2 hours ago
A used car dealer says he visited a CarMax lot and found inventory stacked up everywhere. Now he’s warning that it’s a sign of bigger problems.
Creator Car Questions Answered (@carquestionsansweredd) theorizes that CarMax’s purported troubles are symptomatic of a much wider problem in the car market. His TikTok explaining his logic has been viewed over 297,000 times as of this writing.
In the post, the creator, who says he attends used car auctions every week, focuses on a 2024 Jeep Wagoneer L-Series with a $56,000 price tag. He estimates the original buyer paid around $100,000 for it brand new just over a year ago.
“That customer lost about 50% of their purchase price in just one year on that Jeep,” he says in the video. “That’s insane.”
Is CarMax in Trouble?
Car Questions Answered also observed that CarMax’s stock price had been cut in half over the preceding six months. It still isn’t showing signs of recovering. He frames the packed lot as evidence of a broader downturn without a simple cause.
He asks, “Is this a CarMax problem? Is this a car market problem? Or is this a consumer problem?”
He thinks it’s all three.
On the car market side, he points to a supply squeeze that is keeping prices stubbornly high even as demand falls. Fewer consumers are trading in their older vehicles or buying new cars, which means fewer used cars are flowing into the system through dealer auctions.
This was a widely observed phenomenon last year.
“Even though demand is down for a lot of these dealers, it still creates a strain because we don’t have enough supply,” he says. “I’m still fighting with all of the same amount of dealers at these used car dealerships. I’m still fighting for a limited supply of used vehicles.”
He argues that manufacturers also bear responsibility for continuing to chase high margins on vehicles that consumers are increasingly unwilling or unable to afford.
Is $100,000 A Real Price For A Jeep?
The Wagoneer became a lightning rod in the comments. Multiple viewers balked at paying six figures for a Jeep.
“Anyone who pays $80–$100K for a Jeep product absolutely deserves what they get,” junyer24 wrote. When another commenter asked why he kept buying them, he conceded. “You are 100% spot on … and I’m not proud of it … but having those doors and top off in the middle of the summer is so darn fun.”
StClare D Avery asked, “Chrysler product for $100K?? Who bought that??”
Not everyone agreed with the creator’s depreciation estimate.
TheDriver1978 wrote, “Actually it was more like $75,000 for that Wagoneer. Still high but it didn’t lose $50K. More like $20K. Big difference.”
Depending on the trim level, that pushback has some merit, according to Kelly Blue Book. The original price on the 2024 Series II Wagoneers ranged from $77,000 to $81,000, it reports.
Commenters Take Aim At CarMax
Several commenters claiming to be former CarMax employees piled on. Drueskii wrote, “Former CarMax employee. DO NOT EVER BUY ANYTHING FROM CARMAX. Those cars are trash. They do the bare minimum to get it ready to sell as far as mechanical. Cleaning before the lot is laughable.”
Dom, another self-described former employee, agreed, posting, “The pre-inspections are done … might as well be blindfolded.”
Warrior Pride, who said they worked at CarMax for roughly six years, added, “They once was a great company, it’s went in the can for several years now. Employees don’t care anymore, management can’t keep it together. It’s burning within.”
Derrick.Spease.Jr, who says he works at a CarMax hub, claimed inventory has surged. “We used to hover around 200–300 cars at the end of the day and now we’re over 400 cars at our hub. Also most of these vehicles have defects,” he wrote.
“Ride ’Em Till the Frame Melts”
Many commenters said they were simply sitting tight with their current vehicles rather than paying today’s record high prices.
“100% not broke, just refuse to pay 100K for a pickup truck. All my vehicles are paid off—ride ’em till the frame melts!” D.Watkins wrote.
G_L_two agreed, writing, “It’s not that people are broke, they just are refusing to pay a mortgage payment on a vehicle.”
Chase Martin added, “I have two vehicles with over 200K miles and don’t want to switch because of how expensive cars have gotten and mine are paid off.”
The rest of Car Questions Answered’s TikTok channel features similar videos projecting doom and gloom for the car industry. His argument in this one boils down to a vicious cycle where consumers are holding onto their money, starving the used car pipeline of trade-ins, but the resulting supply squeeze keeps prices too high to attract the buyers the market needs.
Whether that spells lasting trouble for CarMax or a temporary correction remains to be seen.
Motor1 reached out to Car Questions Answered via TikTok direct message for additional comment. We’ll be sure to update this article if he responds.
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