CarMax
- Company typePublic
- Founded2003
- HeadquartersRichmond, United States
- Headcount5,001–10,000
- GTM typeB2C
- OfferingServices
What CarMax does
CarMax, Inc. (NYSE: KMX), headquartered in Richmond, Virginia, is the largest used-vehicle retailer in the United States, operating more than 250 stores across 41 states alongside its CarMax.com e-commerce platform. The company sells used cars to individual consumers through a no-haggle pricing model, an omnichannel buying and selling experience, and an in-house financing arm (CarMax Auto Finance, or CAF) that financed 43.3% of Q1 FY2027 retail unit volume and is the largest Tier 2 lender in the segment. It also runs a wholesale auction business (units up 8.4% YoY in Q1 FY2027), sells extended protection plans, and serves a customer base that ranges from prime-credit consumers to subprime borrowers, with no minimum credit score requirement for financing. The business model blends retail gross profit per unit (~$2,177 in Q1 FY2027) with recurring CAF and protection-plan attach revenue; FY2026 revenue was approximately $28.3B with ~$1.1B in EBITDA.
The technology stack is a hybrid retail platform: CarMax.com handles online search, appraisal, and prequalification, while the Skye virtual chat assistant (launched 2020) and a ChatGPT application (launched May 2026, first from an American auto retailer) provide natural-language vehicle search and appraisal on top of OpenAI's foundation models. In-store and online experiences are stitched together through online prequalification that routes into physical visits, supported by UserTesting and Figma-based experience design work. The wholesale channel uses auction infrastructure to dispose of vehicles not sold at retail.
In early 2026, activist investor Starboard Value acquired a 4.4% stake and pushed for stronger digital execution, dynamic pricing, and deeper cost discipline, contributing to CEO Bill Nash's removal and the appointment of Keith Barr (formerly of InterContinental Hotels Group) as President and CEO on March 16, 2026. New management has articulated a four-pillar strategy — competitive pricing, digital-physical integration, growing financing/protection-plan attach, and a $200M SG&A savings target by FY2027 — and is deliberately accepting near-term gross profit per unit compression to drive volume and recapture share from digital-first competitors.
CarMax firmographics
Firmographics- Name
- CarMax
- Legal name
- CarMax, Inc.
- Website
- https://carmax.com
- Company type
- Public
- Founded year
- 2003
- Operating status
- Operating
- Headcount range
- 5,001–10,000 employees
- Ownership category
- akta.pro rank
CarMax industry classification
Industry- Product category
- Used Vehicle Retail
- NAICS
- Used Car Dealers (441120), Automobile Dealers (4411), Motor Vehicle and Parts Dealers (441)
- SIC
- Retail-Auto Dealers & Gasoline Stations (5500)
- akta.pro primary industry
- Automotive Parts & Accessories Online Retailers (CRAFADAK)
- akta.pro secondary industry
- New & Used Auto Purchase Loans (FSAKADAA)
Keywords
Where CarMax is headquartered
LocationHeadquarters
- HQ city
- Richmond
- HQ country
- United States
- HQ region
- North America
Offices1 record
Markets served
CarMax business model
Business model- GTM type
- B2C
- Offering type
- Services
- Cost components
- Operations, Supply Chain, Personnel, Marketing or Sales, Technology or R&D, Others
Revenue model
- Used Vehicle Retail Sales: Sale of used vehicles directly to consumers through retail stores and online platforms. Revenue generated from the difference between vehicle acquisition cost and selling price. The company reported Q1 FY2027 revenue of $8.01 billion with combined retail and wholesale unit sales of 392,357 vehicles.
- Auto Financing (CarMax Auto Finance): In-house financing arm that provides auto loans to customers. CAF financed 43.3% of retail units in Q1 FY2027, making it the largest Tier 2 lender. CAF income was $140.2 million in Q1 FY2027. The company expanded Tier 2 penetration from 10% to 25%, with a $96 million loan loss provision.
- Extended Protection Plans: Revenue from vehicle protection plans and service contracts offered to customers during vehicle purchases. Management target of approximately $35 per unit in incremental extended protection plans for fiscal year 2027.
- Wholesale Vehicle Sales: Sale of vehicles through wholesale auctions, with unit sales up 8.4% in Q1 FY2027. Wholesale channel drove overall volume growth with 8% increase in wholesale units.
Pricing tiers
| Model | Billing | Price |
|---|---|---|
| One time/ perpetual license | Pay-as-you-go | No-haggle competitive pricing model |
| Transaction based/ take rate | Monthly | Auto financing with no minimum credit score requirement |
Go-to-market motion2 records
Distribution channels4 records
Marketing channels3 records
CarMax product offering
Product offeringCore offering
CarMax is the largest used car retailer in the United States, operating more than 250 retail stores across 41 states alongside an e-commerce platform. The company sells used vehicles through a no-haggle pricing model, provides in-house auto financing through CarMax Auto Finance (CAF), and runs a wholesale vehicle auction channel. Adjacent revenue lines include extended protection plans and an omnichannel experience integrating online prequalification with in-store transactions.
Product overview
CarMax operates as the largest used car retailer in the United States, offering a platform-plus-services model combining physical retail stores (250+ locations across 41 states) with digital commerce capabilities. The core offering includes used vehicle retail sales, wholesale auction services, and in-house auto financing through CarMax Auto Finance (CAF). Adjacent services include extended protection plans and an omnichannel experience integrating online prequalification with physical store visits. The company has invested in AI capabilities including the Skye virtual assistant (launched 2020) and a ChatGPT app (launched May 2026) for natural language vehicle search and appraisal tools.
