CarMax announces used car upswing

CarMax, a national chain that owns and operates a number of used car dealerships across the country, has reported a noticeable uptick in used car sales for the third quarter, allowing the chain to increase profits beyond investor's expectations.

Profit for the company rose by 10 percent year-on-year to $82.4 million, up from $74.6 million in the third quarter of 2009, according to The Associated Press. The strong postings for the company were largely attributed to a high demand for used cars.

Actual revenue for the company was actually up 23 percent, with all dealerships under the CarMax banner moving more than $2.12 billion worth of used autos. According to the company, it makes about $2,103 in profit every time a car is sold.

"We've seen a nice trend here over the last few quarters of increased traffic and increased sales," CEO Tom Folliard said in a conference call with investors. "This quarter's results showed sustained strength in many of our key areas."

While dealerships may have the widest variety of used cars for sale, shoppers may want to keep in mind that they may be able to find even better deals on cars by visiting an auto auction or buying through a private seller.