Tag: CarMax

By on June 29, 2020

Having already pulverized the dead horse of waning auto sales into a fine paste, we’ll now turn our focus on how it’s impacting employment among automotive retailers — squashing another pony.

Much of the information up until this point has been anecdotal and conditional to the North American response to COVID-19. Furloughs were rampant as the pandemic progressed and new safety rules seemed poised to cripple sales moving forward. There was an obvious general plight confronting automotive retailers, but we couldn’t nail down what that meant in terms of job losses.

We still don’t, frankly. But it is starting to become obvious that there isn’t much reason to be exceptionally optimistic. AutoNation recently announced that around half of the 7,000 workers it furloughed in April won’t be coming back. Despite some retailers claiming not to need such drastic cuts, plenty are following AutoNation’s model. With fewer customers and sweeping restrictions on how showrooms can be operated, there’s little reason for there to be all hands on deck. But just how many will be forced to abandon ship this year?  (Read More…)

By on September 28, 2017

CarMax Dealer

Over 25 percent of the used vehicles sold through eight CarMax locations in the United States had recall defects that were not addressed, according to a recent safety report.

The 2017 study, conducted by the Center For Auto Safety, the Consumers for Auto Reliability and Safety Foundation and the MASSPIRG Education Fund, noted that vehicles with unresolved safety recalls  had more than doubled since 2015 at the five locations surveyed in both years. That is worthy of a raised eyebrow or two.

Questions remain, however. While the review cites numerous locations selling vehicles with what many would consider unacceptable issues, we don’t definitively know if this is indicative of CarMax as a whole. But lets face it, there were 64 million vehicles recalled for safety problems last year — exceeding the total for the previous three years combined. (Read More…)

By on September 18, 2017

Dealer Showroom

Car dealerships are an American institution. Often controlled by a patriarch with an unusual amount of sway in the local community (and their sometimes cosseted children), dealer franchises dot the country’s landscape like moles on a back. Isolated near exit ramps, they serve as gleaming beacons of civilization as you traverse through long expanses of wilderness on a road trip.

North America wouldn’t be the same without them but, according to one automotive regent, irreparable change is coming to the dealer networks we’ve become begrudgingly accustomed to. Bill McDaniels, president of McDaniels Automotive Group, runs a half-dozen stores selling selling Acura, Audi, Porsche, Subaru, and Volkswagen-branded vehicles in South Carolina. He’s one of those automotive viceroys mentioned earlier, right down to having his son as the chief operating officer for his business, and he’s convinced the era of family-owned dealerships is almost over.

Is this one man’s paranoid delusion or an astute observation of industrywide trends?  (Read More…)

By on October 28, 2016

AutoNation CEO Mike Jackson

The used car market? Saturated. The battle? About to begin.

America’s largest new-car retailer knows there’s money in them there pre-owned vehicles and has hatched a half-billion-dollar plan to take on the country’s largest used-car retailer. (Read More…)

By on October 24, 2016

CarMax in Raleigh, Image: Ildar Sagdejev [GFDL or CC BY-SA 4.0-3.0-2.5-2.0-1.0]/Wikimedia Commons

When is a completed inspection report not a completed inspection report? When it’s issued by CarMax, a California appeals court has ruled.

The court found the country’s largest used vehicle retailer in violation of a state law requiring detailed inspection checklists for certified used vehicles, Automotive News reports. The ruling, which stems from a lawsuit filed by a customer who claimed CarMax sold him a “certified” lemon, shines light on the retailer’s dodgy vehicle inspection practices. (Read More…)

By on May 5, 2016

 

car title. shutterstock user Sergey Yechikov

Darrick writes:

Hey Sajeev,

First of all, I want to say that I enjoy your articles and your love of Panther and Fox body Fords. (Woot! —SM)

I’m writing to you about my 2005 Ford Focus SE ZX4 in the hope that you may give me some guidance.

I moved to the east coast (southeastern Virginia) from the Midwest in 2008. A year later, I received a brutal lesson in what coastal flooding can do to a neighborhood and when said flooding finds its way into a vehicle. My Focus sustained $3,500 in damages, and nearly all that amount was due to airbag and seatbelt system damage. I had insurance, so I was only out of my $100 deductible, but the damage cost was such that I now have a branded title due to flood damage.

