CarMax is the United States' largest used-car retailer and a Fortune 500 company. The first CarMax used car auto superstore was opened in September 1993. In the fiscal year ending February 28, 2009, more than 350,000 cars were sold; as of March 2009 the company has 100 locations.

Concept

The concept for CarMax was developed by Circuit City executives under then-CEO Richard L. Sharp for nearly a year in 1991 using the code name "Project X" and was also known as "Honest Rick's Used Cars" to those intimately involved in the planning.Michael Myser, "The Wal-Mart of Used Cars: Unlikely big-box chain CarMax has transformed the world of auto retailing", Business 2.0 magazine, October 2, 2006 The concept was actually first proposed by a consultant hired by Circuit City to evaluate possible business opportunities beyond the scope of their consumer electronics locations.

While used cars has always been the main business, CarMax purchased the rights to locations from car manufactures such as Chrysler, Jeep, Mitsubishi and Toyota. CarMax also purchased an Auto Mall in Kenosha, Wisconsin that had additional manufacturer franchises, such as Ford, BMW and Volvo.

CarMax initially began with no fees. The concept was abandoned after it was determined that customers were not concerned about paying transaction fees for the purchase of a vehicle.

The typical CarMax store is approximately 59,000 square feet, carries an inventory of 300–400 vehicles, and turns its inventory over eight to ten times a year. On average, a CarMax location employs 40 sales associates.

On average, a purchased vehicle has 12 hours of work done to it before being put up for sale. Each car gets a 30-day warranty and a five-day free return policy.Jennifer Openshaw, "Buying a new car? Take a trip down the used luxury aisle first", MarketWatch.com, August 3, 2006

Sales and revenues

The first CarMax used car auto superstore was opened in September 1993, 1.7 miles from Circuit City's corporate offices in Richmond, Virginia. As of February 26, 2009, CarMax operated 100 used car superstores and seven new car franchises, all of which are integrated or co-located with its used car superstores.

Circuit City issued the first CarMax stock in February 1997, when CarMax had seven locations. Initially the stock was a tracking stock still under the umbrella of the Circuit City; CarMax officially split from Circuit City as of October 1, 2002, when it was spun off as a stock dividend for Circuit City shareholders, with shares also issued to those holding CarMax tracking stock.Fact: date=July 2007