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CarMax Gears Up for Palm Bluffs: Used-Car Dealer Joins Many Auto Businesses at Corporate Center.

Posted on: Thursday, 18 May 2006, 12:04 CDT

By Sanford Nax, The Fresno Bee, Calif.

May 18--CarMax Inc., which is building a superstore in the Palm Bluffs Corporate Center, will stock up to 500 used vehicles when it opens early next year.

The nation's largest used-car dealer, adding stores at a clip of 15% to 20% per year, has started building a 45,400-square-foot showroom on 11 acres at Palm and Herndon avenues. The dealership is near other auto retailers, but the company selected the site in large part because it is next to Wal-Mart.

"We have a retail model," said spokeswoman Trina H. Lee. "Just as frequently, you'll find us next to a Lowe's or Home Depot."

CarMax has a no-haggle policy. The price on the vehicle is non-negotiable and is a separate transaction from any offer that CarMax makes on a trade-in, Lee said.

"You can sell your car even if you aren't buying a car from us. It is not tied to any purchase," she said.

CarMax, a publicly held company that earned $148.1 million on $6.2 billion in sales last year, sells vehicles that are 1 to 6 years old with fewer than 60,000 miles. The company is in a growth mode, adding stores in midsize cities such as Fresno, which has the only dealership between Sacramento and Southern California.

"We look for markets with a growing retail sector, and we like midsize markets where we can quickly and easily introduce ourselves to the community," Lee said.

Palm Bluffs is one of the fastest-growing commercial developments in Fresno, and an emerging auto row. BMW, Mercedes-Benz, Acura and Lexus are among the luxury offerings there.

CarMax fits in well, said Mehmet Noyan, who is developing Palm Bluffs for Calcot, a cotton cooperative that owned the land. Noyan said most of the pre-owned vehicles are less than 3 years old and many are upscale models. Plus, the franchise, which will employ about 100 people, handles its own financing and repair work.

"It is compatible with the other upscale dealers out there," he said.

CarMax also operates CarMax.com, which displays photos and prices for 20,000 vehicles available at the company's 70 dealerships. Customers who don't find what they want in Fresno can have their choice shipped from another CarMax dealer. There's no obligation to buy the car, but customers must pay a transportation fee, which varies according to the distance shipped.

With the sale to CarMax, only 6 acres of the 195-acre Palm Bluffs Corporate Center remain for sale. Those 6 acres, which are next to CarMax, should be sold by year's end, Noyan said.

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Copyright (c) 2006, The Fresno Bee, Calif.

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Source: The Fresno Bee

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