CarMax superstore has tuneup before big opening

Leroy Burnell
The Post and Courier

Sean Hardy transferred from the CarMax store in Norcross, Ga., to be location general manager of the new Charleston outlet. The West Ashley store has a 9,600-square-foot showroom, parts department, six-bay service department and drive-up zone where people drop off their cars for tune-ups or repairs.

Leroy Burnell
The Post and Courier

CarMax opened its first used-car superstore in the Charleston area Wednesday at 712 Savage Road west of the Ashley. The store employs 65 people and has about 300 cars for sale at any one time.

Discussing CarMax's auto preparation program Monday, local chief Sean Hardy spun out the first of a series of acronyms. "The vehicle goes through WIP, work in progress," he said.

The initials are a conversational shorthand for Hardy, who heads the used-car superstore's first outlet in Charleston. But each of the letter groupings, whether WIP, ASC (Automotive Service Councils) certification or even his title, LGM (location general manager), spotlight important facets of the company's consumer responsiveness and ultimate business skill.

Based in Richmond, Va., CarMax chose Charleston for its 94th used-car superstore nationwide. The 65-employee retailer opened the outlet Wednesday at 712 Savage Road. It has a vast car lot with close to 300 used vehicles, a 9,600-square-foot showroom building, six-bay heated and air-conditioned service garage, parts department and other offices.

Company President and Chief Executive Tom Folliard visited the new Charleston store Thursday, and the center is holding a grand opening today. CarMax has existing stores in Columbia and Greenville.

"We are very excited," Hardy said.

The showroom typically will have three cars on display. The lot has vehicles from 1998 to 2008 model years, and most any name brand, whether the Detroit Big Three, Mercedes-Benz, Honda, Hyundai, Mazda or Mitsubishi. They are organized by type of vehicle, such as luxury, midsize, compact and small, medium and large sport-utilities. They are further grouped by model. If cars aren't at the local store, shoppers can purchase them online at www.carmax.com, or the Charleston store can get cars transferred here.

CarMax has what it calls "no haggle" pricing, in which buyers pay what's on the sticker. Prices on some cars this week were advertised as being below the market value as estimated by Kelley Blue Book. Another perk, especially with the current high-fuel costs: "Every (sold) vehicle gets a full tank of gas," Hardy said.

Sales people are paid commissions, but the money is based on car sales rather than vehicle prices or profit margin. That's designed so staff find the best fit for each customer, rather than trying to sell them the highest-priced car. The store also buys cars outright from customers, who don't have to purchase a vehicle at CarMax to sell one to the store.

The trade-ins or purchases are sent to auto-preparation centers, where they are thoroughly inspected. The company checks to see if cars have been in wrecks and then repaired, and will not resell those cars except to an auction house. In fact, each CarMax outlet displays a damaged vehicle that's been fixed cosmetically, under the sign "We would never sell you this car."

Unlike many local new car dealerships, the service department is closed on the weekends. But in another departure, the sales operation is open every day of week, including Sundays, when many Charleston area car stores are closed. Another service: The store has people on duty to watch kids in the children's play area, called FKO or "For Kids Only."

On Monday in preparation for the opening, employees were going through a "skill practice" to learn how to assist customers. The crew earlier this year visited the larger Columbia store to see how an outlet operates.

Service hours are 8:30 a.m.-5:30 p.m. weekdays. The sales part of the store is open 10 a.m. to 9 p.m. Monday to Friday, 9 a.m. to 9 p.m. Saturday and noon to 7 p.m. Sunday.

Hardy relocated from Norcross, Ga., where he was assistant manager of one of the larger superstores, to head the Charleston locale. This is the first time Hardy has run a CarMax, but he was manager with CarMax's former sister retailer, Circuit City. The used-car auto company was spun off from Circuit City several years back.

Hardy expects the Charleston store to do well. In adding a new market, "Generally what we do is the demographics, how many vehicles (would be sold)," he said.

The Lowcountry is an untapped market. "We also monitor our Columbia sales," he said. "You have a lot of Charlestonians (who) travel up to purchase a vehicle."

Reach Jim Parker at 937-5542 or jparker@postandcourier.com.