# Carmax and vehicle financing



## stangman1 (Mar 8, 2016)

Called carmax about a vehicle and told them I was using it for uber / lyft and they will not finance because is being used vehicle


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## TomDewey (Jan 30, 2015)

What?


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## stangman1 (Mar 8, 2016)

Ya that's what I said


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## Uberchampion (Oct 17, 2015)

Don't buy a car to Uber. ☺


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## rtaatl (Jul 3, 2014)

Makes sense...most dealers won't let you finance a vehicle if they know you're doing some type of livery work with it. Brings down the value too much in a short period of time.


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## Adieu (Feb 21, 2016)

Why tell em??? 

Or were you specifically looking to get a rejection in writing, for some further purpose?


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## Frontier Guy (Dec 27, 2015)

I'll walk before I buy a vehicle from Carmax, overpriced, overhyped, scum.

Feb. of 2014 my wife and I went to local Carmax looking for a car for her, didn't have anything she liked, but were running a promo of free inbound shipments for 4wd/AWD. Few days later, found a 2013 Mitsubishi Outlander GT listed at Carmax in Vegas, reasonable price. Carfax said it was a fleet return (either a manufacturer demo or press car). 3 weeks later it arrived. WOW, not even close to the description or the pics. Entire length of the vehicle it had surface scratches from being trail driven, the hood, front bumper and both fenders had horrible rock pitting, the hood was bowed, looked like someone tried to close it while the prop rod was in place. The 3rd row seat was broke, and the cover for the back area was broken. When my wife tried to adjust the seat (power seats), the gear motor just whined, I looked under the seat and found it was loose. Carmax claimed to have done a through inspection of the vehicle in Vegas. Salesman was cool, got his manager, she was appalled at the condition of the vehicle. It had arrived that morning so they hadn't checked it out here in Denver. We thought maybe the transport driver had joyrided it, but the mileage matched to the shipping. They took the car to a local body shop that does work for them (I know the owner), Carmax ended up sending it to a wholesaler. It needed $3,500 in repairs.

Jan. 2015, wife and I went to the other Carmax in town, I was looking for a Nissan Frontier. They had a 2013 Pro 4x luxury package, 13K miles, topper, 1.5" lift, very clean. No price on the website. They wanted $32K for it at the dealer, I checked KBB, called a couple of local Nissan dealers. Every source listed it as $30K, but only as CPO vehicle, otherwise $27,500 tops. When I pointed this out to Carmax, the salesmanagers response, well, our pricing people have forgotten more about vehicle pricing that KBB, NADA or the dealers will ever know. I laughed in his face and left.

Also, they are notorious for seriously lowballing people if you outright sell them a vehicle. In 2014, a friends parents wanted to sell them their sons 2006 Charger R/T. The son had been killed in Afghanistan, the car had been left to the parents. Bright red, custom wheels, custom pinstriping, tuned engine, custom exhaust, the car had 75K miles on it, had been stored under a car cover, in storage unit in So. Cal. for most of 5 yrs. Literally, this car looked like it rolled off the showroom floor. Carmax said the car was worth at most $9,000. The parents took it, 5 days later, Carmax had it on the lot for $15,000, they put maybe $500 into for reconditioning, and that was cleaning up dust.


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## PHXTE (Jun 23, 2015)

Frontier Guy said:


> Also, they are notorious for seriously lowballing people if you outright sell them a vehicle. In 2014, a friends parents wanted to sell them their sons 2006 Charger R/T. The son had been killed in Afghanistan, the car had been left to the parents. Bright red, custom wheels, custom pinstriping, tuned engine, custom exhaust, the car had 75K miles on it, had been stored under a car cover, in storage unit in So. Cal. for most of 5 yrs. Literally, this car looked like it rolled off the showroom floor. Carmax said the car was worth at most $9,000. The parents took it, 5 days later, Carmax had it on the lot for $15,000, they put maybe $500 into for reconditioning, and that was cleaning up dust.


Well, of course they're not going to give you what the car is worth because they need to make a profit on it too. They're a business, they're not in the habit of offering you top dollar out of their generosity. That doesn't make them scumbags.

That being said, I wouldn't buy a car from Carmax. Many of their vehicles are ex-rental cars and they usually want way too much for them.


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## Frontier Guy (Dec 27, 2015)

There is a difference between top dollar, and paying below wholesale, something they routinely do. When I was selling my last pickup, Carmax offered me $2,000 for it, wholesale was $2,800. Echopark, one of their local competitors gave me $4,000 for it, if I had the time I could have sold it outright for $5,500 probably.


