CarMax 2001 Annual Report Download - page 16

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14
An overriding focus on the customer also drives
the success of our CarMax used-car superstores.
They must offer the same value—exceptional
customer service, broad selection, low prices and
continued satisfaction after the sale—that character-
izes successful specialty superstores nationwide.
CarMax’s pioneering consumer offer is unmatched
in automobile retailing.
CarMax has been a hit with the consumer
since the day the first store opened in Richmond,
Va., in 1993. In our first year, the Richmond
store’s used-vehicle sales were higher than the
combined used- and new-vehicle sales of any
new-car dealer in the Richmond market. Today,
the average used-car sales of our 33 CarMax
used-car superstores are more than three times the
national new-car-dealer averages for new- and
used-car sales combined, and our largest super-
store in Laurel, Md., sells nearly eight times that
average. Over the past eight years, we have further
refined the consumer offer, strengthened our oper-
ating skills and capacity, and honed our ability to
deliver CarMax’s value equation consistently
across all stores on a daily basis.
One of the keys to our customer focus is the
CarMax sales consultant. These consultants
receive the same commission amount for every
car they sell. Pricing on vehicles, financing and
warranties are set at low, no-haggle levels, and
trade-ins are handled as separate no-haggle trans-
actions. These incentive and pricing policies
enable the sales consultant to focus solely on the
customer’s needs rather than negotiating the best
“deal” for the dealership. Whether buying a luxury
vehicle or a sub-compact, the CarMax customer
receives the same help and attention.
In addition, the sales consultant is able to assist
the customer at every stage of the buying process,
from selection and test driving, through the trade-
in appraisal and sale, and sign-ups for financing
and extended warranty plans. Our proprietary,
enterprise-wide information system facilitates and
speeds the shopping process. It allows the sales
consultant and customer to instantly check system-
wide inventory information, price an extended
warranty or submit an application for financing.
Qualified customers receive online financing
approval on primary credit financing from either
CarMax Auto Finance, Bank of America, or both,
typically in less than five minutes. Sub-prime
financing is provided through the system by a
variety of third-party lenders.
CarMax also provides a customer-defined shop-
ping experience on the Web. While most used-car
customers prefer to view and test drive these
unique vehicles, CarMax.com provides comprehen-
sive information on our entire vehicle inventory.
Both used-car and new-car customers can contact
dedicated “eOffice” consultants online via
CarMax.com, by telephone or by fax. Customers
can work with these eOffice sales consultants from
the comfort of home—including applying for
financing—and need only visit the store to sign the
paperwork and pick up their vehicle.
customer- shopping
defined
“IN FISCAL 2001, CARMAX’S UNIQUE
CONSUMER OFFER AND OPERATIONAL
CONCEPT BEGAN TO DELIVER THE
PROFITABILITY ENVISIONED WHEN THE
BUSINESS WAS LAUNCHED, AND NOW
WE LOOK FORWARD TO TAKING THE
CARMAX CONCEPT TO MORE MARKETS.”
AUSTIN LIGON
PRESIDENT
“COMPETITIVE FINANCING IS A KEY
COMPONENT THAT MAKES THE CARMAX
OFFER WORK FOR THE CUSTOMER.”
ANGIE SCHWARZ
VICE PRESIDENT
CARM AX AUTO FINANCE
“CARMAX SALES CONSULTANTS TAKE
THE CUSTOMER THROUGH THE ENTIRE
BUYING PROCESS, FROM VEHICLE
SELECTION THROUGH TEST DRIVING
AND FINANCING TO DELIVERY.”
TOM FOLLIARD
EXECUTIVE VICE PRESIDENT
STORE OPERATIONS