top of page

Support Group

Public·97 members

Carmax Buy Car Prices [VERIFIED]


That apparent contradiction caught investors' attention this past week as CarMax reported its Q1 earnings results. While revenue is rising thanks to soaring prices, the chain is seeing mounting pressures on its customer traffic that all point to a weaker selling environment ahead.




carmax buy car prices



Price increases were substantial, with average retail prices jumping 14% to $6,300 per vehicle. Yet this boost didn't lift CarMax's bottom line. Gross profit per vehicle only rose 6% to $2,339. Net earnings continued their downward march, falling to $252 million, or 2.7% of sales, from $437 million, or 5.7% of sales a year ago. "The used vehicle market environment was challenging in the first quarter," CEO Bill Nash said in a press release.


The short-term profit picture wasn't helped much by CarMax's decision to keep prices low compared to wider industry trends. This choice kept customers browsing at its dealerships, but many people opted to delay their purchases or to pick less-expensive models. Management said that tilt toward lower-priced vehicles was another factor pressuring results.


And CarMax has a large inventory of used cars, which is becoming more valuable in an era of rising prices. That supply should also be handy as the chain fights to improve market share over the next several quarters.


Simply put, in most cases the CarMax price is not cheaper than a dealer. Their cars are well inspected but tend to cost more and the prices are firm. For example, a 2017 Ford Escape with 41,000 miles costs around $25,998. Meanwhile, a 2019 Ford Escape with 24,000 miles costs around $23,000 from a local dealer.


CarMax works on a no-haggle policy, allowing people to buy and sell their cars without having to spend much time and effort. Not everyone is cut out to spend hours at a car dealership negotiating prices.


We will host a conference call for investors at 9:00 a.m. ET today, December 22, 2022. Domestic investors may access the call at 1-800-274-8461 (international callers dial 1-203-518-9814). The conference I.D. for both domestic and international callers is 3170513. A live webcast of the call will be available on our investor information home page at investors.carmax.com.


We currently plan to release results for the fourth quarter ending February 28, 2023, on Tuesday, April 11, 2023, before the opening of trading on the New York Stock Exchange. We plan to host a conference call for investors at 9:00 a.m. ET on that date. Information on this conference call will be available on our investor information home page at investors.carmax.com in March 2023.


For more details on factors that could affect expectations, see our Annual Report on Form 10-K for the fiscal year ended February 28, 2022, 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 investor_relations@carmax.com or by calling (804) 747-0422 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.


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.


We currently plan to release results for the first quarter ending May 31, 2022, on Friday, June 24, 2022, before the opening of trading on the New York Stock Exchange. We plan to host a conference call for investors at 9:00 a.m. ET on that date. Information on this conference call will be available on our investor information home page at investors.carmax.com in early June 2022.


So where are sellers most likely to get top dollar for their vehicle and where are lower offers most likely to come from? To find out, the FinanceBuzz team compared offers on over 100 different vehicles from three major online car-buying services: Carmax, Carvana, and Vroom. By comparing offers for the same car across all three platforms, we found which online car retailers deliver the highest offers, and how vehicle type, age, and mileage affect potential sales prices.


Carmax & carvana anger me. This not saving these tips are how to get half way ripped off not full ripped off. Thanks for tips. I see a carmax car which is already marked high. Plus a delivery fee. Plus I know to use my bank and say no to warranties. The truth hurts. Im angered. This is America and im never buying from Carmax &Carvana. Negotiation is what makes a good deal. Everyone likes a good deal.


Now that Tesla's new car prices are much lower, the same is becoming true of used Tesla prices. Just a quick look at the online car sales website Carmax shows a 57 percent drop in Tesla inventory over a 24-hour period.


When Tesla first dropped its prices in the US late last year, it excited many folks, but it also upset others. When a car's starting price drops notably, current owners' cars lose resale value. In addition, car prices drop on the used market.


