CarMax Provides Advice on Receiving the Best Auto Finance Offer

Business Wire, Oct 27, 2008

Credit Remains Widely Available for Qualifying Customers at Used Car Superstore

RICHMOND, Va. -- Given the concern about the current credit environment, CarMax, Inc. (NYSE: KMX), the nation's largest retailer of used cars, says customers are interested in learning how to get the best finance terms for their vehicle purchase.

"While credit remains widely available for qualifying customers at CarMax, there are steps that can be taken now to ensure they get the best offer," said Angie Chattin, president of CarMax Auto Finance. "We are proud to provide our customers with what we believe is the most user-friendly auto financing process in the industry."

Just like the CarMax buying experience, the CarMax finance process is unique. CarMax sales consultants do not receive a commission on the financing process and do not handoff customers to a commission-paid finance or sales manager. CarMax provides a completely transparent finance process and customers see the auto finance offer on the computer screen directly from the finance source. When multiple offers exist, customers may choose the offer that best suits their needs. CarMax also provides a three-day payoff option, which gives customers up to three business days to replace the auto financing with cash or an alternative finance source, free of penalty or interest. More information about auto financing can be found here: http://www.carmax.com/enUS/car-financing/default.html.

CarMax provides the following tips for getting the best auto finance offer:

Maintain Good Credit

* Maintaining a good credit rating is generally a matter of simply paying bills on time.

* You should also be aware that overextending yourself on credit and actively shopping for credit could have a negative impact.

* Know your credit history by getting a copy of your credit report. Check your credit report annually to see if any information on the report needs correcting. You can get a free copy of your credit report at www.annualcreditreport.com, You may also contact any of the three nationwide consumer credit reporting companies:

-- Equifax: 800-685-1111, www.equifax.com
-- Experian: 888-397-3742, www.experian.com
-- TransUnion: 800-916-8800, www.transunion.com

Know How Much You Can Afford

* Determine how much you can afford for your vehicle purchase and monthly payments. Most financial institutions recommend that your monthly car payment not exceed 15% of your gross monthly income.

* Maximize your down payment to lower your monthly payments and it may improve your offer and likelihood of approval.

* Calculate how much your trade is worth and how much you owe on it to gain a better understanding of your total purchase. Go to any CarMax superstore for a free appraisal to determine the current value of your vehicle. CarMax will be happy to contact your current finance source for a payoff to help you determine your equity position.

Find a Car Retailer that Offers Competitive Finance Terms

* Look for a car retailer that offers competitive finance terms without the hassles of negotiation.

* Make sure the retailer shows you all available finance options. CarMax makes it quick, easy, and convenient to apply for financing and will show customers the details of all offers received so customers can make an informed decision.

* Only buy a car from a retailer that offers at least a three-day payoff option. If you find a better offer or decide to pay cash after you take the car home, this gives you the option to pay off the financing with no fees or penalties.

Be Prepared at the Car Retailer

* When shopping for a vehicle, take essential paperwork items with you, including the title and the registration for your current vehicle, your driver's license and your insurance card.

* Before signing any paperwork, review all the documents and understand all terms including vehicle price, trade amount, financing, warranties, return policies and fees.

* Beware of any add-on or hidden costs not previously disclosed or explicitly requested by you.

* Do not hesitate to ask lots of questions. Be prepared to walk away if you are unhappy with your car-buying experience.

About the CarMax

CarMax, a FORTUNE 500 company, and one of the FORTUNE 2008 "100 Best Companies to Work For," is the nation's largest retailer of used cars. Headquartered in Richmond, Va., CarMax currently operates 99 used car superstores in 46 markets. The unique CarMax consumer offer provides our customers the opportunity to shop for vehicles the way they shop for items at other national retailers, and it is structured around four customer benefits: low, no-haggle prices; a broad selection; high quality vehicles; and a customer-friendly sales process. During the twelve months ended February 29, 2008, the company retailed 377,244 used vehicles and sold 222,406 wholesale vehicles at its in-store auctions. For more information, access the CarMax website at http://www.carmax.com.