CarMax Debuts Enhanced Online Loan Pre-Qualifications

Used-vehicle dealership chain CarMax offers a new online financing initiative that gives vehicle shoppers personalized loan terms with no impact on their credit score.

Pre-qualified customers will know their terms on vehicles across CarMax’s inventory within minutes, including monthly payments and annual percentage rate (APR), the company says.

Amid inflation and rising interest rates, CarMax says this program allows such pre-qualified customers to know what they can afford from the beginning of their shopping processes, allowing them to find vehicles that fit their needs and budget.

Once pre-qualified on CarMax’s website or mobile app, customers can adjust filters such as down payment to see how it affects their terms or filter to show only vehicles that meet their monthly payment budgets.

“We continue to elevate the used-car buying experience by building tools that help improve the car shopping and financing process,” says CarMax CEO Bill Nash.

Auto-financing decisions based on credit profiles come directly from multiple lenders. About 95% of customers receive approvals, most within minutes, CarMax says.

Because the credit submissions are considered soft-credit inquiries, they don’t adversely affect credit scores.

CarMax’s more than 230 stores sell nearly 1 million used vehicles a year.