BUYING A CAR

part III

     In my last post we discussed how you. the consumer, is far more educated now.  That is not the only dynamic changing car sales.

Used Car  SUPERSTORE

     Quite a few years back, some executives at a consumer electronics business decided to diversify their business.  They took their time and studied ALL the things that used car dealers were doing and took a long look at what worked and what didn't.  This company had already had good success in changing the consumer electronics market creating a demand for a "Superstore" with a vast selection and providing good customer service. Things that would translate well in the automotive sales market.  So in 1993 Circuit City gave birth to the first CarMax used car lot.

     From the very start, CarMax did things very differently than most used car dealers.  Most used car dealers had a relatively small selection of used cars,  They did not recondition the cars. They also did not have any kind of return policy.  They used traditional "hard sell" techniques to "push" buyers into cars.

     CarMax started out with inspections and reconditioned their cars, so they not only LOOKED good but they RAN good as well.  They also treated their customers like customers.  Offering knowledgeable sales consultants rather than the traditional hard sell used car salesman.  They also offered a HUGE selection of cars 300 to 400 cars on one lot, something unheard of in used cars at the time.  Probably the most RADICAL thing they offered was a 5 day return policy and a 30 day warranty!!

     CarMax began selling more and more cars and other used car dealers had to change in order to compete.