When it comes to buying a used car, CarMax and Enterprise Car Sales are two of the biggest names in the game. As major national chains with hundreds of locations across the U.S., they have each sold millions of pre-owned vehicles.
But despite their similarities, there are some key differences between these two auto giants that may make one a better choice than the other for your next used car purchase. This comprehensive guide will compare CarMax and Enterprise Car Sales across several factors to help you decide which dealer is the right fit.
A Brief Comparison Table
| Category | CarMax | Enterprise Car Sales |
| Inventory Size | 50,000+ vehicles nationwide | ~7,000 vehicles nationwide |
| Inventory Sources | Auctions, lease returns, trade-ins, company acquisitions | Rental and corporate fleets |
| Availability of Makes & Models | Huge variety of makes and models | Focused on domestic brands |
| Average Vehicle Age | Range of ages, depends on inventory source | Typically 1-3 years old |
| Average Vehicle Miles | Varies widely | Tend to be < 40k miles |
| Pricing | Consistently competitive pricing nationwide | Frequent promotions, more room for negotiation |
| Inspection Process | 125+ point inspection | 200+ point inspection |
| Buying Process | Streamlined, efficient, hassle-free | By appointment, complete purchase in one visit |
| Facilities | Large, modern stores | Smaller, no-frills locations |
| Warranties | 30-day limited + extended MaxCare plans | Limited powertrain warranty on some models |
| Return Policy | 7-day/300 miles money back guarantee | 7-day/1,000 miles exchange only |
| Ongoing Customer Service | Free battery testing, multi-point inspections | Roadside assistance with some vehicles |
| Loyalty Program | No | Yes, earn rewards points |
Overview of CarMax
Founded in 1993 and headquartered in Richmond, Virginia, CarMax is the largest used car retailer in the U.S. They specialize exclusively in used vehicles (no new cars) and offer a huge selection, with over 50,000 cars available nationwide at any given time.
Their focus is on providing a customer-friendly, no-haggle buying experience. You won’t find any high-pressure sales tactics here.
Some key things to know about CarMax:
- They sell used cars from their own inventory as well as ones acquired from auctions, lease returns, trade-ins and private purchases. All vehicles undergo an extensive 125+ point inspection and reconditioning process.
- Their selection includes practically all makes and models, from mainstream brands like Toyota and Ford to luxury choices like BMW and Mercedes-Benz. You can shop online and they’ll transport cars between stores for free.
- Vehicle history reports from AutoCheck are provided on every car they sell. Their MaxCare protection plans cover you beyond the initial 30-day warranty.
- Financing and buying processes are low stress with haggle-free pricing, financing approval before shopping and a money-back guarantee for up to 7 days or 300 miles after purchase.
- Ongoing customer service includes a 5-day/500 miles limited warranty, multi-point inspections andicc free battery testing. You can also sell your car back to them.
Overview of Enterprise Car Sales
Enterprise Car Sales was launched in 1962 as an extension of parent company Enterprise Rent-A-Car’s vehicle acquisition and fleet management operations. Headquartered in Clayton, Missouri, Enterprise Car Sales operates at over 250 branch locations in 34 states.
Here’s an overview of their dealership model:
- The used car inventory comes primarily from Enterprise’s rental fleet and corporate leasing programs, including off-lease, previous rental and company cars. Many are 1-2 years old with fewer than 40k miles.
- You can shop online, reserve a car and buy in-store. The selection covers many makes and models but tends to favor domestic brands like Chevrolet, Ford, Dodge and Nissan.
- Vehicles undergo inspections based on Enterprise’s 200+ point checklist. Extended warranty and vehicle protection plans are available.
- Enterprise promotes a customer experience built on transparency, professionalism and no high-pressure sales tactics. Haggle-free pricing and financing process.
- Customers have up to 7 days or 1,000 miles after purchase to exchange their vehicle. Limited powertrain warranty coverage and roadside assistance for certain cars.
- Enterprise also operates stand-alone used car sales lots primarily offering budget-friendly vehicles under $15,000.
Also Read: Comparison Between Carvana And DriveTime
Key Differences Between CarMax And Enterprise Car Sales
Now that we’ve provided an overview of each dealership chain, let’s directly compare them across several key factors:
- Car Inventory
CarMax wins when it comes to used car selection. With 50,000+ vehicles available nationwide, they offer far more choices and variety than Enterprise’s roughly 7,000 car inventory. MaxCare extended service plans on CarMax vehicles also cover more components than Enterprise’s plans.
However, Enterprise tends to stock newer cars with lower miles, as their inventory comes straight off short-term rental and corporate lease programs. So if you want something only 1-3 years old, Enterprise will have more options in that range.
- Prices & Costs
Both dealers advertise no-haggle pricing, but CarMax tends to offer more consistently low prices across its huge inventory. Various independent studies and analysis have found CarMax’s average asking prices to be lower than Enterprise’s.
Enterprise compensates for sometimes higher sticker prices by offering more frequent discount promotions and specials, especially on certain makes and models. They may also be more willing to negotiate on price with motivated buyers.
