CarMax Looks to Expand Digital Retailing Push
The pre-owned dealer group’s online prequalification portal played a key role in its captive finance company's 7% increase in first-quarter originations. The group is currently testing a home-delivery service as well as an online vehicle appraisal tool.
RICHMOND, Va. — Officials with CarMax Auto Finance, a subsidiary of CarMax Inc., said a focus on its online prequalification portal drove a 7% gain in first-quarter originations from a year ago.
The portal has been live at all CarMax locations for two full quarters. Officials said the next step is to offer customers home delivery, although they said the service will stop short of a complete online buying experience.
"Customers are engaging well with this offering and it continues to contribute to increased online leads, which we believe ultimately generate incremental sales," said President and CEO Bill Nash during the company’s June 21 earnings call to discuss first-quarter performance. “Now we’re focused on improving the experience and proactively marketing our online financing capability nationwide.”
The auto finance company recorded $1.5 billion in first-quarter originations, up from $1.4 billion in the year-ago quarter. The firm did not disclose a total origination count or total outstanding balances.
According to officials, state regulations prevent the automotive retailer from allowing consumers to complete vehicle transactions online. The used-vehicle retailer will instead deliver vehicles to a customer’s home for test-drives. If the customer agrees to purchase after testing the vehicle, the associate accompanying the vehicle will be trained to help the consumer complete the deal paperwork.
Officials also said the pre-owned dealer group is testing an online appraisal tool in its Charlotte, N.C., market. It is designed to allow customers to submit condition reports on their trade-in online to receive an appraisal value. Nash said the company plans to expand that pilot to two more Charlotte stores.
"We continue our home delivery test and one key learning we found is that human intervention at the right time is important to giving our customers the personalized experience they expect," Nash said. "Our goal with this test is to build the functionality needed to fully integrate our online and in-store experiences that we can offer as much or as little the car buying process online as each customer wants."
More F&I
Trust Is Personal
Technology, no matter how efficient, can’t replace what the human F&I manager can do, which is to bridge the divide between cyberspace and the in-store experience.
Read More →
Amplify 2026 Billed as Turning Innovation Into Results
Reynolds and Reynolds says its annual retail summit will connect dealers with practical strategies, peer insight, and technology-driven ideas.
Read More →
Own Your Outcome: F&I in the Digital Customer Journey
Finance has historically been the last step in the car-buying process, but it doesn’t have to be. The customer’s journey starts long before they arrive at the dealership, and so should F&I’s involvement.
Read More →
Tariffs Could Raise Insurance Premiums
As U.S. import tariffs affect repair costs, consumers might find it more affordable to replace a damaged vehicle, according to recent Insurify tariff analysis.
Read More →
Smaller Loans, Longer Terms
The youngest generation of car buyers is more likely to finance less expensive vehicles, more than half of generation Z consumers borrowing less than $25,000.
Read More →
New Lifetime Battery F&I Product Meant to Drive Dealer Traffic
EFG Cos. offering is intended to create lifetime auto dealer engagement with customers.
Read More →
The Psychology Behind Menus That Increase Add-On Sales
There is a science to crafting a menu that gives customers confidence in the choices presented, and moving the process outside the F&I office can further boost results.
Read More →
Why Your F&I PVR Is Misleading You
Here’s a handy checklist of the numbers to track in 2026 instead.
Read More →
Auto Consumer Anxiety Presents Opportunity
A survey of U.S. drivers found the majority are concerned about finances and the economy, but those fears make many ready to buy vehicle-protection products.
Read More →
Humble and Hungry: 12 Rules for an F&I Life
Dustin Gingerich, with a decade in the F&I business under his belt, shares his thoughts on leadership, building trust with customers, and the importance of learning and innovation.
Read More →