CarMax more policies to help keep their customers happy

CarMax Inc has had an incredible impact on today’s car buying industry. CarMax Inc. was originally founded in september of 1993, by Richard L. Sharp when opened its first location, out of Goochland Virginia. CarMax happens to be the biggest used car dealership retailer in all of the United States. Buying a car through CarMax is a much safer, different process than buying through any other used car dealership. Buying a car through CarMax is alternative to buying a car from a new car dealership, like Mercedes Benz, Audi, and Ford.  In today’s industry, the car market has definitely had a major impact on how the citizens of the United States get from point A to point B.  When the time comes, I recommend buying a car through a very reputable source like Carmax because it is the safest way to feel comfortable when buying a car.  This industry is constantly growing and expanding to record high numbers.  CarMax Inc currently controls more than half of the huge open market of used cars in the United States.  CarMax Inc. states that sales reached over 4500 cars per store/month that is about 10 times the average of car sales in any known dealership.  Approximately 99% of car sales that go through CarMax come with a warranty ranging from a two year, 20,000 mile warranty for average priced cars and a five year, 50,000 mile warranty for higher end cars.  CarMax Inc. is not like most used car dealerships that is for sure. In order to keep their customers happy, Carmax offers financing if the buyer needs a payment plan, online car reservations, bumper to bumper warranties, five day satisfaction guarantee, and many more policies to help keep their customers happy and returning for more future purchases. They refuse to let a customer leave the store unhappy which is the ideal car dealership mentality.  What is different about CarMax than another used car dealership, the salesmen try to help find a car to perfectly fit the customer, while at any other used car dealership in the united states, the sales team forces the customer to feel like they need to buy a car and make the entire car buying process much more forceful and, you leave feeling worked over and pushed into a car you may or may not want. This company has numerous marketing strategies.  CarMax stands behind older higher end cars because as soon as you drive a new luxury vehicle off the new dealership lot, it loses half of the value it is worth, than sold to CarMax to sell back to the community at a very discounted price.The company has successfully created a partial monopoly destroying the competition of the used car market. A major competitor of CarMax Inc, is Enterprise Used Car Sales.  Enterprise is a car rental franchise that specializes in strictly renting out automobiles.  After a certified rental car hits a high mileage point in the car’s life, the company, Enterprise sells the vehicle at a used discounted price.   This is one of CarMax Inc, major competitors.  They don’t have near the same amount of locations nationwide but they have a reputable company with the Enterprise franchise. CarMax is very well known as the nation’s leader in used car sales, but Enterprise is the nation’s biggest rent a car company.  When the company originally came to in 1957 as a base rental company.  They began selling their used inventory in the early 2000’s.  Both companies stand for their customers around honesty and integrity, it just happens that Enterprise is a much older company with the same amount of sales experience.   CarMax Inc is a very competitive franchise that prices their inventory fairly and is known for having the “no haggle price” option with all of their products.  Most dealership negotiations take hours if not days to complete. With the no haggle price option, it takes the stress and anxiety out of the deal. To some, it is a very relaxing scenerio knowing that they are getting a phenomenal deal on a used car, and not stressing about if the dealership is trying to take advantage of the buyer. The company is distributing their product by constantly opening up new CarMax locations nationwide which spreads the word of the very well known used car franchise that the United States country has been blessed with. CarMax does an incredible amount of advertising by posting their inventory on social networks and online marketplaces.  I constantly see ads for used cars when surfing the web for another car and frequently see their very professional advertisements scattered over Autotrader, AutoGravity, and Autolist.  CarMax sells an incredible amount of inventory every month, so there’s always something new to check out on their online marketplace.  CarMax Inc.’s site also displays their inventory and organizes them through style, mileage and price.  This advertising of theirs is very beneficial to customers if not, draws the customers attention to the company and creates a new possible customer in the near future. At every CarMax Inc location, they have a massive 60ft tall billboard outside with their massive logo printed.  It grabs the attention of passerbys and individuals driving on the freeway driving in both directions.  This publicity is a major factor in bringing customers into the specific CarMax Inc. location.  CarMax Inc.’s philosophy on doing business is held to only the highest standards. CarMax is 100 percent devoted to making an impact on today’s social community by connecting to the employees and families of the consumers, respecting the environment around us and staying green by recycling, and committed to the customer through and throughout what they have to offer.  They are very well known for their “125 point inspection”.  When CarMax looks into purchasing a vehicle from an individual, they perform a very in depth inspection to insure that they are only buying quality cars and not future lemons.  CarMax says this is to insure quality, but after one faulty inspection back in 2016, owner, Travis Gonzales purchased a used 2007 infiniti from a store in Costa Mesa CA and was not too happy with his purchase. Gonzales attorney stated that the 125 point inspection is quote, ” a complete lie and a farce.”  The purchased car shortly came in contact with some major issues with the very important details of the mechanics of the automobile.  Owner stated that ” “Shortly after he bought the car, he started to encounter several problems with the car, including brake pads that needed replacing, malfunctioning windows, transmission problems and instrument panel warning lights that illuminated routinely or in clusters.” (Tom McParland,Jalopnik.)  The court favored in suit of CarMax Inc due to the concept of they were just doing their job and completed the 125 point inspection.   Some major concerns of this company consists of faulty inspections, misfiled information, and misinterpreting harsh information about a car purchased and sold through the dealership franchise.  With the 125 point inspection, a faulty employee could file a wrong report on the condition and cause major issues for the future sales of that particular vehicle.  With advancements of automobile body work, some work can be virtually invisible so, with a salvage title vehicle that has been rebuilt and a reconstructed title can fool a CarMax employee which can potentially screw a new customer.  The price of stock with CarMax Inc is currently staying pretty constant, not much raise and not to much drop.  The stock price opened up at approximately 59.10 at the beginning of 2017.  Overtime, the price rose to an asstonishing 75.10 by the end of October. And today in the month of December is about 77 points.  Stock skyrocketed from a rough 27.16 in late 2012.   I believe the stock is staying constant because there is not much change in the company.  I believe in the next year or so, CarMax Inc stock will grow once again because of the constant evolution of the company.  Once possible investors see that, they will invest millions of dollars into CarMax Inc and the company will for sure be the highest ranked used car dealership in the nation for years upon years strait.  I personally would definitely invest in this franchise because after CarMax continues to evolve and grow, the stock price will fluctuate a lot more and make myself some serious profit. Purchasing a used car through CarMax is another alternative to buying a car from a new car dealership, like Mercedes Benz, Audi, and Ford with an alternative motive rather than to just make profit, but to help a customer find the car of their dreams. With 175+ locations nationwide and growing, they have single handedly created a new and easier way to purchase a used car, with no drama and a safer more comfortable environment for their customers.  Buying a car has definitely been a scary nerve wracking concept, but CarMax will always be there to make the process a little less scary and a little more comforting.