Competing with CarMax/Carvana on Used

What if you could chase used inventory with the same firepower that’s been beating you for years?

That’s the question Frank Knox can answer from every seat in the stadium: CarMax buyer → regional purchasing leader → indie group acquisitions boss → now COO at Auto Acquire.

Short version: AI won’t replace your people—but it will give them superpowers.

The Pain (You Know This One)

• Scale hurts. Frank’s teams have sourced 500–1,000+ cars a week. Auctions were necessary… and increasingly inefficient.

• Pandemic hangover. Auction-first strategies broke under volatility. Consumer-direct buying became the only real hedge.

So what actually changes with AI?

The Shift: Offers at Scale, Precision You Control

CarMax and Carvana didn’t win on charisma; they won on math. Years ago, they began automating offers and continuously tuning them with machine learning. Frank’s play is putting that capability in dealer hands:

• Automated, adjustable offers. Your store sets the “dials”—model mix, trim risk, reconditioning realities, turn targets—and the system updates offers in real time.

• Whole-garage visibility. With a verified name/email/phone, AI can match the entire household garage, not just the vehicle in front of you. One contact → multiple offers.

• Follow-up that doesn’t sleep. Sequenced, compliant touchpoints keep the funnel warm while your people focus on high-intent sellers.

• Friction-side help. Transport, ID validation, inspection pre-reads—AI assists across the messy middle so your buyers spend time where margin lives.

The Line That Never Moves: People Make the Calls

Frank’s clear: AI narrows the funnel; humans close the gap.
It can’t feel a transmission, smell flood damage, or read a seller’s hesitation. Your used car manager still:

• Tunes the dials (go heavy on Explorers, dial back on Quad Cab Rams).

• Owns final inspection and pencils the deal context the model will never see.

• Builds trust so a maybe becomes a yes.

The Blueprint (Steal This Week)

1. Pick 10: Choose ten VIN archetypes you’re best at turning. Set aggressive dials there; play defense elsewhere.

2. Outreach > Auction: Funnel 20% of this week’s “auction budget” into consumer offers and follow-up sequences. Measure opps created per dollar.

3. Garage Mining Script: “Mind if I check values on the other cars at your address? Prices are strong today.”

4. Fast-lane Recons: Pre-negotiate transport and mobile inspections so “yes” turns into “here” in under 72 hours.

5. Manager Time-Block: Two daily 45-minute blocks where a manager calls only high-score sellers. No interruptions.

The Bottom Line

You don’t need a billion-dollar war chest to win used acquisitions. You need offers at scale, clarity on what you’re best at, and humans who finish the play. Frank’s message to dealers is simple: Put CarMax/Carvana in a box—on your desk—and let your team run it.