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## Frontier Guy (Dec 27, 2015)

I can understand if they have those costs, but low balling, below wholesale, and then reselling for top dollar is stupid. In my friends case, that car needed absolutely nothing, it had a Ca. emissions sticker, passed Colo. emissions, as I said above, at most Carmax put $500 into reconditioning and safety, if even that.


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## I_Like_Spam (May 10, 2015)

Adieu said:


> Why tell em???
> 
> Or were you specifically looking to get a rejection in writing, for some further purpose?


If they ask you the question on the loan application, it can be perilous if you lie as the lender can immediately call in the loan to be paid in full.

Using a car for livery services puts a lot of miles on it in a hurry, really depreciating the value of the collateral for the lender if they have to repossess. Further, the insurance might not cover the damage to the vehicle (their collateral) if its damaged while ubering. Putting yourself in the shoes of the lender, you can see what the problem they might have with it.


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## stangman1 (Mar 8, 2016)

Is this like that with all lenders. Immature their is a lot of people driving for über that has finance their vehicle


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## I_Like_Spam (May 10, 2015)

stangman1 said:


> Is this like that with all lenders. Immature their is a lot of people driving for über that has finance their vehicle


Lenders always want to know what you plan to do with the collateralized property. If you buy a home, they want to know if you are going to rent it out, or raze it and build a meth lab, and are likely to rate the risk of default as well as risk of depreciation of the collateral.

No different with the purchase of the vehicle, especially as there may be difficulties with the insurance of their collateral.


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## Frontier Guy (Dec 27, 2015)

Here's where going into the dealer with your own financing in place comes in handy, the dealer isn't even involved in the process. When I bought my pickup, I put $20K (inheiritance) and financed $12K, but, I had confirmed financing in place via Cap. One, US Bank and a local credit union before I set foot on the lot. That also put me in the drivers seat negotiating the purchase price. My salesman knew upfront that I had my own financing, I'm sure he told his sales manager when they were crunching numbers. After we closed the deal, I had to leave and come back 3 hrs later (had to get my wife from work and pick up the dog from the groomer), when we got back to the dealer, they had a couple in with finance, it took them 45 minutes to complete everything. In my case, I handed my salesman my paperwork from Cap. One (he had talked to finance and they said that was the easiest to work with) before I left, when they called me in, it took maybe 15 minutes to go over the paperwork.


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## I_Like_Spam (May 10, 2015)

Frontier Guy said:


> Here's where going into the dealer with your own financing in place comes in handy, the dealer isn't even involved in the process. When I bought my pickup, I put $20K (inheiritance) and financed $12K, but, I had confirmed financing in place via Cap. One, US Bank and a local credit union before I set foot on the lot. .


That's certainly an advisable way to go, as it simplifies the car buying process. I bought my 1995 Buick in 2000 with an "auto draft", and I had an auto draft available when I bought by 08 Buick in 2010 (although I didn't use it and just ended up paying cash.

Although in either case, I was still a cash customer from the viewpoint of the dealership.


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## limepro (Mar 7, 2015)

Frontier Guy said:


> Here's where going into the dealer with your own financing in place comes in handy, the dealer isn't even involved in the process. When I bought my pickup, I put $20K (inheiritance) and financed $12K, but, I had confirmed financing in place via Cap. One, US Bank and a local credit union before I set foot on the lot. That also put me in the drivers seat negotiating the purchase price. My salesman knew upfront that I had my own financing, I'm sure he told his sales manager when they were crunching numbers. After we closed the deal, I had to leave and come back 3 hrs later (had to get my wife from work and pick up the dog from the groomer), when we got back to the dealer, they had a couple in with finance, it took them 45 minutes to complete everything. In my case, I handed my salesman my paperwork from Cap. One (he had talked to finance and they said that was the easiest to work with) before I left, when they called me in, it took maybe 15 minutes to go over the paperwork.


I always go through usaa, give the dealer a sheet of paper, sign a few things and drive away.


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## Uber-Doober (Dec 16, 2014)

LBSMITH said:


> We use KBB to calculate trade in values here at Nissan of Marin. When we take the vehicle in we have to do smog and safety inspections. which does add about $1000 to the resale pricing of the vehicle. If the dealership is giving top dollar then they would have to sell at a loss.


