Company: KMX
Filing Date: 2025-04-11
Form Type: 10-K
Source: 0001170010-25-000024
Chunk: 9

Company: CARMAX INC
Filing Date: 2025-04-11
Form: 10-K
Item: Item 1
Chunk 9
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 and the number of used vehicles sold or remarketed through retail channels, wholesale transactions and at automotive auctions.  According to industry sources, there were approximately 292 million light vehicles in operation in the U.S. as of December 31, 2024.  During calendar year 2024, it is estimated that approximately 16 million new cars and 38 million used cars were sold at retail, many of which were accompanied by trade-ins, and approximately 12 million wholesale vehicles were sold at auctions and through other channels.

We believe that sources of used vehicles will continue to be sufficient to meet our current and future needs based on the large number of vehicles remarketed each year, consumer acceptance of our appraisal process, our experience and success in acquiring vehicles from dealers, auctions and other sources, and the large size of the U.S. auction market relative to our needs.

Seasonality

Historically, our business has been seasonal.  Our stores typically experience their strongest traffic and sales in the spring and summer, with an increase in traffic and sales in February and March, coinciding with federal income tax refunds.

Technology 

We leverage a combination of cloud-based solutions and proprietary technologies to run our operations.  We have a strong software engineering discipline and we have adopted Agile, DevOps, Lean and other leading digital delivery practices.  Technology teams are tightly integrated with the rest of the business and are embedded within our cross-functional “Product” teams.  Our Product teams use a “test and learn” approach to iterate and deploy new technology-enabled experiences to our associates and customers.  We use advanced data science, AI and machine learning capabilities to optimize our business and the customer experience.  Our business is supported by digital and mobile technologies that provide enhanced customer experience while enabling highly integrated automation of all operating functions, including receiving, appraisals, cataloging, reconditioning, merchandising, shopping, financing, sale and delivery.  We also leverage technology, including data automation, Skye and knowledge management systems, to help us improve efficiency in our Customer Experience Centers (“CECs”).  Buyers and sales consultants are equipped with mobile and centralized tools that allow them to access real-time information to better serve our customers.  Our proprietary digital technology provides our management with real-time information about many aspects of our omni-channel operations, such as inventory management, pricing, vehicle transfers, wholesale auctions and sales consultant productivity.  Real-time access to a complete view of our customer interactions from omni-channel allows our associates to provide a