Profile: Carmax Inc (KMX)
28 Jul 2015
CarMax, Inc. (CarMax), incorporated on October 4, 1996, is a holding company engaged in providing used vehicles and related products and services. The Company operates through two business segments: CarMax Sales Operations and CarMax Auto Finance (CAF). The Company's CarMax Sales Operations segment consists of all aspects of its auto merchandising and service operations, excluding financing provided by CAF. The Company's CAF segment consists of its own finance operation that provides vehicle financing through CarMax stores. As of February 28, 2015, the Company operated 144 used car stores in 73 metropolitan markets.
CarMax Sales Operations
The Company's CarMax Sales Operations segment sells used vehicles, purchases used vehicles from customers and other sources, sells related products and services, and arranges financing options for customers. The Company also provides other related products and services, such as extended protection plan (EPP) products and vehicle repair service. The EPP products include extended service plans (ESPs) and guaranteed asset protection (GAP), which is designed to cover the unpaid balance on an auto loan in the event of a total loss of the vehicle or unrecovered theft.
CarMax Auto Finance
The Company's CAF segment provides financing to the customers of CarMax. As of February 28, 2015, the CAF segment serviced approximately 619,000 customer accounts. The Company's CAF products and services include retail merchandising, wholesale auctions, extended protection plans (EPPs), reconditioning and service, and customer credit. Under retail merchandising, the Company offers customers a range of makes and models of used vehicles, including both domestic and imported vehicles. Under wholesale auctions, the Company provides condition disclosures on each vehicle, including those for vehicles with mechanical issues, possible frame or flood damage, branded titles, salvage history and unknown true mileage. The Company offers EPPs on behalf of unrelated third parties. The Company under reconditioning and service performs routine mechanical and minor body repairs in-house. The Company's used car stores provide vehicle repair service, including repairs of vehicles covered by the ESPs it sells. Under customer credit, the Company offers financing alternatives for retail customers. Vehicles are financed using retail installment contracts secured by the vehicle.
The Company competes with Cox Enterprises and KAR Auction Services, Inc.
12800 Tuckahoe Creek Parkway
RICHMOND VA 23238