CarMax(R) To Expand In Houston Market With Southwest Freeway Store Grand Opening
25 November 1997
CarMax(R) To Expand In Houston Market With Southwest Freeway Store Grand Opening
RICHMOND, Va., Nov. 25 -- CarMax Auto Superstores, the
pioneer of the used-car superstore concept, will open its third and largest
location in the Houston market December 3.
CarMax, a subsidiary of Circuit City Stores, Inc., has been
revolutionizing the way consumers think about automobile purchases since
opening its first store in 1993. CarMax locations offer up 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 Richmond, Va.
The Southwest Freeway superstore, which will employ approximately 250
people, will be the 15th CarMax location to open in the country. CarMax
entered the Houston market with the opening of its Houston North and Houston
South locations in July. 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 Dallas /Fort Worth, Washington/Baltimore and Miami
markets. Additional openings are planned for each of these markets. The
company also plans to add new-car franchises to as many store locations as
possible.
The Southwest Freeway store is located at 6909 Southwest Freeway across
from the Sharpstown Mall. The 83,000-square-foot sales and service facility,
situated on 20 acres, has capacity for more than 800 used vehicles. The
selection includes light and full-size trucks, sport-utility vehicles,
minivans, sub-compact, compact and luxury cars. Customers also have access to
the more than 6,000 used vehicles available at other CarMax locations
nationwide. The Houston North store is located at 16110 North Freeway between
Richey Road and FM 1960 Road. The Houston South location is at 13100 Gulf
Freeway and Interstate-8/Sam Houston Parkway.
"The Southwest Freeway location gives Houston shoppers another opportunity
to experience our distinctly different consumer offer," 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. Since opening, CarMax has sold more than 95,000 vehicles, clearly
proving 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 Southwest Freeway 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.
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. The company has provided more than 400,000 free
appraisals since opening. 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 Houston 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 Southwest Freeway store will be
open Monday through Saturday, 9:00 a.m. to 10:00 p.m. Service hours are
Monday through Saturday, 7:00 a.m. to 8:00 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 15 CarMax Auto Superstores, including the
Southwest Freeway location; 474 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