Many people don’t realize that CarMax was founded in 1993 as a subsidiary of Circuit City. In present times, it’s become one of the biggest used car retailers in the country. With its innovative buying practices, consumers flock to CarMax when looking for a used vehicle.
In general, CarMax does not receive a lot of allegations for selling lemons. Because of the strict policies set in place, CarMax is one of the safer establishments to buy a used car from. While there could still be unknown lemons in the inventory unknowingly, CarMax is a trustworthy company.
The Lemon Pros protect consumers against car dealerships that have sold them a lemon. With lemon cars as our main practice area, we’ve secured millions of dollars in settlements for our clients. Contact us today for your free consultation.
In this guide, we show you the signs that you have a lemon car and discuss the practices of CarMax in comparison to the used car market. We also discuss how to file a Lemon law claim and illustrate the possible outcomes you can expect.
Is your car lemon? If the car has significant defects that interfere with its use, safety or value, you may be due compensation. For cars to qualify for Lemon law cases, they must meet all state and federal laws. In California, the Song Beverly Consumer Warranty Act is the set of guidelines for Lemon Law.
Most regulations protect new cars, but there is a used car Lemon Law in the state as well. However, the vehicle must meet the following conditions:
If the used car you purchase is constantly breaking down or in the shop for repairs, you may be able to file a claim. Because of the vagueness of the California Lemon Law, most defects qualify if they can’t be repaired. Therefore, the claim could include transmission failure, engine defects and electrical system glitches.
CarMax strives to sell high-quality used cars and rarely has issues with lemon vehicles. However, there have been occasional complaints about a lemon that has made its way onto the lots.
CarMax sources its vehicles from several locations.
If a car doesn’t meet CarMax’s strict standards, it will be sold at a wholesale auction instead of being put on the lot. While there have been minor complaints about undisclosed problems, warranty issues and customer service concerns, the majority of CarMax locations receive favorable reviews. Most people are pleased with the processes that CarMax has in place, including the 125+ point inspection and return policy.
CarMax completes a 125+ point inspection on every vehicle before it goes on the lot. This inspection covers all of the major mechanical, electrical and cosmetic systems.
If the vehicle doesn’t pass the inspection, CarMax may choose to repair the issues. Otherwise, the car is sent to auction to be resold at wholesale.
All of CarMax’s cars come with a 90-day/4,000-mile limited warranty. This warranty includes guaranteed coverage on the following systems:
There are also extended warranty plans available, known as MaxCare. These offer an additional cost to the buyer, but provide more peace of mind.
Furthermore, CarMax has a 10-day Money-Back Guarantee, allowing you to return the vehicle if it’s in the same condition as when you purchased it.
Do you know what to do if you bought a defective car from CarMax? It’s important to follow these steps carefully. Otherwise, you could miss out on valuable compensation.
Most Lemon law complaints are lost because of a lack of documentation. Therefore, you must do everything possible to keep a record of the defects and repair history. Document every visit to the repair shop, with the date, reported problem and resolution clearly described. On the repair orders, see if you can have the technician write a few notes about the repairs or the inability to fix the problem.
You should also keep all records of communication between you and the dealer or manufacturer. If you’ve had text messages, phone calls or emails, you should have a record of them.
Take some photos and videos of the problem. Try to illustrate what’s happening and discuss how it’s affecting ownership.
Finally, you need to keep copies of all the expenses. While this includes the purchase price and financing agreement, you also need to think about your downtime. If you’ve had to pay for a rental car or lost time at work because you didn’t have a car, these items should be tracked.
If your car qualifies as a lemon, you have a legal responsibility to write to the dealership and request a resolution. In your formal complaint letter, clearly state your concerns and outline the problems. Be clear about the resolution you want.
With your letter, provide all the documentation that proves what you are saying. Attach copies of all the service records and invoices. You can also set a reasonable deadline for a resolution, typically 10 to 14 days.
