Aug. 23 at 5:28 PM
$KMX https://www.youtube.com/watch?v=Lp9VqJ79QcQ
CarMax is the largest used car retailer in the U.S., and its strong profitability is largely driven by the exceptional resale value and demand for Toyota and Honda vehicles. These brands, known for their reliability and durability, dominate the used car market and sell faster at higher prices than most competitors.
Toyota, the top-selling automaker in the U.S., carefully avoids heavy incentives, fleet sales, and leasing, which helps maintain high used car prices by limiting supply. Lexus and Acura also hold strong residual values, boosting CarMax’s margins. Additionally, tariffs provide CarMax with an extra layer of protection, positioning it to achieve the highest profitability in the sector.
With its market scale and the strength of Toyota and Honda’s value retention, CarMax has a very bullish outlook as the clear leader in used car sales and profits.
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