^^^
Smog and safety inspections are all done by hourly workers. 
Smog takes about two minutes including the visual inspection and safety is done by the guy who is usually the low man on the totem pole. 
Up until 7 years ago I had a 2005 Volvo Cross Country wagon that wouldn't pass smog. 
Won't tell you the name of the dealer, but it's the only Volvo dealer in town. 
The service manager sent me down to the Cadillac store down the street which is owned by the same outfit and he said that he'd call them to tell them that I'm coming in with my Volvo. 
They hooked it up to the OBD port and the tester kept pressing buttons on the console and presto.... it passed.
Paid my $25.00 and left with the certificate. 
Also, the girl in the back that does the paperwork (that they call a "transfer" fee, and all the other little fees that they tack on (also salaried) does probably 20 of them a day.... all for her $14.00 /hr. 
Not only that but when buying a used vehicle here in Vegas and even in L.A. they don't even order the plates to be mailed to you.... you just stand in line at the DMV like everybody else. Or use a service where the walk up to the fleet window. 
A really good shampooer that does all those nice designs on the carpet can crank out 15 cars a day (also hourly worker) with the extractor. 
The dealer "might" put a new set of tires on a car in order to cover up uneven tire wear.... tires at their wholesale and installed and balanced by a guy who is also.... you guessed it.... hourly. 
Same with the guy that details the engine with that crap that they put all over the hoses, etc, etc, etc.


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## secretadmirer (Jul 19, 2015)

Never finance a vehicle to drive for uber. I don't think anyone here needs an accounting lesson to realize that any financing from anything associated with uber is predatory.


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## Alphapisces22 (4 mo ago)

I have a quick question, does Carmax only refuse financing to uber drivers when transporting people or will they not finance a vehicle to anyone working for uber at all or any local food delivery well (i.e." uber eats, doordash, etc)?


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## Atavar (Aug 11, 2018)

stangman1 said:


> Is this like that with all lenders. Immature their is a lot of people driving for über that has finance their vehicle


Not all lenders. Honda finance says rideshare is ok. Even Honda warranty allows rideshare.

This is Honda proper. Third party lenders and warranters at a Honda dealer will vary.


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## oldfart (Dec 22, 2017)

Try Carvana, I was approved for financing there, using Uber for most of my income, and the car was delivered 3 days later

To be fair, I also get social security and I dont have a rent or mortgage payment. . If they hadnt financed the car for me, I would have gone to one of those :"buy here/pay here" places


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## painfreepc (Jul 17, 2014)

From CarMax I have a 2017 MKZ Hybrid Black Label have 44,000 miles on it when I bought it they are no haggle they will finance people who have trouble getting financed somewhere else yes the interest rates may be a little high they stand behind their cars, you have 90 days 1500 miles to bring the car back if you don't like it and you can exchange it for another car, they will even switch the financing from the car you bring back to the other one that you take out, their maxcare warranty is second to none they stand behind their cars that's why you pay slightly higher for them cuz they are a reputable dealer if you don't like them go find some mom and pop dealer down the street and take your luck.


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## painfreepc (Jul 17, 2014)

And the one that help you with your purchase at Carmax are sales consultant, they are not salesman, they do not treat you like car salesman they do not try to get you to buy one car over another one, the sales consultant is not there to add stuff to the price of the car so they can make more profit the profits already built into the cost of the car.


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## Grubhubflub (Jun 16, 2018)

Alphapisces22 said:


> I have a quick question, does Carmax only refuse financing to uber drivers when transporting people or will they not finance a vehicle to anyone working for uber at all or any local food delivery well (i.e." uber eats, doordash, etc)?


More than likely, the latter case is true. They'd figure you would end up using the car for rideshare/delivery.


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## Grubhubflub (Jun 16, 2018)

painfreepc said:


> From CarMax I have a 2017 MKZ Hybrid Black Label have 44,000 miles on it when I bought it


When did you get it? I tried to get one from them in 2020 and they wouldn't finance to me because I drive.


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## painfreepc (Jul 17, 2014)

Grubhubflub said:


> When did you get it? I tried to get one from them in 2020 and they wouldn't finance to me because I drive.


Well I have several things going for me, I actually do have a 20 hour per week part-time job, I have a Bank of America checking account and I have a Capital One 360 checking account, I deposit my Uber income into the Capital One 360 account, I deposit my normal part-time income into my Bank of America account, I write a check from the 360 Capital One account to the Bank of America account weekly and I guess claimed that some type of other part-time income I have, so when CarMax ask for an actual income I have the part-time job, when they ask for the bank statements my bank statements show a large amount of money being deposited weekly, with nothing showing Uber, so there you go.

