Carmax Provides Valuable Insight on Consumer Confidence

Oct 12, 2022 | Corporate Insights, No Bull Economics


•Carmax’s FY2Q23 sales of used cars increased +2% y/y to $8.1B driven by growth in average selling prices partially offset by lower volume (retail unit sales declined -6.4% y/y & wholesale unit sales were down -15.1%).

•While Carmax’s ability to source vehicles from consumers represents a competitive advantage, many of these cars are older and fail to meet their standards for consumer sales & are subsequently sold in wholesale at lower margins (wholesale profit per unit declined -12% y/y to $881 during the quarter) contributing to a -9.6% decrease in total gross profit.

•Carmax purchased 323,000 cars from consumers during the quarter, down -11% from last year’s record results.

•Management reported that consumer confidence is currently even lower than at the height of covid.

Carmax Financials Chart
Carmax Financials Chart

Follow us on LinkedInTwitterFacebook, and YouTube!

Disclaimer of Liability

Nobull consumer research weekly

No Bull Economics

Get Corporate & Market Insights in your inbox