CarMax New Warning - "People Stopped Buying Used Cars" (Video)

In this 24 September 2026 published video, host Michael Bordenaro yalks about CarMax’s recent financial losses and strategic shifts which point to an affordability crisis in the used car market, fueled by high borrowing costs and strained consumer finances. The retailer has responded by lowering prices, shifting toward more affordable inventory, and reducing corporate headcount to navigate the downturn. 

The concept that people have “stopped buying used cars” highlights a major shift in the automotive industry, but the reality is more nuanced: consumers haven’t stopped buying cars entirely; rather, they have been priced out or are actively refusing to participate in a broken market. Driven by an affordability crisis, buyers are hitting a wall due to historically high vehicle prices, staggering interest rates, and an extreme shortage of affordable inventory. 

The bottom tier of the used car market has evaporated. The supply of reliable used vehicles priced under $15,000 is at a critically low 29-to-33-day supply. When cheap cars hit the lot, they sell almost immediately, leaving low-income buyers with very few choices. Even if a buyer finds a reasonably priced used vehicle, high interest rates are ruining the deal. Average used car loan contract rates hover around 10.9% to 11% APR. A borrower might end up paying the same monthly payment for a $25,000 used car at an 11% interest rate as they would for a $30,000 new car carrying a manufacturer-subsidized promo rate. The used car market relies on a steady pipeline of 3-year-old vehicles returning to lots from dealership leases. However, because pandemic-era supply chain shortages cratered new car production between 2021 and 2023, millions of cars were never built or leased. This has created a “12 million car gap” in historical inventory that the market is still reeling from.  Fed up with complex, repair-prone digital features on newer models and massive $700+ monthly payments, millions of Americans are choosing to repair and keep their current cars for as long as possible. This reduction in trade-ins further chokes used inventory.

To understand exactly where prices and supply stand right now, the market is presenting a stark split between different vehicle segments. 

• Average Used Price – Hovering near $27,000 – $28,000, this remains out of reach for nearly half of Americans living paycheck-to-paycheck.
• Overall Inventory – Tight at 44 days’ supply (2.13M units) – Availsble supply is well below the 60-day supply considered healthy for a balanced market.
• Wholesale Trends – Manheim Index dipped 1 percent MoM, 0.4 percent YoY – There is a first year-over-year decline in 2026, though retail price relief remains minimal.
• The Fuel-Type Split – Gas SUVs/Trucks losing value; Used EVs gaining value – Rising fuel costs are driving up demand—and prices—for used electric vehicles and hybrids.

https://youtu.be/rZou9p30_Q0