CarMax is a big company that sells used cars in the U.S. This segment is about how their recent money problems may reflect trouble in the used-car business overall.
Concept
$121 million loss
A $121 million loss means the company lost a huge amount of money over that quarter. For a used-car dealer, that can happen when cars don’t sell fast enough or when financing and other costs go the wrong way.
If cars aren’t selling, dealers may drop prices to attract buyers. But if demand is still low, they might cut prices and still not sell enough cars to make money.
When vehicles “aren’t selling,” it typically means inventory turnover slows—cars sit on lots longer. That increases holding costs and can force further price reductions, worsening profitability.
Days on market tells you how long a car has been sitting on the dealer’s lot or website without selling. If it’s been listed a long time, it often means the price may be too high or the car isn’t moving.
They’re estimating how much the truck’s value dropped since it was new. Normally cars lose a lot more value over 10 years, so this small drop is surprising.
Putting 10% down means you pay part of the price upfront. The rest is financed, so the down payment helps lower the loan amount, but interest still matters a lot.
Mileage is the total distance a vehicle has been driven, usually shown as odometer miles. Lower mileage generally supports higher used-car pricing, and the segment calls out that 56,746 miles is “significantly low mileage.”
Carfax is a company that tracks vehicle history and publishes data dealers use to understand the market. In this segment, they’re using Carfax information to show used car prices are rising.
Black Book is a company that estimates what used cars are worth, especially for dealer-to-dealer (wholesale) pricing. They’re using it to show wholesale prices are also moving up.
MSRP is the “list price” for a new car set by the manufacturer. If list prices go up, new cars get more expensive, and used cars often become more expensive too.
Overpaying means dealers are paying more than they normally would for cars at auction. That can be risky, but it can also happen when everyone is trying to buy the same limited supply.
This is about the government stepping in to help U.S. car companies compete. The idea is that protections make it harder for cheaper imports to take over the market overnight.
A beta is a “test” version of a website or app. They’re letting people try it early and collecting feedback to make it better.
LIVE
It's noon here in Vettner City, New Jersey, and, well, everywhere else on the East Coast,
and this is CarAgeLive for Tuesday, April 14th with your hosts, me, Ray, and, well,
a good-looking dude, Zach, right here in my own condo today. How are you today, handsome?
Doing fantastic. We got the setup here. All right, so I gotta make sure I'm all organized here,
but good to be by my dad's side is fantastic to be here with you. I'm glad that you are
feeling pretty good today, Pops. We're gonna be talking about CarMax today, Dad. There is some
serious trouble. It's worse than we thought. A week ago, we did a show talking about CarMax
and what we thought was happening in the used car market, and, wow, do we have an update today.
Before we get started, however, CarAge.com slash beta, please check it out. We are still seeking
out feedback, and, but we appreciate everyone that's using the new car search. And for those of you
that wants all of our normal services, products, and services, CarAge.com is available to you.
Dad, where to start here? We've got the latest financial results from CarMax, and we'll lead
off with this, Dad. They're stock currently, which this is not a channel about stock market and things
like that. Down 14%, their stock's been down a lot recently, but they're down 14% today,
and they're primarily down, Dad, because of a few things. First and foremost, we wrote this
over on the CarAge blog. The first and foremost thing, they lost $121 million. That's a big deal
at CarMax because they're used to making money. That at the same time, Dad, they had to lower
their prices on vehicles, but they're still not selling. And one of the biggest pieces to this
whole conundrum is the fact that they are setting up more and more sub-prime auto loans. That's
become a bigger and bigger portion of their business. So some of the things that we're seeing
in other parts of the car market are happening at CarMax as well. But let's start here, Dad.
They had a $121 million loss for the quarter. What's going on over at CarMax?
It's not good. No, it's not good.
It's not good. I personally, I, Ray Showska, would love one day, some day before I die,
to be in a position where I can afford to lose $121 million in three months.
We're all going to work on that to try and get you to that position.
