CARMAX INC

Overview

CarMax Inc. is a U.S. used-vehicle retailer and automotive-services company. Its core businesses include retail sales of used vehicles, wholesale vehicle auctions, vehicle reconditioning and service, and customer financing through CarMax Auto Finance. Customers can shop online, in stores, or through both channels, and the company uses no-haggle pricing.[1][2]

CarMax’s operations are based in the United States. As of February 28, 2026, it operated 256 used-car stores across 110 U.S. television markets. The company began operations with its first store in Richmond, Virginia, in 1993 and became an independent publicly traded company in 2002.[3]

For fiscal 2026, ended February 28, 2026, CarMax reported net sales and operating revenues of $25.881 billion and 27,796 full- and part-time associates. Its stated purpose is “To create confidence for the road ahead.” [4]+2 [1]+5

Products & services

CarMax’s principal product is a selection of used vehicles sold at no-haggle prices. Retail vehicles are reconditioned and inspected to CarMax standards; the company describes its vehicles as “CarMax Quality Certified” and offers a 10-day money-back guarantee and 30-day limited warranty.[7]+2 CarMax says its inspection covers 125 or more points.[10] Customers can browse inventory online or in its app, buy online or in-store, and request transfers between locations. In FY2026, 81% of sales were digitally enabled, 68% were omni-channel sales and 13% were online retail sales.[11]+2

CarMax also appraises and buys vehicles from consumers, providing free in-person appraisals and written no-haggle offers, as well as instant online offers valid for seven days. Its MaxOffer digital appraisal product provides offers to dealers. Vehicles that do not meet retail standards are generally sold to licensed dealers through CarMax-owned auctions.[14]+2 Other customer offerings include financing through CarMax Auto Finance (CAF) and third-party providers, online prequalification, and vehicle-protection products. Extended service plans cover mechanical or cosmetic repairs for up to 60 months, subject to mileage limits; guaranteed asset protection (GAP) covers the remaining loan balance after a total loss or unrecovered theft.[17]+3

For FY2026, CAF financed 42.4% of CarMax’s retail used-vehicle unit sales; protection-plan attach rates were 52% for extended service plans and 16% for GAP.[21][19] CarMax reported 780,684 used-vehicle unit sales and 538,203 wholesale unit sales for the year.[13] [7]+15

Geographic presence

As of February 28, 2026, CarMax operated 256 used-car stores across 110 U.S. television markets, covering approximately 85% of the U.S. population. Its operating footprint is in the United States.[22]

The company also operated two stand-alone reconditioning facilities, one stand-alone auction facility, and four combined reconditioning and auction centers. Its identified offices include the home office in Richmond, Virginia, and a CarMax Auto Finance office in Atlanta, Georgia.[23][24]

CarMax’s FY2026 reporting describes its business through operating segments rather than geographic segments; it does not provide revenue or employee distribution by region or country.[25] [22]+3

Business segments

CarMax reports two operating and reportable segments: **CarMax Sales Operations** and **CarMax Auto Finance (CAF)**. Sales Operations includes retail used-vehicle sales and related activities such as wholesale vehicle sales, extended protection products and GAP, advertising and subscription revenue, and vehicle repair services. Sales are conducted online, in stores, or through a combination of both; these activities are not reported as separate segments.[26]+2

CAF provides financing to customers purchasing CarMax retail vehicles. Its income primarily reflects loan interest and fees, funding costs, credit-loss provisions, direct costs, and loan-sale income.[29]

For the first six months of FY2027, ended August 31, 2026, CarMax reported $1,653.9 million of Sales Operations gross profit and $275.8 million of CAF income. As a rough mix of those two reported segment measures combined, Sales Operations represented approximately 85.7% and CAF 14.3%. These are not comparable revenue shares: the company reports Sales Operations using gross profit and CAF using segment income.[30] [26]+5

Company history

CarMax was developed by Circuit City in the early 1990s, with Rick Sharp leading the team that created the concept and Austin Ligon recognized as a co-founder. Its first store opened on West Broad Street in Richmond, Virginia, on September 18, 1993; the company began expanding with a second store in Raleigh in 1994.[31]+2 By 1999, 32 additional superstores had opened. Circuit City completed an IPO of CarMax Group tracking stock in February 1997, and CarMax became an independent, separately traded public company on October 1, 2002.[34]+2

Austin Ligon was succeeded as CEO by Tom Folliard in 2006, and Bill Nash succeeded Folliard in 2016.[37]+2 In 2020, CarMax completed a nationwide rollout of its online car-buying experience and made a minority investment in automotive research company Edmunds; it acquired Edmunds’ remaining stake in 2021.[40]+2 Nash stepped down in December 2025, when David McCreight became interim president and CEO; Keith Barr became president and CEO in March 2026.[43][44]

Sources

• CARMAX INC — Full financial report (2026 Y)
  22 citations

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• www.sec.gov[5]
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• CARMAX INC — Full financial report (2027 Q 2)
  5 citations

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• www.sec.gov[34]
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• investors.carmax.com[37]
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