By now, you’ve probably heard all the news about used car retailers like the Carvana. We recently reported on whether or not that’s the case, given all the problems the company has had over the past year. Its stock fell 96%, and its vice president was charged with 80 different offenses and offenses.
On the other hand, Carmax reported an 86% drop in sales in the third quarter of 2022. Given these facts, is now the right time to buy a car from any of these retailers?
. These complaints included loss of vehicle titles, incorrect issuance of provisional registrations, fraud, and damaged documentation.
According to, “Carvana has seen its dealer license suspended in North Carolina, Florida, Michigan and Illinois.” The company has also had trouble in other states like Florida, but that’s not the case anymore. All that said, buying a Carvana might not be a good idea right now.
Some Carvana customers have reported losing the title of the car they just bought for up to 11 months. As you know, you can’t register a car without a title, so it’s a very big deal. Ultimately, it’s up to you whether or not to buy a Carvana, but the writing might be on the wall for them.
Is buying a car from Carmax a good idea?
As mentioned before, Carmax stock fell last year, which could mean trouble for the used car retailer. However, reports indicate that it is up 18% since December. If anything, it could be a banal slump in sales, but it’s too early to tell in the year.
Either way, low inventory doesn’t necessarily spell doom for the used car retailer. There are still plenty of customers buying cars from, and their prices seem on par with the rest of the market – although still a bit on the high side.
However, it might be a good idea to buy from Carmax because the quality control is as good as ever. The stores also allow customers to take 24-hour test drives, which is a better deal than Carvana’s business model.
A traditional used car dealership could be a better bet
If you are still not sure whether to buy a car from Carmax or Carvana, we suggest that you purchase a used car from local dealerships. Used car prices have been dropping recently, so you might be able to get a good deal on the car you want.
As always, remember to do as much research as possible before entering into a dealer deal and do a pre-purchase inspection before signing any contracts. Taking the necessary steps may prevent you from getting many headaches later. Finally, make sure the dealership has the vehicle’s title so you can properly register it.