CarMax, Inc. (NYSE:KMX)

MikeMiloserdoff (< 20) Submitted: 12/5/2006 3:31:51 AM : Start Price: $23.75 KMX Score: +22.64

Carmax is a used car sales company located throughout the United States that was a spin-off company from Circuit City about 6 years ago. They have a money-back guarantee policy and no-haggle pricing, which seems to give them a competitive advantage in the used car market. I believe that their autos can be transferred nationwide to / from any of their dealerships, making the used car selection extensive through Carmax.

An average Carmax used car sometimes seems a little on the high side, but when you consider that you have a money-back guarantee, it would seem to give a novice used car purchaser a bit more of a comfort level / base from which to make a used car purchase decision through Carmax.

With the cost of new cars seemingly always on the rise, and the near-extinction of the American Middle Class citizen that has deep enough pockets to find a new car affordable, Carmax seems to fill the void for car buyers who may be new to the used car purchase, and would like a little more degree of comfort by having a money back guarantee on their purchase, with no strings attached.

I am not a KMX shareholder at the moment, but I wish now I bought stock when I first started watching it about 6 years ago (about $5 / share). Carmax is in the thriving used car industry, and seems to have good purchase policy from which someone new to the used car market would find attractive. Many people like to trade-in cars that have a lot more life expectancy. There is an abundance of fine used cars in the USA.