Browsing for cars at CarMax? We searched through CarMax’s documentation requirements and frequently asked questions to provide a one-stop place to gather answers! So keep reading.
This article will cover what types of insurance are required for purchasing a car through CarMax and let you know what coverage is available. We’ll also take a peek at getting approved for financing through CarMax.
Does CarMax Require You to Show Proof of Insurance?
CarMax requires proof of insurance for all car buyers in all states. This coverage can be an existing policy of a VIN-specific binder that demonstrates a policy is being written for the vehicle.
For vehicles financed through CarMax, proof of comprehensive and collision insurance is required as part of this. Since CarMax doesn’t sell insurance, you’ll need to find a carrier.
Do You Need Full Coverage to Finance a Car from CarMax?
CarMax requires customers to provide proof of full coverage when they finance a car purchase. Full coverage includes not only liability coverage but collision and comprehensive coverage as well.
Full Coverage Requirements to Finance through CarMax
|Collision Coverage||Comprehensive Coverage|
|Deductible $500 or less||Deductible $500 or less|
For CarMax’s financing, the deductible on the collision policy must be no more than $500. Collision insurance covers damage to the vehicle if the owner is at fault for the accident.
Likewise, the comprehensive coverage must have a deductible at or below $500. Comprehensive insurance covers stolen or vandalized vehicles. Comprehensive insurance also covers vehicles damaged by natural disasters.
What Happens If You Cancel Full Coverage on a Financed Car?
Since your lender is listed as a party on your insurance agreement, your lender will be notified if full coverage is dropped. Since the car is financed, you do not own it outright.
Your lender will take action, such as notifying you in writing, selecting a policy for you at your expense, or repossessing the vehicle.
Maintaining full coverage insurance on financed vehicles is a part of the contract, and you will be in breach of the contract. Check your financing agreement for specifics.
Is It Hard to Get Approved by CarMax?
CarMax says they will work with most credit profiles. It’s worth stopping into a local CarMax or applying online if you would like to finance a car through CarMax. Consider using a co-buyer if needed to get approval. You can also obtain financing through a third party for a CarMax purchase.
To finance through CarMax, you will be required to present the following documents:
- Valid driver’s license
- Proof of income
- Proof of Insurance
- Address (Proof of Residence and/or Variance)
- Proof of phone
Will CarMax Finance Someone with Bad Credit?
According to CarMax’s Financing FAQS, CarMax will work with most credit profiles. We recommend applying for financing from multiple lenders including CarMax. Another strategy is to use a co-buyer with better credit.
How Long Does It Take to Get Approval from CarMax?
CarMax buyers can be pre-approved in as little as 5 minutes online or 20 minutes in-store. For the actual purchase, additional documentation will be required and will take more time.
Does CarMax Offer Insurance?
CarMax does not offer car insurance. The car plan that CarMax offers is an extended warranty and service plan. The plan is called MaxCare and it supplements the CarMax limited warranty that comes with purchasing a car from CarMax.
Frequently Asked Questions
What if I find better financing after buying a car through CarMax?
You have three days to pay off your finance agreement through CarMax with another lender at no cost to you. After three days, there will be finance charges associated with the loan through CarMax, but a transfer is still possible.
What documents will CarMax ask me for?
All buyers will need a valid driver’s license, proof of phone, and proof of insurance. For car financing through CarMax, proof of residence and income will also be required.
What is CarMax’s insurance deductible requirement?
There’s a maximum deductible of $500 for collision and comprehensive insurance when you finance a car through CarMax. Proof of insurance or a VIN-specific binder is required at purchase.
Does CarMax verify my income?
If you are financing a car through CarMax, you must provide proof of income. For car purchases made by cash or check without financing, there is no proof of income required.
Can you negotiate with CarMax?
CarMax boasts “no-haggle” pricing for selling, trade-ins, or buying. Similarly, CarMax does not price match other offers.
CarMax (2023). General Account Information FAQs. CarMax.com. Retrieved January 18, 2023, from https://www.carmax.com/pre-qual/car-financing/carmax-auto-finance/carmax-auto-finance-faq
CarMax (2023. Questions? We’ve Got Answers: Buying a Car. CarMax.com. Retrieved January 18, 2023, from https://www.carmax.com/faq/buying-a-car
CarMax (2023). Questions? We’ve Got Answers: Financing. CarMax.com. Retrieved January 18, 2023, from https://www.carmax.com/faq/financing
Jesse Cunningham V is a professional writer and licensed insurance agent. He has worked in the insurance industry in different capacities, starting as a customer service representative and working his way up to an independent agency owner. He is licensed in the states of Maryland and Pennsylvania for Property, Casualty, Life, and Health products. Jesse has worked with many national carriers, including Nationwide, State Farm, Travelers, and Liberty Mutual, and specializes in car and home insurance and health, life, accidental death, and disability insurance. He writes for multiple publications including FIXD and Bauple.com. All articles by Jesse are opinion-based. Speak with your licensed insurance agent about the particulars of your insurance before making any decisions.