Carvana or CarMax Experience + Basics to Seek?

[82SC]

I have to say I've had a very good experience with CM
I made sure to go over everything before 90 day warranty ran out

As stated above I called them on missing accessories like head phones and screen covers and cool box liner and they order them all.

I found the dreaded broken recirc door. They replaced the unit (told me it took them over 11 hours in labor)

Gave me a loaner car while doing repairs

oh and told my service guy my brakes are already squealing and he had them change those as well

The only outstanding issue which was a biggie is a nonfunctioning rear entertainment screen.
They tried to fix it but failed.
Said its over 4K for just the screen and may need to change the seat cuz of the wiring
total estimate is 10K
I told them to cut me a check for part of that and I'll "deal" with it.

But they still trying to fix. They may just take parts from another car in their inventory to make mine whole and sell the other at auction or as a car with only one functioning screen.

 

[DownTheRoad]

I purchased my 2010 LX570 from Carvana with 81k miles about 6 months ago. I'm at 90k now, just replaced spark plugs and 2 oil changes. No problems and great purchase experience.

3 years ago I also purchased a Dodge Charger from Carvana. No problems, great car.

I'll keep buying from Carvana. It's like Amazon, but no box cutter needed.

 

[AverageJones]

I've had a few people tell me they sold their cars to Carvana in the past couple of months with MAJOR mechanical issues (we caught them and gave them a much lower number as they would need a lot of work). They all said the same thing that when they came to pick up the vehicle that they just checked the tires, looked inside, started it up and looked for a code, then handed them a check and loaded up. Not sure what their recon process is with these vehicles but I would be curious to know how they handle these.

 

[linuxgod]

I've had a few people tell me they sold their cars to Carvana in the past couple of months with MAJOR mechanical issues (we caught them and gave them a much lower number as they would need a lot of work). They all said the same thing that when they came to pick up the vehicle that they just checked the tires, looked inside, started it up and looked for a code, then handed them a check and loaded up. Not sure what their recon process is with these vehicles but I would be curious to know how they handle these.

I'd be curious what "major" meant, and what the year/mileage was on them.

Years ago I'd heard a saying that the only reason people sell a car is because they don't want to deal with whatever problem it has. That was probably coined in the 70s or 80s - nowadays plenty of people lease vehicles or drive for a few years and trade in for something else new just because they want something different.

I assume the inspection process on the backend is similar to Carmax or other generally reputable dealers. The vehicles those dealers buy at trade in but ultimately don't want to repair or sell end up at auction. I'm sure most vehicles that end up at auction get passed around without a serious 200 point inspection by the buyer beforehand, just a cursory inspection from the auction buyer, and picking up a vehicle from a private seller is probably the same cursory review. The buyer assumes responsibility for repairs required and that risk (the average repair cost) gets baked into the price difference along with the auction and transport cost between what a dealer pays you and what they end up selling it for - which is why you always think you'll get more selling as a private party than trading in to a dealer.

Carvana provides a 100 day, ~4000 mile warranty, along with their 7 day return policy. It remains to be seen long term if they'll be profitable and/or if they start dealing with lemons a lot. But given the warranty and return policy again I assume they are doing a reasonable inspection on the backend and will either fix or dump problem vehicles in order to avoid returns.

I'm not in love with Carvana but my experience so far has been decent - definitely better than any dealer experience I've ever had. I'll update in a few months with my experience if anything changes.

 

[82SC]

I tried carvana and carmax and the independent dealer that is directly across from my carmax with a big sign that says we pay more then carmax

This was for my 2011 Nissan Xterra
Carvana -- sight unseen 10.75K
Carmax -- took some pictures, started the engine, barely did an inspection 10.5K
Independent -- just took VIN and mileage 10K (These guys called multiple times upping the price eventually to 11K)

Sold it independently for 12.75K
If I was more patient probably could have gotten 13.5K

I think all these guys offer what the cars recently sold at dealer auctions
So they know they can at least break even even if there are major problems.

 

[wingnutted]

@SgnDen there's a thread in the 200 series classifieds w/ recent purchase prices, but for what it's worth, I picked up a 2013 LC in SoCal in Jan '21 for just under $40K, it had 100K miles, and was dealer maintained. I felt that was a good price at the time, as I was able to get Toyota warranty included, which covered OEM radiator replacement a few months later because I didn't know to check for the stress crack when I was looking...

 

[linuxgod]

I think all these guys offer what the cars recently sold at dealer auctions
So they know they can at least break even even if there are major problems.

From what I know of how dealers operate, I agree with this statement. I suspect if you tried to trade it into a dealer you'd ultimately get a similar offer (though the dealers typically play the "4 box" game and will adjust your trade but screw you on the financing, new purchase price, or loan term to compensate).

 

[linuxgod]

Since I recently used Carvana I figured I'd update.

Local MINI dealership did a PPI within the 7 day window. Tires were below the Carvana PPI spec, rear brakes were marginal, oil filter seal was dripping, engine skid plate/splash guard is missing, and the front ball joints have enough play in them that they clunk over big bumps. Silverrock (the Carvana warranty company) agreed to replace the tires ($500), oil seal ($80 oil change), and the front control arms ($1990). Those are MINI dealer prices. They wouldn't cover the rear brakes or the missing plastic skid plate, though I'm unclear why. (Front brakes were done at 30k, and given the wear I expect we'll end up doing rear pads at 40-45k).

The vehicle has been "partner inspected" and not "carvana inspected". They're supposed to be the same 150-point inspection. FWIW we'd "reserved" the vehicle before it was officially available, so it's entirely possible the inspection was skipped since they already had a sale. Or it's possible their inspection process is crap.

Moral: definitely have an independent mechanic do a PPI. It cost us $100 to do so. TBD whether I'll drop $150 on the plastic skid and do it myself or try to argue with Silverrock to cover it.