CARMAX (KMX)

Add a New Bears Reason Company: CARMAX (KMX) Current price: Headline: (100 character max) Analysis: Cancel 100% agree 2 votes   Credit crisis Top Contributor: J.D. Thornton | Created when NYSE:KMX was $10.33 | Edit | History As a player in the Used car market, where banks have become much less willing to lend to marginal borrowers, Carmax's customers have more difficulty getting financing which in turn leads to less cars sold and less profit for the company. (100 character max) Cancel 0% agree 0 votes   Appraisal Cost Recovery (ACR) Increasing Top Contributor: Patrick Cushing | Created when NYSE:KMX was $11.69 | Edit | History CarMax Inc. has always advertised "free" appraisal offers. Little does the public know that in reality, CarMax recovers the cost and actually makes a profit, even a wholesale profit, by actually giving the customer $1,000 less than the actual market value for their car or truck. In light of the recent downturn in revenue, CarMax is now testing a new Appraisal Cost Recovery program of even offering customers $2,000 less than the market value of their car or truck. CarMax is now in dire straits as it is offering customers less for their trades, inflating the price of their retail vehicles (prices have trended higher in the last 6 months). CarMax has also recently restructured by "realigning" 130 management positions, which will result in lower customer care. Expect more cost cutting as CarMax continues to flail. (100 character max) Cancel

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