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Carmax Inc   (KMX)
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    Sector  Retail    Industry Automotive Aftermarket
   Industry Automotive Aftermarket
   Sector  Retail

Carmax Inc 's

Competitiveness


 

KMX Sales vs. its Competitors Q1 2024



Comparing the current results to its competitors, Carmax Inc reported Revenue decrease in the 1 quarter 2024 year on year by -1.68 %, faster than the overall decrease of Carmax Inc 's competitors by -0.68 %, recorded in the same quarter.

List of KMX Competitors

With a net margin of 0.89 % Carmax Inc achieved higher profitability than its competitors.

More on KMX Profitability Comparisons



Revenue Growth Comparisons




Net Income Comparison


Carmax Inc Net Income in the 1 quarter 2024 fell year on year by -27.16%, while most of its competitors have experienced a contraction in net income by -19.79 %.

<<  KMX Stock Performance Comparisons


Carmax Inc 's Comment on Competitors and Industry Peers


CarMax Sales Operations: The U.S. used car marketplace is highly fragmented and competitive. According to industry sources, there were approximately 17,900 franchised automotive dealerships, which sell both new and used vehicles. In addition, used vehicles were sold by approximately 37,000 independent used vehicle dealers, as well as millions of private individuals. Our primary retail competitors are the franchised auto dealers, who sell the majority of late-model used vehicles. Independent used car dealers predominantly sell older, higher mileage cars than we do. The number of franchised and independent auto dealers has declined over the last decade, in large part due to manufacturers’ franchise and brand terminations, as well as dealership closures caused by the stress of the recession. Despite this reduction in the number of dealers, the automotive retail environment remains highly fragmented.

Based on industry data, there were approximately 39 million used cars sold in the U.S., of which approximately 22 million were estimated to be 0- to 10-year old vehicles. While we are the largest retailer of used vehicles in the U.S., selling more than two times as many used vehicles as the next largest retailer, we represented approximately 5% of the 0- to 10-year old used units sold in the markets in which we operate and less than 3% of the total 0- to 10-year old used units sold nationwide. Over the last several years, competition has been affected by the increasing use of Internet-based marketing for both used vehicles and vehicle financing. We seek to distinguish ourselves from traditional dealerships through our consumer offer, sales approach and other innovative operating strategies.

We believe that our principal competitive advantages in used vehicle retailing include our ability to provide a high degree of customer satisfaction with the car-buying experience by virtue of our low, no-haggle prices and our customer-friendly sales process; our breadth of selection of the most popular makes and models available both on site and via our website, carmax.com; the quality of our vehicles; our proprietary information systems; CAF; and the locations of our retail superstores. In addition, we believe our willingness to appraise and purchase a customer’s vehicle, whether or not the customer is buying a car from us, provides us a competitive sourcing advantage for retail vehicles. Our large volume of appraisal purchases supplies not only a large portion of our retail inventory, but also provides the scale that enables us to conduct our own wholesale auctions to dispose of vehicles that don’t meet our retail standards. Upon request by a customer, we will transfer virtually any used vehicle in our nationwide inventory to a local superstore. Transfer fees may apply, depending on the distance the vehicle needs to travel.

Our sales consultants play a significant role in ensuring a customer-friendly sales process. A sales consultant is paid a commission, generally based on a fixed dollars-per-unit standard, thereby earning the same dollar sales commission regardless of the gross profit on the vehicle being sold. In addition, sales consultants do not receive commissions based on the number of credit approvals or the amount a customer finances. This pay structure aligns our sales associates’ interests with those of our customers, in contrast to other dealerships where sales and finance personnel may receive higher commissions for negotiating higher prices and interest rates or steering customers to vehicles with higher gross profits.

In our wholesale auctions, we compete with other automotive auction houses. In contrast with the highly fragmented used vehicle market, the automotive auction market has two primary competitors, Manheim, a subsidiary of Cox Enterprises, and KAR Auction Services, Inc., representing an estimated 70% of the U.S. whole car auction market. These competitors auction vehicles of all ages, while CarMax predominantly sells older, higher mileage vehicles. We believe the principal competitive advantages of our wholesale auctions include our high vehicle sales rate, our vehicle condition disclosures and arbitration policies, our broad geographic distribution and our dealer-friendly practices. Because we own the cars that we auction, we generally sell more than 95% of the vehicles offered, which is substantially higher than the sales rate at most other auto auctions. Our policy of making vehicle condition disclosures, noting mechanical and other issues found during our appraisal process, is also not a typical practice used at other auctions of older, higher mileage vehicles. Together, these factors make our auctions attractive to dealers, resulting in a high dealer-to-car attendance ratio.

