CarMax, Inc. is the largest retailer of used vehicles in the United States, offering vehicle sales, financing, and related services through a nationwide network of stores and an omni-channel sales platform.

# Summary of CarMax, Inc.

## Business Overview
- **Industry Position**: The largest retailer of used vehicles in the United States.
- **Core Business**: 
  - Selling a broad selection of quality used cars at no-haggle, competitive prices.
  - Operating a customer-friendly, omni-channel sales platform (online, in-store, or combined).
  - Providing related services such as vehicle appraisal, purchase from consumers and dealers, vehicle financing, extended protection plans, and vehicle repair services.
  - Managing wholesale vehicle auctions, mainly for vehicles that do not meet retail standards.

## Operations & Facilities
- **Stores**: 250 used car stores across 109 U.S. television markets as of February 28, 2025.
- **Locations**: 
  - 167 stores on owned sites
  - 83 stores leased
  - Additional stand-alone reconditioning facilities and auction centers.
- **Employees**: 
  - Total of approximately **30,048 associates**.
  - Store associates generally paid on commission; Customer Experience Centers (CECs) associates are hourly.
  - Significant investment in technology and data science roles, with **1,481 technology, product, and data science associates**.

## Customer & Revenue Data (Fiscal Year Ended February 28, 2025)
- **Number of Customers**: 
  - Servicing approximately **1.1 million customer accounts** through CarMax Auto Finance.
- **Vehicles Sold**:
  - **789,050 used vehicles** sold at retail, representing a 3.1% increase over the previous year.
  - Wholesale vehicle sales: **544,312 vehicles**.
- **Revenue**:
  - Total net sales and operating revenues: **$26.35 billion** (slight decrease of 0.7% from prior year).
  - Gross profit: **$2.90 billion** (up 6.8%).
  - CarMax Auto Finance income: **$581.7 million** (up 2.4%).
- **Financials**:
  - **Net earnings**: **$500.6 million** (up 4.5%).
  - **Net earnings per diluted share**: **$3.21**.
  - Operating expenses (SG&A): **$2.44 billion**.
  
## Business Segments
- **CarMax Sales Operations**: 
  - Sale of used vehicles and related products/services.
  - Facilitates online, in-store, or combined vehicle buying.
  - Reconditions vehicles to meet quality standards.
  - Offers a "Love Your Car Guarantee" (test drives, 10-day/4,000-mile money-back guarantee, 90-day/4,000-mile warranty).
- **CarMax Auto Finance (CAF)**:
  - Provides in-house auto financing exclusively to CarMax retail customers.
  - Manages a portfolio of approximately **$17.59 billion** in managed receivables.
  - Financed 42.7% of retail used vehicle units sold in fiscal 2025.
  - Operates risk models targeting the full credit spectrum.
  
## Additional Details
- **Customer Interaction**: Omni-channel platform allows shopping online, in-store, or hybrid.
- **Inventory**:
  - Approx. **73,000 retail vehicles** in stock at year-end.
  - Large inventory available for transfer nationwide.
- **Growth & Expansion**:
  - Opened 5 stores in fiscal 2025.
  - Planned 6 store openings and 4 reconditioning/auction centers in fiscal 2026.
- **Market Share**:
  - Approximate 3.7% of U.S. used vehicle sales (age 0-10 years) in 2024.
  - Market share growth driven by quality offerings, customer experience, and digital capabilities.

This detailed summary reflects CarMax's core business activities, operational footprint, customer base, and financial highlights based solely on the provided documentation.

CarMax, Inc. is the largest retailer of used vehicles in the U.S., offering an omni-channel buying experience and various related services.

## CarMax, Inc. Overview

### Business Model
CarMax, Inc. is the largest retailer of used vehicles in the United States, established in 1993 and incorporated in Virginia in 1996. The company operates through an omni-channel platform, allowing customers to buy used cars through various channels: online, in-store, or via a combination of both. Additionally, CarMax provides related services such as vehicle financing, repair services, and the sale of vehicle protection products.

### Key Operations
1. **Used Vehicle Retailing**: CarMax sells a broad selection of quality used vehicles under a no-haggle pricing model.
   - **Sales**: In the fiscal year ending February 29, 2024, CarMax sold **765,572** used vehicles.
   - **Average Selling Price**: The average selling price for vehicles was **$27,028**.

2. **Wholesale Vehicle Auctions**: CarMax auctions used vehicles that do not meet their retail standards.
   - **Sales**: They sold **546,331** wholesale vehicles in fiscal 2024.
   - **Wholesale Average Selling Price**: Approximately **$8,707**.

3. **CarMax Auto Finance (CAF)**: CAF provides financing options for customers buying vehicles from CarMax.
   - **Portfolio**: The managed receivables portfolio amounts to approximately **$17.39 billion** with **1.1 million** customer accounts serviced.
   - **Financing Penetration**: CAF financed **42.9%** of retail used vehicle sales.

4. **Additional Services**: CarMax offers extended protection plans (EPPs), vehicle repair services, and vehicle appraisals, enhancing customer experience and satisfaction.

### Financial Performance
- **Revenue**: For the fiscal year ending February 29, 2024, CarMax generated total revenue of **$26.54 billion**, a decrease of **10.6%** from the previous year.
- **Gross Profit**: Gross profit was **$2.71 billion**, with a gross profit margin of **10.2%**.
- **Net Earnings**: The company reported net earnings of **$479.2 million**, representing a slight decline of **1.1%** from the previous year.
- **Revenue Breakdown**:
    - **Used Vehicle Sales**: **$20.92 billion** (78.8% of total revenue)
    - **Wholesale Vehicle Sales**: **$4.98 billion** (18.8%)
    - **Other Sales and Revenues**: **$638 million** (2.4%)
  
### Workforce
- **Number of Employees**: As of February 29, 2024, CarMax employed **29,836** associates across various positions, including **3,077** in-store sales associates and **1,525** in Customer Experience Centers.

### Company Vision
CarMax aims to revolutionize the used vehicle buying experience by delivering exceptional customer service and leveraging technology to enhance its operations. This includes integrating data science, AI, and advanced analytics to continually improve customer interactions and operational efficiencies.

### Expansion and Future Outlook
CarMax currently operates **245 used car stores** across **109 U.S. television markets**, covering approximately **85%** of the U.S. population. The company aims to increase its market share in used vehicles, particularly focusing on electric vehicles and enhancing its digital and in-store buying experiences.

This blend of extensive market reach, strong financial performance, and ongoing commitment to innovation positions CarMax as a leader in the used vehicle marketplace.

CARMAX INC

10-K / April 11, 2025

10-K / April 15, 2024

10-K / April 11, 2025

Summary of CarMax, Inc.

Business Overview

Operations & Facilities

Customer & Revenue Data (Fiscal Year Ended February 28, 2025)

Business Segments

Additional Details