CarMax 2004 Annual Report Download - page 8

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6
CARMAX 2004
The CarMax offer is structured around our core equities —
those things we offer customers that, taken together, make us
unique in auto retailing.
LOW, NO-HAGGLE PRICES
■We offer our best price up front and never haggle on any
element of the sales transaction.
•The price of the vehicle is competitively low and clearly
posted on the car, in the store, and on carmax.com.
•The price of the extended service plan is competitive
and fixed, based primarily on the repair record of
similar vehicles and the length of coverage.
•The price of the financing is competitive, no-haggle,
and based on the lender’s assessment of credit risk.
Customers see the finance offer as it is made directly
from the lender and, if approved by more than one
lender, may choose among competing offers.
•The price of the “trade-in” is a written cash offer,
based solely on the wholesale value of the vehicle, and
our offer is good whether the customer buys from us
or not. The offer is good for 7 days or 300 miles.
■Our no-haggle offer streamlines the buying process
and helps ensure that we create only a comfortable,
friendly relationship with customers.
BROAD SELECTION
■A typical CarMax superstore has between 300 and
400 used vehicles for sale compared with approxi-
mately 90 used vehicles at the average new car dealer.
■Our primary focus is vehicles that are 1 to 6 years old,
with fewer than 60,000 miles. For the most cost-
conscious consumer, we also offer older, higher mileage
ValuMax cars that meet our same mechanical, electrical,
and safety standards. These older vehicles typically
comprise approximately 15% of our inventory.
■Each store’s inventory is tailored to the buying
preferences of the consumers in that store’s trade area.
GREAT QUALITY
■Every used vehicle we sell must meet stringent
mechanical, electrical, and safety standards.
■Every used vehicle we retail is put through a thorough,
125-point inspection. Needed repairs are made and the
car is thoroughly detailed inside and out to make it look
and feel as close to new as possible.
■We stand behind our quality standards with our 5-day,
250-mile, money-back guarantee and our industry-
leading, 30-day limited warranty. We also offer extended
service plans on every vehicle we sell that provide up to
6 years of coverage.
2
UNIQUE
CONSUMER OFFER