Income at CarMax Auto Finance, the used-car giant's captive finance arm, rose 22 percent in the quarter ended Feb. 28, despite a rise in both cash sales and ones where the customer arranged financing, as well as in those where the retailer paid a fee to outside lenders, generally in the case of less creditworthy customers, the company said.
The finance arm's results came as CarMax Inc.'s net fell on flat revenue.
The Richmond, Va., company also said revenue from extended protection plans fell 2.4 percent, to $82 million, primarily due to a drop in used-vehicle unit sales.
Total used unit sales fell 3.1 percent, to 170,572 vehicles. On a comparable-store basis, which includes only stores that have been operating for 14 months, used unit sales fell 8 percent. The drop in comparable-store sales reflected in part lower store traffic, a relatively flat conversion rate and comparison with a record-strong year-earlier level.