Who is better, CarMax or Carvana?
Final Thoughts. Carvana is ideal for buyers who want a fast, fully online experience that eliminates the need for in-person visits. CarMax is better suited for those who want to test-drive, have face-to-face support, and value flexible financing. You can’t negotiate directly with CarMax or Carvana — but you can negotiate the entire selling process if you know how to shop your offers smartly. Understanding dealer auction channels and how clean title vehicle sales work helps you navigate this complex market.
Why is CarMax losing money?
It is seeing declining volume, sales, and profit margins, which is a recipe for a stock price disaster. At the same time, its competitor Carvana is gobbling up market share, posting a 44% increase in units sold last quarter. This is a direct threat to CarMax and should concern shareholders. CarMax has a lot of fixed costs, meaning it needs to drive a certain level of unit volume through each of its car lots in order to generate a profit. Margins are moving in the wrong direction with unit volumes declining throughout 2025.