CarMax Raises 4th Quarter Expectations Again; Cites Seasonal Subprime Sales Increase
RICHMOND, VA – For the fourth quarter ending February 28, CarMax, Inc. raised comparable store used unit sales expectations to growth of 11 or 12 percent, and raised earnings per share expectations to 26 or 27 cents.
RICHMOND, VA – For the fourth quarter ending February 28, CarMax, Inc. raised comparable store used unit sales expectations to growth of 11 or 12 percent, and raised earnings per share expectations to 26 or 27 cents.
On February 3, CarMax raised fourth-quarter expectations of comparable store used unit sales growth to a range of 7% to 9%, from earlier expectations in a range of 2% to 7%, and earnings per share to a range of 23 cents to 25 cents, from earlier expectations in a range of 19 cents to 23 cents.
"At the end of January, we began to experience a dramatic increase in sales financed by our subprime lender DRIVE," said Austin Ligon, president and chief executive officer. "Based on industry patterns, we understand that subprime transactions can see a two-to-threefold increase during tax refund season, and we have seen such an increase since the end of last month. We now believe that DRIVE-financed sales will contribute approximately 5 percentage points incrementally to our fourth-quarter used-unit comp sales. We had been reluctant to forecast such an increase in our subprime business based solely on the few superstores that were testing DRIVE in last year's fourth quarter."
CarMax rolled out subprime lending to its full superstore base in August 2004. "With this seasonal increase in DRIVE-financed sales, as well as the continuing strength in our used unit sales overall, we now expect fourth quarter comp store used unit sales growth of 11 or 12% and earnings per share of 26 or 27 cents," Ligon said. "The subprime sales' incremental contribution of about 5 percent to fourth quarter used unit comp sales includes a run rate of approximately 8 percentage points in February. Industry patterns suggest that we should expect the seasonally stronger subprime traffic to continue in March, and then moderate somewhat in April before returning in May to levels in line with those we had been seeing before tax refund season. Of course, because such a spike in subprime sales occurs seasonally, it will not add incrementally to future years' sales and will simply be built into our annual sales performance."
CarMax has said previously that DRIVE-financed sales have generally comprised approximately 3 percent of used unit sales. CarMax plans to issue fourth quarter and fiscal year-end comparable store sales on Fri., March 4, and fourth-quarter and fiscal year-end earnings results on Wed., March 30, both before the opening of the New York Stock Exchange.
More Operations

FLD Promotes Three Executives in Leadership Changes
FLD has promoted three longtime executives, naming Gary Mott CEO, Richard Mallek president, and Ron Sanders managing partner.
Read More →
CAS Automotive Launches Remarketing Service for Damaged, Surplus Equipment
Damaged Equipment expands CAS Automotive’s vehicle remarketing model to commercial equipment, targeting fleet operators, insurers, equipment dealers, and rental companies.
Read More →
Fleet Sales Hold Steady as Commercial Gains Offset Rental Decline
Commercial and government fleet sales increased through July 2026, offsetting most of the decline in rental volume and leaving combined comparable fleet sales 0.5% above the same period last year.
Read More →
Personnel Update: BrickHouse GPS, PRO-VISION, Auto Driveaway, and Proaction
Check out the latest must-know fleet personnel updates from the last couple of months.
Read More →
What Comes Next for Auto Driveaway?
A new Auto Driveaway feature called Arrive provides recipients with live location updates and ETAs during the final hour of a vehicle move, while fleet customers continue to have end-to-end shipment visibility through the company's customer portal.
Read More →
Manheim Index Shows Used-Vehicle Wholesale Prices Up 2.1% in June
The market is seeing stronger appreciation in older used vehicles this year, and the most affordable segments have been among the year’s best performers.
Read More →
Commercial Fleet Sales Contribute To June, YTD Gains
The fleet sector has boosted its vehicle purchases at a reliable pace in the first half of this year compared with 1H 2025.
Read More →
Stop Remarketing Electric Vehicles Like Gas Cars
The advantages and attributes of electric vehicles are upending the traditional remarketing cycle, requiring fleet sellers to rely on new factors and approaches detailed below.
Read More →
AP Fleet Management Expands Remarketing Program for Commercial Work Trucks
AP Fleet Management expanded its commercial vehicle remarketing program with dedicated resale services and an online marketplace for used work trucks.
Read More →
Used EVs Strengthen Overall Electric Vehicle Market
The latest sales data point to several reasons for the divergent trends in new and used EVs that can factor into fleet cycling decisions.
Read More →