CarMax Part 1

After asking only a hundred or so times my Dad finally agreed to take me to CarMax last weekend. I was somehow brainwashed to agree that $2,000 was the cap for the price of my first car – good luck finding anything 3x that much at CarMax.

I decided it would at least be a good trip for learning about which cars were made well, which were downright crappy and which were expensive purely for their brand – like Nike is, another reason you should buy K-Swiss. I also would be able to get a little Scuttlebutt in about a company that I have been researching.

Upon arrival we were greeted by a very enthusiastic, 25 or so year old, salesman who asked if we had ever been to a CarMax before – once ten years ago in North Carolina, I couldn’t remember.

He then gave us a refresher on how CarMax works. He gets paid the same amount no matter what, so the price we see on the car is the price we would pay.

He talked about where everything was located on tag. How every car goes through a 100-something point inspection – and gave us a brochure with all the points, but didn't explain all of them.

Then he showed us a picture of a totaled car that was in more than three pieces and was a few different colors, then he showed us a brand new car right next to it and said they were they were the same and CarMax would never sell a totaled car.

After that he told us to feel free to browse around the lot – my Dad said we just wanted to look – and he would catch up with us later if we had any questions.

While we were walking my Dad explained how CarMax is a great thing for people looking for a car because in the past one would need to add a few thousand to the price they saw on the car because of what he new would happen once he met the salesman.

We never talked to the salesman again while we were there, I did see him talking to another customer who probably actually wanted to buy a car as we left.

In Part 2 I’ll go over the investment considerations for CarMax.

Chicago Fund Managers

I will soon depart on a two-week vacation to Chicago to visit my Grandpa, while there I hope to visit and interview experienced fund managers to grow my investment knowledge, create contacts and post new articles on the blog.

If you know of any managers in Chicago, hedge fund or mutual fund, please e-mail them or post as a comment.

Thanks!