July 25, 2024
News

CAF aims to expand presence in nonprime market

CarMax Auto Finance is looking to expand its presence in lower credit tiers due to ongoing affordability challenges that have impacted sales and originations. During the first quarter of fiscal year 2025, CarMax Auto Finance (CAF) saw a 3.2% year-over-year decrease in origination volume, with $2.3 billion originated by the end of May 31.

FAQ

Q: Why is CarMax Auto Finance focusing on lower credit tiers?

A: CarMax Auto Finance aims to increase its penetration rate in lower credit tiers to address affordability challenges that have affected sales.

Conclusion

Despite facing challenges in the first quarter of fiscal year 2025, CarMax Auto Finance remains committed to expanding its presence in lower credit tiers and addressing affordability issues to drive sales and origination volume.

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