[asphaltgambler]

I'm in the business..................this is what I know about them: They buy clean, low mileage late model cars for retail, then sell at or just under full retail. The amount of re-conditioning said vehicles depends on the margin that's already established. All trades are wholesale valued based on region - then + OR - $$ figure according to model, color, equipment, number of similar vehs in their current inventory.

The sales guys make an "average" salary with very little % on each deal. The company is large enough where some large bank underwrites their prime (top tier)customers. For less credit-worthy B/A and two other banks offer deals to the lesser candidates. I'm sure that Carmax is getting front end and back end % off of each deal; cumulative. Also, they sell mechanical warranty contracts. They may be large and profitable enough now where that is done all in house, instead of someone else underwriting that.

Their service dept mainly supports the reconditioning / sales, but also warranty work when service contracts are sold and that veh needs repairs.