CarMax cuts prices, increases marketing to boost used-car sales in 2026

On the Dash:

• CarMax will lower used-vehicle prices and margins while increasing marketing to drive unit sales in 2026.
• Third-quarter fiscal 2026 results showed net sales down 6.9% and earnings down 50.4%, with used-vehicle units down 8%.
• Leadership changes include interim CEO David McCreight and interim executive chair Tom Folliard, guiding the company’s turnaround strategy.

CarMax is lowering prices and margins while increasing marketing spending to boost used-vehicle sales heading into 2026. The retailer’s interim leadership says the adjustments aim to reverse declining unit sales and better align pricing with consumer expectations.

The company reported third-quarter results for its 2026 fiscal year, ending Nov. 30, showing net sales and operating revenues of $5.8 billion, down 6.9% from the same quarter a year ago. Net earnings fell 50.4% to $62.2 million. Used-vehicle unit sales totaled 169,557, down 8% year over year. The average selling price increased slightly to $26,383.

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CarMax plans targeted price cuts, with reductions varying across inventory rather than applying a uniform decrease. The approach is designed to drive sales while meaningfully maintaining profitability. Interim Executive Chair Tom Folliard emphasized that the company’s immediate goal is to drive sales growth again.

Marketing investment will support the price strategy, helping CarMax communicate value and attract buyers. At the same time, the company aims to reduce selling, general, and administrative expenses by $150 million annually to offset costs and improve efficiency. Third-quarter SG&A expenses totaled $581.4 million, representing 98.5% of gross profit, up from 85% the previous year.

Leadership changes have shaped CarMax’s current strategy. Former CEO Bill Nash stepped down on Nov. 6 after leading the company since 2016. David McCreight, a seven-year board member with prior retail experience at Urban Outfitters and Anthropologie, was named interim president and CEO, overseeing day-to-day operations. Folliard, former CEO from 2006 to 2016, returned as interim executive chair. All changes took effect Dec. 1.

The company acknowledges recethat nt performance has been below expectations. Interim leaders are focused on a dual approach of competitive pricing and stronger marketing to restore CarMax as a preferred destination for used vehicles.