CarMax Staffs for New Store FeaturedTuesday, 18 April 2017 23:39
CarMax Inc. is hiring to fill 110 positions among the company’s stores in the Bay Area.
This includes 75 positions at a new CarMax location in San Jose slated to open in June.
The new San Jose store will be located at 750 W. Capitol Expressway and will be joining Pleasanton, Fremont and Santa Rosa as the fourth CarMax location in the Bay Area.
CarMax Executives Express Confidence FeaturedFriday, 14 April 2017 17:22 Written by Ted Craig
With all the questions surrounding auto finance and the wholesale market, CarMax Inc. executives reassured analysts they’re prepared to meet any challenges that arise.
The used-car superstore chain recently announced results for the quarter ended Feb. 28 that beat many expectations.
“We realize there’s a lot of noise in the market,” said CarMax CEO Bill Nash. “We’re confident about the track that we’re on.”
Total used vehicle unit sales grew 13.4 percent and comparable store used unit sales rose 8.7 percent versus the prior year’s same quarter. The comparable store sales performance resulted from a strong increase in conversion, together with a modest increase in store traffic.
Wholesale vehicle unit sales declined 1.2 percent versus the same period a year ago, as contributions from the growth in CarMax store base and an improved appraisal buy rate were more than offset by a reduction in appraisal traffic. In particular, age 7-to 9-year old wholesale vehicles continued to be in shorter supply.
Nash said some of that decline came from the delay in tax refunds.
Other sales and revenues increased 19.2 percent, primarily reflecting improvements in extended protection plan (EPP) revenues and net third-party finance fees. EPP revenues increased 19.3 percent, largely due to the growth in used unit sales and favorable adjustments to the reserve for cancellations. Net third-party finance fees improved by 44.4 percent as a result of more sales to consumers with higher credit scores.
Total gross profit increased 14.9 percent to $562.2 million. Used vehicle gross profit rose 14.7 percent, driven by the 13.4 percent increase in total used unit sales.
Used vehicle gross profit per unit was largely consistent at $2,134 versus $2,109 in the prior year period. Wholesale vehicle gross profit declined 7.8 percent versus the prior year’s quarter, reflecting the 1.2 percent decline in wholesale unit sales and a decrease in wholesale vehicle gross profit per unit to $938 from $1,005.
Other gross profit increased 46.1 percent, primarily reflecting the improvement in EPP revenues and net third-party finance fees, as well as some favorable payroll-related cost experience in CarMax’s service operations.
One of the biggest concerns going forward is the Increasing supply of used vehicles. Nash said this is a good situation for CarMax’s business.
“We believe lower prices will be beneficial to sales as cars become affordable for our customers,” Nash said.
He said the company has managed periods of sudden declines in wholesale values and high off-lease volumes in the past.
CarMax Names HR Exec FeaturedWednesday, 12 April 2017 22:45
CarMax Inc. announced the promotion of Diane Long Cafritz to the newly created position of chief human resources officer and senior vice president.
Cafritz will lead all human resources and loss prevention areas with the primary responsibility of leading CarMax’s strategy to attract, develop and retain talent to support the company’s business and its future growth.
Cafritz joined CarMax in 2003 as assistant general counsel, managing commercial and consumer litigation and has provided significant leadership within the company’s field operational leadership team. She was promoted to vice president in 2014.
Prior to joining CarMax, she was employed by McDermott, Will & Emery in Washington, D.C. in the litigation department.
She earned her B.A. in economics and international relations at Tufts University, and received her J.D. from the University of Virginia.
Carvana is expanding both its physical locations and its finance connections.
The used-car chain recently expanded into St. Louis, the company’s first market in the state of Missouri. It is Carvana’s 24th market overall.
Carvana has also partnered with Northwest Federal Credit Union (NWFCU), a Virginia-based credit union with more than $3.1 billion in assets. The partnership will provide a completely online vehicle financing and purchasing solution to NWFCU members.
To celebrate the partnership, Carvana and the Northwest Federal Credit Union Foundation are giving away a car worth up to $15,000. The raffle will run from April 17 to June 11, and the winner will have the opportunity to choose a vehicle from Carvana’s inventory.
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