Carmax auto loans: 2025 review

CarMax is best for online and in-person used car shopping

CarMax offers financing on its website with rates presented following prequalification in as soon as five minutes. It works with multiple lenders and has its own lending arm to secure funding for its buyers — which means you can only use CarMax financing to buy one of its vehicles. That said, with over 250 brick-and-mortar stores across the country, CarMax is a great option if you want to check out your vehicle in person before purchasing.

CarMax is unique because it lets you shop online or visit a dealership. You can walk into any CarMax location, shop for a car and finance your vehicle all in one place. You can also browse available cars and apply for financing online, then head to a location to see the cars you're interested in. And if you feel confident handling your finances online, you can also have your car delivered. 

CarMax offers used auto loans

Where CarMax stands out

• Remote purchasing: While CarMax has brick-and-mortar offices across the country, borrowers who are sure of the vehicle they want can purchase it without having to step foot in an office.
• Limited warranty: All CarMax vehicles come with a 90-day or 4,000-mile (whichever comes first) limited warranty that covers all parts and labor for covered systems.
• Fast financing decision: CarMax encourages borrowers to prequalify for its financing. This does not affect your credit and, according to the site, should take less than five minutes.  

Where CarMax falls short

• Limited inventory: Unlike the offerings of a more traditional auto loan lender, CarMax loans are reserved for those who are purchasing a vehicle from one of its lots.
• Range of fees: CarMax charges processing fees and may charge shipping fees if you buy a car online that requires delivery. The partner lender that you are matched with may also charge additional fees. These are all on top of registration fees based on the state you reside in.
• No negotiation: Although some borrowers might be comforted by avoiding the process of negotiation, it is a downside for most. CarMax has a no-haggling policy, but that does not mean that you will be offered the lowest available price.  

CarMax customer resources

Customer support 

CarMax has an easy-to-navigate website and customer service via chat, phone call or in-person appointment. Phone support is available Monday to Friday from 8 a.m. to 10 p.m. ET and Saturday from 9 a.m. to 6 p.m. ET, and its app provides assistance 24/7. 

Digital experience 

CarMax boasts an easy-to-navigate website suitable for drivers who want to check out available vehicles from the convenience of their computer. Borrowers can filter by ZIP code or vehicle type to find the right fit. Those who plan to trade in or sell their vehicle ahead of purchase can also easily handle this online.  

How this lender compares

CarMax only serves borrowers purchasing a used vehicle. If this does not suit your needs, it is worth exploring other similar lending options. However, CarMax does offer loan prequalification, so you can always check if it is a good fit before submitting a full application. 

CarMax vs. Carvana

Like CarMax, Carvana is an online used car platform offering funding through lending partners that cater to a range of credit profiles. Carvana’s loan terms can range from 36 to 72 months with rates starting under 8 percent for well-qualified borrowers. However, it does not have dealerships — you will need to have your car delivered or use one of its vending machines located throughout the country.

Both offer similar limited warranties — 100 days for Carvana and 90 days for CarMax. Overall, CarMax has the edge over Carvana because there are many more locations and vehicles to choose from nationwide.

CarMax vs. CarsDirect

Like CarMax, CarsDirect serves consumers looking to shop and finance for their next vehicle from the comfort of home. Both lenders work with an extensive network of lenders, which can help those with fair or poor credit secure good rates and terms. Unlike CarsDirect, CarMax has brick-and-mortar offices nationwide for those who want to couple the online and in-person experience.

Do you qualify for a CarMax auto loan?

CarMax offers financing for used car loans through its direct lending platform, CarMax Auto Finance, or through one of its many partners. This means that requirements vary based on which lender you are matched with. 

How Bankrate rates CarMax

Those who did secure financing with CarMax noted a frustrating online payment process and unrealistic rates and terms. 

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