CarMax return process with a trade?
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Joined: Sep 2004
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CarMax return process with a trade?
Does anybody have experience returning a car to CarMax? They offer a "no questions asked" 5 day full money back guarantee, but I'm wondering how this would work in the following situation:
1. I trade in my car to CarMax and it has some negative equity.
2. I finance the car I'm buying from CarMax and include the negative equity in the loan.
3. Since I am trading in a car I also get the tax benefit of not having to pay the sales tax on the amount of the new car that is covered by my trade value.
4. A few days later I determine that the car is not for me, or is damaged, or whatever, and decide to return it.
5. I'd like to buy a different car from CarMax, but the other car is located out of state and CarMax must ship it to the local dealer.
What happens in this situation? I guess if by some chance they still have my original trade car they can just reverse the whole thing, but what if they have already sent my trade somewhere else? I don't know how they'd handle the negative equity portion or the purchase of the next car, as I would still want the tax benefit from my trade. Seems like they can't just reverse the deal because I'd end up owing them cash to cover the negative equity (which was rolled into the new loan), and plus if they just treat it like I sold them my car outright then I wouldn't be able to get the tax benefit when I buy the new car after it gets shipped. Maybe they can somehow put the transaction on "hold" so when the other car comes in everything just gets rolled back into that next car?
Has anybody actually experienced this or know firsthand how CarMax handles returns?
1. I trade in my car to CarMax and it has some negative equity.
2. I finance the car I'm buying from CarMax and include the negative equity in the loan.
3. Since I am trading in a car I also get the tax benefit of not having to pay the sales tax on the amount of the new car that is covered by my trade value.
4. A few days later I determine that the car is not for me, or is damaged, or whatever, and decide to return it.
5. I'd like to buy a different car from CarMax, but the other car is located out of state and CarMax must ship it to the local dealer.
What happens in this situation? I guess if by some chance they still have my original trade car they can just reverse the whole thing, but what if they have already sent my trade somewhere else? I don't know how they'd handle the negative equity portion or the purchase of the next car, as I would still want the tax benefit from my trade. Seems like they can't just reverse the deal because I'd end up owing them cash to cover the negative equity (which was rolled into the new loan), and plus if they just treat it like I sold them my car outright then I wouldn't be able to get the tax benefit when I buy the new car after it gets shipped. Maybe they can somehow put the transaction on "hold" so when the other car comes in everything just gets rolled back into that next car?
Has anybody actually experienced this or know firsthand how CarMax handles returns?
Thread Starter
Joined: Sep 2004
Posts: 115
Likes: 0
I'm a sales consultant at CarMax...
Basically you have 5 days to return your car for whatever your reason may be, normally your trade in would be sent to either an auction or a reconditioning facility however you can request to hold it for the 5 day period if your unsure of the car that you bought.
If you return the car its basically like the transaction never happened, they dont send out the paperwork or title for x amount of days.
If you find another vehicle at a different CarMax location that you want to have transfered then they would still use your trade in even if its not physically present, so you still get the negative equity and tax credit.
This is of course how things would work at my store, I cant imagine it would be much different at another store but you definitely want to layout the situation clearly for whoever your sales consultant is so he is fully aware and can notify a manger if need be.
Basically you have 5 days to return your car for whatever your reason may be, normally your trade in would be sent to either an auction or a reconditioning facility however you can request to hold it for the 5 day period if your unsure of the car that you bought.
If you return the car its basically like the transaction never happened, they dont send out the paperwork or title for x amount of days.
If you find another vehicle at a different CarMax location that you want to have transfered then they would still use your trade in even if its not physically present, so you still get the negative equity and tax credit.
This is of course how things would work at my store, I cant imagine it would be much different at another store but you definitely want to layout the situation clearly for whoever your sales consultant is so he is fully aware and can notify a manger if need be.
Joined: Aug 2008
Posts: 4,038
Likes: 1
From: Columbus, OH
Hope you dont loose your job. im guessing you didnt review all of their policies fully.......
I'm a sales consultant at CarMax...
Basically you have 5 days to return your car for whatever your reason may be, normally your trade in would be sent to either an auction or a reconditioning facility however you can request to hold it for the 5 day period if your unsure of the car that you bought.
If you return the car its basically like the transaction never happened, they dont send out the paperwork or title for x amount of days.
If you find another vehicle at a different CarMax location that you want to have transfered then they would still use your trade in even if its not physically present, so you still get the negative equity and tax credit.
This is of course how things would work at my store, I cant imagine it would be much different at another store but you definitely want to layout the situation clearly for whoever your sales consultant is so he is fully aware and can notify a manger if need be.
Basically you have 5 days to return your car for whatever your reason may be, normally your trade in would be sent to either an auction or a reconditioning facility however you can request to hold it for the 5 day period if your unsure of the car that you bought.
If you return the car its basically like the transaction never happened, they dont send out the paperwork or title for x amount of days.
If you find another vehicle at a different CarMax location that you want to have transfered then they would still use your trade in even if its not physically present, so you still get the negative equity and tax credit.
This is of course how things would work at my store, I cant imagine it would be much different at another store but you definitely want to layout the situation clearly for whoever your sales consultant is so he is fully aware and can notify a manger if need be.
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