How many carmax dealers are there

In the number two spot, Penske Automotive sold over 73, cars. Now, what makes CarMax such a draw for used car buyers is excellent marketing that espouses a low-stress, hassle-free car buying experience. It also helps that it has tons of locations in major metro areas and customers have the ability to transfer most vehicles from one location to the next for a fee.

This gives buyers access to a nationwide network of inventory. The price you see is what you pay. As of Feb. Skip to main content. Continue to AutoRemarketing. You will be automatically redirected to AutoRemarketing.

Photo courtesy of CarMax. Monday, Jun. By Arlena Sawyers Correspondent. One Saturday afternoon, she went to the nearest location to receive an estimate for her trade-in. While she was waiting for the numbers to come back, she walked around the lot and looked at a few cars that interested her. As she was telling me the following Monday about her experience, she mentioned that CarMax lets shoppers walk around by themselves and that all of the cars are unlocked.

Wait, hold up. Did I hear that right? There are used cars on the lot, and they are all unlocked? Keep in mind, running a single point medium-size used car operation is a high risk, capital intensive, process-oriented business.

Now, magnify that by corporate-owned large volume locations in dozens of unique retail markets. Their business model requires a constant inflow of used vehicles from various sources, making Carmax the largest used car buyer in the country too. A highly efficient used car dealership like Carmax will turn its retail inventory every 45 days. That means on average, Carmax needs to replace buy approximately 58, vehicles each month to maintain inventory on its lots.

So, where does Carmax get the 58, cars they need every month to feed the machine? Here are their three primary sources:. That brings in about 22, vehicles, but not all them will qualify for resale on their lots due to age, mileage or condition. A large share of them will be flagged for immediate auction disposal without being offered for sale to the public. Have you ever wondered why Carmax puts so much effort into buying cars from private owners?

Simply put, your car provides them with the highest profit margin. This is where Carmax would rather not be buying cars because auction prices are higher than the trade-in and cash offers they make to private sellers like you. At the auctions, Carmax is competing against thousands of other dealerships in an open bidding process.