Top Car Buyer Regret is Overpaying for a New Car That Depreciated, According to Survey

RICHMOND, Va.--Paying too much for a new car that depreciated is a top regret of many car buyers, according to a recent survey conducted for CarMax, Inc. , the nation’s largest retailer of used cars.

Twenty-six percent of those surveyed who had purchased a car believe they overpaid for a new car, while 22 percent of purchasers admitted to not doing enough research when buying a vehicle. Another bad decision is purchasing from an untrustworthy source, a mistake made by 16 percent of those respondents who had bought a car.

“Consumers are trying to make every dollar count when making major purchases,” said Tom Folliard, president and chief executive officer of CarMax. “More than ever, consumers are focused on making smart, well-researched car-buying decisions and to do that, it is important for them to choose an automotive retailer they know they can trust.”

The following are the results of a recent poll of adults who were asked: What was the worst decision you made when buying a car?

Response:		Percent		Number of Respondents
Paid too much for a new car that depreciated		26%		231
Didn’t do the research		22%		198
Bought the wrong car		16%		145
Bought from an untrustworthy source		16%		143
Didn’t get the extended service plan		11%		94
Didn’t review the paperwork before signing		8%		75

The survey was conducted by Ipsos Public Affairs on behalf of CarMax. The national sample consisted of more than 1,000 U.S. adults (886 of whom have bought a car) who were interviewed online January 15 - 20, 2009.

To ensure you make a smart car-buying decision, CarMax offers the following tips for your next car purchase.

1. Know the benefits of purchasing a used vehicle. Used-car purchasers can still get modern features on a quality vehicle at a lower price with less initial depreciation.
2. Use the Internet to research types of vehicles, makes, models, features, vehicle reviews and prices. Carmax.com features actual prices and photos of nearly every make and model, as well as customer reviews and vehicle ratings.
3. Know your needs. Take the time to consider your last year of driving. Do you transport children or animals often? Do you need a smaller car to park in city spaces? Do you haul large items on a regular basis? Are features such as navigation or towing capabilities important to you?
4. Compare financing options and know your budget. This is another area that many car shoppers forget to research or are hesitant to ask questions about. Feel free to visit your bank or credit union before making a purchase to consider your options or ask what the retailer can do for you. Do not take on monthly payments that you cannot afford.
5. Find a car retailer and salesperson you like and trust by asking friends and family for referrals.
6. Find a retailer that is open and transparent during the whole transaction. Beware of any unexplained fees, return policies or warranty restrictions.
7. Read the paperwork and ask about anything that you are unfamiliar with or uncomfortable about. By signing each form, you are stating that you understand and agree with all terms and numbers stated.
8. Ask about guarantees and extended service plans. Get the details of the coverage and understand the limitations.
9. When in doubt, walk away. If your questions are not being answered, you have concerns on the quality of the car, or you feel that the vehicle may not be the one for you, do not purchase something you may regret later.
10. Be confident. Doing your research and understanding the type of vehicle that fits your needs and budget will allow you to make a smart decision that you can feel good about and enjoy for many years.

About CarMax

CarMax, a FORTUNE 500 company, and one of the FORTUNE 2009 “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.