CarMax is a Fortune 500 company based in the United States specializing in used cars. The company was founded in Richmond, Virginia, in 1993 by Circuit City Stores Inc.
CarMax is one of the leading used car retailers in the United States. The company was founded in 1993 and operates in over 150 countries.
CarMax offers a broad selection of used cars, trucks, and SUVs, as well as a wide range of financing options to make the car-buying process as seamless as possible.
CarMax is committed to providing an outstanding car-buying experience offering a wide selection of high-quality used cars, trucks, and SUVs at competitive prices and a hassle-free car-buying process from start to finish.
Whether you’re looking for your next used car, truck, or SUV or ready to finance your purchase, CarMax is here to help. We hope you’ll visit us soon at one of CarMax’s 150+ locations across the country.
The company has transformed car retail in the United States, facing numerous competitors and alternatives.
This article will talk about top CarMax Competitors and Alternatives you can look out for to buy and sell your cars.
Brief History Of CarMax
CarMax is the largest retailer of used cars in the country. In addition, it is a Fortune 500 company. The first CarMax store opened in Richmond, Virginia, in September 1993. The company expanded to 195 sites as of November 30, 2018.
CarMax experimented with curbside sales in early 2020 as industries such as CarMax and others sought to continue operations after the Coronavirus COVID-19 pandemic.
CarMax’s curbside pickup program will allow customers to acquire vehicles that comply with the country’s physical/social distance requirements. Additionally, the organization continues to provide consumers with home delivery services.
Top Competitors and Alternatives to CarMax
|Founder||H. Wayne Huizenga|
|Headquarter||Fort Lauderdale, Florida|
AutoNation is a United States-based company that provides automotive dealership services and used vehicle retailing.
AutoNation is the largest retailer of new and used vehicles in the United States. As a CarMax competitor, they have various makes and models available for purchase or lease. In addition to selling cars, they also provide financing and insurance services.
AutoNation was founded in 1996 and has since grown to over 200 dealerships nationwide. They are headquartered in Fort Lauderdale, Florida, and employ over 25,000 people. In 2017, they generated over $20 billion in revenue.
AutoNation is worth considering whether you’re looking for your first car or an upgrade. With a large selection of new and used cars and competitive pricing, they are a good option for anyone in the market for a new vehicle.
AutoNation was founded in 1996 by Wayne Huizenga, and it has over 360 locations in the United States, with its headquarters in Fort Lauderdale, Florida.
The company offers 1Price Certified Pre-Owned cars and a Money-Back Guarantee. In addition, customers can conveniently have their vehicles inspected and certified.
CarMax is the nation’s largest reseller of secondhand automobiles. On the other hand, AutoNation generated most of its revenue in 2019 from new car sales.
The percentage of new vehicle sales in 2019 was 54.9 percent, while the percentage of used vehicles in 2019 was 23.9 percent.
Finance and insurance accounted for 4.6 percent of income, while parts and services accounted for 16.1 percent. The two companies are nearly identical in revenue, with AutoNation slightly ahead of CarMax.
2. Sonic Automotive Inc.
|Company Name||Sonic Automotive|
|Headquarter||Charlotte, North Carolina, United States|
Sonic Automotive Inc is one of the leading used CarMax competitors in the United States. The company has a network of over 100 dealerships across the country. Sonic Automotive Inc offers various services, including used car sales, financing, and insurance.
Sonic Automotive Inc is a publicly traded New York Stock Exchange company. The company was founded in 1997 and is headquartered in Charlotte, North Carolina. CEO B. Scott Smith Jr is the CEO of Sonic Automotive Inc.
Sonic Automotive Inc is one of the largest used car dealers in the United States. The company offers a wide range of vehicles, including sedans, SUVs, trucks, and vans. Sonic Automotive Inc also offers financing and insurance services to its customers.
Sonic Automotive is the fifth-largest automotive retailer in the United States, with over 100 locations and a fleet of 25 car models.
