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?

Answer
Yes! CarMax will buy a car with a loan on it in most cases. Unless you’re way too far upside down on the loan, CarMax is likely to purchase the car from you.
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:
  • Lienholder’s name and contact information
  • A payoff letter (not necessary, but handy)
With this information, CarMax will facilitate a payoff. Not every sale will get approval, but it doesn’t hurt to find out. If they don’t want to buy your car, they’ll let you know why.
Since you have positive equity, you shouldn’t see any problems in selling your car to CarMax. However, if you have negative equity, CarMax may not purchase the vehicle.
Whether or not CarMax buys your car, make sure you’re saving the most money by searching and comparing car insurance prices via the Jerry app.
As a licensed broker, Jerry helps you find and compare quotes from over 50 top providers in minutes. When you find a better rate, Jerry can help you buy your new coverage and even cancel your old policy!
Eric Schad
Answered on Dec 14, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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