RICHMOND, Va., Feb 03, 2009 (BUSINESS WIRE) -- Paying too much for a new car that depreciated is a top regret of many
car buyers, according to a recent survey conducted for CarMax, Inc.
(NYSE:KMX), the nation's largest retailer of used
cars.
Twenty-six percent of those surveyed who had purchased a car believe
they overpaid for a new car, while 22 percent of purchasers admitted to
not doing enough research
when buying a vehicle. Another bad decision is purchasing from an
untrustworthy source, a mistake made by 16 percent of those respondents
who had bought a car.
"Consumers are trying to make every dollar count when making major
purchases," said Tom Folliard, president and chief executive officer of CarMax.
"More than ever, consumers are focused on making smart, well-researched
car-buying decisions and to do that, it is important for them to choose
an automotive retailer they know they can trust."
The following are the results of a recent poll of adults who were asked:
What was the worst decision you made when buying a car?
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Response:
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Percent
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Number of
Respondents
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Paid too much for a new car that depreciated
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26%
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231
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Didn't do the research
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22%
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198
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Bought the wrong car
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16%
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145
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Bought from an untrustworthy source
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16%
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143
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Didn't get the extended service plan
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11%
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94
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Didn't review the paperwork before signing
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8%
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75
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The survey was conducted by Ipsos Public Affairs on behalf of CarMax.
The national sample consisted of more than 1,000 U.S. adults (886 of
whom have bought a car) who were interviewed online January 15 - 20,
2009.
To ensure you make a smart
car-buying decision, CarMax offers the following tips for your next
car purchase.
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Know the benefits of purchasing a used
vehicle. Used-car purchasers can still get modern features on a
quality vehicle at a lower price with less initial depreciation.
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Use the Internet to research types of vehicles, makes, models,
features, vehicle
reviews and prices. Carmax.com
features actual prices and photos of nearly every make and model, as
well as customer reviews and vehicle ratings.
-
Know your needs. Take the time to consider your last year of driving.
Do you transport children or animals often? Do you need a smaller car
to park in city spaces? Do you haul large items on a regular basis?
Are features such as navigation or towing capabilities important to
you?
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Compare financing
options and know your budget. This is another area that many car
shoppers forget to research or are hesitant to ask questions about.
Feel free to visit your bank or credit union before making a purchase
to consider your options or ask what the retailer can do for you. Do
not take on monthly payments that you cannot afford.
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Find a car retailer and salesperson you like and trust by asking
friends and family for referrals.
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Find a retailer that is open and transparent during the whole
transaction. Beware of any unexplained fees, return policies or
warranty restrictions.
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Read the paperwork and ask about anything that you are unfamiliar with
or uncomfortable about. By signing each form, you are stating that you
understand and agree with all terms and numbers stated.
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Ask about guarantees and extended
service plans. Get the details of the coverage and understand the
limitations.
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When in doubt, walk away. If your questions are not being answered,
you have concerns on the quality of the car, or you feel that the
vehicle may not be the one for you, do not purchase something you may
regret later.
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Be confident. Doing
your research and understanding the type of vehicle that fits your
needs and budget will allow you to make a smart decision that you can
feel good about and enjoy for many years.
About CarMax
CarMax, a FORTUNE 500 company, and one of the FORTUNE 2009 "100 Best
Companies to Work For," is the nation's largest retailer of used cars.
Headquartered in Richmond, Va., CarMax currently operates 99 used car
superstores in 46 markets. The unique CarMax consumer offer provides our
customers the opportunity to shop for vehicles the way they shop for
items at other national retailers, and it is structured around four
customer benefits: low, no-haggle prices; a broad selection; high
quality vehicles; and a customer-friendly sales process. During the
twelve months ended February 29, 2008, the company retailed 377,244 used
vehicles and sold 222,406 wholesale vehicles at its in-store auctions.
For more information, access the CarMax website at http://www.carmax.com.
SOURCE: CarMax, Inc.
CarMax, Inc.
Lisa Van Riper, Assistant Vice President, Public Affairs
804-935-4594
or
Trina H. Lee, Director, Public Relations
804-747-0422 ext. 4197