CarMax Looks to Expand Digital Retailing Push
RICHMOND, Va. — Officials with CarMax Auto Finance, a subsidiary of CarMax Inc., said a focus on its online prequalification portal drove a 7% gain in first-quarter originations from a year ago.
The portal has been live at all CarMax locations for two full quarters. Officials said the next step is to offer customers home delivery, although they said the service will stop short of a complete online buying experience.
“Customers are engaging well with this offering and it continues to contribute to increased online leads, which we believe ultimately generate incremental sales,” said President and CEO Bill Nash during the company’s June 21 earnings call to discuss first-quarter performance. “Now we’re focused on improving the experience and proactively marketing our online financing capability nationwide.”
The auto finance company recorded $1.5 billion in first-quarter originations, up from $1.4 billion in the year-ago quarter. The firm did not disclose a total origination count or total outstanding balances.
According to officials, state regulations prevent the automotive retailer from allowing consumers to complete vehicle transactions online. The used-vehicle retailer will instead deliver vehicles to a customer’s home for test-drives. If the customer agrees to purchase after testing the vehicle, the associate accompanying the vehicle will be trained to help the consumer complete the deal paperwork.
Officials also said the pre-owned dealer group is testing an online appraisal tool in its Charlotte, N.C., market. It is designed to allow customers to submit condition reports on their trade-in online to receive an appraisal value. Nash said the company plans to expand that pilot to two more Charlotte stores.
“We continue our home delivery test and one key learning we found is that human intervention at the right time is important to giving our customers the personalized experience they expect,” Nash said. “Our goal with this test is to build the functionality needed to fully integrate our online and in-store experiences that we can offer as much or as little the car buying process online as each customer wants.”
More Industry
Driving Under Distraction
Though consumers gave higher marks to new vehicles in JD Power’s most recent initial-quality poll, high-tech interference worsened, pointing to craving for simplicity.
Read More →
Affordable New Cars a Thing of the Past
More than one out of five new vehicles sell for more than $60,000, according to Edmunds. That's up 7% compared to prepandemic 2019.
Read More →
State Follows Federal Warning on Auto Ads
The Massachusetts attorney general cautioned the state’s automotive dealers to be upfront with the consuming public about their vehicle prices or risk punishment.
Read More →
Consumer Outlook on the Rise
Younger generations are feeling more positive about their financial futures and current affordability pressures than older generations, according to recent TransUnion data.
Read More →
Pennsylvania Dealership Under New Retailers
The sale of the Chrysler Dodge Jeep Ram store puts a family auto group on a leaner path as first-time dealers take the helm.
Read More →
Battery Storage Takes Priority Over EVs
U.S. automakers are prioritizing battery energy stationary storage over electric-vehicle production as the consumer demand for EVs lags the rest of the world.
Read More →
Auto Dealers Feel Better But Not Great
A second-quarter Cox Automotive poll of franchised retailers and independents found better views of the current market after a good spring but anticipation of third-quarter storminess.
Read More →
New-Vehicle Sales Picture Relative
A May forecast is complicated by last spring’s trade tariff effects on auto retail. Despite continued hard realities, many consumers took advantage of ways to bite the bullet.
Read More →
Auto Group Acquires Third Nissan Rooftop
Iowa-based Coleman Automotive Group recently acquired its seventh dealership, McGrath Nissan, which it renamed Nissan of Elgin.
Read More →
April Less Affordable
Based on prices, reduced incentives and slower household income growth, consumers found it more challenging to buy new last month, Cox Automotive reported.
Read More →