CarMax report shows opportunity to increase consumer knowledge around
vehicle trade-ins
RICHMOND, Va.--(BUSINESS WIRE)--
With the start of the school year top of mind, CarMax,
Inc. (NYSE:KMX), the nation’s largest retailer of used cars, and
third largest auction operation in the United States, recently focused a
national survey on a different type of education: how knowledgeable are
car owners about how much they can get for their vehicle when it comes
time to trade it in? The CarMax report today reveals that only half of
respondents had a good idea of how much they could sell their car for,
and 35 percent were either not sure or had absolutely no clue. To help
all car owners better understand the intricacies of trading in their
vehicle and empower them through the process, CarMax provides the guide
below.
Mileage and Age Can Make a Grade-A Difference
Less than 20 percent of car owners surveyed knew the maximum number of
miles that is considered “ideal” for trade-ins – 100,000 miles. Industry
data indicates that while lower mileage is typically better, after
100,000 miles the value can drastically decrease depending on the make
and model of the car and its condition.
“It’s important for drivers to know how much they can sell their car for
and the factors that impact the offer they will receive. That will allow
them to get the best deal and have a better experience,” explained Tom
Marcey, CarMax vice president, regional merchandising. “CarMax offers an
honest and authentic appraisal process. We see a 23 percent spike in
customers coming into our stores for an appraisal during the summer, and
we want to help consumers get the most for their trade-ins now and at
any point in the year.”
Another misconception identified through the survey was that two in five
car owners believe there is no difference in the offer they will receive
between selling a 10-year-old car versus an 11-year-old car. which
According to CarMax and industry data, the cut off between 10-year-old
and 11-year-old vehicles can be substantial in affecting the offer they
will receive when selling their car. More men than women were confused
when it came to knowing this important trade-in fact (47 percent
compared to 33 percent).
A Trusted Advisor Can Eliminate a Painful Process
Nearly one in ten respondents said they would rather shave their heads
than try to sell their cars. However, selling a car does not need to be
an extreme process, and CarMax has a proven, hassle-free approach that
allows drivers receive an offer for their vehicle in as little as 30
minutes. They can even choose to walk out the door with payment in-hand.
Separate Emotions for Less Stress
Additionally, about one in six respondents had a harder time “breaking
up” with their cars than ending their first relationships. Letting go of
any car is an emotional experience – one in 10 people said the emotions
were the hardest part of their last trade-ins. But like a relationship
ending, it’s also an opportunity for an upgrade and something better
will roll along.
Timing Can Help You Ace the Class
Is there a better time of the year to sell your car? There is, and more
than 25 percent of people surveyed were right on target. CarMax data
indicates March and April are the best months to trade in your car for
the best deal. Except for luxury and sports cars, most vehicles also
tend to appreciate slightly at the beginning of the year when the miles
per year are lowest.
Just as in School, Preparation is Key
When it comes to car trade in prep, many consumers were also on track. A
majority of respondents said cleaning their cars will mean higher
appraisal offers, and while it’s not guaranteed, a spotless car may help
you clean up.
“Taking care of visible maintenance issues like worn tires, warning
lights and broken tail lights prior to an appraisal can increase the
offer you receive for your car,” adds Marcey. “An interior detailing,
which you can do yourself or have done professionally, will make a good
first impression with the appraiser or buyer, showing the vehicle has
been properly maintained.”
The CarMax Difference
CarMax will buy your car, even if you do not buy one of theirs. You’ll
get a competitive offer in as little as 30 minutes and can leave with
payment in hand or take up to a week to make your decision. To learn
more about used car appraisals and sales
with CarMax, including helpful tips and frequently
asked questions, or to schedule an appointment for an appraisal, click
here.
About CarMax
CarMax is the nation’s largest retailer of used cars and operates more
than 160 stores in 37 states nationwide. CarMax revolutionized the auto
industry by delivering the honest, transparent and high-integrity car
buying experience customers want and deserve. For more than 20
years, CarMax has made car buying more ethical, fair and stress-free by
offering a no-haggle, no-hassle experience and an incredible selection
of vehicles. CarMax makes selling your car easy too, by offering
no-obligation appraisals good for seven days. At CarMax, we’ll buy your
car even if you don’t buy ours®. CarMax has more than 22,000 associates
nationwide and for 12 consecutive years has been named as one of the
FORTUNE 100 Best Companies to Work For®. During the 12 months
ending February 29, 2016, the company retailed 619,936 used cars and
sold 394,437 wholesale vehicles at its in-store auctions. For more
information, access the CarMax website at www.carmax.com.
Survey Methodology: CarMax commissioned SHIFT Communications to
survey U.S. online consumers via Google Consumer Surveys to uncover
understandings and attitudes as they relate to selling a used car. The
survey was shown to 15,868 people age 18+ with 3,044 responses, for a
19.2 percent response rate, with a 95 percent confidence level. Consumer
Surveys weights results by inferred gender, age and geography when
possible to make the sample as representative as possible of the
internet population. Responses were collected from July 25-27, 2016.
View source version on businesswire.com: http://www.businesswire.com/news/home/20161011006201/en/
Source: CarMax, Inc.