Description
CarMax 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 May 2021, CarMax operates 225 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, to the Rydell Company.
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).
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, Carlotz, Vroom, Shift Technologies, and others.
