CarMax is a pre-owned car retailer company which deals in used cars selling. It’s largest used car Retailer Company and had been listen in Fortune 500. First location of CarMax was opened in 1993. Reaching by May 2015, CarMax had its 156 locations total. For advertising and creative resource purpose, DeVito/Verdi was hired by CarMax before opening its very first store. For very starting of their store, advertisement had been done on many levels like marketing campaigns & TV advertisement to create awareness about this new type of buying pre-owned car and to give support to newly opened stores. In supervision of CEO Richard L Sharp, the concept of CarMax was projected by employees of Circuit City.
This concept was projected under “Project X” and was known “Honest Rick’s Used Cars”. As CarMax main business was to deal in used cars, they obtained permissions from OEM (Original Equipment Manufacturer) Car Companies (Chrysler, Mitsubishi and Toyota) to locate their stores. CarMax bought an auto row in Wisconsin in Kenosha which was having supplementary
manufacture franchise like Volvo, BMW and Ford. First store of CarMax was opened at 1.7 miles from Circuit city (Parent Company of CarMax) Corporate office in Richmond, Virginia. By 2009, CarMax had 100 used car superstores and some new car franchisees. In this business, Circuit City was pre determined for not taking any fee from consumers as they were sure that no consumer is going to pay any fees for buying any pre-owned car. A CarMax store requires 59,000 square feet. A normal CarMax stores takes 300-400 cars inventory at a time and the same is turned over 7-8 times in a year. CarMax stores usually have 40 sales executives. Concept of CarMax gives services like 125-points inspection of car, 5-day money back guarantee and 30 days warranty.