AMERICAS CARMART INC

America's Car-Mart, Inc.

Overview

America's Car-Mart is a public Texas corporation that operates in the integrated auto sales and finance segment of the used-vehicle market. The company sells older-model used vehicles and provides in-house financing for the majority of its customers through two subsidiaries: Car-Mart of Arkansas and Colonial Auto Finance, Inc. The business emphasizes standardized dealership processes with local decision-making; servicing and collections are handled by both corporate teams and dealership-based staff. Financing is offered only for the company’s vehicles and selected ancillary products.

Footprint and people

• Dealerships: 94 (as of April 30, 2026).
• States of operation (12): Arkansas, Oklahoma, Missouri, Texas, Alabama, Kentucky, Tennessee, Mississippi, Georgia, Illinois, Indiana, Iowa.
  • Dealership counts by state (2026): Arkansas 25; Oklahoma 14; Missouri 13; Texas 10; Alabama 6; Kentucky 6; Tennessee 6; Mississippi 5; Georgia 4; Illinois 3; Indiana 1; Iowa 1.
• Corporate headquarters: Rogers, Arkansas — approximately 50,000 square feet leased.
• Employees: about 1,500 full-time associates (as of April 30, 2026).

Dealership operations and inventory

• Facilities: dealerships are leased or owned properties (typically 1 to 4 acres; 1,500 to 5,000 square feet).
• Vehicle sourcing: primarily from wholesalers, new-car dealers, rental/fleet companies, auctions, and the general public.
• Typical vehicle profile: 5–12 years old, 70,000–140,000 miles; purchase price roughly $7,000–$15,000; average purchase price about $9,500.
• Inventory mix: emphasis on SUVs, trucks, and sedans; minimal sports cars or luxury vehicles.
• Inventory and financing strategy: management may curtail inventory purchases during liquidity stress and relies on cash flow from operations and collections of finance receivables. The company did not maintain a revolving warehouse facility for inventory funding during the period.

Underwriting, financing, and servicing

• Nearly all vehicle purchases at dealerships are financed by Car-Mart.
• Down payments: range from 0% to 20%; average down payment about 5.1%.
• Contract terms: 11 to 70 months; average term 49.0 months.
• Interest rates: fixed, ranging from 6.0% to 20.3%; portfolio weighted average interest rate 17.7%.
• Payment frequency: approximately 78% of payments are weekly or bi-weekly.
• Servicing and collections: handled at both the dealership level and the corporate office. A centralized collections department manages accounts from closed stores and specialized servicing functions (title management, bankruptcy, deficiencies, credit reporting).
• Modifications: roughly half of contracts receive one or more modifications (for example, term extensions) to preserve recoveries.
• Repossessions: pursued after amicable resolution efforts; many vehicles are voluntarily returned or surrendered. Repossessed vehicles may be retailed at dealerships or sold wholesale at auction.
• Bankruptcy-related modifications: a small subset (around 1% range) are modified per bankruptcy plans.
• Customer payment channels: in-person payments at dealerships remain common; additional channels include mail, debit/cash, ACH, online, and store-based payments.

Financing and liquidity

• Total outstanding indebtedness (as of April 30, 2026): approximately $722.4 million.
  • Term Loan: about $263.7 million outstanding (original principal value $300.0 million, net of debt issuance costs).
  • Non-recourse notes payable: about $458.7 million outstanding (asset-backed securitizations).
• Funding approach: historically reliant on securitizations and the Term Loan; no revolving warehouse facility was in place to fund inventory purchases or receivable originations.
• 2026 actions: a covenant-relief amendment to the Term Loan was executed on June 19, 2026, that established milestones and conditions for a relief period. Continued access to capital markets, additional financing, recapitalization, or asset sales remain potential options.
• Transaction activity: no acquisitions completed in fiscal year 2026. Management has pursued strategic and financing alternatives through a Special Committee and remains in discussions with lenders about new financing arrangements.

Key performance indicators and operating metrics

• Average unit price (fiscal 2026): $20,064.
• Portfolio characteristics: average down payment ~5.1%; average term 49.0 months; weighted average interest rate 17.7%; ~78% of payments are weekly or bi-weekly.
• Customer profile: primarily non-prime borrowers with limited credit histories.
• Management focus: material exposure to credit losses and sensitivity of collections and liquidity to dealership closures and inventory levels; emphasis on covenant relief, refinancing, or strategic transactions to address liquidity and leverage pressures.

Corporate context

Management and the board oversee liquidity, strategic reviews, and financing initiatives. The company’s plan includes footprint optimization, centralized collections, and infrastructure investments intended to support growth as liquidity stabilizes.

Summary

America's Car-Mart operates a network of used-car dealerships in the South-Central U.S. that combines vehicle sales with in-house financing for primarily non-prime customers. As of April 30, 2026, it operated 94 dealerships across 12 states, employed about 1,500 people, reported an average unit price of about $20,064, and maintained a financing portfolio with a weighted average interest rate of 17.7%. The company relies on asset-backed securitizations and a term loan for funding and pursued covenant relief and strategic financing alternatives in 2026.