CarMax

US based used car retailer

While CarMax stores focus on marketing used vehicles, the company acquired its first new car franchise with Chrysler Corporation in 1996. By 1999, it added new vehicle franchises for Mitsubishi Motors, Toyota, and Nissan. In late 2021, CarMax sold its last new vehicle dealership, located in Kenosha, Wisconsin, to the Rydell Company.

CarMax's headquarters is located in Richmond, Virginia. CarMax Auto Finance operates from Kennesaw, Georgia. There are CarMax retail locations in 41 states as well as customer service call centers (called Customer Experience Centers). The concept was first proposed by Ronald L. Moore of Richmond, Virginia, a consultant hired by Circuit City to evaluate possible business opportunities beyond the scope of their consumer electronics locations. Before the first store was built, DeVito/Verdi was hired as the advertising agency and creative resource. The company executed the campaign and additional TV advertisements throughout several years in support of the launch and the initial wave of stores. The business model began with no fees. However, the model was subsequently abandoned for the current business model after it was determined that customers were not concerned about paying transaction fees to purchase a vehicle. A typical CarMax store is approximately , carries an inventory of 300–400 vehicles, and turns its inventory over eight to ten times a year. On average, a CarMax location employs 40 sales associates. Each car goes through a thorough 125 point inspection process, beyond any state required inspections, and includes a 90 day warranty, three days to change the financing for free, and a 30 day money back guarantee. Circuit City issued the first CarMax stock in February 1997, when CarMax had seven locations. Initially, the stock was a tracking stock still under the umbrella of Circuit City. CarMax officially split from Circuit City as of October 1, 2002, when it was spun off as a stock dividend for Circuit City shareholders, with shares also issued to those holding CarMax tracking stock. CarMax sold over 750,000 vehicles to consumers in Fiscal Year 2021 (March 1, 2020 February 28, 2021).

While CarMax is seen as the nation's largest used car retailer, it has competition. With a significant shift in customer shopping habits, more online only companies have worked to capture Carmax's share in the used vehicle market. CarMax unveiled an Omni channel platform to allow customers to buy a car online, in store, or any combination of these. They have provided opportunities for customers to choose vehicle delivery at their homes, contactless curbside pickup, and more. These offerings directly compete with other home delivery based options such as Carvana, CarGurus, Vroom, Shift Technologies, and others.