CarMax Inc. Thursday paused share buybacks after reporting an 86% fall in quarterly profit, hurt by waning demand for used cars as inflation-hit consumers reined in discretionary spending.

Shares of the largest U.S. used-car retailer were down 11.5% at $52.54 before the bell.

While auto retailers benefited from strong demand for personal transport through the pandemic, rising interest rates and high car prices have halted that trend.

CarMax's net income fell to $37.6 million, or 24 cents per share, in the quarter ended Nov. 30, from $269.4 million, or $1.63 per share, a year earlier.</p> <p>Revenue fell to $6.51 billion from $8.53 billion a year earlier.