Drivers, start your, er, their engines. While you're at it, kick a tire or two. Take a test drive.
CarMax will launch its South Jordan store today, celebrating its entry into the Utah market. The South Jordan CarMax, 11213 S. South Jordan Gateway, covers 50,000 square feet and will have in stock 350 to 500 used cars at any time, said general manager Rick Starnes.
With its opening, Starnes said Utahns will have the opportunity for a new carbuying (and selling) experience — one that is meant to be free of headaches, hassles and ugliness.
"Buying a used car is not new," Starnes said. "But buying it the CarMax way really is. What makes this experience unlike any other shopping experience people have is not only the process, which is easy. We let the customers define the process."
The retailer is based in Richmond, Va., and as an organization it cringes at the term "dealership," instead favoring "superstore."
It was founded in 1993 by executives at Circuit City Stores Inc. who believed they could apply standard retail industry practices to selling cars and bring their concept to traditionally underserved markets. CarMax is credited with being the the first national retailer to sell cars using the "no-haggle" approach.
After separating from Circuit City, CarMax went public in 2002.
During the 12-month period ended May 31, the company retailed 264,958 used cars. All told, the company sold 285,354 cars during that period.
"We have revolutionized the way consumers buy cars," Austin Ligon, CarMax president and chief executive officer, said in a prepared statement. "Salt Lake City area residents now can choose to have a no-hassle, no-haggle, fun car shopping experience."
In addition to the "no-haggle" concept, Starnes said customers indicated that they wanted certain guarantees built into the transaction process, a better understanding of the trade-in process and a better understanding of financing.
So, Starnes said, the company doesn't do traditional trade-ins.
"A trade-in implies that we'll take your car if you buy one of mine in turn," he said. "We have our own staff of buyers, and the buyers in our store have done 60,000 car appraisals in their careers. We'll give you a written cash offer on your vehicle — whether you buy one of ours or not."
CarMax also offers a five-day, money-back guarantee, a 30-day mechanical warranty and the opportunity to buy an extended service plan, wherein buyers can pick coverage months and mileage based on the vehicle year, make and model.
The company is confident that the Utah market will be a good fit for CarMax, and vice versa.
"We're finding that wherever there are car shoppers and drivers, it's a good fit for us," Starnes said. "We don't really think there's much difference from market to market. People everywhere are looking for quality vehicles. But I'll say that Utah is a great used car market. There are lots of folks who will be in the market for a used car. Our information tells us that the two hot-spots are in the Draper, Sandy and South Jordan area, and Murray. And we're really right in the middle of that."
The South Jordan location employs about 100 people, including sales consultants, technicians, business office associates, customer service representatives and management.
CarMax spokeswoman Trina Lee said it's too soon to determine whether additional locations will open in other Utah markets — Davis County, for example, or southern Utah. But she didn't rule it out.
"Typically, what happens is we'll look at where we're drawing customers from, based on our sales," Lee said. "From that, we'll examine whether there's an area underserved by our existing store."
CarMax operates 63 stores in 28 markets. The company also operates seven new car franchises, all of which are integrated or co-located with its used-car stores.
And, Lee said, buyers also can use the company's Web site, www.carmax.com. Nearly 20 percent of CarMax auto sales are initiated via the Web, Lee said.
"People go to the site, browse the vehicles and make a selection, and then come to the store to do a test drive," she said. "And another area where we're different from other stores: If you find the car you want online, we can transfer it for a nominal fee to your location, from any CarMax store in the country. This is a growing, very popular, part of our business."
Companywide, Lee said CarMax is "on a growth pattern of adding 15 percent to 20 percent of our store base per year. That's almost one store per month anywhere in the country.
"We're looking at markets where there's a population of 1 (million) to 5 million, a booming retail business and opportunities for retail car sales," Lee said. "This area, and cities similar to Salt Lake City, we believe will be good markets for us."
E-mail: jnii@desnews.com