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April 18, 201 1
www.usedcarnews.com
Used Car Sales Are Booming CarMax Reports Record Results CarMax Inc. reported record results for the fourth quarter and fiscal year, both of which ended Feb. 28. Net sales and operating revenues increased to $2.25 billion from $1.83 billion in the same quarter last year. For the fiscal year, net sales and operating revenues increased to $8.98 billion from $7.47 billion in fiscal 2010. Comparable store used unit sales increased 12 percent for the fourth quarter and 10 percent for the fiscal year. Total used unit sales rose 14 percent in the fourth quarter and 11 percent in the fiscal year. For the fourth quarter, net earnings increased. The firm continues to add locations. CarMax officially opened its first auto superstore in Louisiana. The store, located in Baton Rouge, is more than 36,200 square feet, employs more than 50 associates and stocks
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250 to 350 used vehicles of nearly every make and model. The company is also looking at ways to expand online. CarMax Inc. introduced a new service called CarMax EasyShop at carmax.com. Launched exclusively in Raleigh and Fayetteville, the newly added functionality empowers customers to complete more of the car shopping process at their convenience and from any computer before arriving at the store. Now with CarMax EasyShop, customers in Raleigh and Fayetteville can do all the following online: • Place a hold on a vehicle for up to three days; • Schedule a test drive; • Apply for financing and quickly receive a decision online from CarMax and third-party finance providers; • Initiate and pay for a transfer of a vehicle from any CarMax store to your local store; • Choose a MaxCare extended service plan that matches expected budget and driving needs; • Schedule an appraisal of another vehicle; • Get started on paperwork before going to the store. The company selected Raleigh and Fayetteville to pilot CarMax EasyShop due to a strong history with the community and existing consumer awareness levels. CarMax’s Raleigh store was opened in 1994, the second store for the company.
Several Brands Set Certified Record Certified pre-owned sales were the second highest ever in March. Franchise dealers sold 162,092 certified units in the month, up 21.2 percent higher from February and 11.7 percent from March 2010, according to AutoData Corp. There were 27 selling days in March compared to 26 in March 2010 and 24 in February 2011. First quarter sales were 419,593, 13.6 higher than the first quarter of 2010. Toyota was the best selling brand once again and again it led by a wide margin. Toyota dealers sold 31,127 certified units in March. Honda, the No. 2 brand, saw sales of 20,586. Kia, Subaru, Hyundai, Volkswagen, Nissan, Mazda and Maserati reached new highs, while many of the other brands neared their all time highs. Discontinued Pontiac was one of the few brands to report a decline. Its dealers sold 3,190 certified units in March, down from 3,284 in March 2010. Saturn, the other “ghost brand,” actually had higher sales last month than in March 2010. The brand’s dealers sold 1,244 certified units, up from 860 in the same period a year ago.
IN THIS ISSUE • Rising fuel prices cause concern among consumers. – Page 3
• General Motors Co. listens to its dealers. – Page 8
• Proposed tax bill levels the playing field. – Page 6
• A used-car salesman sold several cars and kept the cash. – Page 12
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