Person filing a lemon claim without a car.

Carmax Under Investigation After Spike In Lemon Complaints

CarMax has been the subject of increased scrutiny due to the massive number of complaints alleging that lemons are being sold at its dealerships. Several customers accused CarMax of selling cars with major defects without informing them before purchase. The investigation began when authorities learned that consumers may not have been aware of unrepaired and unreported safety recalls in used vehicles purchased from the manufacturer. As CarMax is a prominent company in the car retailing industry, it was assumed that this could have far-reaching implications for the whole industry.

Unveiling the Investigation

State authorities allege that buyers were not informed of the defects before they purchased the vehicles. CarMax was accused of selling cars with defective safety parts, including airbags, brakes, and fuel pumps. It has been claimed that these cars were involved in accidents but listed as “accident-free” vehicles. Moreover, some car models have severe safety issues that could put customers at risk while driving on roads or highways. Although this CarMax investigation has been ongoing for several years, the company denies any wrongdoing.

Consumer Allegations against CarMax

Recently, CarMax has seen an uptick in complaints from customers who allege that the company sold them lemons. In some cases, customers said they were not made aware that the vehicles they were purchasing had been in accidents or had other major damages. Others alleged that CarMax misrepresented the condition of the cars, leading them to believe they were getting a good deal. Many complaints alleged that CarMax sold customers lemons, and dozens of those customers say they were not informed of the car’s damage until they had purchased it. 

Outcomes of the Investigation

The State Attorney General’s office investigated complaints that CarMax sold customers “lemons” or used cars with major mechanical defects. They were investigating whether CarMax misled customers about the quality of the vehicles they were selling or whether the company properly disclosed all the flaws of the cars before they were sold. It was found that CarMax failed to notify the customers, and the company was fined and forced to change its business practices.

What CarMax Has To Say?

CarMax has stated in response to the complaints that they take the concerns of their customers seriously and are investigating the matter. They also stated that they have a rigorous inspection process for all their vehicles and stand behind their quality. Despite CarMax’s assurances, many customers are still concerned and say they will never buy from the company again. 

What To Do If Your Car Is A Lemon?

If you think your car may be a lemon, there are a few steps you can take to get relief. Try to resolve the issue with the dealership or manufacturer. Most of the time, these cars have major problems that can’t be fixed, no matter how often you take them to the dealership or repair shop.

If you cannot resolve the issue, contact your state’s Lemon Law hotline for more information. Also, you can file a complaint with the National Highway Traffic Safety Administration. You may be entitled to a refund or a replacement vehicle if you find that your car is a lemon. But it’s important to know your rights and understand the process before you take action. Further, you can just sell the car and cut your losses. If you do that, make sure you tell the buyer about the problem so they can make an informed decision.

What’s Next For CarMax?

The future of CarMax is uncertain in light of recent events. The company has been fined for selling recalled cars without disclosing the recalls to the buyers. Regardless of these allegations, CarMax insists it is committed to selling quality vehicles. The company said these settlement terms align with CarMax’s existing practices and are not new. CarMax has vowed to cooperate fully with authorities. In the meantime, the company will continue to sell quality vehicles to consumers. CarMax’s commitment to quality of sale vehicles is admirable, but only time will tell if the company will bounce back from this scandal.

CarMax Lawsuit Settlements

In 2016, the Federal Trade Commission (FTC) made similar claims against the company. The FTC said that CarMax had advertised vehicles with open safety recalls for defects that could cause serious injury. CarMax settled the charges in 2016 but was not required to pay any fines. As part of the settlement, CarMax was restricted from making statements about the safety of its vehicles unless they were free of defects. The company has not breached that settlement. CarMax has committed to displaying QR codes for autos on its sales lots, which will link directly to recall information. In addition, customers will be given hard copies of recall notices before they sign a contract. This way, buyers will have all the information they need to make a decision. CarMax has been disclosing open recalls on a vehicle-specific basis since November 2014 and is currently negotiating a multi-state settlement with the Attorneys General. However, CarMax has agreed to pay a $1 million fine.

Bottom Line

After being scrutinized by AG, CarMax is under fire for selling used cars with hazardous defects. In some cases, these automobiles were sold without divulging the flaws. Thus, if you are in the market for a used car, do research and ask plenty of questions before you make a purchase. It is also important to get a thorough pre-purchase inspection from a qualified mechanic. Plus, get a vehicle history report. Make sure that any promises the seller makes are in writing, and keep copies of all documents related to the purchase. This will help you avoid any problems later on.

Please contact us if you’ve experienced any of the issues mentioned in this article or any others. The Lemon firm has successfully helped our clients recover compensation, and we are ready to do the same for you. Call (833) Lemon-firm to speak with an experienced attorney who can evaluate your case and provide guidance about your next steps.