Consumer complaint received 2025-10-29 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Struggling to pay your loan — Denied request to lower payments
Company: CarMax, Inc.
State: IL

Complaint narrative:
CFPB Complaint CarMax Auto Finance / XXXX XXXX XXXX I am filing a new complaint regarding CarMax Auto Finance Company and its affiliated repair facility, CarMax XXXX, after my prior CFPB complaint ( # XXXX ) was closed without resolution. The situation has worsened significantly and now involves fraud, safety violations, and a clear conflict of interest. 

I have been forced to continue paying my auto loan for over XXXX months on a vehicle that has been in CarMaxs possession, unsafe, and unusable since XX/XX/XXXX. 

Vehicle : XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX  : CarMax Auto Finance XXXX : XXXX ( administered by XXXX XXXX XXXX XXXX ) Summary of Events On XX/XX/XXXX, my vehicles engine failed. It was towed to CarMax XXXX for a XXXX warranty repair. 

On XX/XX/XXXX and XX/XX/XXXX, CarMax employees denied my XXXX claim twice the first time without requesting maintenance records and both quotes exceeded {$20000.00} out of pocket. 

On XX/XX/XXXX, I informed CarMax I would report the matter to the SEC ; the claim was approved within XXXX hours, showing the earlier denials were improper. 

During repairs, CarMax installed the wrong engine part XXXX XXXX XXXX XXXX XXXX instead of the required XXXX XXXX XXXX XXXX XXXX. This engine is mechanically incompatible with my vehicle. 

XXXX of XXXX XXXX XXXX, XXXX XXXX, confirmed CarMax refused to purchase required XXXX one-time-use parts and was warned that the XXXX warranty through XXXX would be voided. 

XXXX XXXX XXXX XXXX XXXX confirmed my VIN qualified for a free extended warranty ( XXXX XXXX ) that would have covered the repair at no cost. CarMax never disclosed this and instead processed the repair through XXXX, billing {$20000.00} to XXXX for work that should have been free. 

This constitutes insurance and dealer fraud. 

Post-Repair Failures After the wrong engine was installed, the vehicle developed multiple issues XXXX XXXX XXXX  ( confirmed by CarMax technician XXXX in voicemail on XX/XX/XXXX ) Fuel line leaks and compressor failure Clutch slipping and power loss after programming Damaged turbo lid and severe brake rust from XXXX months of sitting CarMax refuses to provide inspection reports, diagnostic data, serial numbers, or emissions test results despite more than XXXX written requests. XXXX  compliance analyst XXXX XXXX sent a letter on XX/XX/XXXX, declaring the matter closed while admitting the inspection report exists as an internal business record. 

Conflict of Interest CarMax Auto Finance ( the lender ) and CarMax ( the repair facility ) are the same company. 
This creates an unfair situation where : The lender continues collecting monthly payments while the repair facility holds the vehicle. 

CarMax profits from both loan payments and repair delays. 

I can not access, inspect, or register the vehicle in Illinois due to expired plates and unresolved emissions testing. 

This is a clear conflict of interest and an unfair lending practice. 

Financial and Personal Impact I am currently on workers compensation following a work injury and can not afford to pay for a vehicle that is unsafe and unusable. Despite this, CarMax Auto Finance continues to charge my account every month. 

The vehicle has been out of my possession for over XXXX months, has the wrong engine installed, lost its manufacturer warranty coverage through XXXX, and remains ineligible for legal registration. While I was provided a loaner, I have not allowed my children to drive it for safety reasons. 

Requested Action by CFPB I am requesting that the CFPB : Investigate CarMax Auto Finance and XXXX XXXX XXXX XXXX for deceptive and unfair practices, including misuse of warranty funds and concealment of manufacturer coverage. 
Suspend loan payments until the vehicle is verified as safe, emissions-compliant, and legally registerable. 

Require CarMax to : Provide full documentation ( inspection, diagnostic, emissions, and parts records ) and serial numbers. 
Install the correct XXXX engine ( # XXXX ) and all the correct parts so the extended warranty is valid Verify vehicle safety and emissions compliance.

Repair all damage caused while in CarMaxs custody ( rusted brakes, broken turbo lid ). 
Restore XXXX warranty coverage that was voided by CarMaxs refusal to use XXXX parts. 

Summary CarMax and its affiliates have created a situation where I am paying for a car I can not legally drive, inspect, or register while their own repair department caused the mechanical failure and concealment. This is a serious consumer protection issue and a lender conflict of interest that requires federal review and corrective action.

Company response to consumer: Closed with explanation