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CarMax Inc. KMX recently rolled out a new consumer offering — Love Your Car Guarantee — a fresh and unique feature in the automotive retail industry. This trademark experience will enhance buyers’ peace of mind and confidence by giving them the ability to take 24-Hour Test Drives before making the purchasing decision.
Additionally, CarMax has extended its 7-Day Money Back Guarantee to a “30-Day Money Back Guarantee”. Now, customers have a period of 30 days to decide if a vehicle is the relevant fit, offering them the option to return the car for any reason for a full refund of up to 1,500 miles. Remarkably, this offering is unrivalled in the automotive industry.
Per CarMax consumer research, 96% of used-car buyers would want to take advantage of test driving a vehicle for 24 hours if they had the option. Meanwhile, 63% of used-car shoppers said they would need more than seven days to feel optimistic about their purchase.
Remarkable Consumer Offerings by CarMax
CarMax offers a truly personalized experience to consumers with the option to do as much, or as little, online and in-store as they want. Known for revolutionizing the auto industry with the first used vehicle “no-haggle” buying and selling experience, the company offers a stress-free car buying experience with no-haggle pricing, and flexible options for customers to buy and sell a car on their terms with options to buy online or at one of the 220 CarMax stores in the United States.
CarMax has adequate capabilities and resources to compete online. It is currently the only traditional used-car dealer with nationwide omni-channel offerings. These omni-channel offerings provide a personalized multi-channel experience, thereby improving the shopping experience of buyers.
Seamless integration of a world-class in-store experience and an online experience gives CarMax pany the largest functional market within the used-car industry. In addition, 360-degree photos of vehicles are available online, providing customers full view of the interior and exterior of vehicles. Options like ship-to-home next day, contactless curb-side pick-up option, buy online, pick-up in stores and commercial customer ordering are driving traffic to the company’s online site.
Additionally, CarMax has an advantage of being the largest used-car dealer enabling it to maintain the largest nationwide inventory of more than 60,000 used vehicles of nearly every make and model. Having a huge selection is a key element, especially in the used-car market, where inventories are unique.
The recently-launched Love Your Car Guarantee is CarMax’s latest extraordinary consumer offering that will kick-off a new trend for automotive retail. In true sense, CarMax has stirred up the automotive retail industry with this breakthrough offering, achieving the first-mover advantage in the used-car industry.
In fact, the Love Your Car Guarantee sets a new standard in the industry by providing customers an unparalleled opportunity to truly fall in love with their car within the one free day they get to spend with the vehicle.
CarMax — peers of which include Advance Auto Parts AAP, O’Reilly Automotive ORLY and AutoZone AZO — currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of the company have appreciated 15.9% in the past year, while the industry has witnessed a rise of 10.1%.
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