CarMax(R) Continues Expansion into South Florida With Fort Lauderdale Store Grand Opening
5 November 1997
CarMax(R) Continues Expansion into South Florida With Fort Lauderdale Store Grand Opening
RICHMOND, Va., Nov. 5 -- CarMax Auto Superstores, Inc., the
pioneer of the used-car superstore concept, will open on November 17 its
second and largest store of as many as five locations expected in the South
Florida market.
CarMax, a subsidiary of Circuit City Stores, Inc., has been
revolutionizing the way consumers think about automobile purchases since
opening its first store in 1993. CarMax locations offer up to 1,000 top-
quality used cars and trucks; low prices with no negotiating; customer-
friendly service throughout the buying experience; and convenient, quality
repair service. The company began development of the auto superstore concept
in 1991 and opened the first store of its kind in Richmond, Va.
The Fort Lauderdale superstore, which will employ approximately 300
people, will be the 14th CarMax location to open in the country. CarMax
entered the South Florida market with the opening of its Boynton Beach store
in September. The company expects to operate 17 locations by the end of its
fiscal year and 80 to 90 by calendar year 2001. In its current fiscal year,
CarMax has opened a third location in the Atlanta market and begun entries
into the Houston, Dallas /Fort Worth and Washington/Baltimore markets.
Additional openings are planned for the Houston, Dallas/Fort Worth and Miami
markets in the current fiscal year. The company also plans to add new-car
franchises to as many store locations as possible.
The Fort Lauderdale store is located at 7420 State Road 84 at Interstate-
595 and University Drive in Davie. The 83,000-square-foot sales and service
facility, situated on 21 acres, has capacity for more than 700 used vehicles.
The selection includes minivans, sport-utility vehicles, light and full-size
trucks, sub-compact, compact and luxury cars. Customers also have access to
the more than 5,500 used vehicles available at other CarMax locations
nationwide. A third store in Dade County near International Mall and the
Dolphin Expressway is expected to open in late February. Plans for additional
locations remain under development. CarMax also operates one location each in
Orlando and Tampa.
"The Fort Lauderdale location gives South Florida shoppers another
opportunity to experience our distinctly different consumer offer," said W.
Austin Ligon, president of CarMax. "We provide low, no-haggle prices;
tremendous selection; quality guarantees; and customer-friendly service before
and after the sale. Since opening, CarMax has sold more than 90,000 vehicles,
clearly proving that consumers want to buy cars the way we sell cars."
CarMax has introduced many innovative ideas to the traditional automotive
retail industry. Consumers visiting the Fort Lauderdale location will enjoy
the following shopping experience:
Buying a Car at CarMax
Selecting a Vehicle. Using AutoMation(R), a unique touch-screen inventory
selection system, CarMax's trained sales consultants help customers identify
the CarMax vehicles that meet their needs. AutoMation sorts vehicles by type,
make, model and price and displays on-screen all features, specifications and
the CarMax no-haggle price. All vehicles are displayed on the lot by type,
make and model. For each vehicle selected, AutoMation prints a fact sheet
that includes vehicle information and a map indicating where the vehicle is
located on the CarMax lot.
CarMax Prices. CarMax believes customers should not have to pay more to
be treated well. Thus, CarMax offers low, no-haggle prices at every stage of
the vehicle transaction -- from the purchase price through financing, trade-in
and warranty. CarMax used vehicles are generally priced $500 to $1,000 below
the National Automobile Dealers Association average retail book value. All
prices are non-negotiable so every customer receives the same, attractive low
price.
CarMax replaces the traditional trade-in with an appraisal process in
which cars are purchased from any consumer, including individuals not buying a
vehicle from CarMax. The company has provided more than 325,000 free
appraisals since opening. Trained CarMax buyers appraise the vehicle, usually
in 30 minutes or less, and provide the vehicle's owner with a written monetary
offer good for seven days or 300 miles whether the owner buys a car from
CarMax or not.
CarMax also provides easy financing at competitive rates. The sales
consultant helps the customer complete a financing application, which is sent
on-line to First North American Credit, a division of CarMax; and to
NationsBank. Qualified customers can view rate terms from both providers
generally within eight minutes or less. MaxCare(R), CarMax's extended service
program, offers limited bumper-to-bumper mechanical protection with flexible
terms up to 72 months. Customers can view all extended warranty pricing and
terms and make the decision that is right for them. Again, pricing is not
negotiated, so all customers receive the same favorable terms.
Finally, unlike many traditional dealers, CarMax adds no processing fees
to the vehicle price. In fact, the retailer provides on-line vehicle
registration at no additional charge. The only additional fees are tax and
license fees payable to the state.
Quality Vehicles. CarMax(R) vehicles are generally one to six years old
with fewer than 60,000 miles. ValuMax vehicles, which expand the selection
for more cost-conscious consumers, are generally more than six years old or
have more than 60,000 miles. In the South Florida market, CarMax provides a
five-day, 250-mile return guarantee and a 99-day/ 3,300-mile limited warranty.
All CarMax vehicles pass the Certified Quality Inspection(SM) process covering
all mechanical features, ensuring quality of operation at a value price.
CarMax does not sell vehicles that have incurred frame damage or extensive
body work. Inspections are performed by CarMax service technicians, who
are ASE certified, the industry standard for technician training.
Customer-Friendly Service. A single CarMax sales consultant assists the
customer throughout the shopping process. Sales consultants at all CarMax
locations have been carefully selected, many from other high-service
businesses. Their customer focus combined with the low-price, no-pressure
sales philosophy and the management information systems that support the
buying process creates an exceptional car buying experience. Generally,
customers can complete the entire transaction from vehicle selection through
test driving and financing in two hours or less. As an extra convenience,
each location features a supervised "For Kids-Only(R)" play area.
CarMax offers convenient store hours. The Fort Lauderdale store will be
open Monday through Thursday, 10:00 a.m. to 9:00 p.m.; Friday, 10:00 a.m. to
10:00 p.m.; Saturday, 9:00 a.m. to 10:00 p.m.; and Sunday, 11: 00 a.m. to 8:00
p.m. Service hours are Monday through Sunday, 7:30 a.m. to 8:30 p.m.
CarMax is a subsidiary of Circuit City Stores, Inc., the nation's leading
retailer of brand-name consumer electronics and major appliances and a
leading retailer of personal computers and music software. With headquarters
in Richmond, Va., Circuit City operates 14 CarMax Auto Superstores, including
the Fort Lauderdale location; 469 Circuit City Superstores; four consumer
electronics-only stores; and 52 mall-based Circuit City Express stores. The
company's CarMax Group common stock trades under the symbol "KMX." Additional
CarMax information is available at http://www.carmax.com. The Circuit City
Group common stock trades under the symbol "CC." Additional Circuit City
information is available at http://www.circuitcity.com.
SOURCE CarMax Superstores, Inc.
