CarMax, Inc.
Company History
CarMax History: Founding, Growth & Key Milestones
Founded 1993 in Richmond, Virginia
When was CarMax founded?
CarMax was founded in 1993 in Richmond, Virginia by Richard L. Sharp and Austin Ligon, making it 33 years old.
- Founded
- 1993
- Founding place
- Richmond, Virginia
- Founders
- Richard L. Sharp and Austin Ligon
- Headquarters today
- Richmond, Virginia
- Milestones documented
- 17 (1991–2026)
- Current CEO
- Keith Barr
- Acquisitions
- 3
| Year | Event |
|---|---|
| 1991 | Project X Conceived at Circuit City |
| 1993 | First CarMax Superstore Opens |
| 1996 | Multi-Market Expansion Begins |
| 1997 | CarMax Tracking Stock Listed |
| 2002 | Spin-Off from Circuit City |
| 2005 | Steady Expansion and CAF Growth |
| 2008 | Financial Crisis Navigation |
| 2013 | Digital Investment |
| 2017 | Omnichannel Pilot |
| 2020 | COVID-19 Digital Acceleration |
| 2021 | Edmunds Acquisition |
| 2023 | Revenue Peak at $29.68 Billion |
| 2024 | Cost Discipline and Margin Focus |
| 2025 | CEO Bill Nash Departs; CAF Expands Credit Spectrum |
| 2026 | Keith Barr Becomes CEO |
| 2026 | FY2026 Revenue Falls to $25.881 Billion |
| 2026 | Shift into GEAR Drives Q2 FY2027 Rebound |
- Where was CarMax founded?
- CarMax was founded in Richmond, Virginia in 1993.
- Who founded CarMax?
- CarMax was founded by Richard L. Sharp and Austin Ligon.
- When did CarMax start?
- CarMax was founded in 1993.
- How old is CarMax?
- CarMax is 33 years old as of 2026.
Founding Story
In 1991 Circuit City CEO Richard L. Sharp and strategist Austin Ligon began studying whether the electronics chain's big-box retail playbook could work in another category. They chose used cars, a large, fragmented market with no trusted national brand and a poor consumer reputation. The internal effort, code-named 'Project X', opened the first CarMax in Richmond, Virginia in September 1993 with no-haggle prices, salespeople paid a flat amount per car, and in-store computer kiosks to search inventory.
Founders
Richard L. Sharp
Richard L. Sharp was the Circuit City chief executive who conceived CarMax as an internal venture. In the early 1990s he pushed his team to find a new retail category where Circuit City's strengths in inventory management, point-of-sale systems, and customer service could be applied. Strategist Austin Ligon led the study and the team chose used cars, a fragmented market with no trusted national brand. The resulting 'CarMax' concept combined large selection, fixed prices, inspected vehicles, and salespeople paid a flat amount per car. The first store opened in Richmond in September 1993. CarMax eventually outgrew its parent and was spun off as an independent NYSE company on October 1, 2002; Circuit City filed for bankruptcy in November 2008 and was liquidated in 2009. Richard L. Sharp was born in 1943.
Austin Ligon
Austin Ligon led the Circuit City team that designed CarMax and ran the company from its 1993 launch in Richmond, Virginia until 2006. He built the core elements that set CarMax apart from traditional dealers: posted no-haggle prices, sales consultants paid a flat amount per vehicle rather than on gross profit, consistent appraisals for any car whether or not the owner bought one, and a centralized reconditioning standard. Under Ligon, CarMax expanded beyond Virginia, listed a tracking stock in 1997, and became independent from Circuit City in 2002. (Exact birth year remains publicly undisclosed).
Key Milestones
Project X Conceived at Circuit City
Circuit City CEO Richard L. Sharp conceives 'Project X' to apply big-box retail practices to the used car industry. Austin Ligon is appointed to lead the project, beginning 18 months of planning and development.
Source: en.wikipedia.orgFirst CarMax Superstore Opens
CarMax opens its first store in Richmond, Virginia in September 1993, introducing posted no-haggle prices, flat per-car sales pay, inspected vehicles, and computer kiosks for searching inventory.
Source: en.wikipedia.orgMulti-Market Expansion Begins
CarMax begins expanding beyond Richmond, opening additional superstores in the Southeast with standardized appraisal and reconditioning processes. The company establishes the operational playbook for national scaling.
Source: en.wikipedia.orgCarMax Tracking Stock Listed
Circuit City issues a tracking stock for its CarMax Group, giving public investors exposure to CarMax's growth while it remains part of Circuit City.
Source: en.wikipedia.orgSpin-Off from Circuit City
CarMax is separated from Circuit City through a tax-free transaction on October 1, 2002, becoming an independent, publicly traded company on the NYSE under ticker symbol 'KMX.' The spin-off allows focused management of the used vehicle business.
Source: en.wikipedia.orgSteady Expansion and CAF Growth
CarMax continues steady store openings and expands its product mix, including extended protection plans, while CarMax Auto Finance becomes a major profit contributor.