- Selection & Buying Process
You’ll generally find more variety in terms of makes, models, colors and configurations through CarMax, thanks to their massive nationwide inventory sourced from diverse channels. This makes it more likely you’ll find exactly what you want.
However, Enterprise makes the browsing and buying process very convenient. You can quickly view their full but smaller inventory online, make an appointment, test drive, get financing approval and complete the purchase efficiently at your local branch. Everything can be handled in-store in one visit.
- Customer Experience
Both dealerships aim to provide relaxed, no-pressure sales experiences. However, CarMax stores are typically larger, newer and more aesthetically pleasing. Their representatives are very customer-focused. Enterprise stores tend to have a more utilitarian vibe, but the sales reps are still professional and courteous.
CarMax may have a slight edge in customer service given their investment in state-of-the-art facilities, strict staff training and streamlined systems. But you can expect a solid experience at Enterprise too.
- Perks & Policies
CarMax provides more flexibility and protection for buyers. Their 7-day money back returns are better than Enterprise’s 7-day exchange only policy. And CarMax’s limited warranties have longer terms and mileage limits.
However, Enterprise has three advantages: 1) more special discounts and promotions; 2) vehicles tend to have lower miles for the model year; and 3) buyers earn reward points through their loyalty program.
Also Read: Comparison Between CarGurus and TrueCar
Frequently Asked Questions (FAQs)
Here are some important questions to ask the CarMax sales representative to learn more about a used vehicle you’re considering:
How many previous owners did the car have?
Has the car ever been in an accident or had major repairs done?
Can I see a copy of the vehicle history and AutoCheck report?
What warranty coverage comes with this car if I buy it?
Is there any remaining factory warranty on the car?
Does this car have any open safety recalls I should know about?
What maintenance and inspections were done on the car prior to being put up for sale?
Are there any mechanical issues or problems I should be aware of?
Why is this car priced lower/higher than similar models?
What financing and payment options are available if I buy this vehicle?
Some of the top options for getting top dollar when selling a used car include: CarMax – They offer quick hassle-free quotes and you can simply drop off your car to sell. Often pays higher than trade-in value. Carvana – Convenient online quotes and car pick up. Competitive offers and great for selling without having to negotiate. Vroom – Another top online buyer that makes selling easy through their app. Quotes and payments happen fast. Dealerships – Get quotes from multiple local dealers. Negotiate to maximize price. Dealers need used inventory so have incentive to pay well for right cars. Private Party Sales – Put effort into advertising, showing and negotiating with buyers. More work but highest potential sales price.
Yes, CarMax allows customers to pay for a used vehicle with a credit card, either fully or partially. However, there are some limitations: CarMax caps credit card payments at $5,000 maximum. You can pay for up to $5k of the vehicle cost on a card. Only the primary purchaser’s credit card can be used, no third-party cards. Debit cards are not accepted for vehicle purchases by CarMax. No personal checks can be written for credit card payments, only the physical card. So you generally can use a credit card at CarMax as long as it’s within their $5k limit and follows their other policies. The remaining balance would need to be paid by bank financing, cash or certified funds.
CarMax is a publicly traded company, so there is no single owner. The top shareholders of CarMax stock include: The Vanguard Group – Approximately 9.4% ownership stake, Principal Financial Group – Approximately 9.1% ownership, BlackRock Fund Advisors – Approximately 5.3% ownership, State Street Corp – Approximately 4.4% ownership, Akre Capital Management – Approximately 3.6% ownership, As a public company, ownership of CarMax is distributed across a range of institutional and retail investors. No single shareholder owns a controlling or majority stake in the used auto dealership chain. So in summary, while large investment management firms hold significant portions, CarMax ultimately has diverse public ownership rather than being owned by a single entity. The company operates independently and is managed by an executive team led by CEO Bill Nash.
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Final Thought
So which used car dealership comes out on top? Here are our recommendations based on your needs and preferences:
- If selection and variety matter most, go with CarMax. You’ll have way more makes, models and configurations to consider. Their huge inventories and nationwide car transfers make it easy to find exactly what you want.
- If getting the newest car for your budget is key, check Enterprise first. For 1-3 year old cars with under 40k miles, they will likely have more options. Their daily rental and corporate fleet sourcing puts late models on the lot.
- For the best experience start to finish, CarMax is your choice. Their consultative sales approach, top-tier facilities and focus on customer satisfaction shine through. But you’ll still get solid service from Enterprise’s professionals.
- If price trumps all, cross-shop both thoroughly. CarMax tends to have consistently lower sticker prices across models, but Enterprise runs frequent promotions to make their cars more affordable.
- For warranties and shopping protections, CarMax provides the best coverage. Their 7-day money back guarantee and extended warranty options beat Enterprise’s policies.
Also Read: Is Carfax Better Than Cargurus?
So weigh what matters most as you compare CarMax Vs.. Enterprise Car Sales. Check online inventory and pricing to see which has the best selection and deals on the cars you want. Then visit your local stores to get a feel for their customer service yourself. Take test drives to find the right used car for you at the price you can afford. Either dealership will provide a headache-free buying experience once you settle on the perfect ride.