CHECKING IN WITH ... CHRISTINE MONTANA:
The CarMax on Harbor Boulevard has been open for just three weeks, but it already appears to have established itself within the Costa Mesa community. The lot was the site of Southern California’s “Survivor” casting call last month and is in a can’t-miss location just south of the 405 Freeway.
With gas prices at all-time highs and many questioning the future of the automotive industry, this wouldn’t appear to be the best time to open a car dealership. However, CarMax centers its business on used vehicles of all kinds and may have the flexibility to prosper despite the rising price of oil. General Manager Christine Montana sat down with the Daily Pilot to discuss the effect of gas prices and the overall outlook the dealership has.
Your lot has been open for less than a month. How have things been running so far?
Very smoothly. The community’s very happy to have us here. We have a lot of local folks coming through; they’re very excited to see us. They actually tend to be very familiar with the CarMax product. I feel like things have been running even better than we had expected, to be quite honest.
Talk about the challenges that go into opening a new dealership like yours.
This lot was still empty in November of 2007. We’ve had an excellent construction crew, and the city’s been wonderful with getting our permits in on time and everything.
What are the benefits of buying a car used as opposed to new? Would you ever recommend someone not to buy their car used?
There’s not really a reason to not buy a used vehicle. We put all of our vehicles through the 125-point inspection, so you know you’re getting a vehicle that’s in great condition. A lot of the vehicles that we get at CarMax have very low miles; the initial depreciation has already happened. You know that it’s not going to get that huge drop in dollars once you leave the lot.
More than anything, it’s a quality vehicle that has been inspected.
What makes CarMax different from other dealerships?
We purchase our vehicles from our customers. The thing that made CarMax different is that we made it a non-threatening environment. We’ll give you the best price up front; we won’t haggle with you. It’s about opening up the process, so it’s a lot more friendly and open to our customers.
What kind of effect do rising gas prices have on car dealerships like CarMax? Was this a factor considered before the store was opened?
We have seen a shift in the market to more fuel-efficient vehicles as a whole. But, for example, our SUV prices have dropped substantially. So perhaps a family that was looking for an SUV and was priced out of the market, that SUV is far more affordable and they can balance it out with the rising fuel costs. Both segments of our demographics are really satisfied in that sense: The large family can get their SUV and the commuter can get their fuel-efficient vehicle as well.
What types of cars are the most popular for consumers right now?
It’s really all over the board and that’s really what’s nice about CarMax. We’re here for families that are purchasing, first-time buyers, single parents, you name it. Anybody can come here and find the vehicle of their dreams.
What do you foresee for the automotive industry in the coming years, and how will this affect a dealership like CarMax?
I really don’t have an answer for that. However, we do believe in the company’s long-term growth, and the continuing success of CarMax.
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