‘All these cars have stickers’: Expert finds a ton of repos at the CarMax auction. He says that should be a major red flag for customers (2024)

“More carmax repos at the auction. People are defaulting on their loans and getting their vehicles repossessed,” TikToker Cheese (@thankucheese) writes in a caption for yet another video where he shows a wave of repossessed CarMax vehicles he’s scoping out at an auction.

A car dealer by trade, Cheese is always on the lookout for good whip deals that he can purchase and then go on to resell. In February, the Daily Dot reported on Cheese’s CarMax repo finds, which show the trend of customers who bought vehicles from the used car giant who couldn’t afford the monthly notes they come with.

Although CarMax’s stock is dropping in tandem with the precipitation of its profits, some people believe that the car repossessions could be a part of the company’s strategy: the business intentionally approves loans for vehicles to customers it knows can’t afford them.

“Carmax is in big trouble,” a text overlay in the video reads as the TikToker walks through a lot of vehicles.

“These look like all CarMax repos. A lot of people seem to be defaulting on their loans. As you can see, all these say repos. I mean it’s just repo after repo, all, everywhere right here,” Cheese says as he passes by a variety of late-model cars. The clip then transitions to him seated inside of a car where he explains why he’s walking through a proverbial graveyard of repossessed cars.

“I’m at the CarMax auction right now looking at cars that have been repossessed in people who have defaulted on their loans,” he notes.

Cheese shows off a Benz sedan to detail an example of what he’s referring to.

“This person literally just left their sorority or fraternity and got their sh*t repossessed. Nice Benz right here. It’s another Cadillac, repossession right here as you can see,” he says after walking past the Mercedes and to a black sedan behind it. Like all of the other repo models, there’s an indicator on the windshield noting as such. He cracks open the door of the car to check the interior out.

“Smells straight smoked out, that sh*t is crazy. I mean it’s just continuous like repo after repo, I mean you can’t…all these cars have stickers for repossession as you can see. If you see any of them with the red stickers it might just have writing on it too, like I said, repossession. Look at this truck right here,” he says, showing off a White Chevy on camera.

Then he heads on over to a higher-end Ford offering: “I mean look at this Lincoln Navigator this thing is basically new man, you have to have pretty good credit to get proof for something like this man. But damn, this just got repossessed too.”

One TikTok user who claimed to work for CarMax said that management is indiscriminately approving car loans. “I work at carmax they’re just giving out cars to make a buck,” they wrote.

Someone else speculated, “CarMax gives out cars to people who can’t afford them because they know they’re going to repo them and sell them again.”

From one customer’s perspective, they said that they knew CarMax approved them for a vehicle loan they know any other dealership would’ve immediately shot down: “Carmax definitely let me buy a car I should’ve been denied for. I haven’t had trouble with the payments but another dealer would’ve laughed in my face.”

However, others said that this is a result of the “bubble” that occurred during supply chain issues due to the COVID-19 pandemic. Inflation, along with this supply chain “bubble” ultimately contributed to skyrocketing car prices.

“It’s not just CarMax. it’s all dealers now, that bubble finally popped!” another user contended.

Another echoed this sentiment, ominously writing: “The economy is tanking. Many are having to let cars go back because insurance and the cost of living spiked. I see it getting worse.”

@thankucheese More carmax repos at the auction. People are defaulting on their loans and getting their vehicles repossessed. #repo #repos #repossession #carmax #auction #dealer #wholesale #cadillac #lincoln #mercedes #retail #market #crash #save #fyp #fy #viral #trending ♬ Beautiful Things – Benson Boone

One person pointed out that CarMax isn’t hurting as a result of the repossessions, and that banks are ultimately going to be the ones going after customers and ruining their credit. “Newsflash: Carmax got Paid IN Full!!! It’s the banks that financed these cars that are gonna be holding the bag,” one user said.

Another user on the app said they were thankful for CarMax because without the company, they wouldn’t have been able to have a vehicle. “Carmax was a blessing to me. my credit was poor, got a car, paid it out. now in a new car,” they wrote.

The Daily Dot has reached out to CarMax and Cheese via email for further comment.

Update 3:10pm CT May 15: In an email to the Daily Dot, a CarMax representative shared the following:

“CarMax is committed to transparency in all aspects of the car buying experience,” they wrote. “We offer upfront, no haggle pricing and our associates are paid the same regardless of a car’s price, so the focus is on helping our customers find the right car for their needs and budget. We offer a car payment calculator on our website to help customers determine whether a vehicle’s price is in line with their monthly budget expectations.”

“We also encourage our customers to consider financing through CarMax, because we work with some of the top finance companies in the country that make competitive offers to a wide range of credit profiles, and our credit application process is quick and easy,” they continued.“All credit offers are thoroughly and clearly presented so that our customers can make an informed decision. However, it is ultimately up to a customer to decide whether to accept a financing offer from one of our finance affiliates. CarMax also offers our customers the option to replace their financing within three days penalty-free if they find more favorable terms.”

The internet is chaotic—but we’ll break it down for you in one daily email. Sign up for the Daily Dot’s web_crawlr newsletterhereto get the best (and worst) of the internet straight into your inbox.

Share this article

*First Published: May 13, 2024, 10:00 pm CDT

Jack Alban

Jack Alban is a freelance journalist for the Daily Dot covering trending human interest/social media stories and the reactions real people have to them. He always seeks to incorporate evidence-based studies, current events, and facts pertinent to these stories to create your not-so-average viral post.

