The following is a statement of my personal opinion.
This might not really be a rip-off, but a head's up to anyone thinking of working at CarMax.
I worked there three years and found the pay for Sales Consultants to be way below the industry standard.
No matter what kind of car you sell, how much the company makes on it, or if it's new or used, you only get $150.00 per car. If you sell an extended service plan, you will get an additional $100.00 for that. If someone comes in and sells you their car, without purchasing a car, you get $50.00. However, if someone trades a car in, you do NOT get the $50.00 for it.
What really sucks in addition to the low pay is that the CarMax sales consultant is doing THREE jobs in one. He is not only a salesman, but he also does the job of the Closing Manager and Finance Manager.
There are increases in pay but it's hard to obtain. If you sell 15 cars per month for six months in a row, they will give you an extra $10 per car, NOT RETROACTIVE! (A 10 dollar raise is little more than an insult.) If you can not maintain that level of sales, guess what? You go back down to $150.00 per car again.
There are benefits at CarMax, but they are not outstanding. You can get in on health/dental/vision insurance, but you pay for it. I imagine my insurance coverage at CarMax didn't cost the company a dime. So, is it really a benefit?
The processing fee that every customer pays at CarMax is $149.00. The Sales Consultant gets $150.00. Figure it out... How much does it cost CarMax when a Sales Consultant sells a car? 150.00 - 149.00 = $1.00!!!
What about their claim to be in the Fortune 100 "Best Companies to Work For?" That's nonsense. If you understand how that award is given out, you understand that it means NOTHING.
CarMax is taking advantage and making a fool out of their Sales Consultants. It's a shame, because many of the guys I knew are really honest individuals who really do try to help their customers.
At the store where I worked, there was a problem with favoritism. I can not say this is the situation at every store.
Another thing I did not like about working at CarMax was that I don't believe any of the cars go through a real 125 point inspection. I know at least one case for certain. I bought a car from a guy who brought it in just to sell it. He did not buy a car from me. Three hours later the car was on the lot with a window sticker on it. I can't believe a 125 point inspection can be performed in under 3 hours!
And yes, there are cars on the CarMax lot that are JUNK. A lot of us sales consultants were ASHAMED to show some of the poorer examples.
You have to be careful at ANY car dealer.
BOTTOM LINE: If you ain't selling 20 cars per month, 65% of them with the extended warranty, and buying at least 10 cars per month, you are NOT going to make a living at CarMax.
WARNING FOR SHOPPERS: There are scumbag sales consultants at CarMax who WILL lie to you. Not all of them, and not the majority in my experience, but there are a few. There isn't much they can lie to you about, since the prices are fixed, but be careful as you would anywhere.
HINT: If you feel uncomfortable with someone you're working with at CarMax, come back EIGHT DAYS LATER. The sales commission split policy is seven days.in other words... If you are stuck with a scumbag one night, and come back 7 days later that scumbag will get half the commission, while the good guy you now have will only get half of what he deserves. This is NOT the case AFTER the seventh day.
AND: If you meet a real gentleman CarMax Salesman who you like, KEEP HIS CARD. Even if you come back months later, you can use the www.carmax.com website to select a car, then CALL HIM FIRST AND SET AN APPOINTMENT to see the car. That way, if you do buy a car, a good guy will get the little money CarMax gives him. (So that you won't be helping out some SCUMBAG you just met!)
All this said and done, I will say that I would still consider doing business at CarMax. Just because I didn't like a few things about working there doesn't mean they don't have good cars. Just be very alert... Just like shopping anywhere else. At least they have the GREAT policy (for the customer) of a 5 day return policy.
OH - that reminds me! About the return policy. If a customer returns a car... Guess what? The Sales Consultant gets DOCKED for the sale, even thought he did all the work. This is another UNFAIR CarMax practice. After all, the Salesman did the work, it is not HIS return policy, but CarMax's. (Another way CarMax screws their salesmen!)
Anonymous observer
Orlando, Florida
U.S.A.
0 comments