CarMax, Carvana Expand in Las Vegas FeaturedThursday, 02 November 2017 00:45
Competition is heating up in Las Vegas as two used-car chains are expanding in that market.
CarMax Inc. is celebrating the grand opening of the company’s third store in Las Vegas and fourth location in the state of Nevada. The store is located at 4900 North Rancho Drive and has the capacity to stock approximately 340 used vehicles.
In celebration of the Centennial store opening, CarMax and The CarMax Foundation awarded $15,000 in donations and grants to the YMCA of Southern Nevada’s Centennial Hills Community Center. Support for this organization came at the recommendation of the Centennial CarMax associates.
Meanwhile, Carvana also recently launched operations in the Las Vegas market.
EchoPark Stores Grow Quickly FeaturedWednesday, 25 October 2017 22:12
Sonic Automotive Inc. reported that its EchoPark used-car superstores retailed 37.7 percent more units than in the prior year quarter.
Sonic is opening another EchoPark store in San Antonio in early 2018. Sonic’s schedule for expansion includes the opening of approximately 10 additional EchoPark locations by the end of 2018.
Sonic’s six EchoPark stores combined were cash flow positive during the quarter. The newest location in Colorado Springs was cash flow positive in its third month of operation, some six months ahead of the original EchoPark stores.
CarMax Looks to Hire 2,000 Employees FeaturedTuesday, 24 October 2017 16:10
CarMax Inc. announced plans to hire for more than 2,000 positions companywide by the end of the year.
CarMax currently employs more than 24,000 people nationwide.
The majority of new and open positions are for sales consultants, technicians, detailers and inventory associates. CarMax stores are also hiring for positions within its business offices nationwide.
Additionally, the company is hiring for several customer service positions at CarMax Auto Finance in Atlanta, and for digital and technology positions at the headquarters in Richmond, Va.
During the most recent CarMax Inc. quarterly earning call, Morgan Stanley analyst asked an audacious question: “Could CarMax be Amazon’s Whole Foods of automotive retail?”
Jonas is none for his provocative stance on every aspect of the auto industry from finance to self-driving cars.
CarMax executives gave a very vague answer to his question and moved on.
However, many others are raising more basic questions about CarMax’s digital strategy, especially in light of Carvana Co.’s rapid growth.
CarMax now makes a point in its grand opening press releases to include language about how the company “disrupted the industry more than 20 years ago.” The releases also state that 90 percent of of CarMax purchasers start the process on CarMax.com or the CarMax mobile app.
The releases have always said that each new CarMax store includes more than 100 “used vehicles of nearly every make and model.” However, now they add that customers can order any vehicle they want online from any CarMax store nationwide and have it delivered to that location.
CarMax is also experimenting with home delivery. The company has been running a pilot program in Charlotte, N.C.
“We’re pleased with were where at with home delivery at this point,” said CarMax CEO Bill Nash.
There are no definite plans to expand to other market at this time, but said the company is looking at its options.
One part of the process is gaining a wider reach and that is online appraisals. CarMax will add this service in the Midwest in the next few months.
The company is also working on a more used-friendly online finance tool.
It remains to be seen if Wall Street will consider this enough innovation at a fast enough pace.
Carvana Co. retailed 11,719 used units in the third quarter for revenue of $225.4 million.Total gross profit was $20.4 million. Total gross profit per unit was $1,742. The company still...
Robert Beck, president, Stop ‘N Drive Motors, San Antonio, Texas: “We have one location and we opened up in 2005. “We usually stock about 40 to 50 cars. We have...
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