On: Why CarMax Makes More Money on Used Cars Than Anyone Else

[illumin8]

This is spot on. They offered me $6500 for my car, which was way below blue book. I sold it on Craigslist for $9700 a few days later.

[cstejerean → illumin8]

You will always be able to get more money on a private party sale than trading into a dealer. Did any other dealership offer you more than $6,500?

[illumin8 → cstejerean]

Yes, another dealership offered me $7500. CarMax was by far the low ball offer.

[goatherders → illumin8]

The difference of 800 for a car in that price range is far from significant.

[praneshp → goatherders]

What? It's 10%, and definitely non-trivial.

[bdcravens → illumin8]

Of course they won't give you private sale value; they're buying it to resell.