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31st Annual Gabelli Automotive Aftermarket Symposium October 30, 2007

Mike DolanExecutive Vice President and Chief Administrative Officer

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Forward-Looking Statements

This presentation contains forward-looking statements, which are subject to risks and uncertainties. Additional discussion of factors that could cause actual results to differ materially from management’s projections and estimates is contained in the CarMax, Inc. SEC filings. The Company disclaims any intent or obligation to update its forward-looking statements.

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The CarMax Advantage®

Unique consumer offer

Proprietary processes and systems

Skilled, dedicated people

Diversified profit base

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Unique Consumer Offer

Low, no-haggle prices Huge selection carmax.com Customer-friendly service

Ease of Shopping

Peace of Mind

Guaranteed quality

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CarMax Today Nation’s largest used car retailer

• 84 used car superstores

• 38 markets

• Store growth:

•FY07 10 stores +15%

•FY08 13 stores +17% (Est.)

Large markets (9)

Mid-sized markets (28)

Small markets (1)

Sacramento

Los Angeles

Salt Lake City

Albuquerque

San Antonio

Wichita

Austin

Kansas City

Chicago

Houston

Dallas

Oklahoma City

Miami

Tampa

Orlando

Jacksonville

Birmingham

Memphis

Nashville

Louisville

Indianapolis

Columbus

KnoxvilleVa. BeachRichmond

DC / Baltimore

C’ville

RaleighGreensboro

CharlotteGreenville

ColumbiaAtlanta

Las Vegas

Fresno

Hartford /

New HavenMilwaukee

Tucson

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Consumer and Business Recognition

25+ awards in the last 2 years “Best of” Atlanta , Austin, Columbia,

Sacramento, San Antonio consumer awards BBB award for Business Ethics in Atlanta, central

Indiana, central North Carolina and others American Business Award – “Stevie Award” for

Best Overall Company

2 million cars sold as of December 2006

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Finance Originations

Purchasing/

Inventory

Management

Reconditioning

Consumer

Offer

Proprietary Processes and Systems

14 Years of Refinement

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Skilled, Dedicated Associates

Three years running (2005 - 2007)

THE CARMAX CULTURE

Comprehensive, formal training in four functional areas Classroom and on-line training Mentoring

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Diversified Gross Profit ContributionFY 2007

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CarMax Lifecycle

1993 2000 2003 2007 Future

Start up Stop growth to refine model

Restart

growth

Proven concept

15% annual store growth

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Future Sources of Growth

Store Expansion

84 stores today

CarMax has stores in markets where 40% of the U.S. population lives

15% - 20% new store openings

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Future Sources of Growth

Market Share Expansion

Comp used unit sales (5-year average) CarMax +6% Public new car dealers (3)%

Monthly used unit sales per store CarMax 426 Public new car dealers 49

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Strong Results – FY07

2,000

4,000

6,000

8,000

FY06 FY07

40

90

140

190

240

FY06 FY07

$ in millions $ in millions

Superstores Revenues Net Earnings*

* FY06 restated for SFAS 123R

30

50

70

90

FY06 FY07

AGR = 15% AGR = 19% AGR = 48%

67

77

$6,260

$7,466

$134

$199

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16.4%

13.5%12.3% 12.0% 11.9%

11.1%10.1% 10.0%

6.3%

0

2

4

6

8

10

12

14

16

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HD BBY WMT KMX KSS SPLS COST TGT PublicDealer

Average

RO

IC (

%)

(2)

ROIC (1)

5-Year Average (2002 thru 2006)

CarMax Earns Attractive Returns

Source: Published reports and CarMax estimates.

(1) After-tax EBIT/average invested capital. Invested capital includes operating leases capitalized at 8x rentals. Results not adjusted for subsequent restatements.

(2) Public dealer average includes: ABG, AN, GPI, LAD, PAG, and SAH.

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Future Sources of Growth

Sales Growth

Comp used unit growth: 4% - 8%

New store openings: 15% - 20%

Resulting FY12 revenue range: $13 - $18 bn

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New at CarMax

New carmax.com Search CapabilityGive customers greater search flexibilityImprove site-to-store conversionProvide competitive advantage

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Current carmax.com Search Capability

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New carmax.com Search Capability

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Appraisal System EnhancementsBetter and more timely analytical data for

buyers Improved estimation of reconditioning costsImproved customer offers and delivery

mechanism

New at CarMax

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What is CarMax?

A unique and sustainable retail

growth story with

defensible competitive advantages

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