Nation’s largest used-car retailer now offers a 30-Day Money Back Guarantee and 24-Hour Test Drives

RICHMOND, VA (January 12, 2021) – CarMax, Inc. (NYSE: KMX), the nation’s largest retailer of used cars, today announced the launch of the Love Your Car Guarantee, the only consumer offering of its kind in the automotive retail industry. This new signature experience gives customers the ability to take 24-Hour Test Drives before committing to purchase – providing increased peace of mind and buyer confidence as customers experience a day in their life with a new ride. In addition, CarMax has extended its 7-Day Money Back Guarantee to a 30-Day Money Back Guarantee. Now, customers have 30 days to decide if a vehicle is the right fit, allowing them to return the car for any reason for a full refund up to 1,500 miles. This offering is unmatched in the automotive industry.

“We never stop innovating on behalf of our customers,” said Bill Nash, president and CEO of CarMax. “The Love Your Car Guarantee sets a new standard in the industry by providing customers an unrivaled opportunity to truly fall in love with their car. We know buying a car is a big decision that has a significant impact on your family, and customers are telling us they are loving the Guarantee already.”

According to CarMax consumer research, 96% of used car shoppers said they would likely take advantage of test driving a vehicle for 24 hours if they had the option. Sixty-three percent of used car shoppers said they would need more than 7 days to feel confident they were making the right purchase.

Known for disrupting the industry with the first used vehicle “no-haggle” buying and selling experience, the Love Your Car Guarantee is CarMax’s latest unprecedented consumer offering that will continue to set the trend of the future of automotive retail. CarMax also offers online car buying nationwide, where customers can receive delivery through contactless curbside pickup, available nationwide, and home delivery, available to most customers. Customers can also opt to complete the car buying experience in-person at one of CarMax’s 220 stores among 41 states nationwide. The company significantly invested in technology and digital initiatives to build out this omni-channel experience that empowers customers to buy a car on their terms – online, in-store, and a seamless integration of both.

The CarMax consumer difference:

• Stress-free car buying experience with no-haggle pricing and flexible options for customers to buy and sell a car on their terms including options to buy online or at one of CarMax’s 220 stores nationwide
• Contactless curbside pickup, available nationwide, or home delivery, available to most customers
• Largest nationwide inventory of 60,000+ used vehicles of nearly every make and model
• 24-Hour Test Drives where customers have a full day to decide if a car is the right fit
• 30-Day Money-Back Guarantee where customers can return the car for any reason for a full refund if the vehicle has not been driven more than 1,500 miles
• 360-degree photos online that give customers full viewpoints of the interior and exterior of vehicles
• Limited warranty that covers a vehicle’s major systems for 90 days or 4,000 miles, whichever comes first
• Free appraisal offers good for seven days – we’ll buy your car even if you don’t buy ours®
• Extensive social distancing and sanitation measures at all CarMax locations. CarMax associates wear masks when working with others, and the company sanitizes high-touch areas of vehicles, including before and after test drives and vehicle repairs. Further details on how CarMax is supporting customers during the COVID-19 pandemic may be found here.

Photo images and B-roll are available for download on the CarMax Media Center.

About CarMax

CarMax, the nation’s largest retailer of used cars, revolutionized the automotive retail industry by driving integrity, honesty and transparency in every interaction. The company offers a truly personalized experience with the option for customers to do as much, or as little, online and in-store as they want. CarMax also provides a variety of vehicle delivery methods, including home delivery, contactless curbside pickup and appointments in its stores. During the fiscal year ending February 29, 2020, CarMax sold more than 830,000 used cars and more than 465,000 wholesale vehicles at its in-store auctions. CarMax has 220 stores, over 25,000 Associates, and is proud to have been recognized for 16 consecutive years as one of the Fortune 100 Best Companies to Work For®. For more information, visit www.carmax.com.

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Forward-Looking Statements

We caution readers that the statements contained in this release about our future business plans, operations, challenges, opportunities or prospects, including without limitation any statements or factors regarding expected operating capacity, sales, market share, margins, expenses, liquidity, capital expenditures, debt obligations, tax rates or earnings, are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.  You can identify these forward-looking statements by the use of words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “outlook,” “plan,” “predict,” “should,” “will” and other similar expressions, whether in the negative or affirmative.  Such forward-looking statements are based upon management’s current knowledge and assumptions about future events and involve risks and uncertainties that could cause actual results to differ materially from anticipated results.  Among the factors that could cause actual results and outcomes to differ materially from those contained in the forward-looking statements are the following:

• The effect and consequences of the Coronavirus public health crisis on matters including U.S. and local economies; our business operations and continuity; the availability of corporate and consumer financing; the health and productivity of our associates; the ability of third-party providers to continue uninterrupted service; and the regulatory environment in which we operate.
• Changes in general or regional U.S. economic conditions.
• Changes in the availability or cost of capital and working capital financing, including changes related to the asset-backed securitization market.
• Changes in the competitive landscape and/or our failure to successfully adjust to such changes.
• Events that damage our reputation or harm the perception of the quality of our brand.
• Our inability to realize the benefits associated with our omni-channel initiatives.
• Our inability to recruit, develop and retain associates and maintain positive associate relations.
• The loss of key associates from our store, regional or corporate management teams or a significant increase in labor costs.
• Security breaches or other events that result in the misappropriation, loss or other unauthorized disclosure of confidential customer, associate or corporate information.
• Significant changes in prices of new and used vehicles.
• Changes in economic conditions or other factors that result in greater credit losses for CAF’s portfolio of auto loans receivable than anticipated.
• A reduction in the availability of or access to sources of inventory or a failure to expeditiously liquidate inventory.
• Changes in consumer credit availability provided by our third-party finance providers.
• Changes in the availability of extended protection plan products from third-party providers.
• Factors related to the regulatory and legislative environment in which we operate.
• Factors related to geographic and sales growth, including the inability to effectively manage our growth.
• The failure of or inability to sufficiently enhance key information systems.
• The performance of the third-party vendors we rely on for key components of our business.
• The effect of various litigation matters.
• Adverse conditions affecting one or more automotive manufacturers, and manufacturer recalls.
• The failure or inability to realize the benefits associated with our strategic investments.
• The inaccuracy of estimates and assumptions used in the preparation of our financial statements, or the effect of new accounting requirements or changes to U.S. generally accepted accounting principles.
• The volatility in the market price for our common stock.
• The failure or inability to adequately protect our intellectual property.
• The occurrence of severe weather events.
• Factors related to the geographic concentration of our stores.

For more details on factors that could affect expectations, see our Annual Report on Form 10-K for the fiscal year ended February 29, 2020, and our quarterly or current reports as filed with or furnished to the U.S. Securities and Exchange Commission.  Our filings are publicly available on our investor information home page at investors.carmax.com.  Requests for information may also be made to the Investor Relations Department by email to [email protected] or by calling (804) 747-0422 x7865.  We undertake no obligation to update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise.