CarMax reaches agreement with the Federal Trade Commission regarding its advertising practices related to recalls

RICHMOND, Virginia, 2016-Dec-14 — /EPR Retail News/ — CarMax has reached an agreement with the Federal Trade Commission (FTC) to resolve an inquiry surrounding its advertising practices related to recalls. As part of the agreement, CarMax is not paying any fines to the FTC and will be modifying some language about recalls in its advertising.

“CarMax has led the industry in recall transparency. As soon as centralized recall information was made available by NHTSA, we believe we were the first to incorporate it into our advertising and sales process. We share vehicle specific open recall information in-store and online to ensure our customers know about open recalls prior to purchase. We will continue to make enhancements to our comprehensive recall disclosure program,” said Cliff Wood, Chief Operating Officer for CarMax.

More information about CarMax’s recall policy can be found here.

Contact Information:

Media Inquiries:
(855) 887-2915
PR@Carmax.com

Customer Relations:
(800) 519.1511

Marketing Vendor Inquiries:
marketing_carmax@carmax.com

Source: CarMax

CarMax, Inc. announces management changes

RICHMOND, Va., 2016-Feb-03 — /EPR Retail News/ — CarMax, Inc. (NYSE:KMX) today announced that, as the culmination of a multi-year management succession plan, Bill Nash has been promoted to president and Cliff Wood has been promoted to chief operating officer, effective February 1, 2016. Tom Folliard plans to retire as chief executive officer prior to the end of 2016, at which time it is anticipated that Mr. Nash will assume the role of CEO. Upon Mr. Folliard’s retirement, the Board of Directors expects that he will serve as the non-executive chairman of the board.

“Tom Folliard has built an exceptional management team at CarMax, positioning the company for continued growth,” said Bill Tiefel, chairman of the board. “The execution of our long-term succession plan, with Bill as president and Cliff as COO, ensures a seamless management transition and the continuity of the company’s culture.” Mr. Folliard, 51, has been with CarMax for 23 years and was promoted to president and CEO in May 2006. During his ten years as CEO, Mr. Folliard successfully led CarMaxthrough the company’s establishment as a national brand and a time of significant growth, during which its store base and total revenues more than doubled, and its net income quadrupled.

Mr. Nash, 46, was promoted to executive vice president, human resources and administrative services in 2012, where he oversaw human resources, information technology, procurement, loss prevention, employee health & safety and construction & facilities. He joined CarMax in 1997 as auction manager and was ultimately promoted to vice president of auction services. In 2007, Mr. Nash was promoted to vice president and later, senior vice president of merchandising, a position he held until 2011, when he was named senior vice president, human resources and administrative services. Before joining CarMax, Mr. Nash, a CPA, held a variety of accounting roles at Circuit City. “Bill Nash and I have worked together for nearly 20 years. He is a highly talented leader with experience in all aspects of our business and is the right choice to guide CarMaxthrough the next phase of our growth and development,” said Mr. Folliard.

Mr. Wood, 49, was promoted to executive vice president, stores in 2012, where he was responsible for all sales, service, merchandising, and business office functions. In 1993, he joined CarMax from Circuit City as a buyer in CarMax’s first location. Over time, he rose through the ranks in merchandising and ultimately led the group. Beginning in 2007, he served as vice president of sales. “We are fortunate to have another great leader in Cliff Wood,” said Mr. Folliard. “His breadth of experience and high level of operational expertise will continue to support CarMax’s competitive differentiation.”

“I would like to thank Tom for his vision and support over the years,” said Mr. Nash. “I am honored and excited to have this opportunity. We have an exceptional team of associates who have maintained the truly unique culture that has placed us on Fortune’s ‘100 Best Companies To Work For’ list for 11 consecutive years. Our associates continue to deliver a customer experience that is second to none.”