(Read More…)

By on December 28, 2015

Carmax

Earlier this week I wrote about how CarMax is heavily constrained by a market that has flip-flopped between six years worth of heavy car sales and about 18 months of resurgent truck and SUV demand. Long story short, CarMax’s acquisition costs for trucks, SUVs and crossovers has gone up considerably, and the supply of this inventory has cratered due to new car dealers keeping the bulk of this inventory for themselves.

Not everybody liked what I wrote. Case in point.

(Read More…)

By on December 16, 2015

2015CadillacEscalade_(4_of_9)

If you see this Cadillac a-rockin’, you should submit a complaint to the National Highway Traffic Safety Administration.

That, and depressed 2016 sales outlooks, the Federal Reserve rate hike, a Chinese electric vehicle Warrior and CarMax, after the jump.

(Read More…)

By on August 3, 2015

east-brunswick-nj-jeep-dodge-chrysler-dealership-1024x768

Fiat Chrysler Automobile dealers won’t be able to sell cars without recall repair work or they risk losing their incentive money under a new agreement with the federal government, Automotive News is reporting.

The agreement was part of the sweeping package penalties imposed by the National Highway Traffic Safety Administration, including up to $105 million in fines. According to the consent agreement by the federal bureau and FCA, the company already asks dealers to complete recall work, but the new mandate would reinforce that existing policy.

In the United States, it’s illegal for a dealer to sell a new car without recall repair work, but no such law exists for used cars. A recent proposal in Congress to force used car dealers to complete open recall repair work was met with opposition.

(Read More…)

By on April 9, 2015

Carmax

Though CarMax’s lending arm will press forward with its subprime lending test program, it won’t be a major player in the subprime game.

(Read More…)

By on February 2, 2015

Three ring binder. Shutterstock user Africa Studio

TTAC commentator dtremit writes:

Hey Sajeev —

Inspired by your recent Mazda3 Piston Slap, I thought I’d throw this question your way. Seems like something the B&B might have advice on.

I have a 2005 Mazda6 that is a rather desirable used car…on paper. It is in excellent condition mechanically, and has fairly low miles for its age (about 78k). Single owner, and I have maintained it well, though I am not sure the mess of receipts in the glovebox counts as excellent documentation. I have a good set of Nokian snow tires for it on steel wheels, which would go along with it. It would make a good car for someone for quite some time to come. (Read More…)

By on May 13, 2014

interior2

Imagine over 500 cars at your disposal, and you pick the exact ones you want to test on the open road.

There are no mind games. No bait and switch tactics. Nothing but you going to a computer, figuring out the most worthy candidates, and letting a salaried employee fetch the keys and answer the relevant questions to your car search.

Sounds too good to be true? Well, it’s already happened. There’s only one problem.

The place that does it primarily sells used cars, not new cars.

(Read More…)

By on March 7, 2014

carmax

100,000 miles?

200,000 miles?

300,000 miles?

Everyone has a certain point with their daily driver when they would rather see money back in their pocket, instead of seeing more money fall out of their pocket.

Time marches on. That old clunker loses it’s endearing qualities and then, what do you do?

Well, the answer depends a lot on what type of vehicle you’re trying to sell… which is why I’m introducing Carmax’s wholesale operations into this write-up.

(Read More…)

By on September 3, 2012

9:15 A.M. Labor Day.

I get a surprise message on Facebook this morning from a guy who bought an old Volvo 940 wagon from me nearly six years ago.

That BMW? What did it go for?”

A month ago, I posted this article regarding the grey market Bimmer.  It had sold on the block for a mere $2,300 due in part to a broken odometer. I clicked on the Ebay listing hoping for a fair disclosure. Instead I got…

(Read More…)

By on July 7, 2011

 

Have you ever been to an auto auction? Some may consider an auctioneer to be a ‘carny’. He talks at over 200 mph. Mumbling what appears to be nothing more than gibberish and random numbers.

But if you added all the sales up by those supposed hucksters, you would soon realize that only Wall Street and Walmart sell more goods over the course of a year. Over ten million cars are bought and sold at auctions by these professionals. Hundreds of thousands of dealers have access to the vehicles. With all that free market competition taking place, Carmax is just one of many dealers that must compete for all those cars.

Can Carmax offer a ‘good value’ compared to all that competition? (Read More…)

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