CarMax Sales Surge, Buoyed By Cost-Cutting

CarMax reported a strong second quarter, with net revenue rising 19.5% year over year to $7.9 billion and combined retail and wholesale unit sales increasing 14.7% to 387,735 vehicles. Net earnings jumped 73.3% to $165.3 million. The gains come as CarMax focuses on competitive pricing and cost efficiencies, sources more vehicles directly from consumers and dealers and expands financing through CarMax Auto Finance. Its average retail used-car selling price increased 6.3% to $27,623.

The results point to continued consumer activity in the used-vehicle market and opportunities beyond the vehicle sale itself. Sellers can prospect new and used auto dealers, banks and credit unions, auto lenders, insurance companies, auto repair shops, tire dealers, vehicle service businesses and extended-warranty providers, with campaigns focused on affordability, financing, trade-ins and the ongoing costs of vehicle ownership.