I mean, wouldn't that be a wonderful thing to be in that position and, well, still be able to
operate? The CEO did get replaced, so I wanted to be clear. Well, don't worry about that.
So, yes, they have actually sold what was a few more cars than they had in the past,
maybe more on the wholesale side. It was on the wholesale side, yes. So they actually had,
I'll pull up a few more data points here and then we'll get you a chance to riff on it. Dad,
if you go to the actual report from CarMax, retail unit sales decreased by about 1%.
Their gross profit per vehicle sold also decreased by about 2%. At the same time,
wholesale units sold increased 3%, but they had to make less money on each vehicle, so about $105
less. So the story at CarMax is one of, they sold more cars, but they sold more cars to
wholesale options, and they sold less retail cars, and both of them were for less money.
That's the huge component to all this for CarMax and the trouble that they're in is,
they are charging too much money for their cars when they lower their prices a little bit. The
only people they can get to buy them are other dealers, not retail customers.
Are they charging too much money for their cars? I mean, you know...
Live experiment time, baby. Let's go for it.
I mean, they still sold 309,000 cars in a quarter. Now, you know me, I always say I'm not real good
at math, but I believe that translates into more than 1.2 million used cars that they will sell
this year. Do they have to look at their expenses? Do they have to figure ways to cut some costs?
It's looking expensive, but it's also done looking at the price that they're charging,
because they did make less for per vehicle sold at the same time as they sold fewer vehicles.
You and I have done this forever. If you lower prices, you should sell more. They lowered
prices and they sold fewer. Yeah. Come on, that's not serious trouble.
Okay, yes, maybe. Could be. I have to put this on silent.
If you lower prices... Yes, I'm listening.
And you sell fewer vehicles. Yes, yes.
We could do this for five years and you still don't put your tone on silent.
Yes. You lower prices and you sell fewer vehicles.
Yes. And then you lower prices on the wholesale side and you sell more vehicles.
You're doing something wrong. You can't sell cars to retail customers. Let's do a live experiment.
But their percentage of customers that are sub-clined has gone up.
Yeah. And so it almost seems to me they're turning into Carvalho.
In a sense that at this point, I think they're going to be more concerned with loan originations
and then selling those loans as asset-backed securities, much like Carvalho does.
For sure. But let's talk about the impacts on the used car market. A little bit less on their
business model, a little bit more the impacts on the used car market. When Carmac sells fewer
cars at lower prices, that's an indication that I think things are going to get worse for the car
dealers and better for consumers. What do I mean by that? These are going to have to lower their
prices even more. That's the only way they can liquidate and sell the inventory. Let's do a
live experiment. I've got to hear Dad on the CarEdge car search. We're looking at just inventory at
Carmac's Laurel. So over in Laurel, Maryland, that Carmac's dealership, they have 883 cars for sale.
That's quite a few. That's a big used car dealer, man.
Well, and what I've done, Dad, is I've sorted by days on market up here in the top right.
Yes. I'm curious, the most aged inventory at Carmac's. You can see, Dad, they have some vehicles
that they've been sitting on for a while, 179 dates. 171 days, 134 days. I want to click into one of
these and I want to look at what price they're asking for. I want to do the comparison that we
offered. Sounds good to me. So Carmac's and Laurel, again, the story today is that Carmac's
sold fewer cars at lower profit, indicating that they are struggling and they lost $121
million to the quarter. They're struggling. They're very much so struggling and our read on that.
But it is also the first time they've ever lost money. Yes, it is. That's huge.
Yes. So our read on that is, oh, the used car market is not in good shape right now. Well,
maybe that's because used car prices are too unaffordable. Let's look.
2016 Toyota Tacoma TRD offered for sale at Carmac's Laurel. They're asking $30,000. It's
got 56,746 miles. Very low miles for a very low for a 10-year-old car.
Yeah, you'd expect closer to 120,000 miles on this thing. We give it a high negotiation power
score. But you can't. It's Carmac's. So that's the thing, right? You can't negotiate at Carmac's.
