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CarMax vs. DriveTime
What is CarMax?
CarMax Summary
- Instant online offer in under 2 minutes
- Online offer is valid for up to 7 days
- 2 options for selling – online or in-store
- Get paid within 30 minutes on the spot
CarMax is a US-based car dealership specializing in buying, selling, and trading used cars. The company’s headquarters are in Richmond, Virginia. The company also used to deal in new cars. However, since 2021, it only has one remaining new car store in Kenosha, Wisconsin.
In addition, CarMax also has a financing branch – CarMax Auto Financing. CarMax Auto Financing provides financing options to car buyers who are looking to finance their vehicles. In the fiscal year of 2021 alone, CarMax sold more than 750,000 used cars to buyers.
All in all, CarMax is one of the largest used car dealers in the United States.
How Does CarMax Work?
You have two options to sell a car to CarMax. You can either get an instant online offer or visit a CarMax store to get an in-person offer. Due to the Covid-19 pandemic, you will need to arrange an appointment before heading down to a CarMax store for an in-person offer.
To get an instant online offer, visit the CarMax website and fill in either your license plate number or vehicle identification number. Once you have done so, answer some questions about the condition of your car and the system will generate an instant offer for you. This offer is valid for seven days.
Do note that regardless of whether you opt for an instant online offer or an in-person offer, the offer value is unlikely to differ much. This is because CarMax uses a strict checklist to determine the value of your car. You may even have your instant online offer lowered when you visit a CarMax location for appraisal.
This is because some issues such as scratches and dents may not be picked up by the instant online offer system and can decrease the value of your car during an in-person appraisal.
What is DriveTime?
DriveTime is a used car dealership based in Tempe, Florida. The company used to be a car rental business based in Tuscon, Arizona, known as the Ugly Duckling. However, it went through a rebranding in 2002 to become DriveTime. Today, DriveTime has more than 130 locations in the United States and employs over 3800 associates.
How Does DriveTime Work?
DriveTime only accepts used cars for trade-ins. As such, this means that you will need to purchase a used car from DriveTime if you want to sell your used car. Thus, DriveTime may not be a good option for selling your used car if you do not intend to purchase another one from them.
If you wish to trade in your used car, DriveTime used Kelley’s Blue Book to determine the value of your used car. They will then subtract that value from the price of the car that you intend to buy from them. Doing so enables you to save on sales taxes since you only pay taxes on the difference in value between the two cars.
CarMax vs. DriveTime Fees
| Platform | CarMax | DriveTime |
| Fees | No fees typically. CarMax dealerships in some states may charge state fees and processing fees of between $100 to $400 per sale | No fees for trading in your used car |
| What’s Included | – Same day payment – Online offer within 2 minutes – Offer valid for up to 7 days |
– Only pay sales tax on the difference in value between your used car and the car you are buying |
CarMax vs. DriveTime Features
Value for Money
You are more likely to get better value for your used car when trading it in at DriveTime than selling it to CarMax. This is because DriveTime uses a third-party platform to determine the value of your used car, making the valuation more competitive.
On the other hand, CarMax uses its system to generate an offer for your vehicle. As a result, the offer you get is likely to be on the lower end compared to DriveTime since CarMax also needs to earn a profit on your used car.
Payment
In terms of payment, however, CarMax is the better option. This is because the platform offers same-day payments. As such, you can receive payment via a bank draft for your used car on the day that you bring it to the dealership’s store.
On the other hand, DriveTime will only give you a discount on your purchase of another car from them. Thus, you cannot receive cash for your car when you trade it in at DriveTime.
Convenience
Selling a used car to CarMax is also more convenient than trading it in at DriveTime. CarMax has more than 220 locations in the United States. Compared to Drivetime’s more than 140 locations, this makes it more likely that there is a CarMax location near you.
Since neither platform offers free towing services, you’ll need to bring your used car to a store owned by the dealership to sell or trade it in. Thus, CarMax is the more convenient option since they have more locations.
CarMax vs. DriveTime Customer Service
There are three ways you can get in touch with CarMax customer service: using their online contact form, using their customer service hotline, or using social media.
