CarMax (KMX)

CarMax was created in 1993 as part of Circuit City and became an independent public company in 2002. Its core business is the retail sale of used cars, supported by a no-haggle pricing model and a broad selection of vehicles across makes, models, ages, and price points. The company also sells vehicles through wholesale channels, primarily using auctions to move inventory that does not fit its retail standards or store strategy.

In addition to vehicle sales, CarMax offers financing through CarMax Auto Finance and partner lenders, extended service plans, and repair or reconditioning services. These activities deepen its role across the vehicle ownership cycle and can add revenue beyond the initial car transaction. The company’s scale also supports centralized purchasing, inspection, pricing, logistics, and data-driven inventory management.

Although CarMax is the leading US used-car retailer, the broader market remains highly fragmented, with independent dealers, franchised dealers, online platforms, and private-party sales competing for volume. Its relatively modest share of the addressable US used-vehicle market leaves room for growth, but performance is sensitive to consumer credit conditions, used-car prices, interest rates, inventory availability, and demand for big-ticket purchases. Headquartered in Richmond, Virginia, CarMax is widely viewed as a bellwether for the professionalization and digitization of used-car retailing.