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Hello FWF,

I am trying to become debt free and have the opportunity to buy a dependable vehicle in cash. The problem is I owe more than my vehicle is worth according to Carmax. They offered me 1000 lower than what I owe on a 2015 Ford F-150. Would it be better to wipe my hand of the new vehicle and purchase the other in cash regardless of the loss? It will save me $750 a month in payments and lower my overall debt by $28,000.

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As someone who has put for sale signs in my cars when I sold them on multiple occasions, as well as parked them places w... (more)

Chrisk327 (Feb. 06, 2017 @ 10:36a) |

I have sold two vehicles to CarMax and tried this strategy, but for whatever reason the car dealers could never come clo... (more)

FriendlyPeon (Feb. 06, 2017 @ 11:06a) |

I tried it with an old toyota. Carmax lowballed me, but Toyota gave me enough to pay it off.

forbin4040 (Feb. 06, 2017 @ 11:07a) |

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Go to a Ford Dealer, ask the Used Car manager to give you an offer, when he low balls you, you say, well Carmax was willing to give $X (+1000) and walk out.
He will most likely chase you and offer you a better option.

If he doesn't go to the Next Ford Dealer.

If you can't get a Ford Dealer to ... deal... then go back to Carmax and suck up the $1000 loss.

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Yes

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I will check with the Ford dealership to compare. Thank you all.

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cardinalfan2 said:   Hello FWF,

I am trying to become debt free and have the opportunity to buy a dependable vehicle in cash. The problem is I owe more than my vehicle is worth according to Carmax. They offered me 1000 lower than what I owe on a 2015 Ford F-150. Would it be better to wipe my hand of the new vehicle and purchase the other in cash regardless of the loss? It will save me $750 a month in payments and lower my overall debt by $28,000.

  You need to ponder the choice for a couple more months.  Then the dilemma will resolve itself, since their offer will now be equal to what you owe after making a couple more $750 payments.

Of course, this approach will end up costing you an additional $1500, compared to the $1k making the choice now will cost.  That should make the decision rather obvious - you are going to pay the difference one way or another, the question is how much additional financing costs you pay in the process.

What is this opportunity to buy a dependable car in cash?  Is someone you know selling you their car, or do you just have enough cash to go out and find something reliable?

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Carmax gave me a lowball offer and then the sales guy called me a few times to remind me that i was missing their super offer😉. I later sold the vehicle for a lot more.

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You could of course just post it for the higher price on craigslist. Check nadaguide.com and kbb to get an idea of what the price should be. As you're a private party, you're not going to get retail pricing, but probably somewhere between clean trade in and retail would be a good price, but you might just want to be happy with clean trade in. If they're low balling you, they would offer you rough trade in.

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You can definitely sell it for much more on craigslist.

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selling a car with a lien on it on craigslist is a giant pain in the ass... as a buyer I would never buy a car before it had a clear title

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isn't selling to Carmax typically better than most dealers, but worse then craigslist (do it yourself savings)??

Are there other national sell only dealer options (most want to trade) ??

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Most dealers will do their best to come up to your payoff, if they can. They know that is a "magic number" to beat if they want it. Don't be afraid to disclose it, at all.

The trick is that most likely CarMax gave you a good offer since your vehicle is one they have every intention of selling on their own lot. Look on CARMAX as a buyer for identical trucks and you will see what their profit margin is. So you may not be able to close the gap. KBB/eBay completed will give you an idea where the market is as well.

If you make one more payment you should find yourself MUCH closer, if you cannot get someone to make up the full grand you are short. (they know you want out from under it)

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Carmax will give you a wholesale price. It's easy and convenient, but you pay for that convenience through a low sales price. You could no doubt get a lot more for the car if you sold it yourself, but that comes with a lot of hassle (especially if you don't have the title in hand). It's up to you to determine if the extra hassle is worth the extra money.

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I have used Carmax twice, to gauge the lowest value I can get for my cars.

The first time, I was quoted $7500, and the car was sold on Craigslist to a private buyer for $11000.

