CarMax

CarMax, Inc.
	File:CarMax logo.svg Logo used since 2006
Company type	Public
Industry	Used car retail
Predecessor	Circuit City Corporation (as parent company)
Founded	1 January 1993; 33 years ago in Richmond, Virginia, United States
Headquarters	Richmond, Virginia, United States
Area served	United States (41 states)
Key people	Bill Nash (President and CEO), Enrique Mayor-Mora (CFO)
Products	Used automobiles
Revenue	US$18.95 billion (2021)
Net income	US$2.37 billion (2021)
Number of employees	27,000 (2021)
Website	www.carmax.com

CarMax, Inc. is a prominent American retailer specializing in pre-owned automobiles, operating through two main divisions: CarMax Sales Operations and CarMax Auto Finance. Established in 1993 as a subsidiary of Circuit City Corporation, its inaugural store opened in Richmond, Virginia. By January 2025, CarMax had expanded to 253 locations across the United States.

Originally concentrating exclusively on used cars, CarMax broadened its scope to include new vehicle sales by acquiring a Chrysler dealership in 1996. Subsequently, it incorporated Mitsubishi, Toyota, and Nissan franchises by 1999. Nevertheless, in late 2021, the company divested its final new car dealership located in Kenosha, Wisconsin, thus withdrawing from the new vehicle market to refocus solely on used car retail.

For the fiscal year 2021, CarMax reported revenues of US$18.95 billion and net earnings of US$2.37 billion, supported by a workforce numbering around 27,000 employees. Leadership includes Bill Nash as President and CEO and Enrique Mayor-Mora serving as CFO; both executives oversee the strategic direction and financial results within the competitive landscape of used car sales.

About

CarMax’s corporate headquarters is situated in Richmond, Virginia, while CarMax Auto Finance operates out of Kennesaw, Georgia. The company maintains retail outlets in 41 states alongside Customer Experience Centers that handle service calls.

Concept

The idea for CarMax originated within Circuit City under CEO Richard L. Sharp in 1991 and was initially referred to internally as "Project X." Ronald L. Moore, a consultant, proposed this initiative after identifying potential business avenues beyond Circuit City’s traditional electronics market.

Prior to store openings, CarMax partnered with advertising firm DeVito/Verdi to craft promotional campaigns that would support its market launch. Although the company started with a no-fee transaction model, it later introduced fees after recognizing customer acceptance.

A standard CarMax location covers about , carries an inventory of 300–400 vehicles, and experiences inventory turnover between eight and ten times per year. Each store employs roughly 40 sales professionals. Every vehicle undergoes a thorough 125-point inspection and is sold with a 90-day warranty, a three-day option to change financing terms, and a 10-day return policy (reduced from 30 days beginning in 2024).

CarMax issued its initial stock offering in February 1997 as a tracking stock under Circuit City when it operated seven stores. It became fully independent from Circuit City on October 1, 2002, through a stock dividend distributed to Circuit City shareholders.

During fiscal year 2021 (March 2020–February 2021), CarMax sold more than 750,000 vehicles. The company pursued rapid growth by inaugurating 15 superstores in fiscal year 2018 and planned an additional 15 openings for fiscal year 2019.

Competition

As the largest used-car retailer nationwide, CarMax encounters rivalry from exclusively online companies aiming to capture its market share. To stay competitive, CarMax introduced an Omni-channel platform allowing customers to buy vehicles via online channels, physical stores, or a hybrid approach—including options such as home delivery and contactless curbside pickup. These offerings directly compete with home delivery-centric companies like Carvana, CarGurus, Vroom, and Shift Technologies.

Recognition

From 2005 through 2023, CarMax has been a regular feature on Fortune magazine's "100 Best Companies to Work For" list, securing the 75th position in 2023.

Other notable honors include:

Fortune's Best Workplaces in Retail
Best Workplaces for Diversity in 2019
Inclusion in Training Magazine's Training Top 125 for its exemplary leadership development initiatives

External links