Related posts:[KMX – CarMax; CVNA – Carvana] Moat, Growth, and Competition (Mar. 30, 2018)[CVNA – Carvana] Fat tail investing (Aug. 13, 2020)As previously discussed, the cost structure of used car retailing has become less variable, more fixed over the years. CarMax pioneered this transition in the early ‘90s, applying the lessons of mass retail from […]

CarMax sells more cars in a single year than Carvana has sold in its entire existence and yet has half the latter’s enterprise value as the market has come to appreciate that buying cars online is becoming a real thing and Carvana is best positioned to profit from this channel shift.CarMax was version 1.0 of […]

When I Google “used car salesman”, here are the first images that appear. ‘nuff said. It required an electronics and appliance retailer with no car selling experience to be the change that consumers wanted to see in the car buying experience.  In 1993, the now defunct Circuit City launched the first CarMax store, leveraging its […]