CarMax Auto Finance: CAF operates in the auto finance sector of the consumer finance market. This sector is primarily comprised of banks, captive finance divisions of new car manufacturers, credit unions and independent finance companies.

We believe that CAF’s principal competitive advantage is its strategic position as the primary finance source in CarMax stores. We believe the company’s processes and systems, transparency of pricing, vehicle quality and the integrity of the information collected at the time the customer applies for credit provide a unique and ideal environment in which to procure high quality auto loans. CAF utilizes proprietary scoring models based upon the credit history of the customer along with CAF’s historical experience to predict the likelihood of customer repayment. Because CAF offers financing solely through CarMax stores, scoring models are optimized for the CarMax channel.

CAF’s primary competitors are banks and credit unions that offer direct financing to customers purchasing cars from dealers. Some of our customers have already obtained financing prior to shopping for a vehicle and do not apply for financing in the store. We also offer customers the ability to pay off their loans within three days without penalty. The percentage of customers exercising this option can be an indication of the competitiveness of our rates.

Marketing and Advertising. Our marketing strategies are focused on developing awareness of the advantages of shopping at our stores and on carmax.com and on attracting customers who are already considering buying or selling a vehicle. Our marketing strategies are implemented primarily through traditional and digital methods, including national and local television and radio broadcasts, carmax.com, Internet search engines and online classified listings. We also reach out to customers and potential customers to build awareness and loyalty through Facebook, Twitter and other social media. Television and radio advertisements are designed to build consumer awareness of the CarMax name, carmax.com and key components of the CarMax offer. Broadcast and Internet advertisements are designed to drive customers to our stores and to carmax.com. We also build awareness and drive traffic to our stores and carmax.com by listing retail vehicles on various online automotive classified sites. Our advertising on the Internet also includes advertisements on search engines, such as Google and Yahoo!, as well as online properties such as Pandora and Hulu.

We strive to adjust our marketing programs in response to the evolving media landscape. We have customized our marketing program based on awareness levels in each market. We have transitioned a portion of our television and radio advertising to national cable network and national radio programming and we will continue to seek to optimize our media mix between local and national distribution. In addition to providing cost savings, this transition allows us to build awareness of CarMax prior to our entrance into new markets. Our carmax.com website and related mobile apps are marketing tools for communicating the CarMax consumer offer in detail, sophisticated search engines for finding the right vehicle and a sales channel for customers who prefer to initiate part of the shopping and sales process online. The website and mobile apps offer complete inventory and pricing search capabilities. Information on the thousands of cars available in our nationwide inventory is updated several times per day. Carmax.com includes detailed information, such as vehicle photos, prices, features, specifications and store locations, as well as advanced feature-based search capabilities, and sorting and comparison tools that allow consumers to easily compare vehicles. The site also includes features such as detailed vehicle reviews, payment calculators and email alerts when new inventory arrives. Customers can contact sales consultants in a variety of ways, including online via carmax.com. Customers can also schedule appointments, hold a vehicle for up to seven days and initiate a vehicle transfer using online tools. Our survey data indicates that approximately 80% of customers who purchased a vehicle from us had first visited us online.





  

Overall company Market Share Q1 2024

Overall company, revenue fell by -1.68 % and company lost market share, to approximately 49.32 %.




<<  More on KMX Market Share.
 
*Market share is calculated based on total revenue.

  News about Carmax Inc Contracts

CarMax Reveals Key Insights into Used EV Shopping Trends

for :RICHMOND, VA - CarMax, Inc. (NYSE: KMX), the largest retailer of used cars in the United States, recently released its latest findings on consumer trends in used electric vehicle (EV) shopping. Derived from CarMax.com search and sales data collected between September 2023 and February 2024, these insights shed light on consumer interest, popular models, trade-ins, and regional preferences.The data reveals a significant surge in consumer interest in used EVs. Potential buyers are increasingly turning to CarMax's online platform to explore their options, indicating a growing demand for eco-friendly vehicles in the used car market. This shift in consumer behavior aligns with the global movement towards m...





Who are Carmax Inc 's Competitors?




Autonation Inc
Share Performance



+5.03%
This Year



Autonation Inc
Profile

AutoNation Inc's business model revolves around being one of the largest automotive retailers in the United States. The company operates a network of new and used vehicle dealerships across the country. With a focus on providing customers with a seamless and convenient car buying experience, AutoNation offers a wide range of vehicle options from various manufacturers. Additionally, the company provides services such as automotive maintenance, repair, and financing to cater to the needs of its customers.