The second time, I was quoted $12000, and sold for $18500 privately.

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LAwoodtiger said:   I have used Carmax twice, to gauge the lowest value I can get for my cars.

The first time, I was quoted $7500, and the car was sold on Craigslist to a private buyer for $11000.

The second time, I was quoted $12000, and sold for $18500 privately.

  I've had very different experiences and I'll share details;

in 2013 - 08 ISF - retail and through autotrader they appeared to be going for around 34-35k depending on mileage, carmax offered 33k.  DONE
In 2014 - 12 Chevy Cruz , not the nice ltz model.  Going for around 13-15 depending on mileage.  Carmax offered 12k, ended up trading for 12.5 to another dealer and saving on taxes.  


I'd like to know the details of your carmax offers and eventually sales, because through my experience and acquaintances and friends they did not offer 30% of private party and this post really makes carmax NOT look appealing to someone who doesn't want to spend 30 days selling a car to make another 1 or 2k. 

:edit: this post makes me look like a carmax shill.  I am not a carmax shill, but the ease of working with them on a baseline price, shopping that through other trades or even comparing to local autotrader and craigslist adds is very valuable.   Keep in mind that selling for full price through craigslist or autotrader is NOT a guaranteed thing.. at all

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If you currently have a lien on your car its a pain to sell through craigslist in my experience. I tried it for a while, then decided just to payoff the car, and then sell it, without the hassle. For people who cant afford to pay it off, Carmax also offers a way to make that transaction smoother. You normally have to deal with 10 dumbtards per every one legitimate person when selling on Craigslist, its can sometimes be a overwhelming hassle if you have to walk them through the payoff/title transfer with a lien to pay off process.

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cardinalfan2 said:   Hello FWF,

I am trying to become debt free and have the opportunity to buy a dependable vehicle in cash. The problem is I owe more than my vehicle is worth according to Carmax. They offered me 1000 lower than what I owe on a 2015 Ford F-150. Would it be better to wipe my hand of the new vehicle and purchase the other in cash regardless of the loss? It will save me $750 a month in payments and lower my overall debt by $28,000.

  
I don't know your entire financial situation, but if it were me, I'd eat the $1k.  daw4888 essentially said the same thing I came here to say.  Unless you have your title in hand, it's a PITA selling a vehicle private party.  Heck it's a PITA selling a vehicle for $28k private even if you do have the title in hand. 

Every day you think about this, your truck is losing value.  Should something happen in the news tomorrow that affects 2015 and newer F-150s, then what? Now you're stuck with it or you may end up paying even more to get out of the vehicle.  With the frequency of recalls that are detrimental to resale value, I wouldn't wait a day longer. 

I had a 2012 F--150 Platinum 4x4 with 31k miles that I owed $20k on in 2016.  CarMax offered me $29k.  I called Enterprise to come pick me up and I didn't think twice about unloading that truck that day.  I could have sold it for a few grand more via private party, but I would have had to do deal with the hassle of a private party sale.  CarMax sold it for $33k. 

Private party is great for cheap cars.  Usually quick and painless.  The moment you involve loans and liens, it frequently isn't quick and painless.  Sell it to CarMax.  Don't wait any longer if you really want to get out of the vehicle. 
 

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ArmchairArchitect said:   You can definitely sell it for much more on craigslist.
  I wouldn't waste my time answering the lowball offers you'll get on a high dollar truck like that. Put it on eBay starting at $100, with a reserve $500 over the Carmax offer and a Buy It Now maybe $1,000 above that. Make sure you check the box, immediate deposit required, with the Buy It Now.

