CarMax is the biggest used-car retailer in the US, running about 230 no-haggle stores where you can browse, test-drive, and finance a pre-owned vehicle like shopping at a giant car supermarket.
Money comes from selling used cars at thin gross margins (around 10%) plus financing through CarMax Auto Finance, which adds higher-margin, recurring interest income. Net margins are razor-thin at under 2% annually.
Scale and brand trust in no-haggle pricing create a real but eroding edge as online rivals like Carvana and Vroom undercut on convenience and price, while Tesla's direct sales model normalizes bypassing traditional dealerships.
