Carmax 3Q Used Sales Rise

By Staff Writer December 23, 2020

 

Carmax recently reported 3Q results showing total used vehicle unit sales increased 1.0 percent while comparable store used-unit sales decreased 0.8 percent.

This compares with increases of 11.0 percent and 7.5 percent, respectively, for the prior year’s third quarter. Demand softened and sales trended down in the latter part of the quarter. Some of the factors that Carmax believe impacted sales were the surge in COVID-19 cases, which constrained demand and resulted in tightened occupancy restrictions and shelter-in-place orders from state and local governments, as well as the uncertainty around the election and future stimulus programs. Total used vehicle revenues increased 4.5 percent due primarily to average retail selling prices rising nearly $700 per unit versus the prior year quarter. This largely reflected higher vehicle acquisition costs resulting from strong wholesale industry valuations.

Total wholesale vehicle unit sales increased 10.8 percent compared with the third quarter of fiscal 2020. Wholesale sales benefited from a record third quarter appraisal buy rate, partially offset by lower appraisal traffic.

Other sales and revenues declined 2.3 percent compared with the third quarter of fiscal 2020, reflecting a decrease of $6.9 million in other revenues. The decrease in other revenues was partially offset by EPP revenue growth of 4.8 percent largely reflecting a $5.0 million increase from favorable adjustments to cancellation reserves and profit-sharing revenue recognized in the current quarter.

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Last modified on Wednesday, 30 December 2020 16:31