2 ms·
CarMax has incentive to fail cars at inspection before they purchase the car, or to use the inspection results to adjust the price they pay for the car. The pr
by max76 8y ago
CarMax has incentive to fail cars at inspection before they purchase the car, or to use the inspection results to adjust the price they pay for the car.
The price of fixing a car under warranty can be higher than the difference between their purchase price and their sell price.
- pps43 8y agoYou also need to multiply the price of fixing a car under warranty by probability of the car breaking before that warranty expires. CarMax only makes money on the cars it sells, so as long as there is a decent chance the car will break after warranty expires, it still might make economical sense to do it.