From Yahoo Finance: 2025-04-10 08:09:00

CarMax is increasing its inventory of newer pre-owned vehicles due to President Trump’s new tariffs on new car imports, expected to boost demand for more affordable options. The company is focusing on vehicles aged 6-10 years, as customers prefer cars with modern driver-aid systems over older models. Industry experts suggest the tariffs may shift budget-conscious shoppers to the used-car market. CarMax also raised its supply of vehicles under $20,000 in December. However, the company warns that tariffs could raise used-car prices and reconditioning costs. Shares of CarMax fell about 20% amid market declines, but CFRA Research analyst Garrett Nelson sees it as a “buying opportunity” and believes CarMax could benefit from the tariffs. CarMax reported a 6.7% increase in fourth-quarter revenue to $6 billion, slightly above expectations, but quarterly profit fell short of Wall Street estimates due to higher borrowing costs. Adjusted profit of 64 cents per share missed analysts’ estimate of 65 cents.

Read more: CarMax boosts newer pre-owned car inventory as tariffs impact buying trends