CarMax
Interested in selling your CarMax NNN property or CarMax ground lease property and wondering what you can get for it in today’s changing market?
Contact us for a complimentary broker opinion of value for your off-market CarMax NNN property for sale or CarMax ground lease property for investment, specifically tailored to support your 1031 exchange requirements. This valuable assessment will provide you with the clarity needed to make informed decisions regarding the sale of your CarMax NNN property or the inclusion of a CarMax ground lease property in your investment portfolio. As specialists in working with 1031 exchange buyers seeking off-market CarMax properties, we are dedicated to delivering competitive offers with reduced fees to help you maximize your investment returns.
Number of locations
As of 2024–2025, CarMax operates approximately 240–250 used-car superstores across the United States, along with a nationwide digital platform serving all 50 states.
Core markets include:
CarMax has a national footprint, with strong concentration in Texas, California, Florida, Virginia, North Carolina, Georgia, Illinois, Arizona, and Ohio, along with major metropolitan markets nationwide.
CarMax is the largest used-car retailer in the U.S., with a dominant omnichannel (online + physical store) presence.
Revenue and income
CarMax, Inc. is a publicly traded company (NYSE: KMX), and its financials are fully disclosed.
Key financial highlights (approximate, recent years):
Total revenue: ~$30–33 billion annually
Net earnings: ~$400–600 million (varies with vehicle pricing, interest rates, and consumer demand)
Market capitalization: Multi-billion-dollar public company
CarMax generates revenue from:
Retail sales of used vehicles
Wholesale vehicle auctions
Auto financing through CarMax Auto Finance (CAF)
Extended service plans and vehicle protection products
CarMax consistently ranks as the #1 used-car retailer in the U.S. by sales volume.
Future plans
CarMax continues to focus on scale, digital integration, and operational efficiency.
1. Omnichannel growth strategy
CarMax emphasizes a seamless buying experience through:
Online vehicle browsing and purchasing
Home delivery and curbside pickup
Digital financing and trade-in tools
In-store support for online customers
Customers can complete most or all of the transaction online.
2. Selective store expansion and optimization
CarMax continues:
Selective expansion in high-growth metro markets
Optimization of existing superstore locations
Investment in logistics hubs and reconditioning centers
Physical stores remain central to inventory, reconditioning, and fulfillment.
3. Auto finance platform expansion
Key initiatives include:
Growth of CarMax Auto Finance originations
Expanded partnerships with third-party lenders
Improved credit decisioning and risk management tools
Auto finance is a major earnings driver for CarMax.
4. Technology and data investment
CarMax invests heavily in:
Pricing algorithms and inventory optimization
AI-driven demand forecasting
Digital customer experience platforms
Supply-chain and logistics efficiency
Technology enables faster inventory turns and pricing accuracy.
5. ESG and workforce initiatives
CarMax focuses on:
Responsible lending practices
Employee development and retention
Diversity, equity, and inclusion initiatives
Environmental sustainability in operations
Corporate vs. franchise
CarMax is not a franchise.
All stores are corporate-owned and operated
Pricing, branding, and operations are centrally managed
No independent franchise operators
This structure ensures pricing consistency, brand control, and operational efficiency nationwide.
Additional information about CarMax properties
Founded: 1993
Headquarters: Richmond, Virginia, USA
Public company: CarMax, Inc. (NYSE: KMX)
Typical CarMax locations include:
Large-format used-car superstores
Vehicle reconditioning facilities (on- or off-site)
Customer service and financing centers
Appraisal lanes for vehicle trade-ins
Delivery and logistics infrastructure
CarMax serves millions of customers annually and employs tens of thousands of associates across retail, logistics, and corporate operations.
CarMax History
CarMax was founded in 1993 in Richmond, Virginia, as a subsidiary of Circuit City, with the goal of transforming the used-car buying experience through no-haggle pricing, transparent vehicle history, and a customer-friendly retail model. The company introduced large-format used-car superstores that combined wide vehicle selection with standardized pricing and in-house financing options.