More about Autonation Inc 's Market Share

Market Cap. Revenues TTM Net Income TTM
$ 7,106.838 mill. $ 26,948.900 mill. $ 1,021.100 mill.


Genuine Parts Co
Share Performance



+5.20%
30 Days



Genuine Parts Co
Profile

Genuine Parts Co is a distributor of automotive and industrial replacement parts, operating through multiple divisions for various markets. Their business model revolves around sourcing and procuring quality parts from suppliers and efficiently distributing them through an extensive network of stores to meet the demands of both retail customers and professional repair shops.

More about Genuine Parts Co's Market Share

Market Cap. Revenues TTM Net Income TTM
$ 22,845.113 mill. $ 23,197.053 mill. $ 1,253.060 mill.


Autozone Inc
Share Performance



+10.93%
This Quarter



Autozone Inc
Profile

Autozone Inc operates as a retail company that specializes in automotive parts and accessories. Their business model revolves around offering a wide range of products to customers through their extensive network of physical store locations. They generate revenue by selling auto parts, tools, and chemicals, while also providing customer services such as battery testing and loaning specialty tools.

More about Autozone Inc's Market Share

Market Cap. Revenues TTM Net Income TTM
$ 52,789.421 mill. $ 17,830.563 mill. $ 2,621.057 mill.


Dorman Products Inc
Share Performance



+2.52%
Over The Past 5 Days



Dorman Products Inc
Profile

Dorman Products Inc is a supplier of automotive aftermarket parts, operating on a business model that focuses on designing, manufacturing, and distributing replacement parts and hardware for vehicles sold in North America. They provide a comprehensive range of parts that include mechanical, electrical, and body repair products to professional service technicians and do-it-yourself customers.

More about Dorman Products Inc 's Market Share

Market Cap. Revenues TTM Net Income TTM
$ 2,844.329 mill. $ 1,929.423 mill. $ 129.259 mill.


Motorcar Parts Of America Inc
Share Performance



+11.35%
Over The Past 5 Days



Motorcar Parts Of America Inc
Profile

Motorcar Parts of America Inc operates as a manufacturer, remanufacturer, and distributor of automotive aftermarket parts. They specialize in offering alternators, starters, electric power steering components, brake master cylinders, and other related products, servicing retail customers, professional installers, and automotive suppliers.

More about Motorcar Parts Of America Inc's Market Share

Market Cap. Revenues TTM Net Income TTM
$ 111.719 mill. $ 721.485 mill. $ -49.123 mill.


O Reilly Automotive Inc
Share Performance



-0.22%
Over The Past 5 Days



O Reilly Automotive Inc
Profile

O'Reilly Automotive Inc operates as a specialty retailer of automotive aftermarket parts, tools, supplies, equipment, and accessories to both professional service providers and do-it-yourself customers. The company follows a multi-channel business model, with a network of conveniently located stores across the United States, an online platform offering e-commerce services, and a professional sales team visiting commercial customers. O'Reilly Automotive's main revenue comes from the sale of its vast inventory of automotive products to serve various customer needs.

More about O Reilly Automotive Inc's Market Share

Market Cap. Revenues TTM Net Income TTM
$ 66,630.823 mill. $ 15,811.803 mill. $ 2,346.581 mill.


Standard Motor Products Inc
Share Performance



+3.64%
Over The Past 5 Days



Standard Motor Products Inc
Profile

Standard Motor Products Inc is an automotive parts manufacturer and distributor, specializing in producing engine management and temperature control products for various vehicles.

More about Standard Motor Products Inc 's Market Share

Market Cap. Revenues TTM Net Income TTM
$ 733.295 mill. $ 1,357.826 mill. $ 34.352 mill.


Grupo Aval Acciones Y Valores S a
Share Performance



+15.38%
One Year



Grupo Aval Acciones Y Valores S a
Profile

TrueCar Inc is an online automotive marketplace that connects car buyers with local dealers. They provide pricing information that enables buyers to see what others have paid for similar vehicles in their area, creating transparency in the car buying process. TrueCar generates revenue by charging fees to the dealers for new car sales facilitated through their platform.

More about Grupo Aval Acciones Y Valores S a 's Market Share

Market Cap. Revenues TTM Net Income TTM
$ 71,240.649 mill. $ 5,520.530 mill. $ 555.004 mill.



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