CarMax Inc. will open 10 stores during the next 11 months, including its first foray into the New York metropolitan market, even as it continues to source more vehicles from consumers and build its online offerings.

The used-car retailing giant said last week that it will open one store in Edison, N.J., in May. It also plans to open stores in Wayne, N.J., and in the Long Island town of Hempstead, N.Y., this summer. It declined to share locations for the other new outlets.

With the expansion, CarMax estimated its capital spending will jump by about $192 million to $500 million for its 2023 fiscal year, which started in March. That increase over fiscal 2022 largely will cover long-term growth investments — more money for sales, auction and production facilities.

CarMax is “committed to an appropriate level of investment” on “differentiated assets,” CFO Enrique Mayor-Mora said last week after the retailer reported higher revenue and lower net income for its fiscal fourth quarter ended Feb. 28.

Building out CarMax production facilities, where acquired vehicles are reconditioned for retail sale, could be more expensive than building out the auction side of the business, CEO Bill Nash said.

Nash also reported progress on two efforts that had been a struggle in the past year — boosting staffing and inventory levels.

While CarMax has not yet returned to its historical average inventory of 320 vehicles per store, stocking levels have gotten better, and CarMax has the minimum production capacity it needs, Nash said.

“We can [recondition] more than a million cars a year” currently, he said.

Still, additional capacity to ready vehicles for sale could come in handy, Nash said, especially as CarMax sees sizable increases in the number of consumers looking to sell their cars to the retailer.

CarMax purchased 324,000 vehicles from consumers during its fourth quarter — 69 percent more than in the same period a year earlier. Of those, 162,000 came via CarMax’s online appraisal and instant offer tool. Costs to acquire vehicles rose in the quarter, which in turn led to an $8,300 per vehicle increase in CarMax’s average retail selling price.

For the full fiscal year, CarMax bought more than 1.4 million vehicles from consumers, up 96 percent. Of those, 707,000 were purchased using the appraisal tool.

That tool — rolled out in February 2021 — has been “so successful” in enabling those consumer transactions, Nash said. After its launch, it nearly doubled CarMax’s fiscal 2022 inventory self-sufficiency, Nash said.

CarMax increased its advertising spend by $19 million in its fourth quarter to try to drive customer acquisition and promote the company’s digital options.

About 55 percent of customers used CarMax’s omnichannel option during that quarter, up from 51 percent a year earlier. Omnichannel refers to technology and processes aimed at providing a seamless buying experience for consumers whether they shop online, in-store or both.

Another CarMax focus this year is adding self-service capabilities to “enhance in-store interactions, including appraisals and express pickups,” according to the company.

CarMax also revised financial targets first shared last May. The company now projects it will generate revenue of $33 billion to $45 billion and sell between 2 million and 2.4 million vehicles by its 2026 fiscal year.

That’s up from last year, when CarMax said it expected revenue of $33 billion and sales of 2 million vehicles by then.

CarMax is holding steady in its forecast that it will, by 2026, hold more than 5 percent of the market for used vehicles 10 years old or newer. The company estimates its share of that market was 4 percent in the 2021 calendar year and 3.5 percent in 2020.

CarMax, of Richmond, Va., is No. 1 on Automotive News‘ list of the top 100 retailers ranked by used-vehicle sales, with retail sales of 832,640 used vehicles in 2020.