CarMax

CarMax acquires used vehicles from consumers, trade-ins and other sourcing channels, reconditions them, and resells them through a national retail platform. It creates value by combining inventory scale, standardised inspection and merchandising, transparent fixed pricing and integrated digital-to-store fulfilment. The model is reinforced by attached financial products, especially captive auto finance, and by ancillary services such as service plans and post-purchase support.

CarMax is a US consumer automotive retailer focused primarily on used vehicles. It operates an omnichannel model that lets customers research, finance, buy, trade in and sell cars through a combination of digital tools and physical stores. Its customer proposition centres on broad national inventory, fixed no-haggle pricing and a purchase journey that links online browsing with store pickup, test drives and fulfilment.

The company makes money mainly from retail vehicle sales, where it earns gross margin between acquisition and resale prices. It also generates substantial secondary revenue through its in-house lending operation, CarMax Auto Finance, plus ancillary products such as service plans and related ownership services. Its customers are primarily individual consumers buying, financing or selling used vehicles rather than enterprise buyers.