CarMax Auto Finance Drives Earnings Growth Through Tier 2 Expansion

Dow Jones
Sep 29

CarMax Auto Finance income rose 32% to $135.6 million in the second quarter, fueled by a $28.8 million reduction in loan loss provisions as performance aligned with expectations. CAF expanded its full-spectrum credit strategy by financing 22% of Tier two volume, up from 10% a year ago, becoming the largest lender in that tier, the company said. The gains offset a $1.2 billion year-over-year reduction in outstanding receivables tied to selling residual interests in two non-prime securitizations and lower sales in the prior fiscal year

 

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