One important factor, the Capital One 360 account is not in my name, but I have full control of the account I think you can figure out what to do from there.


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## painfreepc (Jul 17, 2014)

Oh sorry I forgot to say how long I had the car it's been 3 months now


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## PukersAreAlwaysYourFault (Mar 25, 2021)

Carvana. Order from Florida.


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## Frontier Guy (Dec 27, 2015)

Alphapisces22 said:


> I have a quick question, does Carmax only refuse financing to uber drivers when transporting people or will they not finance a vehicle to anyone working for uber at all or any local food delivery well (i.e." uber eats, doordash, etc)?


Many lenders will not finance rideshare or “gig” workers, too unstable of an income source vs increased wear and tear on the collateral.


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## painfreepc (Jul 17, 2014)

The guy in the video his experience is similar to mine at carmax, my credit score at time I purchase was around 650, they required $2500 down I actually put down $3,500 my choice, they only asked me where I work and how much I make, I do have a part time job but they did not ask me for proof of income they just took my word for it and the down payment, luckily they didn't even ask me for Bank statements, that would have probably messed me up because that shows my Uber income, I'm currently use Capital One 360 checking account to deposit my Uber earnings so Uber income doesn't show in my main bank statements anymore, I did everything online, there's only a small amount of paperwork I had to sign when I went to carmax, I was basically in and out of there in about 2 hours, it is not like a regular car dealer the ones that help you are called sales consultants, they are not actually car salesman, they're not there to sell you clear coat, and to sell you some type of extra like floor mats and color sealant and whatever they're there to help you with the paperwork to finance the car and get you out of there, that's it is best buying car experience I ever had in my life will definitely do it again.






I have never seen a YouTube creator disable playback a video from other websites, just click it it should still take you to YouTube


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## Frontier Guy (Dec 27, 2015)

painfreepc said:


> From CarMax I have a 2017 MKZ Hybrid Black Label have 44,000 miles on it when I bought it they are no haggle they will finance people who have trouble getting financed somewhere else yes the interest rates may be a little high they stand behind their cars, you have 90 days 1500 miles to bring the car back if you don't like it and you can exchange it for another car, they will even switch the financing from the car you bring back to the other one that you take out, their maxcare warranty is second to none they stand behind their cars that's why you pay slightly higher for them cuz they are a reputable dealer if you don't like them go find some mom and pop dealer down the street and take your luck.


I will guarantee you overpaid for the vehicle


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## painfreepc (Jul 17, 2014)

Frontier Guy said:


> I will guarantee you overpaid for the vehicle


My car is immaculate thoroughly checked out by two different mechanics as I said has 44,000 miles on it did I overpay yes I overpaid a little it's CarMax everyone who investigates CarMax knows this, it's a no haggle dealer they don't give you a bunch of s*** shucking jive, if can Finance you or they can't they don't waste your time so yes I probably overpaid about $1,000 very happy to do so very happy with my car.


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## painfreepc (Jul 17, 2014)

And by the way with CarMax you do have some piece of mind, the problem with any other dealer except for maybe carvana is when you put it in your driveway it's yours no matter what the hell is wrong with it, CarMax you got 1500 miles or 90 days to bring it back and their CarMax care is bar none,

So yes you pay a little extra for piece of mind from a dealer that stands behind their cars, that's why they are the number one car dealer in the usa, go look at YouTube videos of people who buy cars from CarMax go hear them talk about their warranty, you will barely hear anyone complaining.


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## groupchatowner (4 mo ago)

I walked into a dealership 7 years ago with a 680 credit score ALL FAKE pay stubs printed out and $400 cash

in 2 hours 1 being the test drive the 2nd going back home to reprint an error they found on my fake paystubs lmao and drove off with a $11,000 vehicle with a 5 year lease and $260 monthly note

total costs vehicle after paid off ($15,000) repair costs ($15,000) + gas ($25,000) has been about $55,000

that 55,000 netted about $200,000 from uber rides and another 200,000 cuz Dara begged taxpayers to bail his drivers out which got me a 40K 2020 vehicle that sits in a garage 29 days a month while that same 11K vehicle I bought 7 years ago with a current blue book value of $400 is still geting $50+ an hour uber rides

yes i rounded up that means less costs

you car is a tool to make money not lose it

america ef yeah


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## Frontier Guy (Dec 27, 2015)

painfreepc said:


> And by the way with CarMax you do have some piece of mind, the problem with any other dealer except for maybe carvana is when you put it in your driveway it's yours no matter what the hell is wrong with it, CarMax you got 1500 miles or 90 days to bring it back and their CarMax care is bar none,
> 
> So yes you pay a little extra for piece of mind from a dealer that stands behind their cars, that's why they are the number one car dealer in the usa, go look at YouTube videos of people who buy cars from CarMax go hear them talk about their warranty, you will barely hear anyone complaining.