Well, let me ask you, Dad, before I scroll down, what do you think the original MSRP on this was
in 2016? On this Toyota Tacoma TRD off-road? Yeah. That's $39,000. It was just a guess.
This is why the market's so crazy right now. Oh my God, it's $32,000. So they think that it's
gone down to grand in 10 years. Who the hell is buying that? This? Yes. This is an anomaly for
Carmac's too, because this car has been sitting there, what, I'd say 120 days? Something like
that. Yes. This truck's been sitting at Carmac's for 120 days, and they think it's lost $2,000 worth
of its value from original MSRP with 56,000 miles on it. This is why Carmac's is in some
serious trouble. And the reason we think it's worse than we originally thought is because
it's the first time they've lost money in their history for a quarter, and it wasn't a little
bit of money. It was $121 million. So they're saying it's worth 93% of its original value 10
years later. That's crazy. I'm not disagreeing with that. So I'm just thinking for a moment. So
we're at $30,000 plus fee. So you're at $33,000. To buy that used. To buy that used. And let's say
you put the 10% down for the fee. So you're looking to finance 30 grand on a 10-year-old
vehicle. How long can you finance that for? I mean, in the old days, they'd say, okay,
it's a 10-year-old vehicle. Maybe we'll finance it for 24 months, but nobody can afford that
payment for drink. So today, what do they say? Will they finance it for 60 months?
And what's their going rate? What was it? 11.1% I read. So let's go to our payment calculator
and see what that vehicle, through CarMax, at $30,000 financed at 11.1%,
what that payment would be. So again, for those of you that just joined, we're talking about how
CarMax lost $121 million last quarter. The first time they've lost that much money,
the first time they've lost money in the quarter, the first time they've lost $121 million,
and a quarter, they lowered the price. They doubled first. They lowered the prices of their
vehicles, yet they sold fewer to retail customers. We're now looking at a 2016 Toyota Tacoma TRD
off-road that's been listed for sale for 123 days at CarMax of Laurel. They're asking $39,998.40.
They're asking $30,000 for it. It's got 56,746 miles, which is significantly low mileage.
And when we do the comparison, this is the depreciation analysis. This is what you get
on caredge.com.beta for all used cars. You see the depreciation analysis. They've said it's worth
7% less than its original MSRP. So it's barely depreciated in a decade. My dad's question,
my dad's point is, let's go take it to the auto loan calculator over here. And so you're saying
you pay $30,000 because he can't unfortunately negotiate at CarMax. We will go check the price
history on that one in a second here. But you're saying it's $30,000 plus 10% for taxes in face.
So we'll do $30,000 is the selling price. Yes. And what are you saying is we'll do $0 for that?
No, do the 3,000. All right, we'll do 3,000. 10% down. We'll say we're in Maryland because that's
where this vehicle is listed for sale. We'll say whatever, we'll put this at 10%. Yeah,
the sales tax is at 10%. Okay, we'll put it at 5%. This is for illustrative purposes.
6%, but that's... 6% that is, like I said. Then, dad, what are you saying the loan term is?
16 months. And their average interest rate, CarMax, that was what, 11%?
11.1%. 11%. Excuse me.
Including our taxes and fees in the loan, you've got a $682 a month payment.
And you're paying back. To be clear here, this is an original MSRP on this vehicle of $32,085.
If you bought this used from CarMax today with these financing terms,
you're going to spend $44,000 on it. Which is nuts.
This is why the car market, the used car market is broken. CarMax is in serious trouble. Like,
they cannot find enough customers, even if they do increase their share of subprime borrowers.
They cannot find enough customers. You can justify buying a $32,000 car for 44 grand.
Used to be that used cars were a better value than new cars. You got some of the depreciation.
We'll do another example that's not a Toyota in a second, but that's crazy.
You can't expect somebody to be spending $682 a month for five years on a 10-year-old vehicle.
Most people that would be looking at a 10-year-old vehicle are looking at a 10-year-old vehicle
because they need a cheaper price. Speaking of cheaper price, Ted, let's look at the price
history chart for this particular vehicle. You can see CarMax has come down on the price.
