CarMax 2006 Annual Report Download - page 10

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Unique Consumer Offer
3
8CARMAX 2006
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 and no-haggle
and is based on the finance company’s assessment of
credit risk. Customers see each finance offer as it is
made directly from the finance company and may
choose among competing offers.
■The price of the “trade-in” is a written cash offer, based
on the wholesale value of the vehicle, and we’ll buy the
customer’s vehicle whether or not the customer is buy-
ing from us. The offer is good for 7 days or 300 miles.
BROAD SELECTION
■An average CarMax superstore has between 300 and
400 vehicles for sale, compared with approximately 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-con-
scious consumer, we also offer older, higher mileage
ValuMax®cars that meet our same quality standards.
ValuMax vehicles comprise approximately 15% of our
inventory.
■Each store’s inventory is tailored to the buying prefer-
ences of the consumers in that store’s trade area.
No-haggle pricing