# CarMax's Used Car Margin Test

> CarMax's used car recovery shows margin resilience despite retail unit slowdowns
- Title: CarMax's Used Car Margin Test | Shortify
- Summary: CarMax's used car recovery shows margin resilience despite retail unit slowdowns Retail gross profit per unit dropped $230 as CarMax fights for demand with…
- Keywords: carmax, kmx, used car, retail gross profit, wholesale sales, auto finance, allowance for loan losses, sga expenses, CarMax's, Used, Car, Margin
- Source: Alphastreet - Earnings Decoded. Market Intelligence Delivered — https://news.alphastreet.com/carmax-kmx-used-car-recovery-still-has-a-margin-and-credit-test
- Author: Newsdesk
- Published: 2026-09-25T13:21:26+00:00
- Read time: 1 min
- Topics: carmax, kmx, used car, retail gross profit, wholesale sales, auto finance, allowance for loan losses, sga expenses
## Q1 2027 Results
CarMax reported $8.0 billion net revenue, up 6.2% from prior-year quarter
## Retail Units Flat
Retail used vehicle sales nearly flat at 230,293 units, down 0.8% in comparable stores
## Wholesale Growth
Wholesale used vehicle sales rose 8.4% to 162,064 units, offsetting retail weakness
## Retail Margin Drop
Retail gross profit per unit fell $230 to $2,177, reflecting pricing actions to support demand
## Wholesale Margin Up
Wholesale gross profit per unit rose 8.3% to $1,046, maintaining steady performance
## Auto Finance Impact
CarMax Auto Finance financed 43.3% of units sold, with interest margins up 20 basis points
## Credit Watch
Allowance for loan losses rose to 2.95% of auto loans held for investment
## Key takeaway

Retail gross profit per unit dropped $230 as CarMax fights for demand with pricing actions