Back in December of last year, they wanted $33 grand for this thing. Then in January,
$31,000. Now, they've been sitting here since the new year at $30,000 for this vehicle. They
have dropped the price $3,000. Let's do another example. That was a Toyota. Maybe we'll say it's
a little bit of an anomaly. There's a Jeep next to it. I don't know. Mercedes, an Audi Q8,
Prestige. Wow, that thing appreciated a bunch. Which one of these you want to do? Do you want to
pre-owned minis in the country? All right, Ted. We've got a 2019 mini hardtop four-door Oxford.
One of the Oxford edition was the least expensive mini that they made. They negated some of the
standard equipment and they brought the price down. I'm thinking, so that's the four-door
Oxford edition. They're asking $15 grand for it. It's got 60,000 miles, which again is relatively
low miles. You'd expect 2019 to have more miles. But it is a mini. I mean, they break me.
111 days on the market. What do you think original MSRP on this thing?
Oh, I want to say that was 24 grand, 25 grand. Wow. He is so good, folks. $23,750 was an
Oxford edition. Let's just look at this for a second. They're asking $15 grand. Original was
around 24. They're saying it's depreciated about 37% of its original MSRP over the last,
what is that, seven years? Yeah, it's depreciated much more than that, but that's besides.
No, but that's not besides the point. That's the key of this. That's the trouble that CarMax is in.
The whole point of their business model and Carvana as well is to buy cars at relatively
high prices and then convince people to pay even more for them. But if I know, this is actually
an affordable vehicle for somebody. For somebody, $15,000 is affordable.
Yeah, that's the unfortunate thing is that it's a mini and that the cost to maintain a mini
once it's out of warranty and factory maintenance is expensive.
For sure. But no, I mean, the fact that it's $15,000 is good, but the thing is,
is it actually a $15,000 vehicle when the original MSRP was 24,000, seven years ago?
Everything has gone up dramatically. We're all sitting here waiting for prices to really drop,
which never really seems to happen. We have some data from Carfax we'll look at a little bit that
suggests the opposite. The one thing about that mini, if I met, not that the Fenn CarMax here,
but that Tacoma was a 10-year-old Tacoma and you were going to pay almost $700 a month,
you can get the mini for half of that and it's three years newer. It is a mini, but it's three.
Somebody out there that's looking for a $15,000 or less vehicle so that they can have an
affordable monthly. This is it. For sure. There's not a lot of choice. Let's look at the price
history chart because they've had this for 111 days, which is crazy. No. For CarMax to hold
on to a car over 100 days is pretty nuts. Let's come down here. Yeah, they've lowered the price
on this thing too. Holy cow, they were asking $17,000 originally last year. Sure, why not?
They came down to $16,000 and now they've been here flat at $15,000. They've come down $2,000 on
my car. They've been sitting on that price for three months, four months. If it hasn't
sold at $14,998 in four months, then the price is still two. I don't know anything about retail.
Other than if somebody hasn't bought something, there are two ways to look at it. There was an
art dealer here at Atlantic City, I forget his name, in the 70s and 80s. He sold
Hummel figurines and art and all kinds. His theory was that if it didn't sell,
it was priced too low. He would keep raising the price until somebody walked in and said,
oh my god, it's got to be worth that. One year for his birthday, he chartered a 747 and took his
friends and good customers to Paris for the weekend. It worked for him. The other way that
typically works is if it hasn't sold, you haven't lowered the price enough. You have to keep lowering
the price. I don't know anything about the car business other than every 10 days, you have to
look at the pricing of your vehicles, especially the ones that aren't selling and go, okay,
what should we market? Even if you drop it $100 every 10 days, at some point it might catch
somebody's eye and they'll come in and buy it, but you can't keep at the same price for four
months and wonder why nobody's coming to buy it. When you dig into the car max data,
they lowered prices by like $100 or $200 in terms of their gross profit. Their gross profit per
vehicle sold went down by about $100 or $200. I forget the exact amount, but it's in that ball
part. It's not enough. That's what this is telling me is it's not enough. For customers out there
who are in the used car market, there's an interesting conundrum right now, which is,
I'm going to pull up the latest data from Carfax. The latest data from Carfax,
you can see it right there. I'll read it out to you. The average price of a used vehicle
is now $25,500 up roughly $1,500 in just one month. Carfax has this new press release,
this new study out showing that used car prices have skyrocketed in the past month. So the conundrum
here is you've got some data sources like Carfax saying, hey, used car prices are skyrocketing.
