Used-vehicle retail giant CarMax plans more expansion this fiscal year. Photo credit: BLOOMBERG
Aided by the expansion of its used-only stores in the U.S. and U.K., Penske Automotive Group in the first quarter led all publicly traded auto retailers not named CarMax in retail used-vehicle sales. But include CarMax, and it wasn’t even close.
Penske’s used-vehicle sales rose 18 percent from a year earlier to 73,228 units. CarMax’s fell 3.1 percent in its most recent quarter, which ended Feb. 28, but it still retailed 170,572 vehicles.
CarMax has long been the volume giant in the used-car market. What some don’t realize is that the Richmond, Va., company also is the leader among publicly traded used-vehicle sellers in profits and margins.
A look at results for CarMax and its rivals in the latest quarter shows just how large the company’s lead is — and where it faces challengers.
In gross profit per used vehicle retailed, CarMax led the field with $2,147, up 0.6 percent.
Lithia Motors Inc. was second, at $2,038, down 8.8 percent. No other rival’s gross profit per used vehicle retailed topped $1,600.
Upstart Carvana Co., an online used-vehicle retailer known best for its vehicle vending machines, posted by far the largest increase in gross profit per used vehicle retailed. But its 63 percent gain left it at a paltry $902, nearly $200 behind the next-smallest tally: $1,090 for Sonic Automotive Inc.
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