[kaisen]

Lee, if you took the Z to the auction the only motive is to make a (small) profit there (~$400?). You would have considered your seller's fee (~$300) and the buyer would have paid a fee too (~$250). Then the buyer has to transport the car 'home' to their lot (up to $700 if outstate). So if you paid, say, $20000 that next dealer paid $20950 with fee and owns it, shipped, for up to $21650.

The Carmax model kinda says, 'hey, if we're gonna own an un-known out-of-town car for $21650, we might as well buy the local guy's for about the same money.' They look like a hero for giving the guy $1650 more than the last dealer. But Carmax has a local car with history.

Not a bad business plan.