F&I

CarMax pushes into Tier 2, revamps MaxCare and GAP

At its Nov. 3 strategy update, CarMax said CarMax Auto Finance will expand into Tier 2 credit in stages, aiming to capture 40% of CarMax's Tier 2 volume by fiscal 2030 versus 10% in Q2 of fiscal 2026, with upfront loss provisions weighing on finance income near term. It also plans a reworked MaxCare and GAP lineup plus renegotiated provider terms to lift protection-plan profit per retail unit by 20% or more by FY30, alongside $200 million in run-rate cost savings exiting FY27, per CarMax's SEC 8-K. CarMax is tying more lending and protection income to each sale, but the targets are not results already delivered.

Possible industry effect: Lenders and product providers may face more emphasis on value per transaction.

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