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atikovi said:   
ArmchairArchitect said:   You can definitely sell it for much more on craigslist.
  I wouldn't waste my time answering the lowball offers you'll get on a high dollar truck like that. Put it on eBay starting at $100, with a reserve $500 over the Carmax offer and a Buy It Now maybe $1,000 above that. Make sure you check the box, immediate deposit required, with the Buy It Now.

  it would come out the same if you sold it to carmax. have to pay crap loads of fees to eBay  

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tantuti said:   
atikovi said:   
ArmchairArchitect said:   You can definitely sell it for much more on craigslist.
  I wouldn't waste my time answering the lowball offers you'll get on a high dollar truck like that. Put it on eBay starting at $100, with a reserve $500 over the Carmax offer and a Buy It Now maybe $1,000 above that. Make sure you check the box, immediate deposit required, with the Buy It Now.

  it would come out the same if you sold it to carmax. have to pay crap loads of fees to eBay  

  
I believe eBay just charges $60 to sell a car. I'm not sure you'd call that a crap load. 

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atikovi said:   
ArmchairArchitect said:   You can definitely sell it for much more on craigslist.
  I wouldn't waste my time answering the lowball offers you'll get on a high dollar truck like that. Put it on eBay starting at $100, with a reserve $500 over the Carmax offer and a Buy It Now maybe $1,000 above that. Make sure you check the box, immediate deposit required, with the Buy It Now.

  
Is the eBay commission small enough that ti's worth the extra hassle over CarMax?
 

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tjguitar85 said:   
atikovi said:   
ArmchairArchitect said:   You can definitely sell it for much more on craigslist.
  I wouldn't waste my time answering the lowball offers you'll get on a high dollar truck like that. Put it on eBay starting at $100, with a reserve $500 over the Carmax offer and a Buy It Now maybe $1,000 above that. Make sure you check the box, immediate deposit required, with the Buy It Now.

  
Is the eBay commission small enough that ti's worth the extra hassle over CarMax?

  If you can get an extra thou, why not?

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Recently went through the same experience although my truck was free and clear.

2008 Avalanche LT2 4x4 144k miles. Offered 10k at Carmax just before Christmas. Put it on eBay for 13.5k. Had lots of offers at 10-10.5 but nothing higher. Kept it listed for a month decreasing my BIN price eventually hitting 12k BIN. The last week I decided I would take it to CARMAX. This was 1 month after my first offer and ~500 more miles. Nothing else different with the truck. They offered $9500. I declined and decided to let the listing end. Two days before listing ended had a serious buyer contact me and we agreed at 10,250 wired outside of eBay. Truck was picked up by the carrier last night.

My truck was free and clear but I did keep it insured for the extra month and drove it a bit. In the end after 1 month on eBay I received $250 more than my original offer. HAd many phone calls, emails, offers back and forth. For the guy who bought it I am happy. He got a good truck at a good price but the $250 was not worth the hassle.

Eat the $1k if that is the goal to avoid delaying and dealing with the hassle. There are tons of incentives on new trucks right now and they may even get stronger. For reference Carmax had a 2015 Silverado LTZ on the lot at $39.9k with 35k miles. I bought my new silverado LTZ for 40.6k. Your truck is the same. It will compete with new trucks with incentives and it will lose.

Good luck in it!!

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You can't really compare a old high mileage truck during the worst time of year to sell to a 2 year old one at the start of tax season and the Spring surge in car buying. Sure, if he doesn't want to deal with it, drop it off at Carmax.

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Losing 1k to get rid of 28k debt is awesome. Like said above visit a few Ford Dealers. But do not let the Carmax offer expire.

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In the past 10 years, I have literally taken every one of my cars to CarMax to get a value just out of curiosity. I sold 2 to them. For most cars, they mark it up $4,000 from their offer to you. So, normally, if you want, you can sell it yourself in the middle of the 2. With CarMax, they don't mess with you on the payoffs. It get paid off right away. I have heard of nightmare stories from car dealers that decide not to payoff the loans right away or wait until they sell the car. Guess what happens to your credit when the lender doesn't receive a payment? 

For a $1,000 out of pocket, I don't see it that bad, considering your payment is $750 a month, especially if you plan to get out of the truck. It's close to the sweet spot. You may think that if you make a few more payments, you will be in the money. That doesn't always happen. It can change from week to week, depending on auction markets. I have had it go the other way too, where the value went up by waiting. So, it depends on the type of car and the economy. For a truck, you probably can predict that with low gas prices, the value will be better than when gas is higher.

