A yr in the past, 70 % of CarMax’s stock was priced beneath $25,000. Quick-forward to at the moment, and “it is extra like 43 to 45 %, and that is actually the results of inflationary pressures,” Nash mentioned.
Older automobiles — 6 years previous or with greater than 60,000 miles — garnered extra shopper curiosity within the quarter, Nash mentioned.
“Usually that form of stock [represents] in any given yr, 20 to 25 % of our gross sales,” Nash mentioned. “For this quarter, it was extra like 35 % of our gross sales.”
Within the second half of 2021, CarMax spent much less on advertising per car as a result of demand was so robust. That ended up altering within the first quarter, Mayor-Mora mentioned. CarMax promoting, normal and administrative bills elevated 19 % to $657 million, partially because of a rise in gross sales per car, personnel prices and progress prices.