Why would a dealership send a car to auction?

Dealerships sell these cars to auctions to make room for newer cars and have a bit of a return to their investment. Repossessed cars due to the owner not able to continue paying their loan. Some owners trade their Cars to banks and insurance so that they can get a newer one.

Are CarMax auction cars good?

CarMax Dealer Auctions have a reputation for selling high-quality vehicles with a friendly, professional staff. Amazingly, they sell 97-100\% of all vehicles the first time, which is a testament to the caliber of vehicle you will find there.

What happens to cars sold at auction?

Many cars that end up at auction, particularly new ones, are cars dealers weren’t able to sell. After some time on the lot, dealers sell them at auction to move them quickly. Banks then sell these cars at auction. There are also ex-lease or rental cars.

Does CarMax send cars to auction?

The Rest. Any vehicle Carmax purchases as a trade-in or CFYC that falls outside of their “retail eligible” criteria immediately gets flagged for wholesale auction. According to their website, approximately 60\% of all cars they take in are rejected for their retail lots.

Why do people sell cars at auctions?

Car auctions are regularly used by independent traders and car dealers to acquire suitable stock to sell. When buying a car at auction, the price can be cheaper than purchasing in a private sale or from a dealership because you efficiently cut out the middleman.

What happens to cars CarMax cant sell?

CarMax fixes up all vehicles it receives before selling them, so you are generally guaranteed to purchase a new-quality vehicle from them. It may also be a good idea to use CarMax even if you do not plan on buying a new vehicle. CarMax will purchase vehicles from people who do not intend to buy a new one.

Does CarMax sell repossessed cars?

No, all units are sold through the auction. These vehicles are sold through our auction. Other vehicles may be CarMax Auto Finance repossessions.

What happens to cars that don’t sell at auction?

In most cases, dealers sell these cars to auction houses rather than auction the vehicles off themselves. The title of the car is typically transferred directly to the auction house, removing any further involvement from the dealership.

Does CarMax negotiate selling price?

In short, there is nothing you can really negotiate at CarMax. The whole appeal of the company is that it is a no-hassle car dealer. You know the price you are going to pay for a particular vehicle when you walk in the door. That is, the advertised price of that vehicle is exactly what you are going to pay.

Can you negotiate when selling a car to CarMax?

When you sell your vehicle to CarMax, you will not be able to negotiate the price of it. But you may be able to get a tax credit if you trade your vehicle in, or sell it at select CarMax dealerships. And when you get your new vehicle, you may be able to negotiate about items such as new tires, or minor repairs when you buy your new vehicle.

Why buy from CarMax auctions?

CarMax Auctions is open and upfront with our wholesale customers. We make major mechanical announcements on vehicles that we know to have evidence of a bad motor, transmission, 4×4, front and rear differential, etc. CarMax Auctions also discloses any known title brands.

Does CarMax buy salvage cars?

However, these cars will need to be towed to a CarMax store for an appraisal. CarMax will even buy cars that they don’t expect to sell, such as badly damaged vehicles, that they will sell to auction. There are exceptions to the vehicles that CarMax will buy. The retailer will not buy a salvage vehicle.

Does CarMax buy old cars that don’t run?

CarMax will buy most cars, even old cars that don’t even run. However, these cars will need to be towed to a CarMax store for an appraisal. CarMax will even buy cars that they don’t expect to sell, such as badly damaged vehicles, that they will sell to auction. There are exceptions to the vehicles that CarMax will buy.