Sonic Automotive opened its first twenty locations in 1997 when Bruton Smith founded it. Sonic is ranked 298th on the Fortune 500 and is a member of the Russell 2000.
The revenue generated by Sonic Automotive in 2019 was about half that of CarMax. The company built 100 new standalone used-car locations in 2014 to compete with CarMax (the market leader in this segment).
3. Penske Automotive Group Inc.
|Company Name||Penske Automotive Group Inc.|
|Headquarter||Bloomfield Hills, Michigan, United States|
Penske Automotive is an American automotive retailer that sells and services used cars. The company operates through two segments: Retail and Wholesale.
Penske Automotive operates over 150 locations in the United States, Canada, and Puerto Rico. The company also has a minority stake in CarMax, one of its main competitors.
Penske Automotive was founded in 1968 by Roger Penske. The company began as a small used car dealership in Detroit, Michigan.
Today, Penske Automotive is a Fortune 500 company with annual revenue of over $15 billion. The company employs over 27,000 people worldwide.
Penske Automotive is dedicated to providing quality used cars at competitive prices. The company offers a wide range of services, including financing, insurance, and extended warranties.
The company operates in Western Europe, the United States, and Canada and is a Fortune 500 company. The company also offers diesel, gasoline, and other automotive equipment.
Additionally, it sells both pre-owned and new vehicles. Penske Automotive employs 26,980 people. The company made $23.17 billion in revenue in 2019.
Penske Automotive is a major competitor of CarMax. However, it earned slightly more revenue than CarMax in 2019.
Penske Automotive is the second-largest dealer of new cars in the United States. Still, it revealed last year that it is increasing its used-car locations to improve revenue and profitability.
The question is whether this will help them expand their lead over CarMax.
|Founder||Ernest Garcia III, Ryan Keeton, Ben Huston|
|Headquarter||Tempe, Arizona, U.S|
Carvana is an online used car retailer that offers customers a unique and convenient experience. Carvana’s mission is to change the way people buy cars.
The company has developed a unique business model allowing customers to shop for cars online without ever having to step inside a dealership.
Carvana was founded in 2012 and is headquartered in Phoenix, Arizona. The company has raised over $1 billion in funding from investors, including Capital One, Andreessen Horowitz, and Sherpa Capital.
Carvana is one of the leading used car retailers in the United States and is quickly becoming a major competitor to traditional dealerships like CarMax.
The company offers a wide selection of quality used cars at competitive prices, and its hassle-free shopping experience has earned it rave reviews from customers.
The company separated in 2014 and now operates as an online vehicle dealership, where customers can purchase, sell, finance, or trade in a vehicle.
The company’s 18 car vending machines allow customers to pick up their vehicles or have them delivered.
Customers can exchange or return their cars within seven days of purchase if dissatisfied with them.
Carvana, known for its one-of-a-kind, multi-story automobile vending machines, is a relative newcomer to the industry.
The company entered the market seven years ago. The company’s revenue is more than six times that of CarMax.
Carvana is one of the fastest-growing used automobile dealers in the United States.
5. Asbury Automotive Group
|Company Name||Asbury Automotive Group|
|Founder||David W. Hult|
|Headquarter||Duluth, Georgia, United States|
Asbury Automotive is one of the largest automotive retailers in the United States. It is a publicly-traded company on the New York Stock Exchange with over 80 dealerships across the country.
Asbury Automotive Group was founded in 1995, has its headquarters in Atlanta, and operates all over the United States.
Asbury Automotive sells new and used vehicles and provides financing, vehicle service and repair, and extended service contracts.
Asbury Automotive is a leading retailer of new and used vehicles in the United States.
With over 80 dealerships across the country, Asbury Automotive provides financing, vehicle service and repair, and extended service contracts. Asbury Automotive also sells CarMax competitors’ used cars.
Asbury Automotive, a Fortune 500 company, is the seventh-largest automotive distributor in the United States.