Source: en.wikipedia.orgFinancial Crisis Navigation
CarMax navigates the global financial crisis by tightening CAF underwriting standards, reducing inventory exposure, and maintaining liquidity. The company emerges with increased market share as weaker competitors fail.
Source: en.wikipedia.orgDigital Investment
CarMax invests in e-commerce and mobile shopping tools as online research becomes central to used-car buying.
Source: en.wikipedia.orgOmnichannel Pilot
CarMax pilots omnichannel features including online reservations, financing pre-qualification, and home delivery, laying groundwork for its nationwide omni rollout.
Source: en.wikipedia.orgCOVID-19 Digital Acceleration
The COVID-19 pandemic accelerates CarMax's digital transformation, with the company scaling home delivery, curbside pickup, and end-to-end online purchases to meet consumer demand for contactless transactions.
Source: en.wikipedia.orgEdmunds Acquisition
CarMax acquires the remaining interest in Edmunds Holding Company, valuing the car-research site at about $404 million, to strengthen its digital shopping and appraisal tools.
Source: en.wikipedia.orgRevenue Peak at $29.68 Billion
CarMax reports fiscal 2023 revenue of $29.68 billion, its peak to date, before higher interest rates and affordability pressure weigh on used-vehicle demand.
Source: en.wikipedia.orgCost Discipline and Margin Focus
With revenue below the fiscal 2023 peak, CarMax focuses on margin protection, CAF underwriting discipline, and selective store growth.
Source: en.wikipedia.orgCEO Bill Nash Departs; CAF Expands Credit Spectrum
Bill Nash's nine-year tenure as CEO ends in late 2025, with board member David McCreight serving as interim CEO. CAF expands into Tier 2 and Tier 3 lending and completes a $900 million non-prime securitization in Q3 fiscal 2026.
Source: investors.carmax.comKeith Barr Becomes CEO
Keith Barr becomes President and CEO effective March 16, 2026, succeeding interim CEO David McCreight.
Source: investors.carmax.comFY2026 Revenue Falls to $25.881 Billion
CarMax reports fiscal 2026 revenue of $25.88 billion (down 1.8%) and net earnings of $247.3 million (down 50.6%), including a $141.3 million goodwill impairment.
Source: investors.carmax.comShift into GEAR Drives Q2 FY2027 Rebound
CarMax reports Q2 fiscal 2027 revenue of $7.9 billion (up 19.5%), retail used units up 13.8%, and EPS of $1.16 (up 81.3%), and announces plans to resume share repurchases.
Source: media.carmax.comMajor Acquisitions
Edmunds Holding Company
2021CarMax 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)
2020Strategic investment and data integration with AI-powered automotive pricing and predictive inventory analytics provider CarStory.
AutoFi (strategic equity investment)
2021Minority equity stake in leading digital retail and auto financing technology platform AutoFi.
Keep researching CarMax
CarMax Company History FAQ
When was CarMax founded and what corporate entity created it?
CarMax was founded in 1993 as an internal skunkworks retail innovation project of consumer electronics retailer Circuit City Stores, Inc., led by Richard Sharp and Austin Ligon in Richmond, Virginia.
When did the first CarMax superstore open to the public?
The first CarMax store opened in Richmond, Virginia, in September 1993, pioneering the major concept of fixed-price, no-haggle used-car retailing with computer-assisted customer search kiosks.
When did CarMax list publicly and spin off from Circuit City?
Circuit City issued a tracking stock for CarMax (ticker: KMX) in February 1997, and on October 1, 2002, CarMax was spun off as a completely independent, publicly traded corporation on the New York Stock Exchange.
Who has led CarMax as CEO?
CarMax has had four permanent CEOs: Austin Ligon (1993-2006), Tom Folliard (2006-2016), Bill Nash (2016-2025), and Keith Barr (since March 16, 2026), with David McCreight serving as interim CEO in between Nash and Barr.
How did CarMax handle the 2008-2009 global financial crisis?
During the 2008 recession, while Circuit City liquidated and several auto manufacturers filed for bankruptcy, CarMax remained profitable by tightening vehicle inventory, maintaining conservative underwriting at CarMax Auto Finance, and gaining market share.
When did CarMax launch its nationwide omnichannel digital car-buying platform?
CarMax rolled out its nationwide omnichannel platform between 2018 and 2020, enabling customers across the country to complete vehicle financing, trade-in valuations, and car purchases 100% online with home delivery.
When did CarMax acquire Edmunds.com?
CarMax acquired the remaining interest in car-research site Edmunds in 2021, valuing it at about $404 million. In Q4 fiscal 2026 CarMax wrote off its remaining $141.3 million of goodwill.
What is CarMax's modern market position in the US used-vehicle industry?
CarMax is the largest U.S. used-car retailer, with about 256 stores, roughly 28,000 associates, 1.32 million combined retail and wholesale units sold in fiscal 2026, and $25.88 billion of fiscal 2026 revenue.
Was CarMax owned by Circuit City?
Yes, CarMax was famously created in 1993 entirely by the executives of Circuit City, who wanted to apply their massive "big-box" electronics retail model to the highly fragmented, untrusted used-car market.
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