What Finance Companies Does Carmax Use?

Wondering what Finance Companies does Carmax use? Then this article is exactly what you need.

Carmax, which is undoubtedly the largest used car dealer in the US definitely isn’t new to auto financing hence works with most of the best finance companies you can get in the US. Therefore if you wish to get your car from Carmax, trust that financing can be obtained from a very trusted lender.

Unless you can finance your car from your savings, you may need to get financing for your car elsewhere. Good thing is that, as a car dealership, Carmax has a number of top lenders they work with to provide financing for persons like you and I’ll provide you with the full list.

READ ALSO: Is It Better To Get A Car Loan Through Your Bank Or The Dealership?

How Carmax Works

As the largest used car dealer in the United States, Carmax is a home of quality and affordable used cars. It has been doing this well over 28 Years hence are experts at delivering the best of services.

Carmax has partnered with a number of top lenders who are willing to offer the best of financing deals to customers no matter their credit score. That alone takes a huge burden from borrowers with a not so good credit score or history to secure financing for their car.

At Carmax, you have a wide range of cars to choose from at good prices and also help you secure financing in case you need one. Carmax has about seven (7) lenders they are in partnership with to offer financing to clients.

Carmax themselves has an auto finance division from which you can obtain financing as well. To make things easier for you, you can actually get pre-approved online before choosing a car so you know what budget you are working with.

With their Omni channel platform, you can decide to either apply for financing online at your own convenience, or in person at their store or both. Additionally, you can also opt for your car to be delivered to your home rather than going to the store to pick it up.

Although you can secure financing without making a down-payment, it is advisable to go along with a good amount of down-payment which will improve your chances of getting a good deal. The amount you provide as down-payment has an impact on the APR you will be offered, your monthly payments and the amount you’ll qualify for. A higher down-payment may get you a lower APR and also lower your monthly payments.

READ ALSO: How Does In-House Car Finance Work

Now let’s go ahead and look at the Finance Companies Carmax Use.

List of Finance Companies Carmax Uses

Aside Carmax Auto Finance, here are the other Finance Companies they work with:

  • Capital One Auto Finance
  • Wells Fargo Dealer Services
  • Ally Financial
  • Chase
  • American Credit Acceptance
  • Exeter Finance
  • Westlake Financial Services
  • Santander Consumer Bank

Frequently Asked Questions (FAQ) 

Q1. What is the minimum credit score for CarMax? 

CarMax does not have a minimum credit score they work with. CarMax Auto Finance, together with their list of partnered lenders are able to provide financing to borrowers with all kinds of credit profile or score.

However, the better your credit score, the better your chances of getting a better offer.

READ ALSO: How To Transfer Financing On a Car To Another Person

Q2. How much down payment will I have to make at Carmax? 

CarMax has not set a specific amount buyers/borrowes must make as down-payment in order to purchase a car from them. In fact, it is not a requirement although it is better to bring a down payment in order to increase your chances of being approved.

A down-payment reduces the amount you may have to borrow which will then mean lower monthly payments and may get you a better offer as well.

Q3. Can I bring my own lender? 

Yes! Although the majority of customers that buy from CarMax uses them to finance their cars, they also allow buyers to bring in their own lenders. In which case you will have to provide a check or something as proof to show that your car is being financed by your lender.

Q4. Will my credit score be affected when I apply for financing at CarMax?

Yes! But note that, applying for pre-approval does not affect your credit score because it only does a soft credit check. However, beyond that, CarMax Auto Finance or their partnered lenders will need to do a hard credit check when considering your loan application which will affect your credit score.

Q5. What do I need to get pre-approved? 

To request for pre-approval, you must first have an amount you wish to borrow in mind. Aside that, your contact, employment and income details will be needed as well. If you have a Co-Buyer, his or her details will be needed as well.

Once you apply online you’ll be contacted by CarMax to talk about the finance options available to you and how much you qualify for.

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