CarMax requires proof of liability insurance just to test drive and buy a car, but if you're financing (getting a loan) for the vehicle, the lender will mandate "full coverage" (comprehensive and collision) to protect their investment, which you'll need to maintain until the loan is paid off. For standard test drives, just liability works, but 24-hour test drives need proof of both liability and full coverage.
Yes. All customers must show proof of insurance when buying a car. You'll either need to provide evidence of existing coverage or a VIN-specific binder.
Proof of liability insurance with one of the following: Insurance card or binder (a binder is a document that serves as temporary proof of insurance) Show your online coverage when you arrive at the store. Call your insurance company from the store to have an agent verify by phone.
What kind of documentation do I need to buy a car at CarMax?
To take a 24-hour test drive, you must provide a valid driver's license and show that you have both comprehensive and collision insurance coverage.
First and foremost, the vehicle must be returned within 30 days from the date of purchase and should have fewer than 1,500 additional miles on its odometer since leaving the lot. Additionally, CarMax expects cars to be returned in good condition—so no joyrides that leave behind unexpected wear!
Proof of auto insurance
Have your current insurance card with you, or be prepared to contact your insurance provider from the dealership to add your new vehicle to your policy. Some dealers may require proof of full coverage if you're financing the car.
Our finance sources accommodate most credit profiles, and every CarMax customer will enjoy the same upfront pricing and exceptional customer service, in the store and online.
However, there are some limitations. CarMax generally will not purchase vehicles with salvage titles, frame damage, or flood damage. Vehicles they do not intend to sell on their lot may still be purchased and sent to auction.
Instead of getting a no-money-down loan from an independent buy here, pay here (with super high rates), you could consider CarMax. CarMax doesn't have a minimum credit score requirement and it doesn't require a down payment for most buyers.
Cons
CarMax, Inc. (NYSE:KMX) faces an investigation by Faruqi & Faruqi, LLP for allegedly misleading investors about its growth prospects. The company reported a significant 11.2% decrease in income from CarMax Auto Finance (CAF) in the second quarter of fiscal 2026.
$160 per car, $100 if you can sell the expensive MaxCare warranty IF you aren't forced to split it which equals > $130 for sometimes hours and hours of work. All the pay is accurate I see they left few things left out. You have 4 ways to get paid in sales. You don't have to prospect.
The 20/3/8 rule is a guideline that suggests you put 20% down on a car and repay the loan over three years. Applying the rule correctly will also require your monthly payment and car expenses be 8% or less of your income.
We analyze your car's specific year, make, model, mileage, and features. We consider its condition, history, and use from information you provide, our own assessments, and internal and third-party history information. We especially look out for major issues, like frame or flood damage or odometer rollbacks.
We check every car's history to rule out any with flood damage, frame damage, outstanding liens, or salvage history. Any car that can't meet those condition standards gets sold at auction — not to you. Cars must also pass a 125+ point inspection and undergo a detailed reconditioning process to be sold at CarMax.
The vehicles are generally 5 years old or newer though most of their cars are 3-year-old off-lease vehicles. CarMax also offers a 30-day return policy (up to 1,500 miles) and 90-day or 4,000-mile limited warranty on all vehicle purchases.
CarMax will buy most cars, even old cars that don't even run. However, these cars will need to be towed to a CarMax store for an appraisal.
Final Thoughts. Carvana is ideal for buyers who want a fast, fully online experience that eliminates the need for in-person visits. CarMax is better suited for those who want to test-drive, have face-to-face support, and value flexible financing.
If you're shopping for a used car, CarMax Auto Finance has a huge inventory of pre-owned vehicles. It offers both in-house financing and loans from partners like Ally Auto, Capital One and Santander, that offer competitive rates and no minimum credit score requirement.
With CarMax, you can choose to pre-qualify for a specific vehicle or a dollar amount, with no impact to your credit score. Simply fill out a pre-qualification request, which will ask for personal, income, and housing information. Then our finance sources will return a decision (usually within 5 minutes).
If you tell them that you won't be taking out a car loan, many will either refuse to negotiate on the car's price or, worse, raise the price to increase their profit. If they know you have a specific budget, they also know they won't be able to move you up to a more expensive, profitable model.
In most instances, it's best to have insurance lined up before or at the dealership. And below you'll find out why, along with a few scenarios to consider. Luckily, insuring a new car has never been easier.