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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)
View full answer
- Gregory R.
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