News Summary: Car dealer chain CarMax profit up

News Summary: Used car dealer chain CarMax 1Q profit up 21 pct on higher sales, tops estimates

Associated Press

SALES DRIVE: Car dealership chain CarMax Inc. said Friday that higher sales of used cars drove its first-quarter profit up more than 21 percent. The Richmond, Va.-based company runs more than 120 stores that mainly sell used cars and trucks.

BREAKDOWN: Used vehicle unit sales rose 22 percent as the company's average selling price rose more than a percent to $19,540. Wholesale vehicle unit sales increased 6 percent. New vehicle unit sales fell 7.5 percent.

FUEL: CarMax says it has benefited from a better consumer credit environment. About 90 percent of its customers receiving a financing offer from one of its lenders. Income from CarMax's auto financing arm rose nearly 16 percent to $87 million in the quarter as it financed more of its customers' vehicles.

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