CarMax 2003 Annual Report Download - page 8

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6CARMAX 2003
The CarMax consumer offer is unique in the auto retailing marketplace.
We give consumers a way to shop for cars like they shop for items at
other “big-box” retailers.
UNIQUE CONSUMER OFFER
2
Great Quality
■CarMax vehicles are thoroughly inspected and reconditioned to meet high mechanical,
electrical, safety and cosmetic standards.
■ValuMax vehicles — older, higher mileage cars that provide quality at an economical
price — represent roughly 15–20% of our inventory and meet the same mechanical,
electrical and safety standards as a CarMax vehicle, but not as high a cosmetic standard.
■Every vehicle is backed by a five-day or 250-mile money-back guarantee and an
industry-leading 30-day limited warranty.
■We also offer MaxCare extended service plans on every car we sell that provide up
to six years coverage.
Broad Selection
■CarMax’s average superstore displays retail inventory of 300 to 400 used vehicles,
compared with approximately 90 used vehicles at the average new car dealer.
■Each store’s inventory is targeted to the buying preferences in the store’s trade
area—not just having a lot of cars and trucks, but having a lot of the right makes,
right models, right ages, right mileage and right prices of cars and trucks — in short,
having the vehicles consumers want to buy.
Low, No-Haggle Prices
■The price of each element of the sales transaction is no-haggle, separate and
designed to be clear to the consumer.
●The price of the car is competitive and is clearly posted on the car, in the
store and on carmax.com. In fiscal 2003, our retail prices averaged more than
$1,500 below Kelley Blue Book.
●The price of the extended service plan is competitive and fixed. It is
based primarily on the repair history of like makes and models and the
length of the coverage the customer prefers.
●The price of financing is a competitive and no-haggle price based on the
lender’s credit risk assessment of the customer. Customers approved by more
than one financing source can choose from the competing offers.
●The price of the “trade-in” is a written cash offer on the consumer’s car that
is separate from any other transaction.The offer is good whether or not the
consumer buys a car from CarMax and is good for seven days or 300 miles,
whichever comes first.We purchase more than half the cars we retail directly
from consumers, an excellent source of hard-to-find quality used vehicles.