CarMax Financing Bad Credit Auto Loans

Everyone’s Asking…

Does CarMax offer auto loan financing for bad credit?
The answer is a little more than a yes or no.

CarMax Financing Bad Credit Auto Loans

CarMax not only works with a multitude of lenders for most all credit types, but they even have their own financing… CarMax Auto Finance.

CarMax Claims to Help Over 100k People a Year Get Auto Financing.
This benefits those with some credit challenges, but can also present some major downfalls. With their no haggle pricing this limits how much they can discount their vehicles. With most bad credit auto lenders they only offer financing up to 80% of the vehicles market value. Which limits CarMax’s ability to discount their vehicles with their no haggle pricing.

carmax financing bad credit auto loans

CarMax Financing Bad Credit Auto Loans

CarMax Auto Finance Reported Higher Income
They reported the higher income on a lower number of credit applications in the third quarter, as its mix increased toward higher credit-quality loans.

The Number of Bad Credit Auto Loans for CarMax is Very Small
The mostly used-car retailer also said its 2-year-old foray into originating its own subprime auto loans remains very small, accounting for just 0.5% of the captive’s sales penetration in the quarter.

In My Opinion…
You are better off going through a smaller car dealer that can be more flexible with their pricing to accommodate the lenders “loan to value” requirements for poor credit. Typically this is 80% or less. Keep in mind that the other 20% is usually profit for the dealers and is not a requirement for lenders. So, if you want to pay 100% of a vehicles value with bad credit you will get approved for 80% ltv and the dealer will want 20% down payment. As you can see, it’s better to have the dealer discount the vehicle than for you to put money down simply for the dealer to make more money.

Happy Car Shopping,
Jeremy

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