PriceProtect™
DriveShield™
GarageGuard™
Services
Insurance
Car Insurance
Compare Car Insurance with Jerry
Jerry’s Expert Advice
Car Insurance Estimates
Home & Renters Insurance
Renters Insurance
Loans
Car Loan
Compare Car Loans with Jerry
Jerry's Expert Advice
Car Loan Guides
Repairs
Car Repair Estimates
Repair Estimates for Popular Services
Advice
Read Car Content
Browse Jerry Car Advice
Check Out Expert Car QnA
Learn About How We Create Content
Jerry Data & Research
Will CarMax buy a car with a loan on it?
My friend told me that CarMax offers great value if you want to sell it to them. The only problem is that my car still has a loan on it, although I have positive equity. Will CarMax buy my car if it has a loan on it?
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Since the balance of your car loan is lower than the car's value, that shouldn't affect whether CarMax will buy your car. If they make you an offer and you accept, they'll pay off your lender, then give you whatever is left over from the sales price—the positive equity.
But CarMax will even buy cars with negative equity—you would just pay CarMax the difference between the sales price and your remaining loan amount.
- If you're trading your car in and buying a new one from CarMax: the difference could be rolled into your new car loan.
- If you're selling your car outright: you could pay the difference directly to CarMax.
If you want to sell a vehicle to CarMax that still has a car loan on it, schedule a meeting or walk into a branch near you. Make sure that you have the following documents to begin the payoff process:
- Lienholder’s name and contact information
- A payoff letter (not necessary, but handy)
MORE: Your guide to selling a car with a loan
View full answer
- Gregory R.
WHY YOU CAN TRUST JERRY
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
Join 4M+ members in lowering their car insurance
You Might Also Be Interested
Read Advice From Car Experts At Jerry
What Others Are Asking
Browse More Content
Insurance for Your Car
Insurance in Your State
Easiest way to compare and buy car insurance
No long forms
No spam or unwanted phone calls
Quotes from top insurance companies
