CarMax Stock ... sometimes you miss the opportunity.

[macarose]

About a week ago I mentioned an extreme 40% downturn in CarMax trade-ins. I had noticed that decline widening every week for nearly all of 2025.

Yesterday CarMax stock lost 25% of their value. A cliff dive 53% decline in their stock price so far for the year... and darn it! Guess who didn't buy any put options.

 

[SC Maintenance]

About a week ago I mentioned the 40% downturn in CarMax trade-ins.

Yesterday CarMax stock lost 25% of their value, and darn it! Guess who didn't buy any put options.

The odds of getting a short bet right is about zero - according to the pro's that will in fact short

The only ones making money on shorts are those selling them, and a long/short portfolio - the short allows you to leverage the long with less volatility - ie your hedging your leveraged long.

 

[zzyzzx]

Their business model of high fixed prices was bound to negatively affect them at some point. Kind of wondering why anyone would shop there...

 

[JeffKeryk]

Long term for the win. Short term carries far too much risk.
Balance, Grasshopper...

 

[Tdbo]

Their business model of high fixed prices was bound to negatively affect them at some point. Kind of wondering why anyone would shop there...

Shopping there is fine.
They have a plethora of vehicles. All different makes, models, and types.
Great place to go to decide what you want, all in one stop.
It is the purchasing piece that is the problem.
That can be done elsewhere, for less.

 

[svtrit]

I bought my 2020 Wrangler there a year ago. At that time, their prices had settled into being the same or similar to the normal dealerships around them. Plus I was able to have them ship the Jeep from CO to me in IA for $300, which was much cheaper than flying to Denver, buying the Jeep and then driving it home.

That was the 2nd vehicle I bought from them, as I hate the game normal dealerships play. I do think COVID fixed that, at least in my area.

On edit, I did wait 2 months watching the Jeep and pulled the trigger after a price decrease.

 

[WeyounDS9]

Their business model of high fixed prices was bound to negatively affect them at some point. Kind of wondering why anyone would shop there...

I like their large selection and that I can generally trust those cars.
Bought a Nissan 4x4 V8 Pathfinder 7 years ago.
Had a choice of paying 16000 USD at a Carmax, or 7000 USD at a small independent.
The Carmax one was a 2011 with 90,000 miles. The indpendent had 140,000 miles and was a 2008.

I didnt mind the milage, since I know how stout those power trains are.
Picked up the small indpendent.
They knew I was going to drive 1000 miles home but did not honor my request to put on new wipers prior to pick up, stating the existing ones were (near new) they were not)
Had all sorts of undisclosed issues including the car would not align, because the suspension components were rusted into each other (the results all new suspension I bought made the car ride great though).


Both would have been a fly-in drive back home 1000 to 2000 miles (those were rare even back then)

Looking back I would have bene much happier with the Carmax one which even had awarranty available. In the end I spent on ym 2008 to get it to my standards nearly as much as I would have spent on the Carmax example, thta sitll would have been a newer car with lower miles after all was said and done.
My next vehicle I will buy at aNIssan or Infiniti dealer or at Carmax.

 

[Dave Hess]

Some cars at CarMax are overpriced considering the age and mileage.