMax price for the car will be something very similar or more than the sums you recorded as a guide.

If you’re interested in selling your car to CarMax, click here.

Check Out: Car Flipping 101: Make over $200/day Flipping Cars in 2021

How Does Carmax Offer Work?

The CarMax offer is useful for seven days so in case you’re uncertain whether you need to acknowledge it, don’t hesitate to leave now.

For example, some individuals list their vehicle available to be purchased for a couple of days to check whether they can get more than CarMax offer.

If they end up not selling to a private dealer, they take it back to CarMax and take the money.

However, before you head to CarMax, it will be a smart choice to estimate how much a vendor would give you if you trade-in your car.

Lookup websites like Edmunds.com and Kelley Blue Book and check your car’s trade-in value. Once you find it, write down the trade-in value for reference later.

In case you’re not kidding about selling your vehicle on the spot, carry these things with you:

  1. Extra car keys
  2. The car’s title — sometimes called the “pink slip” — if you own the car outright
  3. Your car’s valid registration
  4. Your driver’s license
  5. Information about your car loan if you still owe money
  6. Your checkbook in case you owe more than the car is worth; for amounts greater than $250, CarMax requires cash or cashier’s check, certified check, or debit card.
  7. Enough money to take a taxi, Uber, or Lyft home

Read Also: How To Pay For Car Repairs With No Money In 2021: 5 Possible Ways.

How Can I Find out CarMax’s Offer for my Car?

Some websites similar to CarMax only give an estimate or a range of your car’s value.
Typically, CarMax gives you a real offer in writing.

They practically conduct a fast, free, no-obligation appraisal while you’re busy making your order at their store.

Their team of trained workers will go over your vehicle and extend an offer that’s valid for one week. This is to enable you to have time to think over it.

See Also: Get Paid To Drive Your Car | Up To $50 Per Hour

What Paperwork Do I Need to Sell my Upside Down Car to CarMax?

While coming to the CarMax office around you, make sure you bring along the title or payoff information for your vehicle, including your valid current registration.

Don’t forget to come along with your valid state issued photo IDs, including your car’s keys, key fobs, and remote entry fobs.

Related: Cheap Car Insurance for New Drivers under 25 in 2021

What Happens if I Accept CarMax Offer

If you choose to acknowledge the CarMax offer, they will accompany you to the finance department where the paperwork will be taken care of.

They will request you to sign various forms needed by your state’s division of motor vehicles.

Meanwhile, the finance administrator will give you a check for your vehicle.

At this point, try not to negotiate, they fix the prices.

Also, don’t stress yourself to ask for an appraisal if your car has a check engine light on.

Finally, try to go to CarMax on a weekday morning to avoid crowds and take your personal items out of the car.

Read Also: Why Is Car Insurance So Expensive In 2021?

Frequently Asked Questions

Can I sell my car to CarMax without buying a car from CarMax?

Yes, and their offer will be the same whether you’re buying from them or not.

Is the online offer a real offer or an estimate?

CarMax provides real offers, both online and in-store, and all of their offers are good for 7 days. If you have an online offer to redeem, bring it to any CarMax store. Once they verify that your car’s condition matches the information they received online, you’ll leave with payment in hand. They adjust some offers after the verification process.

Can I get both an online and in-store appraisal?

If you have an online offer, an additional appraisal isn’t needed unless the offer is no longer valid. CarMax uses the same appraisal criteria online and in-store, and every car’s condition is verified in person when an online offer is redeemed. They only adjust online offers if a car’s condition differs from the information they received online.

Can I sell a car on behalf of a company?

If you would like to sell a car on behalf of a company, please see a Business Office associate for the requirements needed.

What do I need to sell my car?

You will leave with payment in hand the same day you sell your car to CarMax. They pay with a bank draft, which is a type of check where payment is guaranteed to be available by the issuing bank. A bank draft must be deposited and cannot be cashed. Before attempting to draw on the bank draft, always check with your bank to see if they have a specific hold policy on deposits.

Final Thought

When deciding about how to get out of a car loan, it is important to avoid being impulsive. Trade-in for your vehicle may make you get your next car faster, but it doesn’t stop you from paying off your debt.

Selling an upside down car to CarMax is the best option to really pay off your car loan.

CarMax will help you pay off your loan.

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