HomeBlogBlogSelling a Car to CarMax With a Loan: What to Know

Selling a Car to CarMax With a Loan: What to Know

Will CarMax buy my car if I still owe money on it?

Yes. CarMax generally buys cars with an outstanding loan and works with your lender to pay off the balance. You don’t necessarily need to pay off the loan before getting an offer, but you’ll need to settle any amount that remains after the sale.

What happens to the loan payoff?

CarMax compares its offer with the lender’s payoff amount. If the offer is higher, the difference is your equity, which is paid to you after the loan is handled. For example, if CarMax offers $15,000 and your payoff is $12,000, you may receive the $3,000 difference, subject to the final figures and transaction details.

If the payoff is higher than the offer, you have negative equity. When selling without buying another vehicle, you’ll generally need to pay that shortfall to complete the sale. If you’re trading the car toward another vehicle, financing the difference may be an option, depending on lender approval and the terms of the new deal.

What should I bring?

Bring a valid photo ID, your vehicle, and any requested documents. It helps to have your loan account information and a recent payoff quote from your lender. A payoff quote is time-sensitive because interest can accrue daily, so ask your lender for the amount valid through the expected sale date. Requirements can vary by state and lender.

CarMax may coordinate the payoff with your lender, but the loan isn’t cleared simply because you’ve accepted an offer. Keep making payments until your lender confirms the balance is paid; otherwise, a payment could become due while the payoff is processing. Follow up with the lender and check that the account is closed.

Before you accept an offer

Compare the written offer with the current payoff amount so you know whether you’ll receive money or need to bring funds. Ask CarMax what paperwork is needed for your lender and state, especially if you don’t have the title in hand. For more detail on payoff, lien release, and title steps, read the guide to selling a financed car.

FAQ

What happens if my car is worth more than the loan payoff?

If the CarMax offer is greater than your lender’s payoff, the difference is positive equity. CarMax applies the offer toward the loan, and the remaining amount is generally paid to you after the transaction is finalized.