Here are 1-3 brief analogies for CarMax:

• The **Best Buy for used cars.**

• The **Costco of used cars.**

• The **McDonald's of used cars.**

CarMax (KMX) primarily sells used vehicles directly to individual consumers. Therefore, it does not have other companies as its major customers in its primary retail business.

CarMax serves the following categories of individual customers:

1. General Used Car Buyers: This broad category includes individuals and families from various income levels and demographics who are actively seeking a pre-owned vehicle. They might be first-time car buyers, individuals looking for a reliable commuter car, or families needing an additional vehicle or an upgrade. They often prioritize value, reliability, and a transparent buying process.
2. Trade-In Customers: A significant portion of CarMax's customer base consists of individuals who are looking to sell their current vehicle, often as a trade-in towards the purchase of another vehicle from CarMax. These customers value the convenience of an immediate appraisal and sale offer for their existing car, alongside the process of buying a new one.
3. Digital-First and Convenience-Oriented Buyers: With its strong online platform and "omni-channel" retail model, CarMax attracts customers who prefer to conduct much of their car shopping and purchasing process digitally. This includes customers who value the ability to browse inventory, get financing pre-approvals, and even complete vehicle purchases online, often opting for home delivery or convenient in-store pickup options.

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Bill Nash, President and Chief Executive Officer

Bill Nash joined CarMax in 1997, beginning his career as an auction manager. He progressed through various senior roles in auction services and merchandising before transitioning to human resources in 2011. He served as Executive Vice President of Human Resources and Administrative Services prior to his promotion to President and CEO in 2016. Before joining CarMax, Mr. Nash held several positions at Circuit City, including corporate tax manager, and also worked as an accountant at a public accounting firm where he received his CPA title. He currently serves as a member of the Board of Directors for eBay Inc.

Enrique Mayor-Mora, Executive Vice President, Chief Financial Officer

Enrique Mayor-Mora joined CarMax in 2011 as Vice President of Finance. He later became Treasurer in 2016 and was promoted to Senior Vice President and CFO in 2019, then to Executive Vice President and Chief Financial Officer in 2022. Mr. Mayor-Mora is responsible for leading CarMax's financial planning, accounting, treasury, internal audit, investor relations, tax, real estate, procurement, and facilities functions. He has been instrumental in driving CarMax's capital allocation strategy, which includes strategic investments and acquisitions, such as the $404 million acquisition of Edmunds in June 2021. Before his tenure at CarMax, he served as Vice President of Financial Planning and Analysis and Investor Relations at Denny's Corporation from 2005 to 2011, and held various financial positions at Gap, Inc. from 2001 to 2005.

Joe Wilson, Executive Vice President, Chief Operating Officer

As Executive Vice President, Chief Operating Officer, Joe Wilson leads field strategy and store execution for CarMax's more than 230 stores nationwide, its auction business, customer experience centers, and logistics services. He also directs the company's pricing and inventory strategies and has been a key leader in enhancing the efficiency of sourcing and managing CarMax's inventory over the past two decades. Mr. Wilson has been in his current role since 2022 and has held various positions within CarMax, including Assistant Vice President, Vice President of auction services and merchandising development, Vice President of merchandising operations, and Senior Vice President of store strategy and logistics.

Diane Cafritz, Executive Vice President, Chief Innovation & People Officer

Diane Cafritz joined CarMax in February 2003 as head of litigation. Over 14 years, she advanced through various roles within the legal department, eventually becoming Senior Vice President and CarMax's first Chief Human Resources Officer in April 2017. In 2021, her responsibilities expanded to include General Counsel and Chief Compliance Officer, and she was promoted to Executive Vice President in 2022. Prior to her career at CarMax, Ms. Cafritz was a partner at McDermott Will & Emery.

Shamim Mohammad, Executive Vice President, Chief Information and Technology Officer

Shamim Mohammad, as Executive Vice President, Chief Information and Technology Officer at CarMax, oversees the strategic application of technology across the company. This includes digital innovations and product engineering, aimed at developing revenue-generating products and solutions that provide competitive advantages. He is recognized for leading an entrepreneurial technology team and for fostering a culture of learning and innovation to cultivate digital talent and build organizational agility.