You also have people like us who are about to show you the Blackbook data, which for another week
shows wholesale used car prices increasing yet at the same time. We're the same figure heads talking
to you about how Carfax can't lower their prices fast enough to sell vehicles. There are some
opportunities out there. So maybe, maybe just maybe Carfax sits on this stuff and as the values
keep escalating on the wholesale side of things and on the retail side of things, suddenly,
even though that might be 180 days old, it becomes the market value and people will pay for it. I
the fact that we have seen such a drastic increase in used values and a lot of dealers
are struggling, used car wise, but yet used car values keep going up both on the wholesale and
the retail level and yet here's Carfax struggling to sell what they have and they've always been
known to have higher prices than their local competitors, but suddenly they're struggling.
I don't know why they're not the dealership of choice anymore for used car buyers. I'm not sure,
but I think it's price. I think it's all price. We looked at some examples. They're just actually,
let's do the inverse before we move to the wholesale market update because we do need
to look at what's going on with wholesale used car prices. We filtered by days on,
excuse me, by days on market oldest and CarMax does. At least, we're looking at just CarMax of
Laurel, which is in Laurel, Maryland. You can come on the CarEdge Beta website and you can search by
dealership right here. You could search for any CarMax. You can just put it in, type in CarMax,
and all the various CarMaxes will show up right there. You can do that on your end, but Dad,
I want to look at days on market newest. Let's look at some of the newest vehicles that this CarMax
dealership has listed for sale. Let's compare those because you're asking the question,
why are less people choosing to buy cars from CarMax? I think it's price.
Let's look at some of the newer vehicles they have for sale and let's see if the prices are
fair. 2018 Acura MBX? Yeah, that's technology. Here we go. I'm going to guess, that's a 2018.
That was what? With the technology package, that was $53,000, $54,000 new? 2018 Acura MBX
tech package. They've had it for one day. It's got 88,000, 87,868 miles, which again is a little
bit below where you'd expect. Closer to 100,000 is what you'd expect and they're asking $22,000.
Original MSRP was $50, Dad. Okay. This thing they're saying has depreciated
56%. Does that seem reasonable? Yeah, that seems reasonable. I think it does
in comparison to their other vehicles. The other ones we were looking at actually,
yeah, the ones that had been sitting for 100 plus days, those seemed a little unreasonable.
This does feel a little bit more reasonable. Yeah, I mean, and Acura's
pulled their value a little bit better and are typically somewhat bulletproof. The MDX,
so that doesn't seem unreasonable. Why don't we compare it to the Infinity right next to it?
This will be interesting. 78,000 miles on this 2019, 20 grand is what they're asking for.
Okay, they're saying this also has fallen 53% below its original MSRP.
Yeah, but I would tell you that one's fallen more. Yeah, I would agree. Yeah.
The Infinity doesn't hold its value anywhere near where the Acura does.
So you think the prices of their newer recently listed ones seem a little bit more fair than the
prices of the ones that have been sitting for 100 days? Maybe they're reacting in real time.
They must be reacting in real time. It certainly seems that way, doesn't it?