The customer service hotline for CarMax has the following operating hours (EST):
- Sun: 11 am to 7 pm
- Mon to Fri: 10 am to 9 pm
- Sat: 9 am to 9 pm
On the other hand, you can contact DriveTime customer service via their hotline or via email. DriveTime also has an in-depth FAQ section on its website that has answers to the most common questions asked by customers.
CarMax vs. DriveTime Reviews
| Platform | CarMax | DriveTime |
| Ratings | – 3.5 out of 5 stars on Consumer Affairs – 1.8 out of 5 stars on Trustpilot |
– 4.4 out of 5 stars on Consumer Affairs – 4.2 out of 5 stars on Trustpilot |
| Average Rating | 2.65 out of 5 stars | 4.3 out of 5 stars |
CarMax has received average reviews from users on Consumer Affairs. The company received an average rating of 3.5 out of 5 stars from reviewers. Positive reviews praised the company for the convenience that the company offered. Reviewers were happy that they were able to carry out most transactions online.
However, the platform also received a negative rating on Trustpilot. Reviewers here rated the company just 1.8 out of 5 stars. Many reviewers were dissatisfied with how the company would often reduce the instant online offer during the in-person appraisal at the last minute due to seemingly minor issues.
On the other hand, DriveTime has received mostly positive reviews. The platform was rated 4.4 out of 5 stars on Consumer Affairs. The platform also received a positive rating of 4.2 out of 5 stars on Trustpilot. Most reviewers agreed that the staff at DriveTime were above board and did not resort to any unscrupulous sales tactics.
In addition, DriveTime staff were praised for the superb customer service they provided.
CarMax vs. DriveTime Comparison Verdict
Overall, DriveTime is the better car dealership for car sellers who are also in the market for another used car. Although DriveTime does not offer cash for cars, they have a wide range of used cars to choose from in their catalog. Furthermore, when you trade-in your vehicle, you only pay sales taxes on the difference in value between the two.
In addition, you are also likely to get a better offer for your used car from DriveTime than from CarMax since DriveTime uses a third-party, neutral appraisal website.
Nonetheless, if you are in a rush to sell your car and do not intend to get another one from DriveTime, then CarMax may be the dealership for you. This is because CarMax will buy your used car even if you do not buy theirs. Thus, this makes it one of the best places to sell a used car online.
CarMax vs. DriveTime Alternatives
Compare to Other Car Buying Websites
Peddle
Get your free offer instantly via online form or call on (855) 925 4302
$0 fees + you don’t have to pay for towing – Peddle will take care of it
Get paid in check during the pick up for any car (damaged, junk, wrecked)
Wheelzy
Quick car evaluation without the hassle – sell your car within 30 min
Choose a convenient date and time for free pick-up, as soon as next day
Get cash in hand the same day the Wheelzy agent picks up your car
Peddle
Peddle Summary
- Buys used, damaged or junk car nationwide
- Get instant quote on (855) 925 4302
- Free towing within 48 hours after offer
- Receive payment upon car collection
Apart from CarMax and DriveTime, you should also consider using Peddle if you want to sell your used car for cash. Peddle offers many similar features to CarMax. For example, Peddle will buy your used car even if you do not buy theirs.
When you sell your used car to Peddle, you can also enjoy same-day payments. In addition, Peddle provides a free towing service nationwide. This is especially useful if you do not live near a Peddle dealership since you can save on transport costs as you won’t need to bring your vehicle to a dealership.
Thus, you should consider using Peddle as an alternative platform for selling your car if you value the added convenience of free towing and you want to get paid for your used car without having to purchase another one from them.
Wheelzy
Wheelzy Summary
- Wheelzy stores are open 7 days a week
- Get offer in minutes – (855) 510-1108
- Free towing of your car from your location
- Instant payment via cash or check
Wheelzy is also another alternative platform for selling a used car. The platform is also available in all fifty states, making it convenient to sell a car to them no matter where you are.
In addition, Wheelzy stores focus solely on buying cars, so you do not need to worry about sales associates trying to sell you a new car or getting you to trade in your old car.
Moreover, Wheelzy also offers free towing services and instant online offer services. When you sell your car to Wheelzy, you can get paid in cash on the spot once an associate has verified that your used car is in the condition you have declared.
