CarMax extends yearlong subprime test, from Automotive News.
Used-car giant CarMax Inc. says it needs more time to evaluate a subprime lending pilot program at its finance arm.
The pilot is almost a year old, having launched last January. But CarMax CFO Tom Reedy said during a quarterly earnings conference call this month that the test will continue at least long enough to capture results from shoppers purchasing vehicles with their income-tax refunds in 2015.
“What I can say is that we have not seen anything negative and unexpected that would lead us to dial back or not continue the test,” Reedy said.
The test by CarMax Auto Finance is designed to allow the company to learn more about customers that it had typically handed off to its subprime lending partners.