I would be encouraging everyone to shop CarMax because they have a lot of pressure on them to
bounce back after this quarter and their earnings suggest that they're going to have to be more
aggressive on price. That's what it says to me. And it also says to me that the new CEO who came
from a hotel back ring, you could probably work CarMax for a week's vacation as former hotel chain,
perhaps. I don't know. All right, let's spend a second here, Dad, talking about the wholesale
side of the equation. Everyone that tunes into CarEdge is in the know, Dad. Well, what's going
on at the wholesale dealer auctions is a continued increase in prices. The black line on this chart
shows you the average or the change in wholesale prices at the dealer auctions and the other
line to show you prior years, 2025 and 2024. Wholesale use car prices continue to skyrocket
earlier in the year and at a higher rate than we've seen before. This is another week corroborating
the idea that this is going to be like when the pandemic started and use cars became a dime a
dozen. Could that have something to do with the fact that the prices of new cars continues to go
up as well? The MSRPs continue to go up. The average advertised price continues to go up
well in excess of $50,000. Could that be the reason? And so even though wholesale values of
used cars are moving in the wrong direction for consumers, much earlier in the year and at a
higher rate, the spread, the fact that the average selling price for a used car today was what,
$25,500, is significantly, still significantly below the average selling price for a new car,
which is just under $50,000. So it's about half. So yeah, the wholesale values and the retail
values continue to climb on used cars because that spread between new and used is so significant
that people, you know, for those who can't afford new, which is the vast majority of the
population. They have to look amused. And now the market values of used cars are going up because
the asking prices of new cars are so ridiculously high. And again, that's why the CarMax Serious
Trouble thing is really, really, really pervasive and interesting. They should be benefiting from
these markets. You would think CarMax should be winning right now. Used car prices are going back
up. What does that mean? They can make more money per vehicle sold. What did they do in the most
recent quarter? Lost $121 million while lowering their prices and selling fewer cars.
The alarm bells are going off over at CarMax. They got to figure out how to sell more cars.
I am telling you, especially on their older ones, they're sitting there thinking,
guess what? The market's going to catch up to these prices in the near future. And so that's why
we've seen them on their aged vehicles sit on those prices for four months because they're
figuring that the market's going to come catch them. And they very well might be right.
Yeah, they could be. One of the other leading indicators we look at is days to turn. How long
does it take to turn over used car inventory? Folks, we want to see as consumers, this start
go up into the right. It's going down into the right. That means it's taking fewer days to turn
over used car inventory. And then another leading indicator would be the sales through rate over
at the dealer auctions, which still continues to sit at above 60%. This is higher than normal,
significantly higher than normal. And this indicates that dealers are desperate to get their hands at
the dealer auctions on used cars. So the bright spot here for everyone, and I encourage everyone
to do this, check what your vehicle is actually worth. Because you might be pleasantly surprised
that how much someone is willing to pay to buy your car right now. The dealers are overpaying
at the auction. CarMax is overpaying to buy cars. I mean, Carvon is overpaying to buy.
Check how much your vehicle is worth. This is going to be a brief plug, but a plug nonetheless.
We have in the new beta experience, caredge.com slash beta, but what's my car worth? Do it,
y'all. Do it. Take a peek at what your vehicle is worth right now because it's probably worth
more than you anticipate. That's the one great... What's my car worth? What's your car worth?
I don't know. We'll have to add it and we'll have to check.
Yeah. Yeah. So tune in tomorrow. We'll add it. It's a little awkward with the keyboard up here
for me to try and do it all right now. But, Dad, I think that's the one bright spot in the car
market right now is that if you got a car you're thinking about selling, someone's probably going
to overpay for it. But here's the not-so-bright spot. If there's a car you want to buy, they're
not going down in price. They're really not. I continue to hold on to believe that CarMax
will have to lower their prices. I hear what you're saying, but the opposite seems to be happening.
If wholesale values continue to go up, which they do, and if the spread between the asking
price for that pre-owned car and that comparable new car is $20,000, then people are going to
continue to buy used cars. So I don't see, and with a 35-day supply, I don't see used cars.
I'm telling you, CarMax is going to sit on that inventory until the market catches up with it
and they can sell it because they won't be able to replace it.
Yeah, with cheaper options. Yeah. You're right. You're right.
I just... So here's my advice to anybody looking at a used car.
Advice time.
Okay. My advice would be if you find a used car that you like and a price that you feel is fair
or affordable, it will be cheaper for you to buy it today than it will next week.
