CarMax(R) to Enter South Florida Market With Boynton Beach Store Grand Opening
22 September 1997
CarMax(R) to Enter South Florida Market With Boynton Beach Store Grand Opening
RICHMOND, Va., Sept. 22 -- CarMax Auto Superstores, Inc., the
pioneer of the used-car Superstore concept, will enter South Florida next week
when it opens the first of three locations planned for the market.
CarMax, a subsidiary of Circuit City Stores, Inc., is revolutionizing the
way consumers think about automobile purchasing by offering a broad selection
of 400 to 1,000 top-quality used cars and trucks; low prices with no
negotiating; customer-friendly service throughout the buying experience; and
convenient, quality repair service. The company began development of the auto
superstore concept in 1991 and opened the first store of its kind
in September 1993 in Richmond, Va.
The Boynton Beach superstore, which will employ approximately 170 people,
will be the first CarMax location to open in the South Florida area and the
13th in the country. The company expects to operate 17 locations by the end
of its fiscal year and 80 to 90 by calendar year 2001. In its current fiscal
year, CarMax has opened a third location in the Atlanta market, and begun
entries into the Houston, Dallas/Fort Worth and Washington/Baltimore markets.
Additional openings in the current fiscal year are planned for the Fort
Lauderdale, Houston, Dallas/Fort Worth and Miami markets. The company also
plans to add new-car franchises to as many store locations as possible.
The Boynton Beach store, located at 2000 Highridge Road at Interstate-95
and Gateway Boulevard in Boynton Beach, will open September 29. The 14-acre
location will feature display space for 500 used vehicles, including minivans,
sport-utility vehicles, light and full-size trucks, sub-compact and luxury
cars. The Fort Lauderdale store, located at 7420 State Road 84 at Interstate-
595 and University Drive in Davie, is scheduled to open in November. With
capacity for more than 700 used vehicles, the 21-acre location will be the
largest CarMax superstore in the South Florida market. A third store in Dade
County near International Mall at the Dolphin Expressway is expected to open
in late February. CarMax currently operates one location each in Orlando and
Tampa, Fla.
"We are looking forward to providing our distinctly different consumer
offer to area shoppers," said W. Austin Ligon, president of CarMax. "We
provide low, no-haggle prices; tremendous selection; quality guarantees and
customer-friendly service before and after the sale. Our experience has
clearly shown that consumers want to buy cars the way we sell cars."
CarMax has introduced many innovative ideas to the traditional automotive
retail industry. Consumers visiting the Boynton Beach location will enjoy the
following shopping experience:
Buying a Car at CarMax
Selecting a Vehicle. Using AutoMation(R), a unique touch-screen inventory
selection system, CarMax's trained sales consultants help customers
identify the CarMax vehicles that meet their needs. AutoMation sorts vehicles
by type, make, model and price and displays on-screen all features,
specifications and the CarMax no-haggle price. All vehicles are displayed on
the lot by type, make and model. For each vehicle selected, AutoMation prints
a fact sheet that includes vehicle information and a map indicating where
the vehicle is located on the CarMax lot. The sales consultant also can
provide information on the more than 5,000 used vehicles available at other
CarMax locations nationwide.
CarMax Prices. CarMax believes customers should not have to pay more to
be treated well. Thus, CarMax offers low, no-haggle prices at every stage of
the vehicle transaction -- from the purchase price through financing, trade-in
and warranty. CarMax used vehicles are generally priced $500 to $1,000 below
the National Automobile Dealers Association average retail book value. All
prices are non-negotiable so every customer receives the same, attractive low
price.
CarMax replaces the traditional trade-in with an appraisal process in
which cars are purchased from any consumer, including individuals not buying a
vehicle from CarMax. Trained CarMax buyers appraise the vehicle, usually in
30 minutes or less, and provide the vehicle's owner with a written monetary
offer good for seven days or 300 miles whether the owner buys a car from
CarMax or not.
CarMax also provides easy financing at competitive rates. The sales
consultant helps the customer complete a financing application, which is sent
on-line to First North American Credit, a division of CarMax; and to
NationsBank. Qualified customers can view rate terms from both providers
generally within eight minutes or less.
MaxCare(R), CarMax's extended service program, offers limited bumper-to-
bumper mechanical protection with flexible terms up to 72 months. Customers
can view all extended warranty pricing and terms and make the decision that is
right for them. Again, pricing is not negotiated, so all customers receive
the same favorable terms.
Finally, unlike many traditional dealers, CarMax adds no processing fees
to the vehicle price. In fact, the retailer provides on-line vehicle
registration at no additional charge. The only additional fees are tax and
license fees payable to the state.
Quality Vehicles. CarMax(R) vehicles are generally one to six years old
with fewer than 60,000 miles. ValuMax vehicles, which expand the selection
for more cost-conscious consumers, are generally more than six years old or
have more than 60,000 miles. In the South Florida market, CarMax provides a
five-day, 250-mile return guarantee and a 99-day/ 3,300-mile limited warranty.
All CarMax vehicles pass the Certified Quality Inspection(SM) process covering
all mechanical features, ensuring quality of operation at a value price.
CarMax does not sell vehicles that have incurred frame damage or extensive
body work. Inspections are performed by CarMax service technicians, who are
ASE certified, the industry standard for technician training.
Customer-Friendly Service. A single CarMax sales consultant assists the
customer throughout the shopping process. Sales consultants at all CarMax
locations have been carefully selected, many from other high-service
businesses. Their customer focus combined with the low-price, no-pressure
sales philosophy and the management information systems that support the
buying process creates an exceptional car buying experience. Generally,
customers can complete the entire transaction from vehicle selection through
test driving and financing in two hours or less. As an extra convenience,
each location features a supervised "For Kids-Only(R)" play area.
CarMax offers convenient store hours. The Boynton Beach store will be
open Monday through Thursday, 10:00 a.m. to 9:00 p.m.; Friday, 10:00 a.m. to
10:00 p.m.; Saturday, 9:00 a.m. to 10:00 p.m.; and Sunday, 11: 00 a.m. to 8:00
p.m. Service hours are Monday through Sunday, 7:30 a.m. to 8:30 p.m.
CarMax is a subsidiary of Circuit City Stores, Inc., the nation's leading
retailer of brand-name consumer electronics and major appliances and a leading
retailer of personal computers and music software. With headquarters in
Richmond, Va., Circuit City operates 13 CarMax Auto Superstores, including the
Boynton Beach location; 460 Circuit City Superstores; four consumer
electronics-only stores; and 52 mall-based Circuit City Express stores. The
company's CarMax Group common stock trades under the symbol "KMX." Additional
CarMax information is available at http://www.carmax.com. The Circuit City
Group common stock trades under the symbol "CC."
Additional Circuit City information is available at
http://www.circuitcity.com.
SOURCE CarMax Auto Superstores, Inc.