Ian Davis's questions to Carmax Inc (KMX) leadership • Q2 2025
Question
Ian Davis, on for Chris Bottiglieri, asked what prevents CarMax from achieving higher finance penetration rates similar to some peers and inquired about the profile of the 30% of customers who use outside financing.
Answer
SVP Jon Daniels explained that CarMax's strategy is to provide broad credit access across the spectrum via its multi-lender platform, not solely to maximize its own finance arm's penetration. He characterized the customers using outside financing as higher-end, rate-sensitive consumers who often use cash or credit union loans. President & CEO William Nash added that while they could force higher penetration by limiting partners, their current approach is better for the customer and the business.