It started like any other Tuesday in Ontario, just outside the sprawl of Los Angeles. Then, a red Ferrari 458 Italia ended up wrapped around a tree. People saw the photos and immediately started asking the same question: how does a supercar from a major used car retailer end up in a crumpled heap during a routine test drive? The CarMax Los Angeles incident—specifically the one involving a high-profile crash in the Inland Empire—became a flashpoint for discussions about dealership liability, the "test drive" culture, and what happens when 562 horsepower meets an inexperienced driver on public roads.
Bad things happen fast.
When we talk about the CarMax Los Angeles incident, most people are referring to the 2016 tragedy where a CarMax salesperson, Warren Smale, lost his life. He was doing his job. He was sitting in the passenger seat of a Ferrari 458 Italia, a car capable of hitting 60 mph in about three seconds. The driver, a 28-year-old man from Whittier named Nehal Lulla, was behind the wheel. According to the Ontario Police Department, speed was the primary factor. Witnesses described the car "flying" down Mercedes Lane before the driver lost control. The car obliterated a tree. It was a total loss, but the human cost was the real story.
Why the CarMax Los Angeles Incident Changed the Way We Think About Test Drives
CarMax is known for its "no-haggle" 24-hour test drive policy and its massive inventory. They sell everything from Honda Civics to high-end luxury vehicles. But after the Ferrari crash, a lot of folks started wondering if a 28-year-old should be handed the keys to a mid-engine Italian supercar without some kind of vetting.
Honestly, it’s a weird gap in the industry.
If you go to a dedicated Ferrari or Lamborghini dealership, they don't just let anyone pull out of the lot. You usually need a relationship with the dealer, or at least proof of significant insurance coverage. CarMax is different. Their whole brand is accessibility. This incident forced a massive internal look at how "performance" vehicles are handled. While the company has always had safety protocols, the optics of a salesperson dying while a customer essentially "joyrode" a high-performance machine led to a lot of criticism from the local community and industry experts alike.
The crash wasn't just a fender bender. The impact was so severe that the car was unrecognizable. Smale, who was 43 and well-liked by his colleagues, died at the hospital. Lulla was arrested on suspicion of vehicular manslaughter while under the influence of drugs. This added a darker layer to the "incident." It wasn't just a mistake or a mechanical failure. It was a criminal act.
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The Legal and Insurance Fallout You Never Hear About
Most people see the headline and move on. You've probably done it too. But the legal machinery that grinds into gear after a CarMax Los Angeles incident like this is incredibly complex.
Who pays?
First, you have the worker's compensation aspect. Because Smale was on the clock, his family was entitled to benefits, but no amount of money replaces a person. Then you have the liability of the driver. In California, if you wreck a car during a test drive, you are generally liable for the damages. However, most personal auto insurance policies have limits. A Ferrari 458 Italia in 2016 was worth well over $200,000. Most "standard" insurance policies top out at $50,000 or $100,000 for property damage.
CarMax carries massive commercial insurance policies to cover their inventory, but the subrogation process—where the insurance companies fight each other for years—is a nightmare.
Misconceptions About Dealer Liability
There’s this common myth that "if the dealer lets you drive it, they're responsible."
That's mostly false.
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If you are negligent—meaning you were speeding, driving recklessly, or under the influence—the dealership's insurance company is going to come after you. They have lawyers whose entire job is to make sure the "at-fault" party pays every cent. In the CarMax Los Angeles incident, the driver faced both criminal charges and the inevitable civil fallout.
How CarMax and Other Dealers Quietly Changed the Rules
You might have noticed that it's harder to test drive certain cars now. That's not a coincidence. Since that Ferrari crash and a few other high-profile incidents across the country, CarMax and its competitors have tightened the screws.
Here is what changed behind the scenes:
- Enhanced Vetting for High-Value Units: If you want to drive something with a massive engine or a six-figure price tag, you're going to face more scrutiny. You might need to show a higher level of insurance or even have a credit check run before the keys are handed over.
- Route Restrictions: Many Los Angeles area dealerships now have "pre-approved" test drive routes. No more hitting the freeway to "see what it can do." They want you on surface streets where speeds are controlled.
- Accompanying Drivers: While CarMax pioneered the solo test drive for many vehicles, high-performance cars almost always require a staff member to be present. This is a double-edged sword, as we saw in the Smale case, but it's intended to discourage reckless behavior.
The Cultural Impact in Southern California
Los Angeles is the car capital of the world. We live in our cars. We define ourselves by them. When a red Ferrari crashes in a suburb like Ontario, it feels personal to the car community. It serves as a grim reminder that these machines aren't toys.
I remember talking to a local car enthusiast who frequent's the "Cars and Coffee" events in Irvine. He mentioned that after the CarMax Los Angeles incident, the vibe shifted. There was less "let me try your car" and more "stay in your lane." The "incidents" aren't just data points; they're stories that change how we interact with car culture.
What You Should Do If You Are Involved in a Test Drive Accident
Look, nobody goes into a test drive expecting to crash. But if you’re in the Los Angeles area and something goes sideways, you need to be smart.
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First off, stay at the scene. This seems obvious, but panic makes people do stupid things. If you leave, you're looking at a hit-and-run charge on top of everything else. Second, don't admit fault to the salesperson or the police immediately. State the facts: "I was turning left, and the other car hit me." Don't say, "I'm so sorry, I didn't see him." That’s a legal admission that will haunt you.
Check your own insurance policy before you go to a place like CarMax. Does your policy cover "temporary substitute vehicles" or "unowned vehicles"? If you have a bare-bones policy, you might be personally on the hook for a $40,000 SUV if you total it.
Actionable Steps for a Safe Test Drive
- Record the Car's Condition: Take a quick 30-second video of the car before you leave the lot. If there's a crack in the windshield or a scuff on the rim, you don't want them blaming you when you get back.
- Adjust Everything Before Moving: Don't fiddle with the mirrors or the seat while you're driving an unfamiliar car. Get it sorted in the parking lot.
- Keep the Radio Off: You aren't there to test the speakers (well, maybe a little). You're there to listen to the engine, the brakes, and the suspension. Silence helps you focus on the road.
- Stay Within Your Limits: If you've only ever driven a Toyota Corolla, don't try to floor it in a Tesla Model S Plaid or a Mustang GT. The torque curve is different. The braking distance is different.
The CarMax Los Angeles incident involving Warren Smale remains a tragic benchmark in the industry. It serves as a reminder that safety isn't just about airbags and crumple zones; it's about the choices made behind the wheel. CarMax continues to be a leader in the used car space, but the shadow of that Ferrari 458 remains a cautionary tale for every salesperson and customer who steps onto a lot.
If you're planning on heading to a dealership today, just remember: it's a piece of machinery, not a video game. Treat it with respect. The road doesn't care about your "no-haggle" price if you aren't paying attention to the speed limit.
Before you sign the papers or take the keys for a spin, verify your insurance coverage and understand the dealership's specific liability waiver. Most people sign those documents without reading a single word. Don't be that person. Understanding the fine print is the best way to ensure that your next car purchase doesn't turn into a headline.