I was more curious (or maybe not), but I went to CarMax to see what they would offer me

on my 2016 F-Type R coupe w/5k miles.

Not that I paid msrp less than a year ago (Feb 2016), but a $33000+ depreciation hit is crazy talk! I know KBB isn't that accurate (NADA isn't available), but KBB notes $84-90k!

 

I don't understand..they are offering less than the trade-in value? What am I missing?
larry

 

Yuppers!!!
KBB and the likes of online consumer appraisal sites are always inflated, but I'm really shocked by the large discrepancy!

 

CarMax offered me only $8,000 for a 2000 Vette with 60,000 miles. I traded it on a used Miata for my wife and got $15,000. CarMax is out to make a buck, or a lot of bucks.

 

Don't get me started on CarMax.

They used to offer the best money on trade in. They were able to do this because of their huge network of dealership selling only used cars across the country. Trade in a convertible in Chicago? No problem, they'll pay California money on it and ship it out to California to sell (where there is a better market).

However, they no longer offer good money on cars.

Last year they offered us $7k less than the same car they had on the lot. Same, but...lets be honest, different. The car on the lot was filthy, scratched, and had much higher mileage. My wifes car looked showroom new inside an out, had much fewer miles, and much better options. I laughed at their #. I had a couple other cars looked at by CarMax and the same thing happened. They offered much less than it was really worth, even when comparing to dealer trade in #'s.

CarMax got a good rep for a long time for paying good money on cars. They no longer do this, and now are just a good place to dump your car if you want to get out of it quick.

P.S...used cars are dealerships money makers. They "steal" them from people, mark them up, and make a ton of money. CarMax is no different than your typical dealer when it comes to this now.

Speaking with a guy I know well in the business, I asked him about getting a good deal by having him buy me a car at auction. He said they don't really get good/great deals at auction. I asked why, as I thought it would be "wholesale" price. He explained that if a dealer is at an auction buying cars, its because they don't have used cars on their lot to sell. So them, and every other dealer buyer at the auction needs those to get them on the lot. So...the prices are a bit higher than wholesale because everyone needs them and they're all paying top "wholesale" dollar for them. Basically he said me and every other schmuck there need that car and it causes the prices to go up.

They love cars on trade in. Buy them cheap, sell them for larger profit.

They don't love buying cars at auction. Though to us, auction prices will still be cheaper than dealer retail prices, so might still seem like a good deal.

 

I only got $80k on dealer trade for my 2016 R with 10,500 miles when I picked up my SVR the other day....they initially offered $75k.

I paid $93k for the car 8 months ago. The dealer had about six used Rs sitting on the lot...

 

Thanks guys.
Maybe $75k isn't really that far off and if I were trading in at a Jag dealer for instance, $80k would be possible.

I've only dealt with Carmax one time before when I sold them my M4. They offered me top dollar and I was pleasantly surprised. Then again, I did Euro Delivery on the M4, so what I paid was already lower than US msrp. Plus, I sold them my M4 with my "winter setup"...Chinese knockoff VMR CSL wheels without tpms sensors! I was completely honest with them about the wheels, hell the TPMS idiot light was shining on the dash. They must have took a loss on that car. Ironically enough, the same guy at Carmax that appraised my M4, and who eventually bought it from me, did the appraisal yesterday of the Jag. He remembered me, so perhaps he was lowballing to make up for the previous deal!!!

 

The issue is that it is unrealistic to sell $80K car privately, the market is too small. As such, dealers will loot and pillage you with trade-in offers and will make substantial profit. In my area used F-types are over-over-priced and in a high demand. When I was buying my 16, used 14s V8s were advertised at $85+. This was about as much as I paid for mine, taking delivery of it with 50km on the odometer.

 

carmax isnt in the business to save you money

 

Before I traded my SLK, I took it to Carmax. Their appraisal was $1000 less than the dealer's which seemed in the realm of reasonableness.

 

not shocked at all 30% depreciation on a $100k two-seater that is plenty available on dealer lots. I bet I can find 40-50 for sale in a 100 mile range ... you wan to be the first you have to eat the depreciation ... 30% first year is no shocker at all, no matter the mileage nor options ...

 

carmax uses a propiertary edmunds program. They are always lower than Kelly, hard to find dealers that give you kelly, they always try to be back of book. Dealers usually make way more on used than new!

 

Not difficult to sell a 2016 R on Ebay/CL privately for $80k if in excellent, low mileage condition and marketed properly. Most are pricing 2016 Rs in the mid 80s or even high 80s and those hardly ever sell.

Those that really want to sell price 2015 Rs in the high 60s and 2016 R in the high 70s.

Any higher is usually dealer only, financing ready for you territory where they romance you and give you the dealer retail 'experience.' Bleech.

Carmax offering $75k wholesale is fair. They will list in the high 70s for their profit. You 'give up' $3-5k to not play salesperson.

 

KBB shows 30% depreciation for the 2016 V6S with 10K miles, excellent condition, private party sale. For the R, $33K is a lower percentage than that. I expected it would tank in the first year. Luxury cars (that's how these are seen) do that.