Car loan and CarMax
August 24, 2009 2:22 PM Subscribe
Are there reasons I should avoid CarMax auto financing and go with my local bank?
posted by crapmatic to work & money (13 answers total)
We're intent on buying a used car this week at CarMax and my wife wants to use their in-store financing
to keep the whole thing simple.
I know conventional wisdom posted all over the Internet holds that you should line up financing at your bank, on the other hand I think it's common knowledge that CarMax is not run like a shark tank. So my question is whether I need to be on guard getting a loan with them and what I might want to watch out for doing the deal. Our time is more important than merely saving a few bucks, which is why we're doing CarMax and trying to get it over with as smoothly as possible, so a few APR points or a few hundred dollars here or there is not a big deal.
I'm already doing a little due diligence by calling both places, but I'd like to know what to ask for or look for. My bank rep admitted to me that their rates aren't as good as dealers right now; she said they offer 8%, no downpayment, and require 2 years of tax returns (I'm self employed). The guy at Carmax would not answer any questions about downpayment, rates, or paperwork requirements until I submit to a credit check. So that's where I'm at now. Both places appear to allow early payment without penalty (this is even stated on the CarMax site) so maybe it's all good and I need to relax.