Okay, because values keep going up. So yeah, if you have a car to sell, that's good for you.
If you need to buy a car, that's bad for you because prices keep going up and there's nothing
here that I've seen so far other than CarMax struggled in the last quarter.
There's nothing that suggests that the prices are going to significantly drop on used cars.
Now, one thing we think could help new car and used car prices come down would be to allow more
competition in the new car market. If new car prices come down, you would think used car prices
would come down. I don't know if you saw this that. Not a lot of news this morning.
Ford CEO Jim Farley says Chinese automakers EV should be kept out of the United States.
This comes one day after the New York Times did their article, their op ed excuse me,
or their opinion piece about how new cars have become affordable.
And it comes after Jim Farley sat down with CBT News and admitted to the whole world,
he drives a Xiaomi.
That'd be a Chinese car.
That'd be a Chinese car.
Yeah.
So this is fascinating. One way we could see car prices come down the United States would be at
increased competition from Chinese competitors. And yeah, now the CEO of Ford saying, don't do that.
Fascinating. We're not going to spend too much time on this, but it is one lever they
could pull to a lower price.
Well, I'll spend a little bit of time.
Go for it.
I can almost assure you that the CEOs of Stellantis, Ford, and General Motors
have enough sway with the current administration to say, we don't want Chinese cars here.
If you allow Chinese cars into this country without them having to manufacture them here,
it will put us out of business, okay? So do you want to be the president who was in charge
when you said, okay, it's time to put General Motors, Ford, and Stellantis out of business?
I don't think so. So are we going to see Chinese vehicles in this country?
I don't think anytime soon.
I agree. It won't happen anytime soon. It's a good headline.
Oh, it's a great headline. But yeah, I can't see the government going, yeah, we don't want to
protect the American car industry.
Yeah, I don't see that happen anytime soon either. Dad, let's come over here to the chat
earlier in the show. We had a thoughtful contribution from Rich. Thank you for this, Rich.
What we lose on each vehicle will make up in volume.
Yes. I remember when I was a kid, there was a TV brand called Months. And yeah,
you weren't a kid when I was a kid. And their slogan was, yeah, we lose money on every TV,
but we make it up in volume. Yeah. Yeah, that's why they're still not around.
Sounds like this is why I haven't heard of Months. Yeah.
That business model doesn't sound particularly profitable.
Yeah. Well, you know, yeah, there's people that think that way that, well, we can make it up in
volume. Folks, if we can help you out with anything, caredge.com. And again, we have
the beta out there right now as well. We appreciate your feedback and your input,
caredge.com and caredge.com slash beta. We appreciate everyone tuning in today.
We're back live tomorrow side by side with more Car Edge Live.
And yeah, thanks so much for tuning in and for spending time with us.
Look forward to reading the comments this afternoon and hanging out with my dad.
Yeah, you know, I might even answer some of the comments. I occasionally do.
Yeah, we're going to be hanging out this afternoon, so we might as well.
Yeah. And then we're going to have a nice dinner.
Yeah, we're going to have a nice dinner tonight. It'll be really good.
Yeah. Thank you for that.
Well, thank you, everybody. We'll see you back here in my living room tomorrow at noon Eastern.
See y'all.
We're available now at Murdox. Go to Stokeshues.com to find a store near you.
Stokeshues, thunderous comfort at half the price.
About this episode
CarEdge Live digs into CarMax’s worsening used-car business, citing a $121M quarterly loss and a shift toward subprime lending while retail sales and per-vehicle gross profit fall. The hosts use CarEdge beta pricing tools to show long-staying inventory at seemingly unrealistic prices—like a 2016 Tacoma listed around $30K that, with typical CarMax financing, can land near $682/month. They contrast that with rising wholesale auction prices and argue CarMax may need deeper discounts, while consumers may still face stubborn used prices.
Today on CarEdge Live, Ray and Zach discuss the latest news from CarMax and discuss the used car market. Tune in to learn more! Hosted by Simplecast, an AdsWizz company. See https://pcm.adswizz.com
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