Survey Indicates Car Shoppers Prefer 'No Haggle' Prices

But a True No-Haggle Offer Involves More than Just the Price of the Car, Says CarMax President

RICHMOND, Va., Sept. 13 -- More than 70 percent of respondents to a recent online survey conducted by CarMax, Inc., the nation's largest retailer of used cars, indicated that getting a fair price without haggling is more important than negotiating the price when choosing where to buy a new or used vehicle.

"For 14 years, our consumer research has indicated that a majority of car shoppers prefer not to haggle when buying a car if they can get a fair price in a no-haggle environment," said Austin Ligon, president and chief executive officer of CarMax. "However, shoppers often do not realize that a true no-haggle offer involves more than just the price of the car. A true no-haggle offer includes a low, no-haggle price on all four major components of the car purchase: the price of the vehicle, the price offered on a trade-in, the price of the financing, and the price of other add-on products, such as extended service plans."

  The following are the results of the survey of 771 carmax.com visitors:

  Which of the following is more important to you when choosing a place to
  buy a new or used vehicle?

                                                    Percent   Respondents
  I can get a fair price without haggling              73%        563
  I can negotiate a lower price with a little effort   27%        208

"For those car shoppers who believe they can negotiate a lower price, they should beware of a car price that is too good to be true," said Ligon. "If the price is too good, you may not be getting a fair price for your trade-in, or you may be paying too much for financing or other add-on products."

In 1993, CarMax revolutionized the used car industry by developing the first true no-haggle, no-hassle car retail offer. CarMax offers low, transparent, no-haggle prices on all four elements of the transaction, including the price of the car, the trade-in, the financing, and the extended service plan.

  CarMax explains exactly what a true no-haggle price includes:

  Price of the Car
  --  A no-haggle price means the price of the vehicle is competitively low
      and the price you pay is the price posted on the car.
  --  No-haggle means you do not have to negotiate back and forth to get a
      fair price on a vehicle.

  Price of the Trade-in
  --  A no-haggle price on the trade-in is a written cash offer, based
      solely on the wholesale value of the vehicle.
  --  The trade-in offer is good whether the customer buys a car or not and
      the offer is good for seven days or 300 miles, whichever comes first.

  Price of the Financing
  --  A competitive no-haggle financing offer is based on the finance
      company's assessment of credit risk.
  --  Customers see the finance offer as it is made directly from the
      lender, and the customer may choose among competing offers.

  Price of Extended Service Plans and Other Fees
  --  The price of the extended service plan is competitive and fixed, based
      primarily on the repair record of similar vehicles and the length of
      coverage.
  --  Customers review the extended service plan offer made directly from
      the plan provider and the customer may choose among the options
      presented.

  About CarMax

CarMax, a FORTUNE 500 company and one of the FORTUNE 2005 "100 Best Companies to Work For," is the nation's largest retailer of used cars. Headquartered in Richmond, Va., CarMax currently operates 64 used car superstores in 29 markets. CarMax also operates seven new car franchises, all of which are integrated or co-located with its used car superstores. During the twelve month period ended May 31, 2005, the company sold 264,958 used cars, which is 93 percent of the total 285,354 vehicles the company retailed during that period. For more information, access the CarMax website at http://www.carmax.com/.