CarMax is the largest used vehicle retailer in the U.S., operating 256 stores across 110 markets and selling roughly 780,000 used cars at retail annually. CarMax's core value proposition is a no-haggle, fixed-price buying and selling experience, where customers can transact fully online, fully in-store, or any hybrid. CarMax sources used vehicles from consumers, dealers, and auctions, reconditions them to an internal quality standard, and sells them at a fixed retail price. Vehicles that don't meet retail standards — roughly half of what CarMax acquires — are sold at wholesale auctions to licensed dealers. CarMax also sells extended service and GAP insurance products on behalf of third-party providers, earning a fee per plan sold and potential profit-sharing. CarMax Auto Finance (CAF), its in-house lending arm, provides auto loans exclusively to CarMax customers and managed a $16.4B loan portfolio as of early 2026; CAF financed roughly 42% of retail unit sales and earns a net interest margin on its loan portfolio. CarMax uses proprietary pricing and inventory management algorithms to set retail prices and optimize inventory turns. On the cost side, CarMax is targeting SG&A reductions and per-unit reconditioning savings through AI deployment, automation, and stand-alone reconditioning centers. CarMax is also expanding CAF into near-prime and subprime borrowers, targeting a higher CAF penetration rate over time, funded in part through off-balance-sheet securitization of non-prime loan pools.