CarMax concept working

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Market analyst J.D. Power & Associates said CarMax, the originator of the used car superstore concept, seems to have tapped into a viable consumer niche. Nationally, new-car dealers have approximately 70% of the 2-to-4-year-old used vehicle market, Power said. But in Atlanta and Raleigh, N.C., its new study reports, new-car dealers have only a 56% share while CarMax has 11%.

Loretta Seymour, Power's director of client accounts, noted: "The share of market CarMax has gained in a relatively short period of time should give dealers in these markets cause for concern."

Copyright November 1996, Crain Communications Inc.

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