CarMax is dedicated to making the process of buying and selling used cars more accessible, efficient, and reliable for consumers. It is the United States’ largest used-car retailer and a Fortune 500 company. CarMax does not maintain a Standard & Poor’s rating, but has very strong financials. The company´s slogan “The way car buying should be” says a lot about its business model.
What We Like About CarMax
Unique Niche Market
What To Look For When Buying A CarMax
High Price Points
CarMax competes against the certified pre-owned used cars offered at traditional franchised used car dealers (i.e. new car dealers selling used cars).
What Is Sold In A CarMax
Corporate Office Location
12800 Tuckahoe Creek Parkway – Richmond, VA 23238
As of January 2019 CarMax operates 190+ locations in 35+ states. The largest presence is in California, Texas and Washington DC, and Baltimore.
In 2013, CarMax was named one of Fortune’s “100 Best Companies to Work For”
While CarMax stores focus on marketing used vehicles, the company acquired its first new car franchise with Chrysler Corporation in 1996. By 1999, it added new vehicle franchises for Mitsubishi Motors, Toyota, and Nissan as well.
The company´s sales consultants work on fixed commissions, so they make the same amount of money regardless of which car the customer buys. The company wants to ensure that employees don´t have the incentive to push those cars which generate higher margins for the company, and they can focus their time and energy on finding the best vehicle for each customer.