CarMax, Inc. is a used vehicle retailer based in the United States. It operates two business segments: CarMax Sales Operations and CarMax Auto Finance. The corporate entity behind the formation of CarMax was Circuit City Stores, Inc. The first CarMax retail location opened in September 1993 in Richmond, Virginia. As of October 2022, CarMax operates 238 locations. 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. In late 2021, CarMax sold its last new vehicle dealership, located in

Kenosha, Wisconsin Kenosha () is a city in the U.S. state of Wisconsin and the seat of Kenosha County. Per the 2020 census, the population was 99,986 which made it the fourth-largest city in Wisconsin. Situated on the southwestern shore of Lake Michigan, Kenos ...

, to the Rydell Company.

About

CarMax's headquarters is located in Richmond, Virginia. CarMax Auto Finance operates from Kennesaw, Georgia. There are CarMax retail locations in 41 states as well as customer service call-centers (called Customer Experience Centers).

Concept

The concept for CarMax was developed by Circuit City executives under then-CEO Richard L. Sharp. It was developed for nearly a year in 1991, using the code name "Project X", and was also known as "Honest Rick's Used Cars" to those intimately involved in the

skunk works Skunk Works is an official pseudonym for Lockheed Martin's Advanced Development Programs (ADP), formerly called Lockheed Advanced Development Projects. It is responsible for a number of aircraft designs, beginning with the P-38 Lightning in 1 ...

team. The concept was actually first proposed by Ronald L. Moore of Richmond, Virginia, a consultant hired by Circuit City to evaluate possible business opportunities beyond the scope of their consumer electronics locations. Prior to the first store being built, DeVito/Verdi was hired as the advertising agency and creative resource. The company executed the campaign and additional TV advertisements over the course of a number of years in support of the launch and the initial wave of stores. The business model began with no fees, however the model was subsequently abandoned for the current business model after it was determined that customers were not concerned about paying transaction fees for the purchase of a vehicle. A typical CarMax store is approximately , carries an inventory of 300–400 vehicles, and turns its inventory over eight to ten times a year. On average, a CarMax location employs 40 sales associates. Each car goes through a thorough 125-point inspection process, beyond any state-required inspections, and includes a 90-day warranty, three days to change the financing for free, and a 30-day money back guarantee. Circuit City issued the first CarMax stock in February 1997, when CarMax had seven locations. Initially, the stock was a tracking stock still under the umbrella of Circuit City. CarMax officially split from Circuit City as of October 1, 2002, when it was spun off as a

stock dividend A dividend is a distribution of profits by a corporation to its shareholders. When a corporation earns a profit or surplus, it is able to pay a portion of the profit as a dividend to shareholders. Any amount not distributed is taken to be re- ...

for Circuit City shareholders, with shares also issued to those holding CarMax tracking stock. CarMax sold over 750,000 vehicles to consumers in Fiscal Year 2021 (March 1, 2020 - February 28, 2021). According to the CarMax

fiscal year A fiscal year (or financial year, or sometimes budget year) is used in government accounting, which varies between countries, and for budget purposes. It is also used for financial reporting by businesses and other organizations. Laws in many ...

2018 report released on April 24, 2018, the company opened 15 used car superstores in Fiscal Year 2018, and expects to open 15 additional stores in Fiscal Year 2019.

Competition

While CarMax is seen as the nation's largest used-car retailer, it is not without competition. With a large shift in customer shopping habits, more online-only companies have worked to eat away are market share in the used vehicle market. To combat this CarMax unveiled what it calls their Omni-channel platform, which is aimed at allowing customer to buy a car online, in-store, or any combination of the two. They also have provided opportunities for customers to choose vehicle delivery at their home, contactless curbside pickup, and more. These offerings directly compete with other home delivery based options such as

Carvana Carvana is an online used car retailer based in Tempe, Arizona. The company is the fastest growing online used car dealer in the United States and is known for its multi-story car vending machines. Carvana was named to the 2021 ''Fortune 500' ...

, Vroom, Shift Technologies, and others.

Recognition

CarMax is listed on '' Fortune''s "100 Best Companies to Work For" list from 2005 to 2022, placing 98th in 2022. Other awards include: *Fortune Best Workplaces in Retail *Best Workplaces for Diversity 2019 *Training Magazine's - Training Top 125

References

External links

*
CarMax Auction official websiteCarMax Foundation official website
{{Authority control Circuit City 1993 establishments in Virginia Companies based in Richmond, Virginia American companies established in 1993 Retail companies established in 1993 Companies listed on the New York Stock Exchange Auto dealerships of the United States 1997 initial public offerings Corporate spin-offs Used car market Automotive websites Online automotive companies of the United States