As part of an additional incentive offering, Tesla dropped its prices a second time at the end of last year, but the most notable drop came just last week. The company wasn't simply offering an end-of-year incentive, but rather, adjusting its prices down significantly. Tesla says the price cuts are due in part to the improving economic situation. In China, Tesla pointed to manufacturing efficiencies and lower costs as reasons it can now offer its cars at lower prices.


At any rate, CarDealerhipGuy on Twitter aims to provide "Unbiased & transparent insights into the car business." His Twitter account was the one that recently warned people of a potential future financial crisis that may come from the current situation with car loans. CarDealershipGuy was watching online Tesla inventory after the electric automaker lowered its prices, and he noted that Carmax sold 57 percent of its Tesla inventory in 24 hours.


Today, at the time of writing, Carmax has only 170 Tesla models left in stock. We imagine the drop is notable at various rivals of the online car sales company, so long as they all dropped their prices accordingly.


Soaring used-car prices- sent their share prices rocketing up until August. Since then the companies have seen their stocks hammered because they were having trouble getting enough vehicles to sell. Then, on Wednesday General Motors (ticker: GM) announced its plan to sell used-cars online in direct competition, sending the share prices of the used-car companies down some more.


CarMax (KMX) stock was handed another in a string of downgrades Wednesday as analysts expect continued pain in the used car market throughout 2023. A key industry metric showed used car prices took a record fall in December.


The Manheim Used Vehicle Value Index in December increased 0.8% in wholesale auto prices month over month. However, prices dropped 14.9% year over year, the largest annualized price decline in the 26-year history of the index.


[...] I'm not that eager to buy KMX. I expect used car prices to come down as weaker demand and better supply turn into headwinds. Moreover, loan quality is coming down as a result of a weaker consumer on top of lower (expected) margins for KMX's lending business.


Although higher prices lifted the company's overall revenue, the results were well below forecasts from analysts surveyed by Refinitiv. That set off alarm bells for investors. CarMax shares plunged more than 24% Thursday, and other car retailers' stocks were also hammered. Shares of used car rival Carvana fell about 23% and AutoNation, the nation's largest new car dealer, fell 10%. Shares of many automakers, including General Motors, Ford, Stellantis and Tesla, were also lower.


Car prices have been climbing steadily for the last two years, as a shortage of parts, particularly computer chips, has limited supply in the face of strong consumer demand. Those higher prices have been a major factor in overall inflationary pressures since roughly 40% of US households buy a car each year.


Used car prices - although down 2% in August from the record high reached in January - are still up 48% from August 2019, according he Consumer Price Index, a key inflation measure. New car prices hit a record in August, up 30% over the last three years.


But it's not just the cost of buying and financing a car that was a drag on sales, according to CarMax executives. The overall pressures on household budgets from higher prices across the board has become an issue.


Two tangible factors make the CarMax version stand out: no-haggle prices and abundant use of digital technology. Nearly all auto dealerships have expanded their online presence in the past few years, but it could be said that CarMax helped show them the way.


The latest quarterly figures from CarMax come as inflation rose 8.5% year-over-year in March, the fastest pace since December 1981, when inflation hit 8.9%. Used car and truck prices, which have been a major component of the inflation increase, are still up 35.3% from the previous year, but actually declined by 1.8% in the one-month period between February and March.


Carmax also gives the buyer the option to take a 24-hour test drive, which is perfect for driving the vehicle home to see if it fits in your garage or test out its size with the whole family. That said, its prices tend to be higher than other used-car sources. CarMax is serious about its no-haggle policy, so the price will hold firm. But if you hate negotiating, this policy could be an advantage.


Keep in mind that you'll be buying the car "as-is" unless it is still under warranty. Doing so is a riskier move for you as a buyer, but if you bring a mechanic with you or get the car inspected before you buy it, you can offset this risk. With private-party sales, you'll find that the prices are lower across the board. Our pricing analysts calculate that a used vehicle will typically cost about 12% more at a dealership than if it were sold by a private party. You'll need to pay cash or have a car loan already secured in order to close the deal, so make those arrangements beforehand. 041b061a72


About

Welcome to the group! You can connect with other members, ge...
Group Page: Groups_SingleGroup
bottom of page