CarMax Acquires Edmunds in $400 Million Deal

Corey Lewis
by Corey Lewis
carmax acquires edmunds in 400 million deal

Yesterday, used-car giant CarMax announced it finalized a deal to acquire automotive consumer advice site Edmunds, in a deal worth just over $400 million.

CarMax promises it’s magnanimous, and that Edmunds and its advice will operate independently of CarMax and its sales.

CarMax first showed interest in Edmunds in January of 2020, when it handed over $50 million to acquire a minority ownership stake. Once the check cleared, CarMax and Edmunds worked jointly on a number of new projects, which included the successful instant offer tool on Edmunds. That’s the button sellers use to sell their car to CarMax for Cash Right Now. CarMax credits that instant offer button with placing CarMax in place to become the largest online buyer of used cars from consumers.

They’re so pleased with collaborations thus far that CarMax is shelling out the remaining $354 million to purchase the 50-year-old Edmunds. The purchase will take place via stock buyout and cash. CarMax says they’re excited to invest in Edmunds’ growth and look forward to delivering the highest quality online experience possible. Edmunds says CarMax is a great business partner, and the company looks to provide continual innovation, as well as support their dealer and manufacturer customers.

And don’t worry about the providers of advice and the sellers of the product that’s being advised upon residing under the same ownership umbrella. CarMax ensures that Edmunds will operate independently, and will remain in its consumer-focused advisory capacity, as well as continuing to offer value to the aforementioned dealers and manufacturers. Advice articles like this one that encourage you to use the instant offer button to sell your car directly to CarMax are just a coincidence.

[Image: CarMax]

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  • Schmitt trigger Schmitt trigger on Apr 03, 2021

    Thanks Shappy, for corroborating our suspicions.

  • EX35 EX35 on Apr 04, 2021

    I’ve said it before but just put TTAC out of its misery already. It’s a case study in what happens when you sell out. I also can’t imagine it makes any money. Who even comes here to read reviews of MY2020 cars.

  • MRF 95 T-Bird Back when the Corolla consisted of a wide range of body styles. This wagon, both four door and two door sedans, a shooting brake like three door hatch as well as a sports coupe hatchback. All of which were on the popular cars on the road where I resided.
  • Wjtinfwb Jeez... I've got 3 Ford's and have been a defender due to my overall good experiences but this is getting hard to defend. Thinking the product durability testing that used to take months to rack up 100k miles or more is being replaced with computer simulations that just aren't causing these real-world issues to pop up. More time at the proving ground please...
  • Wjtinfwb Looks like Mazda put more effort into sprucing up a moribund product than Chevy did with the soon to be euthanized '24 Camaro.
  • Wjtinfwb I've seen worse on the highways around Atlanta, usually with a refrigerator or washer wedged into the trunk and secured with recycled twine...
  • Wjtinfwb Surprising EB Flex hasn't weighed in yet on it being the subject of a recall...