About CarMax
CarMax, a member of the Fortune 500 and the S&P 500, and one of the Fortune “100 Best Companies to Work For,” for 11 consecutive years, is the nation’s largest retailer of used vehicles. Headquartered in Richmond, Va., CarMax currently operates 155 used car stores in 77 markets. The CarMax consumer offer features low, no-haggle prices, a broad selection of CarMax Quality Certified used vehicles and superior customer service. During the fiscal year ended February 28, 2015, the company retailed 582,282 used vehicles and sold 376,186 wholesale vehicles at our in-store auctions. For more information, access the CarMax website at www.carmax.com.

Forward-Looking Statements

We caution readers that the statements contained in this release about our future business plans, operations, opportunities or prospects, including without limitation any statements or factors regarding succession or organizational matters, are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by use of words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “outlook,” “plan,” “predict,” “should,” “will” and other similar expressions, whether in the negative or affirmative. Such forward-looking statements are based upon management’s current knowledge and assumptions about future events and involve risks and uncertainties that could cause actual outcomes to differ materially from anticipated outcomes. Among the factors that could cause actual outcomes to differ materially from those contained in the forward-looking statements are the following:

  • Changes in the competitive landscape and/or our failure to successfully adjust to such changes.
  • Events that damage our reputation or harm the perception of the quality of our brand.
  • Changes in general or regional U.S. economic conditions.
  • Changes in the availability or cost of capital and working capital financing, including changes related to the asset-backed securitization market.
  • Changes in consumer credit availability provided by our third-party financing providers.
  • Changes in the availability of extended protection plan products from third-party providers.
  • Our inability to recruit, develop and retain associates and maintain positive associate relations.
  • The loss of key associates from our store, regional or corporate management teams or a significant increase in labor costs.
  • Security breaches or other events that result in the misappropriation, loss or other unauthorized disclosure of confidential customer or associate information.
  • Significant changes in prices of new and used vehicles.
  • A reduction in the availability of or access to sources of inventory or a failure to expeditiously liquidate inventory.
  • Factors related to the regulatory and legislative environment in which we operate.
  • Factors related to geographic growth, including the inability to acquire or lease suitable real estate at favorable terms or to effectively manage our growth.
  • The failure of key information systems.
  • The effect of various litigation matters.
  • Adverse conditions affecting one or more automotive manufacturers, and manufacturer recalls.
  • The inaccuracy of estimates and assumptions used in the preparation of our financial statements, or the effect of new accounting requirements or changes to U.S. generally accepted accounting principles.
  • Factors related to seasonal fluctuations in our business.
  • The occurrence of severe weather events.
  • Factors related to the geographic concentration of our stores.

For more details on factors that could affect expectations, see our Annual Report on Form 10-K for the fiscal year ended February 28, 2015, and our quarterly or current reports as filed with or furnished to the U.S. Securities and Exchange Commission. Our filings are publicly available on our investor information home page at investors.carmax.com. Requests for information may also be made to the Investor Relations Department by email to investor_relations@carmax.com or by calling 1-804-747-0422 ext. 4391. We undertake no obligation to update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise.

Source: CarMax, Inc.

CarMax, Inc.
Investors:
Katharine Kenny, Vice President, Investor Relations, (804) 935-4591
Celeste Gunter, Manager, Investor Relations, (804) 935-4597
or
Media:
pr@carmax.com, (855) 887-2915

CarMax 2015 Used Car Shopping Report: Nissan Altima the No. 1 choice for used car shoppers for the second year in a row

Second annual CarMax Used Car Shopping Report reveals popular add-on and upgrade features

Richmond, VA, 2015-6-11 — /EPR Retail News/ — The Nissan Altima was the No. 1 choice for used car shoppers at CarMax for the second year in a row, according to the company’s 2015Used Car Shopping Report published today. Data from the nation’s largest used car retailer also indicates domestic models are gaining favor: Five of the 10 most purchased vehicles from CarMax stores were made by American manufacturers, across all age groups.

Results are based on more than 550,000 vehicle sales at CarMax’s more than 140 stores nationwide between March 2014 and February 2015.

