CarMax Sold More Used Cars—Why Did Profit per Car Fall?
CarMax sold more used cars. The part that made me stop was what it earned on each one. In results released September 29, the company reported stronger sales and earnings for its fiscal second quarter. Yet gross profit on the average retail used vehicle slipped by $111 from a year earlier. That sounds like a contradiction until the dealership, the finance desk and the price tag are separated. So is this a healthier used-car business, or one working harder for each sale? Previous Tech(EN) post: GM and LG Energy’s LMR Battery Shift: Is Cheaper EV Range Closer? Key Takeaways For the three months ended August 31, 2026, CarMax (NYSE: KMX) reported retail used-unit sales up 13.8% and total revenue up 19.5% to about $7.9 billion. Gross profit per retail used vehicle fell from $2,216 to $2,105 . More units nevertheless lifted aggregate retail used-vehicle gross profit by 8.1% to $478.6 million. Diluted earnings per share rose from $0.64 to $1.16, but that result also reflects...