Rising Demand Drives Growth in Used Vehicle Transactions for CarMax

Used Vehicle Sales Grow 2.9%

CarMax Sales Increase. CarMax reported that combined retail and wholesale used vehicle unit sales reached 352,478 in the second quarter ending August 31, marking a 2.9% increase compared to last year.

Retail Sales Surge by 5.1%

Total retail used vehicle unit sales rose 5.1%, reaching 211,020. Comparable store used unit sales also grew by 4.3% year-over-year. Total retail used vehicle revenues were up 1.5%, driven by higher unit sales, though partially offset by a 4.6% decrease in the average selling price, which dropped by approximately $1,250 per vehicle.

Wholesale Sales Slightly Decrease

Wholesale vehicle unit sales dipped by 0.3% to 141,458 units, with total wholesale revenues dropping 12.7%. The decline was primarily due to a 12.9% decrease in the average wholesale selling price, which fell by approximately $1,150 per unit.

Vehicle Purchases from Consumers Increased by 2.9%

CarMax purchased 300,000 vehicles from consumers and dealers, up 2.9% compared to the prior year’s second quarter. Of these, 269,000 were sourced from consumers, down 1.2%, while 31,000 came from dealers, a substantial 61.4% increase.

Other Revenues and Online Sales See Growth

Other sales and revenues rose by 13.2%, driven by a $21.3 million increase, primarily from stronger EPP margins. Online retail sales accounted for 15% of retail unit sales, slightly up from 14% last year, while online transactions totaled $2.0 billion, representing 29% of net revenues, down from 31% due to the decline in wholesale prices.

Profitability Improves

CarMax’s total gross profit for the second quarter increased by 9.1%, reaching $760.5 million. Retail used vehicle gross profit rose by 5.9%, with gross profit per used unit remaining steady at $2,269. Wholesale vehicle gross profit saw a modest increase of 0.9%, with gross profit per unit consistent at $975.