CarMax Auto Finance grows pre-qualification feature

CarMax Auto Finance plans to scale its “no-impact-to-your-credit-score” pre-qualification feature — first tested in March — across the U.S. during the rest of the year, Jon Daniels, senior vice president, said on CarMax’s earnings call last month. The feature is currently available to about 25 percent of its online customers.

“As interest rates rise, consumers’ ability to confidently secure financing is more important than ever,” said Bill Nash, CEO of CarMax. “The expansion of our best-in-class pre-qualification product, once fully deployed, will provide frictionless and seamless access to multilimit credit terms on every car within our retail inventory.”

The move is in line with CarMax’s push to improve consumers’ omnichannel buying and financing experiences as the used-vehicle retailer looks to tap into changing customer preferences, Nash said.

“While we expect our online and omni sales to grow over time, our goal is to provide the best experience, whether that’s in-store, online or a seamless combination of the two,” he said. “Our ability to deliver integration across digital and physical transactions gives us access to the largest total addressable market.”

Daniels said customers used CarMax Auto Finance for financing on 39.3 percent of loans in the retailer’s first quarter, which ended May 31, compared with 43.7 percent in the same period last year, attributing this to CarMax taking the initiative on its interest rates.