During the late 1990s and early 2000s, CarMax expanded rapidly across major U.S. metropolitan markets and became a publicly traded company in 1997. In 2002, CarMax was fully spun off from Circuit City, allowing it to operate independently and focus exclusively on scaling its used-vehicle retail and financing platforms. Over the following decades, CarMax grew through new store development, investments in reconditioning and logistics infrastructure, and the expansion of CarMax Auto Finance, which became a key earnings driver.
Today, CarMax operates approximately 240–250 used-car superstores nationwide, supported by a robust omnichannel platform that enables customers to buy, sell, finance, and receive vehicles both online and in store. Headquartered in Richmond, Virginia, CarMax, Inc. (NYSE: KMX) is the largest used-car retailer in the United States, continuing to invest in digital retailing, data-driven pricing, supply-chain efficiency, and customer experience innovation.
Why Invest in Ground Lease and NNN Lease of CarMax?
Investing in CarMax ground lease or triple net (NNN) lease properties offers compelling advantages due to CarMax’s national scale, strong brand recognition, and resilient used-vehicle retail model. CarMax locations are attractive NNN assets because of their long operating history, predictable occupancy, and prominent real estate footprints in major markets.
1) CarMax NNN Property Investment: Stable Income
CarMax generates diversified and recurring revenue from used-vehicle sales, wholesale auctions, extended service plans, and CarMax Auto Finance, supporting reliable long-term rent payments and making CarMax a stable NNN tenant.
2) CarMax NNN Property Investment: Established Tenant
Founded in 1993, CarMax, Inc. is the largest used-car retailer in the United States and a publicly traded company (NYSE: KMX), operating approximately 240–250 superstores nationwide, which provides strong tenant credit quality and reduced vacancy risk.
3) CarMax NNN Property Investment: Low Management Responsibility
CarMax ground and NNN leases typically require the tenant to cover:
Property taxes
Insurance
Maintenance and repairs
This structure offers passive ownership with minimal landlord obligations, appealing to long-term investors and 1031 exchange buyers.
4) CarMax NNN Property Investment: Favorable Lease Terms
CarMax commonly signs long-term leases, often 15–20 years with multiple renewal options and contractual rent escalations, helping deliver predictable income growth and long-term tenant stability.
5) CarMax NNN Property Investment: Real Estate Value
CarMax stores are typically located on large, high-visibility parcels along major highways and arterial roads, featuring strong traffic counts, ample parking, and flexible big-box layouts, which support long-term real estate value and future re-tenanting or redevelopment potential.
Pros and Cons of CarMax Ground Lease and NNN Lease Investment
Pros:
- Stable income supported by CarMax’s position as the largest used-car retailer in the U.S. with diversified revenue from vehicle sales, wholesale auctions, service plans, and CarMax Auto Finance.
- Creditworthy tenant backed by CarMax, Inc. (NYSE: KMX), a publicly traded company with national scale, strong brand recognition, and decades of operating history.
- Minimal landlord responsibilities under typical NNN and ground lease structures, with CarMax responsible for property taxes, insurance, maintenance, and repairs.
- Long-term lease agreements, commonly 15–20 years with renewal options and rent escalations, providing predictable and durable cash flow.
- Strong real estate locations, usually large-format sites along major highways and arterial roads with high visibility, strong traffic counts, and ample parking, supporting long-term property value.
Cons:
- Automotive industry cyclicality, as vehicle demand can be affected by economic slowdowns, interest rates, and consumer credit conditions.
- Lease renewal risk if CarMax chooses to relocate, consolidate, or shift to alternative retail or omni-channel strategies at lease expiration.
- Limited landlord control due to standard NNN or ground lease structures and CarMax-specific operational requirements.
- Large, specialized store layouts, which may require capital investment or reconfiguration if the property is re-tenanted for a non-automotive use.
- Dependence on single-tenant performance, where vacancy could result in longer downtime compared to smaller multi-tenant retail properties.
As with any NNN investment, it is essential to evaluate site demographics, traffic patterns, lease structure, tenant credit strength, and long-term market demand when considering a CarMax property, ideally with guidance from experienced NNN real estate and financial professionals.