You don't hear people complaining because they didn't price shop or pay attention, Carmax is no better than any other used car dealer, only thing missing is the plaid seersucker suit. I'd suggest you read any of their Facebook or pages and the complaints that get registered their. Carmax used to delete FB complaints. And like Carvana, Carmax is a shlock, rip-off dealer, they buy below wholesale and sell for CPO prices. Read my comment above on my attempted buying exp. from them, and that was before I knew how they operated.

Here's an example of their pricing: 2015 when I bought my pickup, didn't want to trade it in, knew I could sell it outright for $5K, but didn't have time for brain damage. Took it to Carmax, they offered me $2,000, which was $700 below wholesale, but only if I took the offer within 24 hrs, after that it would drop in price. Took it to the Dodge dealer next door, they offered me $3,000, took it to Echopark (used to be independent, but now part of Sonic Auto Group) a competitor to Carmax in my area, they offered me $4,000.

As for checking out their videos, Hoovie, of Hoovies Garage on Youtube used to take cars he wanted to sell to his local CarMax to get valuation. They would significantly under value, often by tens of thousands, the value of a vehicle. The Vinwiki channel on Youtube did a thing on them as well showing how they operate. There have been 1,500 BBB complaints in the last 3 yrs against Carmax with the BBB nearest their corporate office, and if you peruse many of the complaints, a lot of them are from military members being jerked around. Here in my area, there's a consumer advocate on the radio who has had a couple run-ins with both the local Carmax locations, consumers calling with cars that were supposed to be fixed but weren't, in one instance, a consumer bought a Chrysler 300 from them that they claimed as perfect, after 3,000 miles the front tires were worn out. When they went to buy new tires from a different shop, they were told it needed an alignment, when they tried to have it aligned, the shop couldn't get it in spec, they took the car back to Carmax, Carmax checked it out and blamed the consumer for hitting something with the front end and refused to stand behind the car. The car was then taken to a Chrysler dealer who couldn't align it, they took it to their body shop who put it on the rack and found that the car had been wrecked, the subframe was bent, and the car had a "washed" title. Carmax had "bought" the car as part of a trade in in Arizona, then shipped it to a different location for sale. It took threats from the State dealer licensing board to get Carmax to undo the sale and refund the money.


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## Frontier Guy (Dec 27, 2015)

painfreepc said:


> And by the way with CarMax you do have some piece of mind, the problem with any other dealer except for maybe carvana is when you put it in your driveway it's yours no matter what the hell is wrong with it, CarMax you got 1500 miles or 90 days to bring it back and their CarMax care is bar none,
> 
> So yes you pay a little extra for piece of mind from a dealer that stands behind their cars, that's why they are the number one car dealer in the usa, go look at YouTube videos of people who buy cars from CarMax go hear them talk about their warranty, you will barely hear anyone complaining.


Not entirely true, some new car dealers have exchange policies within a few days, and also most states have dealer licensing boards that will go to bat for consumers who get screwed over bad enough, but most used car lots rely on stupid consumers who don't know their rights.


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## painfreepc (Jul 17, 2014)

Frontier Guy said:


> Not entirely true, some new car dealers have exchange policies within a few days, and also most states have dealer licensing boards that will go to bat for consumers who get screwed over bad enough, but most used car lots rely on stupid consumers who don't know their rights.


Well I guess I'm just another stupid consumer, but I know I'm happy with my car.


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## TomTheAnt (Jan 1, 2019)

groupchatowner said:


> I walked into a dealership 7 years ago with a 680 credit score ALL FAKE pay stubs printed out and $400 cash
> 
> in 2 hours 1 being the test drive the 2nd going back home to reprint an error they found on my fake paystubs lmao and drove off with a $11,000 vehicle with a 5 year lease and $260 monthly note
> 
> ...


Why did he get banned? Since the newbie is a genius like that, he surely could have taught us mere mortals a thing or two.


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