Posted by Liana Harrow
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Compare top US auto retailers by different metrics to understand what "biggest" really means.
When you hear the name CarMax, the image of a massive lot filled with used cars often comes to mind. But is it really the biggest dealership in the United States? This article breaks down the numbers, compares the top players, and shows what ‘biggest’ actually means in the auto retail world.
CarMax is the largest pure‑play used‑car retailer in the U.S., operating over 230 stores and selling more than 600,000 vehicles a year. Founded in 1993, the company pioneered the no‑haggle, buyer‑friendly model that many shoppers now expect. Yet the auto market hosts a handful of other giants that dwarf CarMax in different ways.
Dealership size can be sliced three ways:
Each metric paints a slightly different picture. A chain might have fewer sites but outsell others because it focuses on high‑volume new‑car sales, while a pure‑play used‑car retailer could dominate in units sold but lag behind on revenue.
Here are the five most influential auto‑retail groups in the U.S. as of 2024‑2025:
| Group | Locations | 2024 Revenue (US$ billions) | Units Sold (thousands) |
|---|---|---|---|
| AutoNation | ~300 | 24.0 | 2,100 |
| Penske Automotive Group | ~340 | 21.2 | 2,050 |
| Lithia Motors | ~300 | 15.1 | 1,800 |
| Group1 Automotive | ~300 | 12.0 | 1,600 |
| CarMax | 230 | 11.5 | 1,850 |
Looking at raw numbers, CarMax leads the pure‑play used‑car segment but falls short of the broader auto‑retail giants in both revenue and total locations. AutoNation tops the chart on every metric, followed closely by Penske.
Size brings both advantages and drawbacks. Here’s a quick guide to help you decide whether a larger chain is right for you:
In short, CarMax’s advantage lies in its transparent, no‑haggle pricing and a massive selection of certified used cars. If you prioritize a wide new‑car lineup or a deep service network, a larger group like AutoNation or Penske might be a better fit.
Two forces have reshaped the hierarchy in the past two years:
Analysts from J.D. Power note that the “big‑player advantage” is narrowing as tech‑savvy independents adopt similar online platforms.
In pure‑play used‑car terms, CarMax is the undisputed leader. Across the broader car‑dealership landscape, however, it ranks fifth when you include new‑car specialists and diversified groups. Whether that matters depends on what you value most - transparent pricing and used‑car expertise, or a one‑stop shop for new vehicles and service.
As of the end of 2024, CarMax operates roughly 230 retail stores across 44 states.
CarMax focuses almost entirely on certified pre‑owned vehicles. It does not carry new‑car inventory, although it may facilitate new‑car orders through partner dealerships.
Buyers have a 7‑day, 250‑mile return window for any vehicle purchased at CarMax, no questions asked.
Penske Automotive Group leads with about 340 locations, followed closely by AutoNation and Lithia Motors, each with around 300 sites.
Larger dealers often have more robust consumer‑protection policies and wider service networks, but safety also hinges on individual store reputation and the buyer’s due diligence.
Comments
Aditya Singh Bisht
Wow, the CarMax breakdown really highlights how a focused used‑car model can punch above its weight.
Even with fewer locations than the big new‑car groups, they’ve built a reputation for transparent pricing that many shoppers love.
Their 230 stores still give a massive inventory, so you don’t feel limited just because the chain isn’t the absolute biggest.
I think the data shows that “biggest” isn’t the only metric that matters – customer experience matters a lot too.
If you’re after a hassle‑free purchase, CarMax’s 7‑day return policy is a solid safety net.
Overall, it’s impressive how they turned a niche into a national leader.
October 14, 2025 at 18:32
Agni Saucedo Medel
Totally agree, the focus on service really shines! 😊 CarMax’s consistent policies make the whole process feel safe and friendly.
It’s great to see data backing up what many of us have felt anecdotally.
When you combine that with their online tools, the whole buying journey becomes way smoother.
Keep the positive vibes coming! 🙌
October 14, 2025 at 19:55
ANAND BHUSHAN
CarMax might not have the most stores, but they definitely have a lot of cars on hand.
Their used‑car inventory is huge, so you can find something that fits your budget.
New‑car dealers have bigger revenue, but CarMax’s model works for many buyers.
It’s interesting how the market splits between new and used specialists.
Overall, they seem to be doing pretty well.
October 14, 2025 at 22:08
Indi s
I hear you – the split between new‑car giants and used‑car specialists can be confusing.
What matters most is finding a dealer you trust, whether it’s CarMax or a local showroom.
For many, the peace of mind from CarMax’s return policy is a big plus.
At the same time, the larger networks can offer more service options.
In the end, it’s about what fits your personal needs.
October 14, 2025 at 22:58
Rohit Sen
Honestly, size doesn’t guarantee better deals; smaller boutique lots often beat the giants.
October 15, 2025 at 00:38
Vimal Kumar
That’s a fair point – the charm of a local shop can be hard to beat.
But remember, CarMax’s nationwide warranty and easy return policy give it an edge for many shoppers.
It’s all about balancing convenience with personal service.
If you value a wide selection and consistent experience, the big chains still have a lot to offer.
At the same time, supporting local dealers keeps the community vibrant.
Both options have their perks, so choose what feels right for you.
October 15, 2025 at 01:45
Amit Umarani
When examining the dealership rankings, one must first ensure that the metrics are clearly defined and consistently applied.
The article correctly separates the three primary dimensions: locations, revenue, and units sold, which prevents apples‑to‑oranges comparisons.
However, the presentation could benefit from a more explicit explanation of why revenue includes service and parts, not just vehicle sales.
Additionally, the table would be easier to read if the numbers were formatted with commas for thousands (e.g., 2,100 instead of 2100).
Despite these minor presentation issues, the core data appears accurate, reflecting AutoNation’s dominance across all three categories.
Penske’s lead in sheer store count is notable, yet its revenue lags behind AutoNation by a sizable margin.
Lithia’s rapid growth is impressive, especially considering its relatively recent expansion into new markets.
Group1’s steady performance underscores the viability of a diversified brand portfolio within a mid‑size operation.
CarMax, while smaller in location count, excels in the used‑car segment, leveraging its no‑haggle model to attract price‑sensitive buyers.
The article’s point that “biggest” depends on the consumer’s priorities is well‑taken; size alone does not guarantee a superior buying experience.
One could argue that the digital retailing push has narrowed the advantage previously held by the largest chains, a trend the piece hints at but does not fully explore.
Furthermore, the discussion of consolidation could include recent acquisitions that have reshaped the competitive landscape, such as Penske’s 2023 purchases.
From a consumer perspective, CarMax’s 7‑day, 250‑mile return window offers a level of reassurance that many larger dealers lack.
Conversely, AutoNation’s extensive service network provides logistical benefits for long‑term ownership.
Overall, the article presents a balanced view, and with a few formatting tweaks, it would serve as an even more valuable resource for car shoppers.
October 15, 2025 at 04:32
Noel Dhiraj
Great analysis Amit it really helps put the numbers in perspective
Remember that every buyer’s situation is unique so the “best” dealer can vary
Use the data as a guide but also trust your gut feeling when you walk onto the lot
Happy car hunting and keep sharing insights
October 15, 2025 at 05:05