It's hit or miss. I just sold a car for $3200 more than CarMax had offered, but my previous car only sold (after much pain in the butt) for $200 more than they had offered. That said, there's lots of risk in buying a used car for resale, so they generally lowball (just like any dealer). Also, if the car isn't pretty new and clean, they're going to wholesale it rather than sell it themselves, which cuts into their margin.
Glad you touched on the other side of this discussion. I have sold an embarrassing number of vehicles in the recent past. They all were sold out of the front yard, and typically Craigslist was the source of most of the traffic. Suggesting that CarMax was trying to rip anybody off, or that their business model preys on those not willing to make the effort, is pretty silly. As the OP clearly understands, they are not in the business of retailing seven year old cars. They also offer free, legitimate appraisals. What is missing from the transaction is what was the buyer's intent IF you accepted his offer? Does he have a list of reliable buyers that operate local, economy grade used car lots? Did he take a moment to look at this week's Manheim sales to determine what he will recover at auction, including the cost of sending a driver, and paying the fees to run it past the podium? Does the car fit his business model, and does he have room, and interest, in putting it on his lot?
I recently approached several buyers about getting a quote on a heavy duty pickup I was selling. The average offer was $9K. I knew that it was WAY low based on what I could expect from a private sale. finally, I said, "hey, lets cut the B.S here, you are $4K BELOW Nada private sale, why?" The buyer then showed me the contact info. for the local car buyers he send cell phones pics to, and their offers. (mid to high $7K range) he also showed me the auction results from the week before, with similar sales figures. Bottom line is that he would of made a few hundred bucks, to maybe a grand for a vehicle that he had no interest in putting on his lot. I sold the truck to a private party for $15K. I'm nobody special, but I know how and where the buyers are for that particular rig. When I was talking to buyers, the truck was in Florida. It was a very heavy duty four wheel drive model. I sold the thing in the mountains of rural Pa. where it's difficult to find clean units like that can be used for plowing snow, construction, or heavy towing. Obviously, when you know all the details, it's clear in my case that that $9K was a legitimate offer, but it left way too much on the table.