New to this year’s Used Car Shopping Report is insight into desired add-on and upgrade features. The most popular add-on purchased by CarMax buyers was leather interior, based on CarMax sales data. According to a recent survey of more than 1,000 U.S. adults conducted by Ipsos Public Affairs on behalf of CarMax, there is also interest in convenience and entertainment or luxury upgrades, such as navigation systems and satellite radio.

“At CarMax, knowing our customers’ wants and needs is critical to providing them with the best shopping experience possible,” said Cliff Wood, executive vice president of stores for CarMax. “For the second year in a row, Americans have chosen mid-sized sedans as their vehicle of choice. When it comes to add-ons and upgrades, features that keep consumers connected and comfortable continue to be popular.”

Malibu Passes Camry for No. 2 Spot

While the Nissan Altima remained CarMax’s top selling car, the Chevrolet Malibu sped into the No. 2 spot, passing the Toyota Camry, which fell to No. 4. Honda had two cars in the top five, the Accord (No. 3) and the Civic (No. 5).

Ford continues to perform well, occupying four of the top 20 spots overall. Ford vehicles especially appeal to Gen Xers, who purchased Fords more than any other age group, earning three spots in that generation’s top 10 vehicles. Ford also scored with Millennials, though their model preferences differed. Older generations most often purchased Explorers, Escapes, and F150s, while Millennials purchased the Fusion and Focus.

The majority of domestic vehicles moved up in rank above foreign cars, compared to last year. Gen Xers purchased cars from American manufacturers more than any other age group – of the top 10 vehicles purchased, six were from domestic makers.

Add-on Features Vary by Age and Region

While leather interiors rank at the top of add-on features among overall CarMax buyers, the popularity of other features purchased at CarMax locations varies in different parts of the country. Remote start technology, which held the No. 1 overall spot last year, still sells the most in the colder climates of the Midwest and Northeast. Leather interiors are more in demand in warmer climates of the West and South.

Wish List If Upgrade Features Were Suddenly More Affordable

CarMax also commissioned a survey with Ipsos Public Affairs that revealed consumers’ interest in vehicle convenience and entertainment or luxury upgrades.

When asked if purchasing a used car were to make convenience upgrade features suddenly more affordable, just under a third of respondents (30 percent) said that they would be most interested in a navigation system, while one in five would opt for remote start (21 percent). Park assist is more popular among Millennials than Baby Boomers (14 percent vs. 9 percent).

When it comes to entertainment or luxury upgrades, satellite radio and stereo systems were preferred by one in five (19 percent and 18 percent, respectively). Leather interior and sunroof followed in rank, with Millennials being more likely than Baby Boomers to opt for a sunroof. Nearly one in five Gen Xers (19 percent) were among those most likely to choose a back seat/headrest video system for their used car.

Self-Cleaning Car Tops Americans “Greatest Wish” List

When looking beyond the upgrade features that are available now when purchasing a used car, nearly a quarter said that a self-cleaning car (23 percent) would top their “greatest wish” list.

An infographic highlighting the results and a video showcasing the top five vehicles and add-on features is available.

About CarMax
CarMax, a member of the Fortune 500 and the S&P 500, and one of the Fortune 100 Best Companies to Work For®, for 11 consecutive years, is the nation’s largest retailer of used vehicles. Headquartered in Richmond, Va., CarMax currently operates 147 used car stores in 75 markets. The CarMax consumer offer features low, no-haggle prices, a broad selection of CarMax Quality Certified used vehicles and superior customer service. During the twelve months ended February 28, 2015, the company retailed 582,282 used vehicles and sold 376,186 wholesale vehicles at our in-store auctions. For more information, access the CarMax website at www.carmax.com.

About the Ipsos Survey
These are findings from a survey conducted May 7-8, 2015 by Ipsos Public Affairs. For the survey, a sample of 1,004 U.S. adults age 18 and over was interviewed online. A factum of survey results is available at http://ipsos-na.com/news-polls/pressrelease.aspx?id=6858.

