Purchasing a new car can be out of the question if you have budgetary restraints. This is where the used cars come in! They can be bought for a fraction of a new car’s price and often called a ‘ Wise move.’
The repairs on an old car would cost a couple of hundreds over months or years. However, you will be required to spend on monthly maintenance of a new car.
If you are in the market for purchasing or selling a used car, you may have heard of Carvana or CarMax.
This article digs deep to give you the best and the worst of both these online buyers and sellers of used cars, so you can pick a company best for you!
- 1 What is Carvana, and How does it work?
- 2 What is CarMax, and How does it work?
- 3 Difference Between Carvana and CarMax
What is Carvana, and How does it work?
Carvana is an online retailer of certified used cars. It was established in the year 2012. They follow a strict 150-point inspection program to ensure the vehicles you purchase are in pristine conditions. Their main motto is ‘If it isn’t good enough for us, it is not good enough for you.
Their online purchasing of used car’s process completely cuts out intermediaries, which is how they can offer their customers low prices. Along with that, they make no commission or any other hidden charges.
How Do you purchase Carvana?
You have the luxury of browsing their selection of used cars on their official website. Once you have picked your vehicle, the company will deliver it to you within 48 hours.
If you live close to one of their car ‘Vending machines,’ you can fetch the car yourself and avoid shipping charges.
The website possesses a ‘Caravan Auto Loan Calculator,’ which helps the customers determine the amount required to purchase your car. Once you have done that, click on the ‘Get My Personalized Financing’ to get yourself a personalized financing plan.
Best Things about Carvana-
- They offer a 7-day car return and money back policy with a +100 day or 4,189-mile warranty on each purchase
- A free oil change on every purchase
- Free inspection and service up to 100 days from purchase
- They do not sell cars that were involved in accidents
- They get a hold of car details and its history from Carfax
- You can sell your old car to them hassle-free online.
Cons about purchasing and selling via Carvana that must be kept in mind-
- You may receive fewer offers in comparison to private sales when selling your vehicle through them
- And you will not be able to test drive the vehicle of your choice before purchasing it.
- You may end up paying a $200 delivery fee
What is CarMax, and How does it work?
CarMax is a Fortune 500 company established in 1993 and has grown to be one of the largest retailers of used cars. They have set up over 215 stores across the United States, and each has sales consultants present to help you find a vehicle that fits your budget and your needs.
You can also browse through their car’s selection and purchase one from their official site apart from buying from their physical stores.
At any given time, they have over fifty-thousand vehicles for customers to choose from, so you will indeed find one that you’d want to buy.
They offer a 7-day return warranty during which you can test out the car and return it if unhappy with it. You will also be refunded the full amount you paid for its purchase.
How Do you Purchase from CarMax?
Much like Carvana, CarMax also allows browsing to select used cars they offer online on their website. You can narrow down your search through their model, keyword and make specific filters. Searching their website will allow you to access their entire inventory.
If you still find it challenging to make up your mind, then click on their ‘Find your car’ option to simplify your search. Once your selection is done, you will be directed to the vehicles profile page. Here you will get a 360-degree view of the said vehicle, and these images will include the interiors of the car and its identification number too.
This will help you look up its history if you want to do your background check!
When you finalize your vehicle, schedule a test drive at its location. Then move on to purchase and pick it from its lot. You can also buy it online, and CarMax will ship it to your site with modest transport charges. CarMax will also help you figure out a financing plan to make an easy purchase of your vehicle.
Best Things about CarMax-
- – You can test drive your selection before purchasing
- – They ensure 100% transparency with customers, and you need not worry about any hidden fees
- – It offer a 7-day return policy along with a +90 day or a 4,000-mile warranty with every purchase
- – They have sold over nine million cars
- – And You can take benefits of their in-house financing
- – You can also sell your old vehicle to them
Cons about purchasing and selling via CarMax that must be kept in mind-
- You will have to pay transport/ delivery charges if you want the car to delivered to your doorstep
- Their prices on used cars are much higher in comparison to those of Carvana
- You will have to make a visit their store to sell your car
Difference Between Carvana and CarMax
Before jumping into the primary reason that sets both the used car retailers apart, let us tell you why they are a better option than private sellers. A private seller will price the car at what they deem best and may or may not be open to haggling.
Moreover, contacting private sellers off sites like Craigslist are sure shot ways of getting scammed, and there is no way of telling if what they are offering is, in fact, true or not.
There are two major differences between the workings of Carvana and CarMax, they are-
CarMax has set up over 215 physical stores in its 28 years in the market across the United States. It ensures the consumer can give the car a physical look before making a purchase.
The same cannot be done with Carvana as their services are restricted online. However, they do not charge an overhead as they don’t own physical lots! This, in short, translates to lower prices.
Selling cars through Carvana is convenient as they provide you an estimated amount on your vehicle online before making an inspection. Their whole selling process is done online.
You receive the check if your car passes their inspection.
In the case of CarMax, you would be required to take your vehicle to the closest CarMax store for necessary inspection. Once the review is complete and your car is up to their standards, they will make you an offer.
There is no denying that Carvana is new in selling used cars compared to CarMax. CarMax has managed to build a level of trust with its 9 million customers over the years.
However, Carvana offers prices that are just unbeatable! The company also provides more checks and warranties that put a new buyer’s mind at ease.
Before concluding, it must be added here that both websites offer an easy haggle-free shopping experience online and are equally worth checking out before settling with one.