CarMax 2003 Annual Report Download - page 6

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4CARMAX 2003
Home
Improve-
ment
1- to 6-
Year-Old
Used
Cars
U.S.
Retail
Used-Car
Market
$375
$260
$200
MARKET SIZE
(in billions)
USED VEHICLE SALES STABILITY (percentage change)
Source: Manheim Auctions, CarMax estimates
and National Home Improvement Institute
Source: Manheim Auctions
1COMPELLING MARKET
The used vehicle market is very attractive.
Huge
■Used vehicles generate an estimated $375 billion in annual sales in the
United States.
■In 2002, there were an estimated 43 million used cars and light trucks sold,
nearly three times as many units as new vehicles sold.
■CarMax’s primary focus—one- to six-year-old vehicles— is a market estimated
at $260 billion in annual sales.
■In comparison, the home improvement market, in which Home Depot and
Lowe’s compete, is estimated to be $200 billion in annual sales.
Stable
■The year-over-year change in used units sold has averaged less than 2%,
up or down, since 1985, the first year for which we have information.
■This stability provides an excellent base for CarMax’s market share growth
strategy, both in our existing markets and in the markets we are entering.
-15
-10
-5
0
5
10
15
% Change Used Vehicle Unit Sales
% Change New Vehicle Unit Sales
200220001998199619941992199019881986