Carvana vs. CarMax: Which Is Better for Buying or Selling a Used Car?
Carvana and CarMax both make it easier to buy or sell a used car without the traditional dealership experience.
The main difference is how they approach the buying process. Carvana is built around online convenience, while CarMax gives shoppers the option to inspect and test-drive vehicles in person.
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For sellers, the experience is more similar. Both companies allow you to get an offer and sell your vehicle quickly, though the amount you're offered may differ. Find out more below.
Carvana vs. CarMax: Quick Take
Convenience: Carvana is built around an online buying experience and home delivery.
Test drives: CarMax allows shoppers to inspect vehicles and take test drives before purchasing.
Selling your car: Both companies make it easy to sell or trade in a vehicle, but offers can vary.
Return policies: Carvana offers a seven-day money-back guarantee, while CarMax offers a 10-day Money Back Guarantee.
Carvana Is Best for Convenience
If convenience is your top priority, Carvana makes it possible to shop for a vehicle, apply for financing and schedule delivery from home. You can browse at your own pace without visiting a dealership.
If you’re hesitant to purchase online, Carvana has a seven-day money-back guarantee.
The trade-off is that buyers have fewer opportunities to inspect a vehicle in person before purchasing. If you're comfortable completing most of the process online, Carvana may be a good fit.
CarMax Is Best If You Want To Test-Drive Before You Buy
CarMax may be a better fit if you prefer to see a vehicle in person before signing paperwork. While shoppers can browse inventory online, they can also visit a location in person to inspect vehicles and take test drives before buying at over 250 locations across the country.
CarMax also offers a 10-day Money Back Guarantee if you decide the vehicle isn't right for you.
The hands-on experience can make it easier to feel confident about a used-car purchase.
Selling Your Car? Compare Offers Before Deciding
Neither company consistently offers the highest payout when it comes to selling a vehicle.
Sellers may receive different offers for the same vehicle because Carvana and CarMax use their own appraisal methods. Factors such as mileage, condition, optional features and local market conditions can all influence a vehicle's value.
If your goal is to get the highest offer possible, compare quotes from Carvana, CarMax and local dealerships before accepting one.
How To Get the Best Deal
There isn't one place that will always offer the best deal, so here are some tips to use that will help you save more.
Compare the Vehicle, Not Just the Retailer
The company matters, but the specific vehicle matters more. Compare factors such as mileage, accident history, features, total price and fees before making a decision.
Get Multiple Offers Before Selling
Don't assume one company will automatically pay more than the other. Comparing multiple offers can help you determine which buyer values your vehicle the most.
Shop Around for Financing
Don't assume the retailer's financing offer is your best option. Before signing a loan agreement, compare rates from banks, credit unions and online lenders. Even a slightly lower interest rate could save you money over the life of the loan.
Which Should You Choose?
Want some help narrowing down which place might be best?
Choose Carvana If You:
Want to complete most of the transaction online
Prefer home delivery when available
Already know what vehicle you're looking for
Value convenience above all else
Choose CarMax If You:
Want to inspect and test-drive a vehicle before buying
Prefer an in-person experience
Feel more comfortable completing a transaction at a physical location
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This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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