Its headquarters are in Duluth, Georgia, and David W. Hult, its founder, chairman, and CEO, leads the business. The company operates 80 dealerships and 96 franchise locations in ten states. In addition, a total of 25 collision repair centers belong to the corporation.
Asbury Automotive Group had 8,200 employees and a revenue turnover of $6.87 billion in 2019. Asbury earned the most money from selling new vehicles in 2019, accounting for 53.6 percent of its total revenue.
6. Auto Trader
|Company Name||Auto Trader|
|Headquarter||Atlanta, Georgia, United States|
Auto Trader is an online marketplace for buying and selling used cars. It is one of the largest CarMax competitors in the United States.
Sanford Schwartz created Autotrader in 1997. Auto Trader connects buyers and sellers of used cars safely and conveniently.
Auto Trader offers a wide variety of used cars for sale. You can find everything from sedans to SUVs to trucks on Auto Trader. With so many options, you are sure to find the perfect car for your needs.
Auto Trader makes it easy to find the best deals on used cars. You can search by make, model, price, and more. Once you find a car you like, you can contact the seller directly and arrange for a test drive.
If you are looking for a great deal on a used car, Auto Trader is a great option.
It serves as an online marketplace for buyers and sellers of automobiles. To resell them online, it purchases new, used, and pre-owned cars from dealers and private sellers.
Auto Trader provides essential information in reviews, recommendations, and vehicle comparison tools that assist clients in navigating the worlds of financing and insurance.
Autotrader operates in the shadow of its parent firm, Cox Automotive, also owning Kelley Blue Book, Xtime, and Manheim.
Manheim is the world’s largest wholesale vehicle auction company. As a result, Autotrader’s income is a fraction of what CarMax made in 2019.
However, while Autotrader is a purely online automobile marketplace, CarMax has physical and online locations.
Autotrader employs 859 people. The corporation claimed a $1.1 billion revenue turnover in 2019. Autotrader is a wholly-owned subsidiary of Cox Automotive.
7. Lithia Motors
|Company Name||Lithia Motors|
|Headquarter||Medford, Oregon, United States|
Lithia Motors Inc. is a retail automotive retailer and dealership based in Medford, Oregon. Lithia is the third-largest vehicle retailer in the United States.
Lithia Motors Inc. is one of the largest automotive retailers in the United States. The company sells new and used vehicles and provides financing and insurance services.
Lithia Motors was founded in 1946 by Walter J. Deukmejian Sr. and John Giesen. The company began as a small used car lot in Ashland, Oregon. Lithia now operates over 200 dealerships across the country, with locations in all 50 states.
The company has a strong focus on customer service and satisfaction. Lithia was ranked #1 in customer satisfaction by J.D. Power and Associates in 2017 and 2018.
In addition, the company has been named one of the “100 Best Places to Work” by FORTUNE magazine for 11 consecutive years.
Lithia reached position 294 on the Fortune 500 by 2018, indicating its tremendous success.
The corporation has six subsidiaries: DCH Auto Group, Prestige Auto Stores, Day Auto Group, Downtown LA Auto Group, Carbone Auto Group, and Baierl Auto Group.
Lithia Motors is the United States’ third-largest dealer of vehicles. It employed 14,320 people in 2019 and generated $12.67 billion in sales.
Lithia Motors is one of the industry’s top five auto dealers, vying for the ultimate title. The company’s revenue has gradually increased over the past few years, increasing by 7.2% year over year in 2018.
Lithia Motors’s 2019 revenue, although slightly higher than CarMax’s, still needs more work.
8. Enterprise Car Sales
|Company Name||Enterprise Car Sales|
|Headquarter||St. Louis, Missouri, United States|
Enterprise Car Sales is a subsidiary of Enterprise Rent-A-Car that sells used cars. The company was founded in 1999 and has since grown to become one of the largest used car dealers in the United States.
