Dealership which sells used vehicles, with most makes, models will soon open its doors in Huntsville, Alabama in a strategic location on University Drive, not to far from Madison, Monrovia and Harvest, three of Huntsville’s sister cities.

The company which prides itself on ‘no-haggle’ pricing usually has 250-350 used cars on its site, and will offer various Huntsville car financing packages.
 
A slowing national economy might seem like a tough time to open new auto retail car lots but that hasn’t stopped CarMax Inc., the publicly traded used-vehicle dealer that has over 100 auto outlets nationwide.

The company has changed the way consumers buy cars. Outside, the car lot has 250 to 350 used cars grouped by type of vehicle and by model. Most brands are represented, including Audi, BMW, Mercedes-Benz, Ford, Dodge, Jeep, Lincoln, Cadillac, Suzuki, Honda, Hyundai and Nissan. Vehicles that aren’t on the lot can be transferred to Charleston or ordered online at www.carmax.com.

It is expected that, like its other car outlet across the nation, Carmax Huntsville will include a showroom and parts department and waiting area with a supervised room for kids.

What Does This Mean for Huntsville Local Dealers

CarMax touts low “no-haggle” prices, where buyers pay what’s on the sticker. Most of its vehicles are 1 to 6 years old, have less than 60,000 miles, are backed by a limited 30-day warranty, and are guaranteed not to have flood or frame damage or odometer or title issues. The company pledges to buy any car whether or not the seller purchases a CarMax vehicle.

According to company figures, CarMax sales grew steadily from $2.2 billion in 2000 to $7.5 billion in 2007, and net earnings rose from $1.1 million to $198.6 million over the same period. Company sales continue to increase, growing by 15 percent a year.

Carmax marketing strategy combine with its leveraging power could affect the sales of small local car dealers. However, Huntsville continues to experience an economic growth fuel by three main reasons:

(1) Baby boomers have found the Huntsville area an attractive place to live and retire

(2) BRAC Huntsville anticipation of generating 5000 new jobs by 2012.

(3) The growth of Research Park, the second largest research park in the country

Speaking of economy, Carmax could contribute up to 75 new jobs in Huntsville, Alabama and may lead to the decrease in cost of an average used car in the area, a plus for the average Huntsville car buyer

Categories: Huntsville Auto
Tags: carmax, huntsville alabama auto, huntsville car loan, huntsville cars, huntsville used cars