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Raymond James Investor MeetingsAtlanta, GeorgiaOctober 9, 2008

Katharine W. KennyAssistant Vice President, Investor Relations

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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 Story

Largest used car retailer in the U.S.

Unmatched consumer offer Competitively low, no-

haggle prices Huge selection Guaranteed quality Customer-friendly sales

processes

Unique culture Diversified profit base

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Largest Used Car Retailer in the U.S.

CarMax currently has:

• 99 used car superstores

• 46 markets

In FYE 02/29/08 CarMax sold:

• 377,244 used vehicles

• 222,406 wholesale vehicles

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Strong Culture

Founded on the principle of integrity Well-trained, engaged associates Culture recognized in wide variety of

awards

Fortune’s “100 Best Companies to Work For” 4 consecutive years

2008 International Torch Award for Marketplace Excellence by the Council of Better Business Bureaus

2008 Training Magazine “Top 125”

Diversified Profit Base (FYE 2/29/08)

Percentages represent breakdown of gross profit dollars, including CarMax Auto Finance income

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Store Growth

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Finance Originations

Purchasing/

Inventory

Management

Reconditioning

Consumer

Offer

Competitive AdvantagesWell-tested Proprietary Processes & Systems

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Competitive AdvantagesScale Efficiencies

Sell more used cars per store

25,000+ used vehicles in national inventoryCustomer transfers represent ≈ 25% of sales

Carmax.com and marketing efficiencies70% of customers visit website first

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Competitive Advantagescarmax.com (original search capability)

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Competitive Advantagescarmax.com (with new search capability)

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Difficult Current Conditions

Economic slowdown and reduced consumer spending power had a negative impact on retail business

Disruption in financial markets reduced ABS liquidity

Consumer confidence at record lows and future conditions uncertain

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Q2 FY09 Q1FY09 Q2FY08

Used unit comps (17%) 1% 3%

Revenue $ 1.84 bn $ 2.21bn $ 2.12 bn

Gross profit / unit $ 2,753 $ 2,564 $ 2,869

Net earnings $14.0mm $29.6mm $65.0 mm

Results – Q2 FY09

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Current Results Reduced sales primarily due to decrease in traffic,

as conversion remained similar to prior year

Wholesale results strong

Buy rate decrease pressured used unit gross profit vs. Q2 ’08, but sequential gross profit increased

CAF results include negative charges of $28 million related to market conditions

Sequential reduction in SG&A due to cost cutting

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Steps We’ve Taken

Cut future growth plans

Dramatically decreased inventory and adjusted mix

Reduced variable costs throughout organization

Reduced staff in operations

Increased capacity in warehouse facility to $1.4 billion

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CAF Liquidity Options

Warehouse facility now offers greater flexibility to await securitization market improvements

Short-term balance sheet support Revolver increased to $700 million Sale-leaseback opportunities

Ongoing exploration of other options, including private securitization

Reduce warehouse usage for short term and offer bank partners more originations

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Future Opportunity

Long-term growth story remains strong Current store base covers only 43% of population Market share for Carmax averages only 5% in most markets

Unique CarMax model is adaptable to changed market conditions

Opportunities to reduce costs in reconditioning

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Why CarMax?

A unique and sustainable retail growth story with

defensible competitive advantages

Used car focus, with diversified profit base

Unique consumer offer

Process and systems driven

Organic growth opportunity

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