‘All these cars have stickers’: Expert finds a ton of repos at the CarMax auction. He says that should be a major red flag for customers (2024)


How many missed payments before repo CarMax? ›

Two or three consecutive missed payments can lead to repossession, which damages your credit score.

Does CarMax buy cars with mechanical problems? ›

The short answer to this question is yes, they do. CarMax buys cars in all types of shape. They buy cars with transmission trouble, engine trouble, blown head gaskets, bad clutches and more. CarMax will buy almost any vehicle.

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

In some cases, the negative equity can be included in your financing when you buy a car from CarMax. If not, we'll calculate the difference between your pay-off and our offer to you and you can pay CarMax directly. If the amount you owe is less than $250, we will accept a personal check.

How does selling a leased car to CarMax work? ›

In most cases, you can sell your leased car in almost the same way as any other financed car. We'll appraise the car, then contact the leasing company for a payoff quote and process any equity you might have.

How long can you miss a car payment before repo? ›

California law permits cars to be repossessed after one late or missed loan payment. Cars may be repossessed after missed insurance payments as well. There is no legally required grace period, and the repossession company doesn't have to give you notice that they are repossessing your car.

Should I pay off a repossession? ›

In most states, you have to pay off the entire loan to get your car back after repossession, called "redeeming" the car. The balance you would need to pay to redeem the vehicle might include extra fees and charges, including repossession and storage fees, and even attorneys' fees.

Does CarMax take cars with the check engine light on? ›

Dealerships will expect your car to be running and safe to drive, but scratches, dents, check engine lights, and other issues may not be a deal breaker for them. They'll ask you about any issues with the vehicle when you fill out an online offer form and take those into account when they make you an offer.

Why would CarMax not buy my car? ›

CarMax will even buy cars that they don't expect to sell, such as badly damaged vehicles, that they will sell to auction. There are exceptions to the vehicles that CarMax will buy. The retailer will not buy a salvage vehicle. It will also not buy one with frame damage or flood damage.

Can you negotiate with CarMax when selling a car? ›

CarMax has a no-haggle policy, which means you can't negotiate the price. This can be a benefit, though, because you know you're getting CarMax's best rate first instead of a lowball offer. You can still sell your car to CarMax after the seven-day period, but you'll need to get a new offer.

What is the best place to sell your car? ›

5 Recommended Platforms for Car Selling
  • Cars.com: Editor's Choice. Best for: Selling newer vehicles in good condition. ...
  • Carvana: Most Seamless Process. ...
  • Peddle: Good Choice for Older Vehicles. ...
  • TrueCar: Good for Quick, Fixed-Price Offers. ...
  • 5. Facebook Marketplace: Good for Private Local Sales.
Feb 28, 2024

Can you trade in a car that is not paid off CarMax? ›

You can trade in a financed car you still owe money on. However, there are considerations to keep in mind—one of which is whether you're entering the trade-in process with positive or negative equity.

Who pays most for used cars? ›

Private Sale. You can likely get the most money for your car by selling it privately. This is because you're selling to the next owner directly instead of through a middleman like a dealership or car buying website.

What if my car is worth more than the residual value? ›

When your leased car's trade-in value is greater than the residual price you'd have to pay to buy it at lease end, you have equity. Equity at the end of a car lease could help you cash out or get a good deal on purchasing your current vehicle, or buying or leasing a new one.

Where is the best place to sell a leased car? ›

Return It to the Dealership

Selling a leased car to a dealership is the easiest option for many people. It will help them get out of their old vehicle and into a new lease with the least hassle. You can sell your vehicle back to the dealership you leased it from or sell it to another dealership.

Will CarMax buy out my loan? ›

CarMax buys vehicles that are not paid off. To sell a car you still owe money on to the retailer, you must provide loan information so CarMax can pay off the lender. If you owe more than your offer, you will need to cover the difference.

How many car loan payments can you miss? ›

How Many Car Payments Can You Miss Before Repossession? The number of car payments you can miss before your car is repossessed depends on the lender, but two or three missed payments can lead to a repossession.

How far back do car lenders look at late payments? ›

Repossession and late payments stay on your credit reports for up to seven years, and you may run into some issues if you plan on financing in the near future.

How late can you be on car payment before repo reddit? ›

Most don't repossess for quite some time (60-90 days late).

How many car payments can you miss before repo with Capital One? ›

When you sign an auto loan, you take on the legal responsibility to make monthly payments on time and keep adequate insurance. If you become delinquent or late on the payment by more than 30 days, or if you don't have adequate insurance, the lender has the right to retrieve or repossess their property (your car).

Top Articles
Latest Posts
Article information

Author: Allyn Kozey

Last Updated:

Views: 5605

Rating: 4.2 / 5 (63 voted)

Reviews: 94% of readers found this page helpful

Author information

Name: Allyn Kozey

Birthday: 1993-12-21

Address: Suite 454 40343 Larson Union, Port Melia, TX 16164

Phone: +2456904400762

Job: Investor Administrator

Hobby: Sketching, Puzzles, Pet, Mountaineering, Skydiving, Dowsing, Sports

Introduction: My name is Allyn Kozey, I am a outstanding, colorful, adventurous, encouraging, zealous, tender, helpful person who loves writing and wants to share my knowledge and understanding with you.