Largest Used Car Retailer Completes Roll Out of Online Car Buying Nationwide

CarMax’s personalized e-commerce capabilities and nationwide store footprint empowers customers to buy a car on their terms, doing as much, or as little, online and in-person as they prefer

RICHMOND, Va.--(BUSINESS WIRE)--CarMax, Inc. (NYSE: KMX), the nation’s largest retailer of used cars, today announced the completion of its omni-channel rollout, which gives CarMax the largest addressable market in the used car industry. This unique omni-channel experience empowers customers to buy a car on their terms – online, in-store, and a seamless integration of both. The announcement was made in the company’s second quarter earnings release, where the company reported record results and profitability.

Customers nationwide can leverage CarMax’s personalized e-commerce capabilities to shop for, save, and transfer vehicles; secure financing pre-approval; and obtain an online appraisal. Customers can opt to complete the car buying experience in-person at one of CarMax’s 220 stores nationwide; or buy the car online and receive delivery through contactless curbside pickup, available nationwide, or home delivery, available to most customers. In addition, CarMax has the nation’s largest used car inventory of more than 55,000 vehicles, which makes it easy for a customer to find the ideal car for them.

CarMax’s research has found that customers don’t want to be forced to interact 100 percent in-store or 100 percent online. That’s why CarMax purposely built its omni-channel offering to give customers the option to seamlessly do as much, or as little, online and in-person as they prefer. CarMax provides experienced guidance whenever and wherever customers want, including in-person, online and over the phone.

“When we set out to create the future of car buying, we knew that customers wanted personalized, convenient and on-demand retailer experiences where they can seamlessly navigate between online and in-person, all on their own terms,” said Bill Nash, president and CEO of CarMax. “CarMax has always stood for empowering the customer and offering an exceptional experience. The significant investments we’ve made in technology and digital innovation, coupled with the tireless efforts of our 25,000 associates nationwide, enable us to deliver this iconic experience the way only CarMax can.”

Nash concluded by stating, “I am confident our omni-channel experience, which gives us the largest addressable market within the used car industry, and our diversified business model will drive profitable sales growth and market share gains for years to come.”

Additional information on the CarMax consumer difference:

• Largest nationwide inventory of 55,000+ used vehicles of nearly every make and model
• 220 stores nationwide where customers can experience vehicles in-person, and take a solo test drive prior to purchase
• 7-day money-back guarantee where customers can return the car for any reason for a full refund
• 360-degree photos that give customers panning viewpoints of the interior and exterior of vehicles
• Limited warranty that covers a vehicle’s major systems for 90 days or 4,000 miles, whichever comes first
• Free appraisal offers good for seven days – we’ll buy your car even if you don’t buy ours®
• Extensive social distancing and sanitation measures in all locations. CarMax associates wear masks when working with others, and the company sanitizes high-touch areas of vehicles, including during appraisals and before and after test drives and vehicle repairs. Further details on how CarMax is supporting customers during the COVID-19 pandemic may be found here.

Photo images and B-roll are available for download on the CarMax Media Center.

About CarMax

CarMax, the nation’s largest retailer of used cars, revolutionized the automotive retail industry by driving integrity, honesty and transparency in every interaction. The company offers a truly personalized experience with the option for customers to do as much, or as little, online and in-store as they want. CarMax also provides a variety of vehicle delivery methods, including home delivery, contactless curbside pickup and appointments in its stores. During the fiscal year ending February 29, 2020, CarMax sold more than 830,000 used cars and more than 465,000 wholesale vehicles at its in-store auctions. CarMax has 220 stores, over 25,000 Associates, and is proud to have been recognized for 16 consecutive years as one of the Fortune 100 Best Companies to Work For®. For more information, visit www.carmax.com.

Forward-Looking Statements

We caution readers that the statements contained in this release about our future business plans, operations, challenges, opportunities or prospects, including without limitation any statements or factors regarding expected operating capacity, sales, market share, margins, expenses, liquidity, capital expenditures, debt obligations, tax rates or earnings, are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by the use of words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “outlook,” “plan,” “predict,” “should,” “will” and other similar expressions, whether in the negative or affirmative. Such forward-looking statements are based upon management’s current knowledge and assumptions about future events and involve risks and uncertainties that could cause actual results to differ materially from anticipated results. Among the factors that could cause actual results and outcomes to differ materially from those contained in the forward-looking statements are the following:

• The effect and consequences of the Coronavirus public health crisis on matters including U.S. and local economies; our business operations and continuity; the availability of corporate and consumer financing; the health and productivity of our associates; the ability of third-party providers to continue uninterrupted service; and the regulatory environment in which we operate.
• Changes in general or regional U.S. economic conditions.
• Changes in the availability or cost of capital and working capital financing, including changes related to the asset-backed securitization market.
• Changes in the competitive landscape and/or our failure to successfully adjust to such changes.
• Events that damage our reputation or harm the perception of the quality of our brand.
• Our inability to realize the benefits associated with our omni-channel initiatives.
• Our inability to recruit, develop and retain associates and maintain positive associate relations.
• The loss of key associates from our store, regional or corporate management teams or a significant increase in labor costs.
• Security breaches or other events that result in the misappropriation, loss or other unauthorized disclosure of confidential customer, associate or corporate information.
• Significant changes in prices of new and used vehicles.
• Changes in economic conditions or other factors that result in greater credit losses for CAF’s portfolio of auto loans receivable than anticipated.
• A reduction in the availability of or access to sources of inventory or a failure to expeditiously liquidate inventory.
• Changes in consumer credit availability provided by our third-party finance providers.
• Changes in the availability of extended protection plan products from third-party providers.
• Factors related to the regulatory and legislative environment in which we operate.
• Factors related to geographic and sales growth, including the inability to effectively manage our growth.
• The failure of or inability to sufficiently enhance key information systems.
• The performance of the third-party vendors we rely on for key components of our business.
• The effect of various litigation matters.
• Adverse conditions affecting one or more automotive manufacturers, and manufacturer recalls.
• The failure or inability to realize the benefits associated with our strategic investments.
• The inaccuracy of estimates and assumptions used in the preparation of our financial statements, or the effect of new accounting requirements or changes to U.S. generally accepted accounting principles.
• The volatility in the market price for our common stock.
• The failure or inability to adequately protect our intellectual property.
• The occurrence of severe weather events.
• Factors related to the geographic concentration of our stores.

For more details on factors that could affect expectations, see our Annual Report on Form 10-K for the fiscal year ended February 29, 2020, and our quarterly or current reports as filed with or furnished to the U.S. Securities and Exchange Commission. Our filings are publicly available on our investor information home page at investors.carmax.com. Requests for information may also be made to the Investor Relations Department by email to [e-mail] or by calling [phone] x7865. We undertake no obligation to update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise.