Though CarMax’s lending arm will press forward with its subprime lending test program, it won’t be a major player in the subprime game.
According to Automotive News , CarMax CFO Tom Reedy said as much during an earnings call with the media and analysts this month, stating that the company has three partners already doing well for CarMax in the subprime market; thus, no reason for CarMax Auto Finance to take a greater role in said market like it does in the prime lending market.
For now, the lending arm will continue loan originations at 5 percent of subprime vehicle sales for the duration of the testing period, which began January 2014. The arm originated $72.2 million of receivables under the program through the end of February 2015.
The post Reedy: CarMax Lending Arm Won’t Fully Play In Subprime Market appeared first on The Truth About Cars.
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