CarMax, a Fortune 500 used car giant familiar to Richmond residents through its prominent Broad Street location, is set to amplify its regional operations. The Goochland-headquartered company is embarking on a new expansion phase, developing a significant facility in New Kent County. While CarMax’s Broad Street store at 11090 W. Broad St. is a well-known retail and auction center, this new venture focuses on enhancing the backend operations that support locations like Broad Street and others in the region.
Construction is slated to begin shortly on a substantial 78,300-square-foot complex situated on a 44-acre plot at 16931 Eltham Road in New Kent. This strategic move, detailed in a site plan submitted earlier this year, signals CarMax’s commitment to strengthening its infrastructure. However, unlike the Carmax Broad Street location, the New Kent facility will not engage in direct retail sales to the public.
CarMax Broad Street store in Henrico County, Virginia
The primary function of this New Kent center is to serve as a regional reconditioning and auction hub. According to company spokeswoman Jennifer Bartusiak, this location will be instrumental in preparing vehicles for sale at various CarMax retail stores in the area, effectively feeding inventory to locations including, but not limited to, the well-established CarMax Broad Street. Furthermore, it will function as an auction site, facilitating vehicle sales to other dealerships, a core component of CarMax’s business model.
CarMax’s auction operations are a significant part of its overall strategy, complementing its retail sales to individual consumers. The company proudly identifies itself as a leading wholesale vehicle auction operator nationwide, conducting auctions in over 60 locations spanning 30 states, according to their official website. In fiscal year 2024 alone, CarMax successfully auctioned off over 546,000 vehicles, as highlighted in their latest annual report. This is in addition to the impressive 765,600 used cars sold to retail customers during the same period.
The plans for the New Kent facility reveal a comprehensive setup, including a 70,600-square-foot service building dedicated to vehicle reconditioning, a 6,800-square-foot wholesale building for auction activities, and a 900-square-foot car wash to ensure vehicles are in top condition. This investment underscores CarMax’s dedication to maintaining high standards for its inventory across all channels, from wholesale auctions to retail locations like CarMax Broad Street.
CarMax New Kent facility site plan layout
CarMax finalized the acquisition of the New Kent site in February from Weir Creek LLC. While the purchase price remains undisclosed in public records, this acquisition marks a significant step in CarMax’s local expansion. The company has not yet released details regarding the anticipated investment in the New Kent facility or the number of jobs it will create. Permitting processes are still underway as CarMax aims to commence construction later this summer.
The New Kent location represents CarMax’s first foray into this particular county. Within the Richmond metropolitan area, CarMax already operates a retail store in Midlothian at 901 Murray Olds Drive and the combined retail and auction center at 11090 W. Broad St. The company’s corporate headquarters are also located in the Richmond region, in West Creek, Goochland.
With nearly 250 locations and over 30,000 employees nationwide, CarMax continues to be a major player in the used car market. Its strong performance is reflected in its ranking as the second-highest locally based company on this year’s Fortune 500 list, securing the 141st position with a reported $31 billion in revenue for 2023. The expansion into New Kent County further solidifies CarMax’s commitment to the Richmond region and its strategy to efficiently serve its retail locations, including the well-known CarMax Broad Street, while growing its wholesale auction business.
