10 Best Auto and Truck Dealership Stocks to Invest In

2. CarMax, Inc. (NYSE:KMX)

Number of Hedge Fund Holders: 44

CarMax, Inc. (NYSE:KMX) is a leading retailer of used cars in the United States, known for its straightforward and customer-friendly approach to buying and selling vehicles. The company operates primarily through two segments including CarMax Sales Operations and CarMax Auto Finance (CAF).

During the fiscal third quarter of 2025, CarMax, Inc. (NYSE:KMX) experienced year-over-year gains in retail and wholesale figures, as well as in its auto finance operations. Management attributed growth to a more stable environment for vehicle valuations, which helped improve earnings per share (EPS) significantly. Despite a decline in average selling prices, which went down about $1,100 per unit or 4% year-over-year, the company maintained strong profit margins. Its retail gross profit per used unit was $2,306, slightly up from the previous year.

Management has been enhancing its omnichannel retail sales experience. The efforts resulted in online retail sales accounting for about 15% of total retail unit sales, indicating a slight improvement year-over-year. The improvement led to revenues from online transactions reaching approximately 32% of net revenues. It ranks 2nd on our list of best auto and truck dealership stocks to invest in.

Madison Mid Cap Fund stated the following regarding CarMax, Inc. (NYSE:KMX) in its Q3 2024 investor letter:

“We trimmed our positions in Moelis and CarMax. We reduced our position in CarMax, Inc. (NYSE:KMX) coincident with our addition of the two automotive retailers. While we are positive on CarMax’s prospects, we want to ensure we manage our portfolio’s overall exposure to the new and used car markets.”