From Top Electric.

In a stunning reversal of fortune, CarMax, America’s largest used car retailer, faces potential collapse after a $5.2 billion write-down led to the abrupt firing of CEO Bill Nash in November 2025. Once celebrated for its transparent, no-haggle model born in 1993 from Circuit City’s vision of trust in a shady industry, CarMax built its empire on fixed prices, detailed vehicle histories, and data-driven fairness. By investing heavily in tech for online browsing and customer satisfaction tracking, it topped surveys for reliability through the 2010s.

But by mid-2024, warning signs emerged: inventory piled up for over 70 days, overbids on acquisitions created massive losses, and subprime loans at 23% interest fueled rising defaults and repossessions. Internal memos flagged billion-dollar risks, yet leadership delayed action, leading to boardroom chaos and morale collapse. The mark-to-market accounting exposed brutal realities—depreciating stock and bad loans—while rival Carvana’s shares surged 50% amid allegations of shell-game financing through family-linked entities like DriveTime, offloading risks off-balance.

This saga warns of a broader auto meltdown: channel stuffing by manufacturers burdens dealers, subprime traps crush families like plumber John who lost his truck, and honesty gets punished in a deception-riddled market. If CarMax falls, trust in the system crumbles, signaling peril for everyday buyers drowning in debt.

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