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CARMAX Inc KMX

CarMax, Inc. is a retailer of used autos. The Company operates through two segments: CarMax Sales Operations and CarMax Auto Finance (CAF). The CarMax Sales Operations segment consists of all aspects of its auto merchandising and service operations. Its CarMax Sales Operations segment sells used vehicles, purchases used vehicles from customers and other sources, sells related products and services, and arranges financing options for customers. The CAF segment consists solely of its own finance operation that provides financing to customers buying retail vehicles from the Company. The CAF segment also services all auto loans it originates and is responsible for providing billing statements, collecting payments, maintaining contact with delinquent customers, and arranging for the repossession of vehicles securing defaulted loans. It provides customers with a range of other related products and services, including extended protection plan (EPP) products and vehicle repair services.


NYSE:KMX - Post by User

Bullboard Posts
Comment by investologyon Jun 13, 2008 2:39am
735 Views
Post# 15181013

RE: Small profit margins

RE: Small profit marginsIt is quite evident that with increasing gas prices, consumers will be cutting back on the purchase of cars (speaking from experience). This will be devastating for Carmax. As mentioned in an earlier post, any dip in revenues will eliminate the mere 1% margin accomplished by the company. They may well be operating at a loss in the remainder of this year, consequently, sending its share price down.
Bullboard Posts