CarMax

The business model centres on acquiring used vehicles, reconditioning them to internal standards, and reselling them at fixed, no‑haggle prices via an integrated online and store network. Inventory comes from customers trading in or selling their cars and from other sources; vehicles that do not meet retail criteria are diverted to wholesale auctions. The core value proposition for consumers is transparent pricing, simplified purchase and trade‑in processes, and an ability to complete transactions online or in store.

Around this core, the company operates a captive auto finance division that underwrites and services consumer auto loans and partners with third‑party lenders, creating financing and interest revenue and supporting more vehicle sales. It sells extended service plans and other aftermarket products at the point of sale, some administered by third parties, capturing additional margin and creating ongoing service relationships. Wholesale auctions monetise non‑retailable vehicles and provide inventory to dealers. Supporting activities include reconditioning and limited service work, which generate incremental revenue and help maintain vehicle quality and brand trust.

CarMax is a large US-based omnichannel used-vehicle retailer operating a national website and physical stores. It enables consumers to buy, finance and protect used cars through a no‑haggle, upfront pricing model, with options to complete purchases online with delivery or in person. The company also runs a captive finance arm, extended service plans, customer account portal and dealer auctions to support its retail and wholesale operations.

Revenue is generated from vehicle retail margins, wholesale auctions of cars not sold at retail, interest and fee income from its captive auto finance business, and the sale of extended service plans and other add‑on products. Its primary customers are retail car buyers and sellers in the United States, with franchised and independent dealers as wholesale buyers via its auction network.