Richmond, Va.-based CarMax Inc. reported a total of $56.7 million in nonprime loans during its 2014 test period.
CarMax reported a boost in its earnings across the company and CarMax Auto Finance during the third quarter of 2014 on an earnings call Dec. 19. For the fiscal period ending November 30, the company reported $3.41 billion in net sales and operating income, a 15.8% increase. Net earnings were reported at $130 million, a 22.2% increase from the year-ago quarter. CarMax Auto Finance had $89.7 million in revenue, up 6.9% from the year-ago quarter.
The company also reported on its non-prime sales. During the third quarter, CarMax reported that it originated $12.3 million in nonprime loans. The loans, which CarMax traditionally passes to its third party nonprime loan providers, represented about 0.5% of its retail sales unit. The company calls the non-prime loans a “test” in its report, as reported here in April. CarMax has been testing the idea of handling its own non-prime loans in-house. During the second quarter, CarMax announced it is about halfway through the test program of originating nonprime loans.
