CarMax, Inc.

Company profile

• Largest retailer of used vehicles in the United States, operating through two reportable segments: CarMax Sales Operations and CarMax Auto Finance (CAF).
• Omni-channel model that supports online, in-store, and hybrid buying journeys, including an AI-powered virtual assistant (Skye) and a team of customer experience consultants.
• Acquired Edmunds Holding Company in June 2021 to strengthen online shopping capabilities and digital talent.
• Emphasizes reconditioning and quality standards and uses a customer-friendly, no-haggle pricing approach.
• Provides a 10-day money-back guarantee and a 30-day limited warranty on retail vehicles.
• Offers related products and services (extended protection plans, GAP, vehicle repair service) through third-party providers.

Operating segments

• CarMax Sales Operations
  • Sells used vehicles, purchases vehicles from customers and other sources, sells related products and services, and arranges financing options.
  • Allows customers to evaluate each component independently (vehicle purchase, financing, warranties, etc.).
• CarMax Auto Finance (CAF)
  • Provides in-house financing to customers buying retail vehicles from CarMax.
  • Uses proprietary scoring models tailored to the CarMax channel and services all CAF-originated loans.
  • CAF financed 42.4% of CarMax’s retail used vehicle unit sales in fiscal 2026.
  • CAF contracts are financed through a mix of CAF and third-party providers; CAF provides ongoing servicing (billing, collections, repossession of collateral).

Scale and footprint (as of Feb 28, 2026)

• Store footprint
  • Total used car stores: 256 in 110 U.S. television markets.
  • Store formats: 111 production stores, 145 non-production stores, and 6 small-format stores.
  • Of 256 stores, 171 are on owned sites and 85 are on leased sites (land-only and land+building leases).
  • Stand-alone facilities: 7 stand-alone reconditioning/auction facilities (6 on owned sites, 1 on a leased site), plus 2 stand-alone reconditioning facilities and 1 stand-alone auction facility.
• Inventory
  • Approximately 61,000 saleable retail vehicles in inventory.
  • Vehicles transferred at customer request accounted for about 38% of retail sales in fiscal 2026.
• Geographic presence
  • Operations across 110 U.S. television markets.
• Online and digital scale
  • Website/app traffic averaged 37 million monthly visits in fiscal 2026.
  • About 80% of customers use online finance-based shopping tools at the start of the credit process.
  • Online/offline integration includes online pre-qualification, online checkout, and a unified customer experience.

Customers, financing, and assets

• CAF portfolio includes approximately 1.0 million customer accounts (auto loans).
• CAF portfolio financing total: $16.37 billion.
• Examples of third-party finance providers: Ally Financial, American Credit Acceptance, Bank of America, Capital One Auto Finance, Exeter Finance Corp., Santander Consumer USA, Westlake Financial Services.
• Third-party EPP/GAP providers include Assurant, CNA National Warranty Corporation, Fidelity Warranty Services, and Safe-Guard Products International LLC.
• Vehicles purchased from consumers and dealers: approximately 1.1 million in fiscal 2026.
• About half of appraisal-derived inventory meets CarMax retail standards; the remainder are sold to licensed dealers via wholesale auctions.

Employees and leadership

• Total associates: 27,796 (as of Feb 28, 2026), including:
  • CAF: 942
  • Edmunds: 488
  • In-store/field employees (hourly and salaried): 23,888
  • In-store sales associates: 2,915
  • Customer Experience Center (CEC) sales associates: 879
  • Edmunds sales associates: 114
  • Technology, product, and data science: 1,308
• Leadership transition ongoing in 2026; Keith Barr was named President & CEO in 2026.

Key capabilities and differentiators

• Centralized inventory management and pricing system that suggests initial retail prices and markdowns using historical sales, interest, and seasonal data to optimize inventory turns and gross profit per unit.
• No-haggle pricing, transparent terms, and an omni-channel platform designed to reduce friction and improve customer satisfaction.
• Internal reconditioning process to CarMax Quality Certified standards with in-house work and selected third-party services; nationwide service network for post-sale repairs.
• CAF strategy supports a wide credit spectrum over time, which reduces reliance on third-party lenders and enables additional retail sales through in-house financing.

Notes

• The summary reflects the company’s status as of February 28, 2026 and includes leadership information up to that period.
• CarMax discusses potential risks in its filings, including competition, market conditions, capital access, technology risk (including AI), and regulatory risks.