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(AutoBlog)   Carmax feels the double sting of inflation and higher interest rates, with a big earnings miss   (autoblog.com) divider line
    More: Obvious, General Motors, Automobile, Marketing, Money, The Quarter at Tropicana, Six Months Ago, New-car sales, CarMax Inc. shares  
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435 clicks; posted to Business » on 01 Oct 2022 at 4:26 PM (9 weeks ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook



10 Comments     (+0 »)
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2022-10-01 11:25:45 AM  
I tried Carmax once.
Didn't care for it.
Went back to ChapStick.
 
2022-10-01 12:05:14 PM  
When your business is selling cars and there are no cars to sell, problems may arise.
Film at 11
 
2022-10-01 12:44:59 PM  
We went to CarMax for the car we bought last month. We had to pay $200 to get it shipped in from out of state, but it was worth it. It was the exact color my wife preferred and $3000 less than an almost identical car at a local CarMax. And our mechanic gave it a clean bill of health.

Our sales guy said they probably bought it more recently - he had seen a significant drop in offer amounts in the previous six weeks.
 
2022-10-01 5:57:55 PM  

bearded clamorer: I tried Carmax once.
Didn't care for it.
Went back to ChapStick.


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2022-10-01 8:06:14 PM  

phygz: When your business is selling cars and there are no cars to sell, problems may arise.
Film at 11


That's not what happened to CarMax.

people hit a limit of what they have been willing to pay for used cars...and CarMax's inventory of used cars is priced above that limit.

It's a demand problem, not a supply problem.
 
2022-10-01 11:26:25 PM  
I worked for Carmax for a few years. Good product, and generally honest business, though I can't speak for every store/manager.
However, on a corporate level they treat their employees like shiat. Low wages/commissions, no raises, no budget to upgrade equipment, no bonuses (unless you consider a $5 gift card a Xmas bonus), no subsidizing of phones (necessary for the sales staff), employees have to buy uniforms and weather gear, etc., etc. Meanwhile, the company was making $13B a year and the CEO was pulling in around $12M a year. Turnover, not surprisingly, was high and the few old timers constantly complained how conditions got worse every year.
 
2022-10-02 12:31:19 AM  
Oh yeah, well cars are expensive.

dumbobruni: phygz: When your business is selling cars and there are no cars to sell, problems may arise.
Film at 11
That's not what happened to CarMax.
people hit a limit of what they have been willing to pay for used cars...and CarMax's inventory of used cars is priced above that limit.
It's a demand problem, not a supply problem.


I have been pricing used hybrids for about a year--and not nice new ones either--and they actually seem to be going up in price a little.  But I see plenty of paper license plates, so people are buying cars.
 
2022-10-02 3:01:00 AM  
Getting eaten by that period of stupid high used prices when they bought inflated inventory before the drop.
 
2022-10-02 8:10:55 AM  
I bought from Carmax a few years ago. Good experience, but they are too high now. I think their used Teslas are higher than new ones.
 
2022-10-02 11:22:00 AM  
cryinoutloud:

I have been pricing used hybrids for about a year--and not nice new ones either--and they actually seem to be going up in price a little.  But I see plenty of paper license plates, so people are buying cars.


I just checked Carmax for the Hyundai Ioniq hybrid, over the original MSRP.  I am half tempted to try flipping my car again.
 
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