If CarMax doesn’t reply before the deadline, you may want to follow up and escalate the complaint with a higher-level customer service representative. You should also consider mediation services that can be held with the help of your attorney.
Along with filing a Lemon law complaint, there are other steps you can consider taking to protect fellow consumers. Start with the Federal Trade Commission (FTC) which tracks complaints against businesses when fraud occurs.
Another good avenue is with the Better Business Bureau (BBB). You can write a review for the dealership and leave a formal complaint.
Aside from these, contact your state attorney general’s office to file a complaint, along with your California's Department of Motor Vehicles (DMV). Finally, if your vehicle was financed through CarMax, the Consumer Financial Protection Bureau (CFPB) may be able to settle a dispute.
If CarMax won’t resolve the issue, you should get a Lemon law attorney to help. Your California lawyer will review the facts of the case and help you get everything that you deserve. Research the lawyer and make sure they have experience with lemon cars. It’s also helpful if you review your legal rights, so you know what you are entitled to.
The best part of working with a Lemon law attorney is that many work on a contingency basis. This simply means that you won’t need to pay anything upfront. Instead, your attorney’s fees will be taken from the settlement, or the manufacturer will be responsible for paying.
The Lemon Pros knows how to get results. Contact us today for a free case evaluation.
Depending on the situation, you may be able to get a refund or replacement vehicle from your Lemon law claim.
After a review of the evidence, you may receive a refund of the price you’ve paid for the car. The value you receive depends on how many miles you’ve put on the car since the sale and what other fees have been spent. For example, you may be able to receive your taxes, registration fees and other expenses back. In exchange for the compensation, you will need to return the vehicle.
If you’ve been dealing with numerous issues that can’t be repaired, you can also ask for a replacement vehicle. You don’t need to be concerned with the other vehicle having the same problems because it must be defect-free. A replacement will be the same make and model, with similar mileage and features. You will be required to return the vehicle before receiving the replacement.
Depending on what you are dealing with, you may prefer a small Lemon law cash settlement. For example, if there’s a light on the dashboard that can’t be turned out, you may consider keeping the car because there’s nothing serious wrong. A small cash settlement can cover the depreciation of the lemon car but can make it worth your time to hold onto.
A lawyer will help steer you in the right direction. You should never sign an agreement without understanding the future ramifications of the decision. You also don't want this option if there's a serious threat to your safety because of the defect.
If you had to pay out of pocket for any repairs, the dealership may be responsible for covering your costs. Make sure you keep all of the invoices and receipts if you want to get compensated. In addition to the repair costs, you may also get payment for incidental fees, such as a rental car or towing bills. If your case goes to court, the judge will want receipts for everything.
There are many reasons to consider suing a car dealership, especially if you were sold a lemon. Lawsuits are possible against CarMax, but you may do better trying to negotiate with a lawyer representing you as the buyer first. Let a Lemon law attorney review your warranty and state laws to see what you are entitled to.
Sadly, if you’ve purchased a car as-is, you may not have any recourse if there’s something wrong. That’s why so many people trust buying from CarMax because of the warranty and refund policy.
Your best bet is to get a lawyer involved at the beginning of the case. Do not wait to find out what you are entitled to. You could easily miss out on the timeframe to file a lawsuit. Days matter, so there’s no room for delay.
CarMax has generous policies and provides a lot of protection for consumers, but there may still be times when a Lemon law claim is required. In this article, you’ve seen that there’s always the chance that they need to replace the vehicle or offer a refund because of unforeseen problems. Either way, a lawyer can help you navigate the process.
The Lemon Pros are ready to take action on your behalf. As the best Lemon law attorneys, we review all the details and make sure you can get the representation you deserve. Contact us today for a free case evaluation.
Phone: (855) 725-2446
Email: [email protected]
We have an excellent success record in representing consumers just like you! We are award winning attorneys, but that has not gotten to our heads. We are attorneys who care and give personalized attention to each and every client, our attorneys directly handle your claim.
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