carmax is implementing technology solutions to increase efficiency as it continues to address the challenging environment in buying and selling used vehicles.
“FY2024 was a challenging year for the entire used vehicle industry as vehicle affordability and broader macro factors continued to weigh on sales,” said CarMax President and CEO. I am. bill nash The statement was made at the company's quarterly results briefing on Thursday (April 11).
During the quarter ended February 29, the company's combined retail and wholesale used car sales were down 0.9% year over year, net revenue was down 1.7%, and both retail and wholesale gross profit per vehicle were down slightly. CarMax announced.Thursday earnings release.
Consumers continue to face challenges in the affordability of used cars, but prices improved during the quarter, Nash said on the conference call.
Nash said CarMax has focused on “what we can control” as we move through this cycle in the used car industry. This includes implementing data science, automation, and artificial intelligence (AI) to improve operational efficiency.
For example, on the retail side of the business, CarMax has used technology to make it easier for customers to complete key steps in a transaction themselves, Nash said.
The company also expanded the functionality of its virtual assistant Skye, adding financial application management, vehicle transportation, reservation booking, rating offers, and more.
“Customer adoption of Skye has been strong, not only improving efficiency but also increasing bandwidth for our employees,” said Nash.
On the wholesale side, CarMax has enhanced its auction platform to include single sign-on across all systems, AI-enhanced vehicle condition reporting, early bidding capabilities, and automatic sales invoices.
Over the next year, the company will make it easier for online shoppers to move between assisted help and self-growth, further integrate Skye into key communication channels, and optimize pre-qualification products in the credit space. It's a schedule.
“As we move into 2025, we will build on the progress we made from last year and further expand our competitive mode,” Nash said. “We are confident that the actions we are taking will enable us to increase sales, profitable market share and purchases, as well as further operational efficiencies as the market shifts.”