Differentiator
Problem solved
Functional benefit
Quantifiable outcome
- Q1 FY2027 revenue of $8.01 billion, up 6.2% year-over-year, beating analyst expectations
- +3 more outcomes
Companies that use CarMax
Customer profileNamed customers2 records
Segments2 records
Ideal customer profiles2 records
CarMax technology and API
TechnologyTechnology focussed No
API detail
- Has API
- No
- API docs
- API detail
Core technology
AI maturity
App detail
AI capability2 records
Feature4 records
CarMax partnerships and signals
Strategic signalScale indicators9 records
Recent moves6 records
Expansion highlights5 records
CarMax competitors and assessment
Company assessmentDirect peers
- Carvana: Carvana is the closest direct competitor to CarMax in online used vehicle retail, operating a pure-play e-commerce model with vehicle vending machines. It competes head-to-head on selection, pricing transparency, and home delivery, though CarMax retains a physical-store omnichannel advantage.
- DriveTime: DriveTime is a used vehicle retailer focused on subprime and near-prime financing customers, overlapping directly with CarMax Auto Finance's target segment. It competes on integrated vehicle sales and in-house lending, similar to CarMax's no-credit-score model.
Broad incumbents
- AutoNation: AutoNation is the largest US auto dealer group, selling new and used vehicles across multiple brands through ~300 stores. It overlaps with CarMax in used vehicle retail and used-car financing (AutoNation Finance), but as a much broader full-line incumbent.
- Lithia Motors: Lithia Motors is a Fortune 500 dealer group operating hundreds of new and used vehicle franchises plus the Driveway online used-car platform. It competes with CarMax on omnichannel used-car retail and is expanding its captive financing capabilities.
- Group 1 Automotive: Group 1 Automotive is a large US/UK franchised auto dealer group selling new and used vehicles. Its used-car and F&I businesses overlap with CarMax's, but it operates primarily as a multi-brand franchise dealer rather than a pure used-car retailer.
- Sonic Automotive: Sonic Automotive is a franchised auto dealer group operating EchoPark, a standalone used-vehicle retail concept that directly competes with CarMax. EchoPark is an emerging challenger in CarMax's core used-car segment.
Emerging players
- Vroom: Vroom is an online used car retailer that pioneered e-commerce vehicle sales and home delivery. It competes with CarMax on digital buying experience, though its scale and inventory breadth are materially smaller.
Others
- CarGurus: CarGurus is a leading online car shopping marketplace connecting buyers with dealer inventory. It serves as a top-of-funnel discovery channel for used vehicles and competes indirectly with CarMax.com for online shopper attention.
- TrueCar: TrueCar is an online automotive marketplace that provides pricing transparency and connects consumers with dealers. It overlaps with CarMax's no-haggle pricing model and competes for digital car shoppers, though it does not sell vehicles directly.
- Cox Automotive: Cox Automotive (owner of Manheim auctions, Autotrader, Kelley Blue Book) operates the largest US wholesale vehicle auction platform and key industry data assets. CarMax sells wholesale inventory to Manheim and uses KBB values, making Cox an ecosystem participant and partial competitor.
Market position
Strengths5 records
Weaknesses3 records
Competitive moat5 records
Key risks6 records
Key highlights7 records
Customer concentration
CarMax social profiles
Digital presenceCarMax financial estimates
Financial estimateRevenue estimate
Valuation estimate
CarMax leadership team
Management profileNumber of profiles
Profiles8 records
CarMax subsidiaries and ownership
Company hierarchySubsidiaries1 record
CarMax funding detail
Funding detailFunding overview
Funding rounds1 record
Investors
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
CarMax M&A and investment
M&A and investmentM&A1 record
Investments7 records
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about CarMax
What does CarMax do?
CarMax is the largest used car retailer in the United States, operating more than 250 retail stores across 41 states alongside an e-commerce platform. The company sells used vehicles through a no-haggle pricing model, provides in-house auto financing through CarMax Auto Finance (CAF), and runs a wholesale vehicle auction channel. Adjacent revenue lines include extended protection plans and an omnichannel experience integrating online prequalification with in-store transactions.
Is CarMax a public or private company?
CarMax is a public company. It is classified as public and is currently operating.
When was CarMax founded?
CarMax was founded in 2003. It employs 5,001 to 10,000 people.
Where is CarMax based?
CarMax is headquartered in Richmond, United States, in the North America region.
How does CarMax make money?
Four revenue lines are on record. Used Vehicle Retail Sales are the primary driver. The others are auto Financing (CarMax Auto Finance), extended Protection Plans and wholesale Vehicle Sales.
Who are CarMax's main competitors?
Direct peers on record are Carvana and DriveTime. Broad incumbents are AutoNation, Lithia Motors, Group 1 Automotive and Sonic Automotive. Vroom is listed as an emerging player. Others are CarGurus, TrueCar and Cox Automotive.
Does CarMax have an API?
No public API is recorded for CarMax.
What industry is CarMax in?
CarMax's product category is Used Vehicle Retail. Its primary akta.pro industry code is CRAFADAK, Automotive Parts & Accessories Online Retailers, with a secondary code of FSAKADAA, New & Used Auto Purchase Loans. Its NAICS code is 441120 and its SIC code is 5500.