A man went to CarMax to check out a Honda Fit, then noticed something off about the price. However, it wasn’t just the one Honda Fit that made him raise his eyebrows. The entire CarMax inventory was overpriced in his opinion. In a TikTok, Thomas (@thomasssbj/) shows several used cars at CarMax with prices similar to or higher than the manufacturer’s suggested retail price (MSRP) for the same vehicle. In a text overlay, Thomas writes, "CARMAX Has Lots Full Of Unused Overpriced Vehicles." "The price you see is the price you pay. The problem is the price can be way too high," Thomas says in the post. Thomas shows that a 2016 Honda Fit LX with 12,000 miles is priced at $20,000, which he believes is too high. According to Honda, the MSRP for a brand-new 2016 Fit LX was between $15,890 and $16,690. So CarMax appears to be charging $3,000 more than the car cost 10 years ago when it was brand new. The next car Thomas shows is a 2018 Nissan Sentra SV with 77,000 miles, which CarMax is selling for more than $14,000. The starting MSRP for the Sentra was $16,990. The current Kelley Blue Book fair market price for this vehicle is roughly $8,000—about half of the CarMax price. He also points to a 2025 Toyota Corolla LE with 22,000 miles, which CarMax was selling for $23,000; the starting MSRP on it was $22,175. "It’s crazy that these cars that are used are selling at MSRP still today. This stuff is crazy expensive for what you are getting," Thomas says in a follow-up, adding, "A lot of these cars are extremely overpriced for what they are… Especially when you have used vehicles selling for MSRP or over MSRP in some situations." Thomas says CarMax is popular for people who need financing, particularly those with poor credit. While a dealership or other lender may deny them a loan, CarMax may offer them a loan, though potentially at a higher interest rate. Lending Tree reports that CarMax’s interest rate ranges from 5.24% for borrowers with excellent credit to 24.35% for those with poor credit scores, which it defines as below 580. "It’s almost going to all be financed. Very few people are going to CarMax to purchase a vehicle with cash," Thomas says. Does CarMax Overprice Its Vehicles? The car-buying experience varies based on multiple factors. Negotiations can make it tense, and some car salespeople use tactics like bait-and-switch to take advantage of customers. CarMax has positioned itself as a hassle-free place to buy used cars. CarMax displays the out-the-door price on each vehicle's window so the customer knows exactly how much it costs. But experts say this hassle-free experience can cost you. The Penny Hoarder reports that the biggest con to using CarMax is that the average cost for a vehicle is higher than that of standard dealerships. For vehicle costs, The Penny Hoarder rates CarMax two out of five stars. "CarMax makes money by selling cars above their fair market value, plain and simple. While it can vary from car to car, vehicles at CarMax are generally $1,000 to $3,000 more than you’d find them at a car dealership," the Penny Hoarder states. So if getting the best deal possible is your top priority, you may want to consult a pricing guide like Kelley Blue Book and consider buying elsewhere. Are People Willing To Pay A Premium To Avoid Haggling? People who commented on Thomas’ post widely agreed that CarMax is overpriced. "Carmax, I think I’ve been there one time and I looked at their pricing—but no haggle—that just means we price it so high and we’re not gonna take it down. They are unbelievably high priced cars," one wrote. "They trying to be like the real estate market," another added. "They can't sell new overpriced crap so now they are selling used vehicles at high prices," a third opined. Another said, "10-year-old car for 20k. Yuck." At least one person came to CarMax’s defense. "CarMax is what y’all have been asking for. Y’all wanted this. No salesman. No hassle. Lol," they wrote. Motor1 has contacted Thomas via TikTok direct message and comment on the post. We’ve also contacted CarMax via email. We will update this story if either party responds. We want your opinion! What would you like to see on Motor1.com? Take our 3 minute survey. - The Motor1.com Team
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