CarMax sold 387,735 retail and wholesale vehicles in its fiscal second quarter, up 14.7% from a year earlier, as higher volume outweighed lower gross profit per vehicle in both channels. The company reported 227,391 retail used sales, an increase of 13.8%, and 160,344 wholesale sales, an increase of 15.9%.
The September 29 filing also shows a meaningful acquisition split. CarMax bought 310,107 vehicles during the quarter, up 5.9%. Purchases from consumers were essentially flat at 262,570, while purchases through dealers increased 53.7% to 47,537.
Why it matters
CarMax's results show how a large used-vehicle operator can accelerate volume while accepting less gross profit on each retail and wholesale unit. The quarter is useful competitive context for acquisition, pricing and inventory-turn decisions, but it is not a national used-market benchmark and does not establish the right margin target for an individual dealership.
The acquisition mix is especially relevant for dealer buyers. CarMax's dealer-sourced purchases grew much faster than its consumer purchases, indicating that dealer-to-dealer sourcing contributed more meaningfully to supply. The filing does not disclose the mix, age, condition, acquisition cost or subsequent disposition of those vehicles, so the 53.7% increase should not be treated as proof that every dealer-sourced unit was more profitable.
Volume increased while per-unit gross declined
Retail used-vehicle revenue rose 19.7%. CarMax attributed the increase to higher unit sales and an approximately $1,600, or 6.3%, increase in average retail selling price. Comparable-store retail used units rose 13.0%.
Retail used gross profit increased 8.1% to $478.6 million, but gross profit per retail unit fell $111 to $2,105. CarMax said pricing actions intended to support sales contributed to the lower per-unit result. That distinction matters: higher revenue and total gross profit do not mean the economics of each vehicle improved.
Wholesale throughput came with the same tradeoff
Wholesale volume increased 15.9% to 160,344 vehicles, and wholesale revenue rose 18.2%. The average wholesale selling price increased $145, or 1.8%, to $8,036.
Wholesale gross profit was essentially flat at $137.6 million because gross profit per wholesale unit declined $135 to $858. Dealerships comparing auction strategies should therefore track total proceeds, selling expenses, days held and per-unit disposition gain or loss together—not volume alone.
Digital activity did not eliminate the store
CarMax said its digital capabilities supported 81% of retail unit sales. Within that total, 68% were classified as omni sales and 13% as online retail sales. CarMax defines an online retail sale as one in which the customer completes four major transaction steps online; an omni sale involves at least one, but not all, of those steps online.
The definitions prevent a common overstatement. Digital participation in a transaction is not the same as completing the entire transaction online. Dealers measuring digital retail should keep assisted, blended and fully online paths separate so the store can identify where customers advance, stall or switch channels.
Service and operating efficiency also moved
CarMax reported a $22 million increase in service margin, attributing it mainly to cost-of-sales efficiency and leverage from higher unit volume. Selling, general and administrative expense increased 4.6% to $628.6 million, but SG&A per combined retail and wholesale unit improved by $157 to $1,621.
Those company-level results do not disclose dealership-style reconditioning cycle time, technician productivity or expense by rooftop. Operators should use their own cost-to-frontline, days-to-frontline, policy work and post-sale repair data before drawing a local conclusion.
What dealerships should do now
Review acquisition performance by source. Consumer purchases, trades, dealer-to-dealer buys and auctions should each be connected to acquisition variance, reconditioning cost, time to frontline, retail turn and wholesale outcome.
Pair unit-growth goals with per-unit economics and affordability measures. A store can sell more vehicles while giving up margin, carrying higher average prices or shifting risk into reconditioning and aged inventory. The operating dashboard should make those tradeoffs visible before volume becomes the only success measure.
AI-assisted reporting disclosure
This article was researched and generated with AI-assisted systems using the CarMax and SEC materials listed below. Dealership Tech Report applies automated accuracy and risk checks, but company results and operating definitions remain company-reported. Verify current filings and local dealership data before acting.
All operating and financial figures are company-reported for CarMax's fiscal second quarter ended Aug. 31, 2026. They describe one national retailer and do not represent the U.S. used-vehicle market or an individual dealership. Dealer-sourced acquisition growth does not establish vehicle mix, acquisition cost or profitability, and digital-sales percentages follow CarMax's definitions.
Cited references
- SEC — CarMax fiscal second-quarter 2027 earnings release — Company earnings release filed as Exhibit 99.1; published Sep. 29, 2026
- SEC — CarMax Form 8-K — Company current report; filed Sep. 29, 2026