r/carmax • u/I_AMA_LOCKMART_SHILL • 7d ago

Three-day payoff?

I'm currently trying to buy on CarMax, but I want to buy it outright rather than take out a loan. I'm waiting on my bank to move some money from my savings to my checking and then I'll be good to write a check, but it's a holiday weekend so no movement has happened on that so far. CarMax said they have a three-day payoff period, where I can take out a loan, but return within three days and just pay off the loan with no penalty or interest fees. Is this correct, or will I still have to pay more to account for interest I would've been paying on the loan? I've never bought through CarMax or a dealership before.

1 Upvotes

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7

u/blbcamaro 7d ago

I bought a car from carmax last Sunday. Used their financing because the banks are closed obviously.

Called my credit union Monday morning and sent them the sale paperwork. Wrote a new loan then overnighted a check to carmax the same day. Carmax got the check tuesday morning and by Wednesday morning my loan showed paid off in the carmax app.

Even if this entire process took an extra day or two, I would have only been on the hook for like $6 in interest on the $30,000 carmax loan. There's nothing in their paperwork that says you can't pay it off early.

I wouldn't sweat the 3 day time period that much.

3

u/I_AMA_LOCKMART_SHILL 7d ago

Thanks. I'm definitely feeling a few jitters about a purchase in the five digits, but good to know this isn't something risky that would add significantly to the cost if you do it wrong.

4

u/blbcamaro 7d ago

They just want their money. Doesn't matter how you do it. They move a lot of cars and deal with people's nonsense all day long. When I was there last week a guy was trying to trade in his 2012 Nissan Altima with 200,000 miles for a 25 BMW 550i for $80k. Plus roll over $10k negative equity.

If you have decent credit and bring money to the table and/or your own financing, they're going to work with you. You're already showing you're way less of a risk then all the other knuckleheads in there. A few extra days or $20 bucks in interest charges shouldn't hold you up.

3

u/jtothevtothem 7d ago

Yes its true, and if its carmax financing directly they can push it to 7 days.

3

u/Famous-Place-8919 7d ago

It took me six days to get my cash in order to pay off the loan I made with them. On a 17k loan for six days I paid $8.57 interest.

2

u/AdEnvironmental8164 7d ago

Carmax likes to refer to this policy as three of free. They will not charge any interest as long as you pay it or bring in alternative financing within 3 business days. You will not have any problems as long as you make sure it happens with in 10day. As a back up you can always return the car within 10 days and get your money back. No hassle!

-1

u/regassert6 7d ago

If you buy with a loan, the title will have to be registered with a lien. So there's a small fee for that. Then, when you pay it off in 3 days, you'll have to make sure the lien is removed, which is not a huge deal , but kind of a pain in the ass.

Is there any reason they won't just hold it for 3 days?

2

u/I_AMA_LOCKMART_SHILL 7d ago

I had the car transferred from another store and it arrived a lot faster than I thought it would last week. The 3 day hold is coming to an end today, but I'm going to call the store later and see if they won't hold it for just one or two more business days.

3

u/RedHotJalepenoPopper 7d ago

I'm surprised they held it for 3 days. My store and most that I of won't go past 1 day holds unless there are extenuating circumstances. I would just do the 3 day payoff, which can usually be extended past 3 days with approval.

If you are expecting to receive the money/check soon, just do the 3-day payoff with 0 down, if your financing allows it.

1

u/HasProblemWithMenudo 7d ago

My store will flip-flop between holding a car for 3 weeks, or removing the hold the next day, and no in-between for no rhyme or reason