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What all the above posts don't address is that we have no idea what your 'dependable vehicle' is, and why you needed the truck in the first place.

If the 'dependable vehicle' is 10 years old, with 200K miles on it, and you need the vehicle for your business, it may make more sense to stay with your new truck and stay in debt. Debt is not always a bad thing, particularly if you leverage it to make money. A business takes on debt on purpose, since they can use the money to expand their business and increase profits. If the 'dependable vehicle' will only last 1-2 years, and your new truck will last for 10, then you have to look at the total cost of ownership to see what makes sense.Buying a bunch of old trucks over that 10 year period might not be any cheaper than sticking with the 2015 truck.

On the other hand, if the truck was simply used to demonstrate masculinity to the ladies, then absolutely, get rid of it ASAP and get a cheap (but dependable) small car till you can afford a nicer vehicle.

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workindev said:   Carmax will give you a wholesale price. It's easy and convenient, but you pay for that convenience through a low sales price. You could no doubt get a lot more for the car if you sold it yourself, but that comes with a lot of hassle (especially if you don't have the title in hand). It's up to you to determine if the extra hassle is worth the extra money.
  
They run their own auctions, if a car would sell at auction for between 6-9K then they will offer 5K.  Guaranteed a small profit, with more built in if it gets a higher than normal offer.  If its an older car that is guaranteed to go to auction they could really care less if you sell it to them.

However if its a car they can sell on their own lot they know more exactly what they will sell it for and they will often beat the wholesale rate.  That is their sales model - the sweet spot.  That doesn't mean you can't beat it if you want to do the extra work.

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Carmax also can miss things (to your benefit). I sold them a 10 year old mazda sedan that had been in an accident with bodywork, and whose engine bay caught fire, had to be completely rewired, and whose electrical systems were on the fritz regularly. They offered me 10% below good condition bluebook. Needless to say they were the new proud owner.

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PrincipalMember said:   Carmax gave me a lowball offer and then the sales guy called me a few times to remind me that i was missing their super offer😉. I later sold the vehicle for a lot more.
  
I've had similar results from CarMax.  Their trade-in offers came in at the low end of the value range, and I did much better elsewhere. 

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You can also go to KBB.COM and enter all the info about your truck and you will get  offers from dealers interested in buying your truck.

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What are the specs? Ill give you $500 more than what Carmax offered.

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rescue11 said:   You can also go to KBB.COM and enter all the info about your truck and you will get  offers from dealers interested in buying your truck.
  
make sure use your ex girlfriends number unless you want calls from survey people and companies selling extended warranties  

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I will buy your vehicle . Payment will be sent via PayPal. Just send me the title now. I am a Prince.

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I've used Shift.com to sell a car. Anybody use them before?

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gooseman13 said:   I've used Shift.com to sell a car. Anybody use them before?
  Considering they are in two whole markets (LA and SF) that would be a difficult question.
Shift only pays if the car sells.  Otherwise, nope.

Maybe OP can call Beepi.com and see if they will buy it for more?

 

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lotusgardener said:   What are the specs? Ill give you $500 more than what Carmax offered.
  I am sure even $1000 more would be worth it than CarMax's offer.

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If you have time and patience sell it through Craigslist. Also, buy couple of "For Sale" signs and stick it on your truck that you are trying to sell. You can easily get $1000 more if not even more selling yourself.

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JKdeals said:   If you have time and patience sell it through Craigslist. Also, buy couple of "For Sale" signs and stick it on your truck that you are trying to sell. You can easily get $1000 more if not even more selling yourself.
  In my neighborhood you get a $65 ticket for running an unlicensed dealership when you put a For Sale sign on your car and park it in a city street.

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Ticket or advertising expense?

Skipping 5 Messages...
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I tried it with an old toyota. Carmax lowballed me, but Toyota gave me enough to pay it off.

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