Financial research concept

Used Auto Extended Protection Plan Revenue

Used auto extended protection plan revenue is revenue earned from selling vehicle protection products such as service plans and GAP coverage.

By Lee BaileyPublished Sep 25, 2026

Research context

See what supports this page, how current it is, and where comparable or historical context is available.

Research date: Sep 25, 2026Use the dated article and cited sources for the definition, examples, and stated limitations.
Operating-model context: 23 connected conceptsPart of the reviewed Used Auto Retail & Finance Economics; issuer definitions remain distinct where disclosed.
Company examples: 1 reviewed companyRelationships reflect supported examples, not a normalized cross-company KPI ranking.

CarMax example
Why it matters
Revenue is not vehicle margin
Part of the Used Auto Retail & Finance Economics
See It in Company Research
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Used auto extended protection plan revenue is revenue earned from vehicle protection products sold alongside retail vehicle transactions.

These products can include extended service plans and guaranteed asset protection, or GAP.

CarMax example

CarMax reported $448.7 million of extended protection plan revenue in fiscal 2026.

The company sells these products on behalf of unrelated third parties that are the primary obligors for claims. CarMax may also receive profit-sharing revenue tied to extended service plan performance.

Why it matters

Protection-plan revenue adds transaction economics beyond the vehicle's front-end merchandising margin.

That makes it useful alongside Used-Vehicle Gross Profit per Unit, financing economics, and retail units.

Revenue is not vehicle margin

Do not fold EPP revenue into used-vehicle gross profit per unit unless the issuer explicitly reports a combined measure.

The economics differ because product providers, claims obligations, attach rates, profit sharing, and accounting presentation can vary.

Primary source: CarMax fiscal 2026 Form 10-K.

CarMax disclosed that about 52% of retail used-vehicle customers purchased an extended service plan in fiscal 2026 and about 16% purchased GAP, giving useful context for the revenue stream.

Part of the Used Auto Retail & Finance Economics

Connect used-vehicle demand, pricing, sourcing, digital transaction mix, wholesale disposition, operating leverage, finance penetration, lending spread, and credit performance across an integrated used-auto retailer.

Browse the full operating model in Company Analysis →

Where this concept fits

Sourcing, digital channel mix, and wholesale dispositionCurrent relationship
Vehicle purchases from consumers and dealers show inventory sourcing, digitally enabled, omni, and online sales rates show how customers move through the transaction funnel, extended protection plan revenue adds attached-product economics, and wholesale units, selling price, and gross profit per unit show the disposition path for vehicles sold to dealers.
Digitally Enabled Transaction RateExtended Protection Plan RevenueCurrent conceptUsed Auto Omni Sales Rate Used Auto Online Retail Sales Rate Vehicle Purchases from Consumers Vehicle Purchases from Dealers Used Auto Wholesale Average Selling Price Used Auto Wholesale Gross Profit per Unit Used Auto Wholesale Unit Sales
Retail volume, pricing, margin, and operating leverage
Retail unit sales and comparable-store unit growth show demand, average selling price shows transaction value, used-vehicle gross profit per unit shows front-end merchandising margin, and SG&A per total unit plus SG&A as a percent of gross profit show how transaction economics convert through the retailer's overhead base.
Used Auto Comparable Store Unit Sales Growth Used Auto Retail Average Selling Price Used Auto Retail Unit Sales Used Auto SG&A as a Percent of Gross Profit Used Auto SG&A per Total Unit Used-Vehicle Gross Profit per Unit
Finance origination, spread, and credit performance
Net finance penetration and net auto loans originated show how retail sales feed the lending book, interest margin and its rate show lending spread economics, finance income shows the resulting segment contribution after included credit and direct costs, and past-due, net credit loss, and recovery rates show portfolio performance and loss severity.
Auto Finance Average Recovery Rate Auto Finance Income Auto Finance Interest Margin Auto Finance Interest Margin Rate Net Auto Loans Originated Auto Finance Net Credit Loss Rate Auto Finance Net Penetration Rate Auto Finance Past-Due Account Rate

See It in Company Research

These companies are examples of how the concept is reported or discussed in public filings. Definitions can differ by issuer; these links open company research rather than a normalized metric comparison.

KMXOpen operating-model research →23 of 23 reviewed concepts in Used Auto Retail & Finance EconomicsSourcing, digital channel mix, and wholesale disposition9 of 9 bridge concepts supportedContinue through this bridge:Digitally Enabled Transaction Rate Used Auto Omni Sales Rate Used Auto Online Retail Sales Rate Used Auto Wholesale Average Selling Price Used Auto Wholesale Gross Profit per Unit Used Auto Wholesale Unit Sales Vehicle Purchases from Consumers Vehicle Purchases from Dealers

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