One yr in the past, 70 p.c of CarMax’s stock was priced under $25,000. Quick-forward to at this time, and “it is extra like 43 to 45 p.c, and that is actually a results of inflationary pressures,” Nash mentioned.
Older automobiles — 6 years outdated or with 60,000-plus miles — captured extra shopper curiosity within the quarter, Nash mentioned.
“Sometimes that kind of stock [represents] in a given yr 20 to 25 p.c of our gross sales,” Nash mentioned. “For this quarter, it was extra like 35 p.c of our gross sales.”
Within the second half of 2021, CarMax spent much less on per-vehicle advertising and marketing as a result of demand was so robust. That ended up altering within the first quarter, Mayor-Mora mentioned. CarMax’s promoting, basic and administrative bills grew 19 p.c to $657 million, partially due to a rise in per-vehicle advertising and marketing, staffing prices and progress prices.