Enterprise Car Sales operates differently than most used car dealerships. The company offers no-haggle pricing on all of its vehicles, meaning that the price you see is the price you pay. T
The company also offers a 7-day return policy, so you can buy a car confidently, knowing that you can return it if you’re not happy with it.
Enterprise Car Sales is worth checking out if you’re in the market for a used car. The company’s no-haggle pricing and 7-day return policy make it a great option for those who want to buy a car without hassle or worry.
Enterprise Car Sales is a subsidiary of Enterprise Holdings, North America’s leading car rental company.
Enterprise Car Sales is one of America’s most renowned used car retailers, with over 120 locations. They do not sell new vehicles, and their inventory includes over 250 different models of older vehicles.
|Founder||Mitch Golub, William Swislow, Alex Vetter|
|Headquarter||Chicago, Illinois, U.S.|
Cars.com is an online marketplace for buying and selling cars. It offers its users a wide range of features, including the ability to search for cars by make, model, and price range.
Cars.com also provides car-related news, reviews, and a tool to calculate trade-in value and estimate monthly payments.
Cars.com was founded in 1998 and is one of the first companies to offer an online platform for buying and selling cars. Today, it is one of the largest players in the industry, with over 9 million listings from 40,000 dealerships across the United States.
While Cars.com does not sell cars directly, it provides a valuable service for buyers and sellers by connecting them. For buyers, this means having access to a wider selection of cars than they would find at their local dealership.
Car.com is based in Chicago and is a well-known and respected automobile classified advertising company.
Cars.com is one of the most popular used car classified websites in the United States. Cars.com is also a subsidiary of DR Media Holdings. There are 1,300 employees, and the company generated $606.7 million in revenue in 2019.
Cars.com is a classified advertising website for automobiles. Its primary function is to connect automotive buyers and sellers, and it does not own the vehicles for sale.
The company generates revenue by selling online subscription advertising packages to automobile dealerships and original equipment manufacturers.
Cars.com is one of the most popular cars classified websites in the United States. However, it falls short of CarMax regarding market penetration and revenue.
Copart is an online vehicle auction company headquartered in the United States. The company also operates in Canada, the United Kingdom, and Germany.
Copart was founded in 1982 and is a Fortune 500 company with over $1 billion in revenue.
Copart allows members to bid on and buy salvage and used vehicles online. The company offers a wide variety of services for both individuals and businesses, including vehicle storage, transportation, and financing.
Copart is one of the leading providers of salvage auction services in North America and Europe, with over 125 million vehicles sold since its inception.
While Copart is best known for its role as an online auctioneer of salvage vehicles, the company has also become a major player in the used car market.
Copart was founded in 1982 by Willis Johnson. The company provides online automobile auctions and remarketing services in the United States, Canada, the United Kingdom, Germany, Ireland, Spain, Finland, Brazil, and the United Arab Emirates. The company is headquartered in Dallas, Texas.
Copart’s key customers are dealerships, exporters, rebuilders, and dismantlers of used cars. Furthermore, the company sells to private individuals.
Copart sells vehicles primarily to insurance companies, car rental firms, fleet managers, government agencies, and automotive dealers. The company generated $2.04 billion in 2019 and employed 7,327 workers.
Copart and CarMax are automobile sellers, but Copart is an auction house, and CarMax is a vehicle listing company. Copart primarily sells to other auto resale companies, but it also sells to private customers.
However, CarMax primarily sells to private parties. As a result, the revenue generated by CarMax was around ten times more than the revenue generated by Copart in 2019.
|Company Name||Inchcape PLC|
|Founder||William Mackinnon and Robert Mackenzie|
Inchcape is a leading international automotive solutions provider. With over 130 years of automotive industry experience, Inchcape offers its customers a comprehensive range of services.
Inchcape operates in over 30 countries and employs over 22,000 people. It has a strong presence in Europe, Asia Pacific, Africa, and the Middle East.
Inchcape is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index.