There are two clear emerging threats to CarMax:

• The rise of pure-play online used car retailers: Companies like Carvana and Vroom have established a business model centered entirely on online transactions, home delivery, and extended return policies. While CarMax has significantly enhanced its omnichannel capabilities, these pure-play competitors appeal to a growing segment of consumers who prefer to avoid physical dealerships entirely, directly challenging CarMax's market share and requiring continuous adaptation of its own digital strategy and logistics.
• The rapid acceleration of electric vehicle (EV) adoption: As EVs become more prevalent, they introduce significant complexities for the used car market. Factors such as evolving battery technology, uncertain long-term battery degradation, faster technological obsolescence compared to internal combustion engine (ICE) vehicles, and different maintenance profiles create challenges for CarMax in accurately valuing, sourcing, reconditioning, and remarketing used EVs. This shift necessitates substantial adaptation in CarMax's operational model, inventory management, and pricing strategies to effectively manage a growing segment of its potential inventory.

CarMax (KMX) operates primarily in the United States, and its main products and services address three significant markets:

• Used Car Sales: The addressable market for used car sales in the U.S. is substantial. In 2025, the U.S. used car market size is estimated at USD 1.05 trillion. This market is projected to reach USD 1.20 trillion by 2030.
• Used Car Financing: CarMax Auto Finance provides financing options for its customers. The used car financing market in North America was valued at USD 180.0 billion in 2024 and is projected to increase to USD 235.0 billion by 2035.
• Extended Service Plans (Auto Extended Warranty): CarMax offers extended service plans and warranties. The market size for auto extended warranty providers in the U.S. is estimated at USD 32.7 billion in 2025.

CarMax (KMX) is expected to drive future revenue growth over the next two to three years through several key strategies:

1. Expansion of Omni-channel Retail and Digital Capabilities: CarMax continues to invest significantly in its integrated online and in-store shopping experience. This seamless omni-channel approach allows customers greater flexibility and convenience in browsing, financing, and purchasing vehicles. The company has seen a significant increase in digital engagement, with approximately 67% of retail unit sales being omni sales, up from 64% in the prior year. New marketing campaigns, such as "Wanna Drive?", are also aimed at enhancing this customer experience and expanding market reach.
2. Growth in CarMax Auto Finance (CAF) Penetration and Full Credit Spectrum Lending: CarMax Auto Finance (CAF) is a vital component of the company's profitability. CarMax aims to increase CAF's penetration from its current levels (e.g., 42-43%) to 50% and is expanding its full credit spectrum underwriting model. This initiative involves offering competitive financing options to a broader customer base, including those with varying credit profiles, which is expected to support increased vehicle sales volume and contribute to finance income.
3. Market Share Gains in the Used Vehicle Market: Despite being the largest used vehicle retailer in the U.S., CarMax holds a market share of approximately 3.7% for vehicles aged 0-10 years and has expressed ambitions to exceed 5%. The company's focus on gaining market share in the fragmented used vehicle market, coupled with its ability to adapt its inventory to shifting consumer demand for different vehicle types (e.g., older, lower-priced cars), is anticipated to drive higher retail unit sales.
4. Enhanced Operational Efficiencies and Service Profitability: CarMax is concentrating on aggressive cost management, including a target of at least $150 million in selling, general, and administrative (SG&A) expense reductions over the next 18 months. These savings are intended to be reinvested in growth initiatives and enable competitive pricing. Additionally, the company expects growth in service gross profit, driven by cost coverage measures and increased efficiencies, as well as stronger margins from Extended Protection Plans (EPP), further contributing to overall gross profit.

Share Repurchases

• CarMax repurchased $180.0 million in shares during the second quarter of fiscal year 2026 (ending August 31, 2025).
• In the first quarter of fiscal year 2026 (ending May 31, 2025), the company bought back approximately $200.0 million in shares.
• As of August 31, 2025, CarMax had $1.56 billion remaining under its outstanding share repurchase authorization.

Share Issuance

• CarMax reported net common equity repurchases of approximately $355 million in fiscal year 2025 and $49 million in fiscal year 2024, indicating no significant share issuance during these periods.

Capital Expenditures

• CarMax anticipates capital expenditures of approximately $575 million in fiscal year 2026, primarily for land purchases and facility development to support future long-term growth in offsite reconditioning, auction facilities, and new stores.
• Capital expenditures for the second quarter of fiscal year 2026 (ending August 31, 2025) totaled $268.2 million.
• The company's capital expenditures were $422.7 million in fiscal year 2023.