Small profit marginsThe following article brings an important point to light:
https://www.stockhouse.com/Columnists/2008/June/3/Carmaxs-small-profits-have-a-good-chance-of-dropp
Carmax's profit margins are miniscule at best. With margins that low, any dip in revenus will result in a loss of profit figures. This is very unfortunate since the article also points out that a slowing econmy will deff. have its toll on the auto market, as is already being seen by GM, Ford.
Who ever gave KMX the loans backed by car loans recievable is a complete fool, as a great amount of those loans are sure to default in this econmic environment, and Carmax, after maybe some court dates, will get the entire loan without having to repay all the principle.