CarMax Auto Finance’s income increased 12.5% year over year to $107.9 million in the second quarter, despite “modest impact” of Hurricane Harvey in Texas, according to the company’s investor meeting today.
CarMax Auto Finance’s net loans originated reached $1.5 billion in the quarter, up 7.4% from the same time the year prior. Total auto finance balances were not disclosed in the earnings, but the company held $10.3 billion in outstandings at yearend 2016, according to Big Wheels Auto Finance 2017.
Kennesaw, Ga.-based CarMax Auto Finance serves more than 200,000 customers each year, according to its website. CarMax, the used-car dealership, currently has 178 stores in 39 states, including Texas and Florida.
In the second quarter, total used-unit sales increased 11.1% year over year and total wholesale unit sales increased 0.4%, which contributed to the growth of auto finance, President and Chief Executive Bill Nash said during the investor call.
“Used-car pricing continues to drop as a lot of late-model cars have entered into the marketplace recently,” he said. “And used-car depreciation is also favorable to the price drop. Therefore our sales increased, and we see our wholesale margin improve as well.”
Separately, CarMax plans to open 15 more stores nationwide by yearend, eight of which will be in “metropolitan statistical areas having populations of 600,000 or less,” Nash said.
For more content like this, check out the 17th annual Auto Finance Summit, which will take place on Oct. 25-27 at the Wynn Las Vegas. To learn more about this year’s event — or to register — visit the Summit’s homepage here.