Media Contacts

Casey Werderman, CarMax Public Relations, (804) 747-0422, ext. 4773
Twitter: @CarMax Facebook: facebook.com/CarMax

Lauren Llewellyn, PadillaCRT, (804) 675-8153, Lauren.Llewellyn@padillacrt.com

CarMax, Inc. published a survey on midlife crisis car trends

Sedans and SUVs challenge sports cars for midlife purchase of choice, new CarMax survey reveals

RICHMOND, Virginia, 2015-2-4 — /EPR Retail News/ — For many, the words “midlife crisis car” immediately bring to mind “flashy, red and sporty.” CarMax, Inc. (NYSE: KMX) today published a survey on midlife crisis car trends, and the results may be surprising: sedans and SUVs are gaining in popularity. While one in five potential buyers (20 percent) would still go for a sports car first, 17 percent would purchase an SUV and 15 percent would pick a sedan. When asked about a specific make and model, the Ford Mustang and Chevrolet Corvette were the favorites.

Perceptions of “Middle Age” Get a Makeover
This survey comes at a time when the concept of “midlife” and middle age are evolving in America. Increasingly, this life stage represents an exciting new chapter of possibility and freedom. According to the recent CarMax survey, one in four American adults (25 percent) consider it likely they would buy a car associated with a midlife crisis.

“It’s wonderful that people envision marking this new stage of their lives by buying the type of vehicle they’ve always wanted,” said Cliff Wood, CarMax executive vice president of stores. “No matter your dream car, CarMax is the perfect place to start your car buying experience. We offer a wide range of makes and models to match the next adventure anyone has in mind.”

Red Isn’t the Only Show-Stopper
No matter what 80s movies told us, today’s midlife crisis car doesn’t have to be red. The most popular color for respondents’ hypothetical midlife crisis car was black (20 percent), with silver/gray (19 percent), blue (17 percent) and, yes, red (17 percent) close behind. Yellow came in at the very bottom of the list with just 2 percent.

Sports Car for Him, SUV for Her
Thirty percent of men said that they would be very or somewhat likely to buy a car associated with a midlife crisis, while 21 percent of women said the same. But the type of car each gender would buy could not be more different. For men, sports cars still reign supreme, and black is the color of choice, both coming in at 24 percent. Women went with SUVs (19 percent), and red won out as the preferred color (21 percent).

The South Most Likely To Buy Midlife Car
According to the survey, residents of the South are most likely to purchase a midlife crisis car, with more than 30 percent of respondents indicating that they were very or somewhat likely to buy one. Midwesterners were the least likely to spring for a midlife crisis car overall, with almost 80 percent of respondents saying that they were not very likely or not at all likely to buy one. Of the 18 percent of Midwesterners who would purchase a midlife crisis car, the most popular make was an SUV – the only region where the sports car did not come out on top.

The Ipsos survey was conducted on behalf of CarMax from October 20 to October 21, 2014. For the survey, a national sample of 1,005 adults from Ipsos’ U.S. online panel was interviewed online. For the corresponding infographic, please click here. For the full survey results, email pr@carmax.com.

About CarMax
CarMax, a member of the FORTUNE 500 and the S&P 500, and one of the FORTUNE “100 Best Companies to Work For” for 10 consecutive years, is the nation’s largest retailer of used vehicles. Headquartered in Richmond, Virginia, CarMax currently operates 143 superstores in 72 markets. The CarMax consumer offer features low, no-haggle prices, a broad selection of CarMax Quality Certified used vehicles and superior customer service. During the 12 months ending February 28, 2014, the company retailed 526,929 used cars and sold 342,576 wholesale vehicles at our in-store auctions. For more information, access the CarMax website at www.carmax.com.

Media Contacts
Casey Werderman
CarMax Public Relations
(804) 747-0422, ext. 4773
Casey_Werderman@carmax.com

Laura Petrosky
PadillaCRT
(804) 675-8141
Laura.Petrosky@PadillaCRT.com