News Details

RICHMOND, Va.--(BUSINESS WIRE)--Apr. 15, 2009-- CarMax, Inc. (NYSE: KMX), the nation’s largest retailer of used cars, is urging Congress to include used vehicles in the “Cash for Clunkers” legislative proposals. By including used vehicles, this legislation is better positioned to promote fuel efficiency, save jobs, and help more Americans afford a car. One legislative proposal that does include used cars is S. 247, sponsored by Senators Feinstein, Schumer, and Collins.

“More people will be able to participate in the program, more jobs will be saved, and more fuel-efficient vehicles will end up on the road by including used vehicles,” said Tom Folliard , president and chief executive officer. “Excluding this segment of the auto industry could potentially have a negative impact on millions of American workers and thousands of U.S.-based businesses. Nationally, used car sales outnumber new car sales nearly 3 to 1.”

Including used vehicles in the legislation will have the following benefits:

1) Help More Americans Afford to Buy a Car

For millions of American families, purchasing a new car is too expensive, even with a voucher or tax credit. A recent review of the online classified vehicle website AutoTrader.com indicates that the average price for eligible new cars is about $7,000 more expensive than eligible used cars. Including used cars will help those families who cannot afford to buy a new car and expand participation.

2) Save More American Jobs

Including used cars will stimulate the overall auto industry and save more jobs. New and used car dealerships employ more than 1 million people nationwide. There are nearly twice as many used car dealers as new car dealers in the U.S. Even at new car dealerships, used cars represent more than 40 percent of retail vehicle sales, and an estimated 27 percent of gross profits. Last year, hundreds of these dealerships went out of business due to economic conditions resulting in a loss of tens of thousands of jobs.

3) Increase the Number of Eligible Fuel-efficient Cars on the Road

There are tens of thousands of used cars now sitting on dealer lots that meet the fuel efficiency targets in the legislative proposals. CarMax’s inventory alone currently includes more than 12,500 available vehicles with more than 24 miles per gallon on the highway. Including used cars will expand the number of fuel-efficient vehicles that are eligible for the program.

About CarMax

CarMax, a FORTUNE 500 company and one of the FORTUNE 2009 “100 Best Companies to Work For,” is the nation’s largest retailer of used cars. Headquartered in Richmond, Va., CarMax currently operates 100 used car superstores in 46 markets. The CarMax consumer offer provides our customers the opportunity to shop for vehicles the way they shop for items at other national retailers, and it is structured around four customer benefits: low, no-haggle prices; a broad selection; high quality vehicles; and customer-friendly service. During the twelve months ended February 28, 2009, the company retailed 345,465 used vehicles and sold 194,081 wholesale vehicles at its in-store auctions. For more information, access the CarMax website at http://www.carmax.com.

Source: CarMax, Inc.

CarMax, Inc.
Lisa Van Riper, Assistant Vice President, Public Affairs
804-935-4594
or
Trina Lee, Director, Public Relations
804-747-0422, ext. 4197