Carmax Offer

[exit74chris]

A huge chunk of that depreciation is due to rebates and /or manufacturer discounts.

My 24 GT was $16k off (!). On a $60k car that's 25% right off the bat.

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[KidGalahad]

I'm guessing part of his reasoning is in this statement: "Frankly, I was surprised offer was so low since I see they are selling comparable ones with more mileage for about $30,000. That's a big profit for them."

OP not realizing demand; and the fact that Carmax, like most businesses, have to make a profit.

 

[exit74chris]

I'm guessing part of his reasoning is in this statement: "Frankly, I was surprised offer was so low since I see they are selling comparable ones with more mileage for about $30,000. That's a big profit for them."

OP not realizing demand; and the fact that Carmax, like most businesses, have to make a profit.

Agreed there, too. They can't pay you $30k for a car, prep it, throw tires on it, and stash some warranty money aside and sell the car for $30k AND cover overhead.

$24-$25k is reasonable.

 

[Almondtree]

Simple. The price is lower than OP’s expectations.

You don’t sell just because you are not under water. You sell because the overall deal meets your expectations.

Agreed!!!

 

[Almondtree]

Agreed there, too. They can't pay you $30k for a car, prep it, throw tires on it, and stash some warranty money aside and sell the car for $30k AND cover overhead.

$24-$25k is reasonable.

I was hoping to get $25K.

 

[Mach1E]

Last Dec, I took my 2022 premium with 13k miles to CarMax and they offered me $26k. My personal opinion is that they are anti-EV and anti-Mach-E specifically, so I’m skipping the unpleasant experience altogether.

Carvana on the other hand offered $32.6k. I ended up trading it in to my dealer for $29.5k, which is equivalent to the Carvana offer when accounting for sales tax impact (a Chicago special). My dealer sold it for ~$31.5k in less than a week, pocketing $2,000 for looking good and combing his hair nice that day.

Only reason they’re anti-EV is that used EVs sell very slowly.

They are pro- “whatever makes them money quickly.”

 

[GreaseMonkey]

Agreed there, too. They can't pay you $30k for a car, prep it, throw tires on it, and stash some warranty money aside and sell the car for $30k AND cover overhead.

$24-$25k is reasonable.

Prep it? Throw new tires? You must be a dealer.

My dealer didn’t do as much as move it from where I dropped it off. Didn’t even wash the damn thing and sold it for $2,000 profit in a week.

 

[exit74chris]

I was hoping to get $25K.

They might come back higher. Might not.

Did you try carvana to get a feel for the market?

 

[Almondtree]

They might come back higher. Might not.

Did you try carvana to get a feel for the market?

Yes. Same price exactly.

 

[Sikkun]

I got 52k for '23 premium from carmax just before things crashed

The fact I paid 5k less than that with 0% interest for 6 years on a 23 brand new is probably a hint at why people are getting less for them now.

 

[exit74chris]

Prep it? Throw new tires? You must be a dealer.

My dealer didn’t do as much as move it from where I dropped it off. Didn’t even wash the damn thing and sold it for $2,000 profit in a week.

I've yet to see a car in my area bought from caravana that didn't have new rubber and wasn't decently clean upon delivery.

If they're doing it right, they are stocking away 5-7% of the selling price for their warranty.

(Not a dealer - I've just bought way to many cars!)

 

[Mach1E]

Prep it? Throw new tires? You must be a dealer.

My dealer didn’t do as much as move it from where I dropped it off. Didn’t even wash the damn thing and sold it for $2,000 profit in a week.

Gross profit maybe.

But if $2k was all the gross on a used car trade that’s a very skinny deal. They’re lucky to break even on that.

Never worked for a dealership, but did marketing for them in a previous career. Saw all the numbers.

 

[T1328]

Carmax, unlike dealers, is only in the business of buying used cars and selling them. So the profit margin they have to make is higher than any Ford dealer’s required profit margin. But at the end of the day, all EVs have tanked in value. I will only lease them moving forward - that’s also where the best deals are, and if I want to keep the car, I’ll buy it at the end the lease if it is financially sound to do so.

Add to that Tesla and Ford lowering their prices a lot, the tax credit about to go away, and every other EV manufacturer having insanely good lease deals (like $17,500 off the MSRP of the Kia EV9 we leased before the lease price was calculated), and selling a 2nd hand EV that you own or lease is generally a losing money proposition - an rarely pays you what you still owe - except towards the tail end of the lease as seems to be the case here.

Based on the OP saying that s/he will hand the car back to Ford in a year, my understanding is the they are on a 4 year lease. If that's the case, then if you feel you really can't live with the car any longer, I'd suggest shopping for your next EV, and then taking the Carmax quote to that dealer to have them beat it in their trade in. If you own the car, I'd do the same, because you'll get less a year from now. Otherwise, if you're on a lease and are not in a rush to move away from your current vehicle, I agree with your point about just waiting until lease end assuming your mileage is within the total lease miles allowed, and then seeing what's out there - perhaps a really new version of the Mach-E with better range and much quicker super charging, even better range from the Hyundai Motor Group vehicles, of which, if I could afford it, I'd lease the Ioniq 5N or 6N. The only wild card, is whether these manufacturers will still have such great lease deals once the $7,500 tax credit is fully over.

 

[GreaseMonkey]

I've yet to see a car in my area bought from caravana that didn't have new rubber and wasn't decently clean upon delivery.

If they're doing it right, they are stocking away 5-7% of the selling price for their warranty.

(Not a dealer - I've just bought way to many cars!)

CarMax makes a gross profit of $2,300 on an average selling price of $26,000. That's a 9% gross margin. This excludes $500 per car they make selling 3rd party warranties and $150 per car on financing. There is no way they are changing tires and servicing vehicles. They wash them and make them look good. They also handpick shitty ones and sell them wholesale to bottom-feeder dealers at a reduced profit. Spit and polish. All day long.

There is a reason people use the phrase "used car salesman" in a derogatory way. CarMax and Carvana are no exception.

 

[tfun]

I was hoping to get $25K.

I'd buy that car from you for $25K if we can use keysavvy to get the used EV credit

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