Carvana and CarMax both make it easier to buy or sell a used car without the traditional dealership experience. Find out which is better.

More so than the change in leadership, CarMax's bearish expectations for the third quarter are sinking Carvana, whose outlook on the near future of the used car industry is quite bullish.

Analysts have noted that "tariffs do pose a wildcard for Carvana, Carmax, and the used car industry." New car prices could increase, incentivizing customers to explore used vehicles.

For varying reasons, Carvana and CarMax — which only sell used cars — are known to be more generous with their offers than many franchised new car dealerships.

While Carvana trades near its all-time highs, CarMax continues to struggle, now more than 50% below its 52-week peak set at the very round $90 level late last year.

For now, some analysts on Wall Street are seeing positive signs for used-car sales, which is good news for big-name dealers like Carvana and CarMax.

Despite Carvana’s premium valuation, its superior growth, expanding margins, stronger sales momentum and solid estimate revisions make it the better choice for investors seeking handsome...

CarMax shares have lost nearly 20% this month, while Carvana’s have gained about 5%. For the year, the S&P 500 index has seen gains of about 16%.

“We believe that the negative growth CarMax is experiencing is reflective of a highly competitive used-car market and demonstrates Carvana’s competitive moat,” they said.

Is CarMax the best option for your next car transaction? The answer depends on whether you value convenience over saving money. And that applies if you're buying or selling with CarMax.

The launch comes as more shoppers gravitate toward simplified online car-buying experiences—an area dominated by Carvana and CarMax, whose shares dipped following Ford’s announcement.