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CarMax, Inc.

Automotive Retail / Used Vehicle Sales and Auto FinanceFounded 1993
Reviewed by Swet Parvadiya
Company data updated: October 2026

Acquisitions

CarMax Acquisitions

3

Major Deals Covered

$404M

Disclosed Deal Value

What are CarMax's biggest acquisitions?

CarMax's largest disclosed acquisition here is Edmunds Holding Company for $404M in 2021. This page covers 3 major deals from 2020 to 2021, each with its price where disclosed and the reason behind it.

Major deals covered
3
Largest deal
Edmunds Holding Company ($404M)
First deal
2020
Most recent
2021
CompanyYearPricePurpose
Edmunds Holding Company2021$404.0MCarMax bought the remaining interest in car-research site Edmunds, valuing it at about $404 million, to add an owned research audience, valuation tools, and digital talent.
CarStory (Vast.com)2020UndisclosedStrategic investment and data integration with AI-powered automotive pricing and predictive inventory analytics provider CarStory.
AutoFi (strategic equity investment)2021UndisclosedMinority equity stake in leading digital retail and auto financing technology platform AutoFi.
What companies has CarMax bought?
Major acquisitions by CarMax documented here include Edmunds Holding Company (2021), AutoFi (strategic equity investment) (2021) and CarStory (Vast.com) (2020).
What is CarMax's most recent acquisition?
The most recent CarMax acquisition documented here is Edmunds Holding Company, in 2021, for $404M.

Edmunds Holding Company

2021

$404M

Why

CarMax bought the remaining interest in car-research site Edmunds, valuing it at about $404 million, to add an owned research audience, valuation tools, and digital talent.

Impact

Edmunds brings advertising and subscription revenue ($144.5 million in fiscal 2026) and early-funnel shoppers for CarMax's appraisal and retail offers.

Outcome

The deal has underdelivered financially: CarMax recorded an Edmunds lease impairment in fiscal 2025, abandoned the Edmunds lease in fiscal 2026, and wrote off all $141.3 million of remaining goodwill in Q4 fiscal 2026.

Source →

AutoFi (strategic equity investment)

2021

Why

Minority equity stake in leading digital retail and auto financing technology platform AutoFi.

Impact

Accelerated online pre-qualification and multi-lender digital financing capabilities directly inside CarMax.com.

Outcome

Strengthened omnichannel retail sales experience.

Source →

CarStory (Vast.com)

2020

Why

Strategic investment and data integration with AI-powered automotive pricing and predictive inventory analytics provider CarStory.

Impact

Enhanced CarMax's digital appraisal algorithm and nationwide vehicle sourcing intelligence.

Outcome

Integrated CarStory predictive analytics across CarMax digital buying platforms.

Source →

CarMax, Inc.'s Growth & Acquisition Strategy

Keith Barr's 'Shift into GEAR' plan has four pillars: Great Offering (price competitively across demand cycles and grow saleable inventory), Easy Experience (connect digital tools with in-store service to lift conversion), Add Value (grow CAF and EPP profitability), and Run Lean (cut reconditioning, logistics, and SG&A costs). CAF's full-spectrum lending push is a central lever: in Q2 fiscal 2027 CAF financed 22% of Tier 2 volume versus 10% a year earlier. CarMax also continues to build stand-alone reconditioning and auction centers to support future volume.

How CarMax, Inc. Makes Money

CarMax buys used vehicles from consumers (whether or not they buy a car), from dealers, and at auctions, reconditions the ones that meet its retail standard, and sells them at fixed prices online, in stores, or through a mix of both. Vehicles that do not meet the retail standard are sold to licensed dealers in CarMax's online wholesale auctions. On top of the vehicle margin, CarMax earns income from CarMax Auto Finance loans, fees from third-party lenders, and commissions on extended protection plans (EPP). In fiscal 2026, used vehicle sales were 80.0% of revenue, wholesale 17.4%, and other sales and revenues 2.6%; CAF contributed $562.7 million of income, reported separately from revenue.

CarMax Acquisitions FAQ

What was CarMax's landmark acquisition of Edmunds.com in 2021?

In 2021 CarMax acquired the remaining interest in Edmunds, valuing the car-research and review site at about $404 million.

Why did CarMax acquire Edmunds.com and how does it operate post-acquisition?

CarMax bought Edmunds to add an owned research audience, valuation tools, and digital talent. Edmunds still operates its own site and earned $144.5 million of advertising and subscription revenue in fiscal 2026.

Has CarMax acquired other used-car dealership chains to expand its store network?

No, CarMax has grown almost entirely through organic greenfield expansion, purchasing prime retail real estate and constructing custom-designed superstores rather than acquiring existing auto dealership franchises.

Has the Edmunds acquisition paid off?

Financially it has underdelivered: CarMax took an Edmunds lease impairment in fiscal 2025 and wrote off all $141.3 million of remaining goodwill in Q4 fiscal 2026.

How does CarMax evaluate potential future acquisitions?

CarMax evaluates acquisition targets based on their ability to enhance digital retail capabilities, improve vehicle reconditioning efficiency, expand data science appraisal accuracy, and deliver immediate accretive value to shareholders.

Does CarMax plan to acquire auto repair or auction companies?

CarMax maintains an internal strategy focused on expanding its proprietary digital wholesale auction software and in-store service production facilities rather than acquiring third-party auction or repair chains.

Did CarMax buy Edmunds?

Yes, in a massive strategic move in 2021, CarMax acquired the highly respected automotive research site Edmunds for roughly $400 million, instantly capturing millions of consumers who were researching cars online.

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Content is for informational purposes only. Not financial advice. Data sourced from SEC filings, annual reports, and public records. See our full disclaimer and methodology.