CarMax Reports Increase In Net Income
Richmond-based CarMax says its second-quarter net income rose 4.8 percent…and the company earned 108 million or 48 cents a share in the three months that ended August 31st. And as Charles Fishburne reports, it is one company that may have actually gained ground during the recession.
CarMax is the largest used-car retailer in the world, and as the economy went down, used car prices went up.
Hoffer: The fact that used car prices are very strong and they being the largest holder of used cars, they really stand to gain and have gained.
University of Richmond Economist George Hoffer is an auto industry expert.
Hoffer: Now, interestingly, CarMax's relative strength in the market really has improved with the economic downturn. Prior to the economic downturn, because of CarMax's success in the last decade, there were a lot of people getting ready to come into this business, but with the collapse of financial markets, these new people couldn't get any money. And now, as a result, the market will strengthen as the new car market and its used cars in general will improve, CarMax will actually have less competition than they would have had otherwise.
Richmond-based CarMax has 103 stores in 49 markets, employs 13 thousand people, and Hoffer says, they're looking strong.
Charles Fishburne, WCVE News