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CarMax Introduction
CarMax is an American retail used cars company. The company offers the services of buying and selling of used vehicles online and on the stores as well. Circuit City Stores started the project of CarMax in 1993, their first store was the corporate office of the Circuit City Store in Richmond, Virginia. In 2019, the company has 203 total numbers of stores across the US, and store growth has risen round about 8%. CarMax has a total of 25,946 employees by the end of 2019.
The company has divided its business operation into two parts; Auto Financing and Sales Operations. Auto financing deals with the financial operation of the business that buys vehicles from the customers; Sales operations manage the sale of vehicles and other products and services which the company is offering.
The annual revenue of CarMax in 2019 was $ 18.173 billion US dollars, out of which its net income was 842.4 million US dollars. Company’s total sale has increased by 6.1%, and the increment in the total annual profit is 26.8% by the end of 2019. CarMax sold over 748,961 total used cars and other vehicles at the beginning of 2019.
When it comes to buying and selling of used vehicle business, then CarMax isn’t the only one in the market. It has competitors that are in the same line of business, here are some of the main competitors of CarMax which are as follows;
AutoZone
AutoZone is the US used auto parts and accessories retail company. Pitt Hyde is the founder of the company and he established it by the name of Auto Shack in 1979. The company changed its name to AutoZone in 1987.
In 2017, AutoZone was the biggest seller of the automotive spare parts and accessories continuously for three years in North American. The company has more than 6,000 stores across the US, Brazil, and Mexico.
The annual revenue of AutoZone was 11.9 billion US dollars in 2019. The net income of the company was roundabout 1.3 billion dollars from the year 2010 to 2018.
AutoNation
AutoNation is an American news and pre-owned automobile retail company. It was established in 1996, since then it has more than 360 stores across the US. The company deals with pre-owned vehicles with the complete money back guaranteed, it also offers new automobiles as well. According to an estimate, AutoNation has sold approximately 12 million vehicles so far.
The annual revenue of the company in the third quarter of 2019 was $5.4 billion US dollars, out of which the gross profit of the company was 877 million dollars.
Penske Automotive
Penske Automotive is an American transportation multinational company. It offers a variety of products and services to its customers like automotive spare parts, power systems, gas and diesel engines, and distribution of commercial vehicles. Roger Penske established the company in 1990. The company has spread its operations in Europe, America, Asia, Australia and New Zeeland. It has more than 3200 location points across, and the company has employed roundabout 64000 people across the world.
The annual revenue of the company was 22.8 billion US dollars, out of which the net income of Penske Automotive was 470 .3 million dollars.
KAR Global
KAR Global is an American multinational company that offers the auction of vehicle services online and offline. It was established in 1990, and since then the company has been running its business operations across Europe, UK, US, Canada, and Mexico. There are approximately over 18400 employees are working for the company worldwide.
KAR Global claims that it’s the technology analytic auction company that is empowering the customers through information. So that they could make the right decision in the online auction using the digital media they provide.
According to a statistical estimate, the company has sold approximately 3.47 million vehicles worldwide, worth 40 billion US dollars. According to the company’s database record, the average annual revenue of the KAR Global is 2.44 billion US dollars. However, the annual revenue of the company in 2018 was 3.8 billion dollars.
SellMax
SellMax also goes by the name of cash-for-car in the early 90s, the company changed the name into SellMax later. Tom and Tony are the founders of SellMax and they started the car recycling business in 1990, they came up with the idea of making the vehicle sale process easier because it was a very long process back then, where you have to publish an ad in the newspaper, and then contact the dealer, make the deal and negotiate on the price. They made it very simple, just go there and sell it for cash.
SellMax has many location points in 37 states of the US, where people can sell their vehicles even if it’s not working.
CARVANA
CARVANA is an American tech and online retail of used cars company. It was established in 2013. As the name suggests online where people can choose their car online, the company gives its customers two options; either home delivery of the vehicle or they can pick it up at the company’s location point. The company provides 360-degree images to its customers online, so that they could fully check the car. The purpose is to make the customers experience better.
CARVANA has 18 car vending machines where customers can receive their vehicle which they have chosen online. If they don’t like it, then the company gives them the option of returning it within 7 days.
CARVANA has approximately 3,879 employees by the end of 2018, and the company has sold over 94,000 used vehicles at that time. That makes the total worth of 2 billion US dollars.
At the beginning of 2020, the market cap of CARVANA is 12.7 billion US dollars and the share price of the company is $84.
SONIC Automotive
SONIC automotive is an American fortune 500 based automobile retail company. Bruton Smith established the company in 1997. Fortune is the name of a magazine and it annually publishes the list of top leading 500 American corporations, it analyzes their cost with profit, where sonic was ranking at the 298th position in total. It is also considered the 5th biggest retail automotive in the US.
Ever since came into existence, SONIC has been running its business operations in 14 states of the US and it has approximately over 100 dealership locations. The company offers roundabout 25 brands of vehicles at its showrooms. Sonic deals with both types of vehicles; new and used, it also offers other products and services like automotive parts, vehicle maintenance, and repair.
By the end of 2018, there were roundabout 9,700 employees were working for Sonic. The annual revenue of the company was 10 billion US dollars in 2018. However, the market capitalization of the company in 2020 is 1.3 billion dollars and per share price is $30.7.
America’s Car-Mart
It is an American retail automobile company; it offers both new and old used cars. It’s a public company and it was founded in 1981. The difference between America’s car mart and other companies is that its payment package plan is flexible. Car mart gives people a very easy and affordable payment plan relevant to their finances, and the company even gives 2nd chances to those who had a bankrupt history. The interest rate of car mart is short term and lower.
America’s Car-Mart has been running its business operations in 11 states of the US, and it has more than 140 dealership stores. The company has roundabout 2000 business associates. Roundabout 1600 employees were working for the car mart.
The annual revenue of the company is approximately 669.1 million US dollars by the end of 2019. The market per share price of car martin 2020 is $110.4.
Manheim
Manheim is an American multinational vehicle auction company that has been running its business enterprise in Europe, Australia, North America, and Asia after being established in 1945. The company also offers a variety of other products and services like wholesaling of vehicles, online and offline auctions, transportation, automobile repairing and remarketing, vehicle body and dent repairs, dealership management system, financing and title work.
According to the company’s database, approximately 18,000 employees are working for the company across worldwide. Manheim deals with over 7 million registrations of used automobiles, which comprises the transactions of over $50 billion. The annual revenue of the company is over 2.6 billion US dollars.
TrueCar
TrueCar is an online platform that facilitates buyers and dealers by providing the pricing information of the vehicle. Dealers pay the company to get the contact details of their potentials buyers who are checking their vehicles, and the customers get the competitive market price report of the vehicle. It works for both parties, Scott Painter established the company in 2005.
According to an estimate, roundabout 2 million people have bought their vehicles through this platform. The company has a network of more than 10000 automotive dealers across the US.
The annual revenue of the company is 353 million US dollars in 2018. The market capitalization and per share price of the company in 2020 is $464.8 million and $4.3 respectively.
