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

Company: CARMAX INC
Filing Date: 2025-04-11
Form: 10-K
Item: Item 1
Chunk 10
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 tailored and differentiated experience to our customers.  In addition, through our systematic integrations with our third-party finance partners, we are able to provide our finance-based shopping experience.  We continue to build our technologies to expand our reach and integrate CarMax into a broader ecosystem of partnerships.

Our proprietary centralized inventory management and pricing system tracks each vehicle throughout the sales process and allows us to buy the mix of makes, models, age, mileage and price points tailored to customer buying preferences.  Leveraging our more than thirty years of experience buying and selling millions of used vehicles, our system generates recommended initial retail price points, as well as retail price markdowns for specific vehicles based on algorithms that account for factors including sales history, consumer interest and seasonal patterns.  We believe this systematic approach to vehicle pricing allows us to optimize inventory turns, which reduces the depreciation risk inherent in used cars and helps us to achieve our targeted gross profit dollars per unit.  Because of the pricing discipline afforded by our inventory management and pricing system, generally 99% of our entire used car inventory offered at retail is sold at retail.

Marketing and Advertising

Our marketing strategies are focused on driving customer growth through building awareness and affinity for the brand and acquiring in-market shoppers and sellers.  These strategies are implemented through a broad range of media including, but not 

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limited to, traditional broadcast, digital, search, social, out-of-home, sports sponsorships and influencer and activation programs.  Our website and related mobile app received an average of 35 million monthly visits during fiscal 2025 and are a critical part of the customer’s journey, allowing them to learn about CarMax, explore our full inventory in real time, initiate vehicle transfers, apply for financing pre-qualification, receive an appraisal offer and even buy a car fully online.  Our survey data indicates that during fiscal 2025, approximately 95% of customers who purchased a vehicle from us had first visited us online.  In addition, approximately 80% of our customers leveraged some or all of our digital capabilities to complete their transactions in fiscal 2025.  We believe consumers in the used car industry will increasingly prefer to have the ability to shop and transact digitally. 

In fiscal 2025, we continued building the CarMax brand through new creative campaigns promoting our omni-channel platform as well as brand reassurance messaging, highlighting our money back guarantee and up-front pricing.  We extended our Never Settle campaign, encouraging customers to never settle for less than