Inchcape’s main business is the distribution and retailing of motor vehicles. It also provides vehicle remarketing, financing, fleet management, and insurance services. In addition, Inchcape provides aftersales services such as car maintenance and repairs.
Robert Mackenzie and William Mackinnon founded Inchcape in Calcutta in 1847 under Mackinnon Mackenzie & Company (MMC).
Inchcape and Company were renamed in the 1950s and later became Inchcape PLC in 1981.
The company sells automobiles and distributes them. Inchcape is headquartered in London, United Kingdom, and operates across 33 countries in Europe, Africa, South America, Asia, and Australia.
The corporation employs 17,300 workers and generated $12.45 billion in revenue last year.
Inchcape has no operations in North America. However, it operates in 33 other countries worldwide, selling new and used automobiles and vehicle components and offering vehicle financing and insurance.
Inchcape will face off against CarMax, the used-car powerhouse if it enters the United States. However, CarMax must expand outside the United States before it can challenge the global leader.
12. KAR Auction Services, Inc.
KAR Auction Services is one of the largest used car dealership chains in the United States. With over 140 locations, they are a major competitor to CarMax.
KAR offers various services, including vehicle financing, insurance, and extended warranties.
KAR was founded in 2004 and is headquartered in Indianapolis, Indiana. The company went public in 2009 and trades on the New York Stock Exchange under the ticker symbol KAR. In 2017, KAR generated revenue of $4.3 billion and employed over 10,000 people.
KAR’s core business provides auction and remarketing services to automotive dealerships and fleet operators.
They also offer salvage auctions through their subsidiary Insurance Auto Auctions (IAA). IAA operates over 150 salvage auction facilities across the United States.
The organization is thought of as a forward-looking innovator when it comes to remarketing. They develop products from a wide range of leasing companies, banks, and professional dealers.
12. Manheim, a subsidiary of Cox Enterprises
Manheim is a company that provides vehicle remarketing services in the United States and Canada. It is a subsidiary of Cox Enterprises. The company has over 40 locations and employs over 4,000 people.
Manheim offers various services, including auctions, financing, transportation, and reconditioning. The company also provides online vehicle buying and selling services through its website.
Manheim is one of the largest providers of used car sales in the United States. The company sells over 2 million used cars each year. Manheim competes with other used car companies such as CarMax and AutoNation.
Over 115 digital, physical, and even mobile auctions assist dealers and businesses with inventory management.
TrueCar is an American company that provides a web-based car-buying service. The company’s mission is to help consumers find the best possible deal on a new or used car.
TrueCar is one of the leading online car-buying services and competes with sites like Carmax.
Since its founding in 2005, TrueCar has helped millions of Americans buy cars. The company has a more than four million vehicles database and provides users with pricing information on new and used cars.
TrueCar also offers financing and leasing options through its partner, Santander Consumer USA.
If you’re in the market for a new or used car, TrueCar is worth checking out. The company’s transparency and ease of use make it a great option for anyone looking to save money on their next vehicle purchase.
Several dealerships use TrueCar to collect personal information from new leads and potential clients.
In addition, the TrueCar network provides users with an online report summarizing car pricing information from several dealers.
Carfax is a website and mobile app that offers used car history reports. The company was founded in 1984 and is headquartered in Centreville, Virginia. Carfax provides vehicle history reports for both consumers and businesses.
Carfax competes with other companies that offer similar services, such as CarMax, Edmunds, and Kelley Blue Book. Used car dealerships often use Carfax reports to show potential buyers a vehicle’s history.
A Carfax report can provide important information about a used car, including whether it has been in an accident, its mileage, service history, and more. This information can help buyers make an informed decision about a used car purchase.
Carfax is a web-based service that provides vehicle history data to consumers and businesses interested in purchasing used vehicles.
The corporation is headquartered in Centreville, Virginia, and operates in the United States and Canada.
Carfax offers several complementary and valuable services, including myCarfax, which provides car service information and recommends needed maintenance.