CarMax Auto Owner Trust 2021-3 Files 10-K, Confirms Compliance

TL;DR

CarMax Auto Owner Trust 2021-3's 10-K is a routine compliance filing, indicating stable operations for its auto loan-backed securities, making it a neutral signal for investors.

AI Summary

CarMax Auto Owner Trust 2021-3, an asset-backed securities issuer, filed its 10-K for the fiscal year ended February 28, 2025. As a securitization entity, its primary function is to pass through collections from auto loans to investors, rather than generating traditional revenue or net income. The filing confirms the Trust has met all Section 13 or 15(d) reporting requirements under the Securities Exchange Act of 1934 for the preceding 12 months. There were no significant business changes reported, as the Trust's operations are limited to servicing the securitized auto loan pool. Key risks remain tied to the performance of the underlying auto loan collateral, including default rates and prepayment speeds, though specific dollar amounts for these were not detailed in the provided excerpt. The strategic outlook focuses on continued compliance and efficient distribution of cash flows to investors.

Why It Matters

This filing confirms CarMax Auto Owner Trust 2021-3's adherence to SEC reporting standards, providing transparency for investors in its asset-backed securities. For investors, it signals continued operational stability in the securitization of auto loans originated by CarMax Business Services, LLC. The consistent compliance helps maintain confidence in the structured finance market, particularly for auto loan-backed products, amidst a competitive landscape where investor scrutiny on asset quality is high. Employees of CarMax and its affiliates are indirectly impacted by the health and efficiency of these financing vehicles, which support the company's core auto sales business.

Risk Assessment

Risk Level: low — The risk level is low because the filing indicates full compliance with SEC reporting requirements under Section 13 or 15(d) of the Securities Exchange Act of 1934, with the registrant checking 'Yes' for having filed all required reports. Additionally, the Trust is a securitization vehicle, meaning its operational risks are generally limited to the performance of the underlying collateral, which is not detailed as problematic in this excerpt.

Analyst Insight

Investors in CarMax Auto Owner Trust 2021-3 should view this as a routine, positive compliance update, confirming the Trust's adherence to regulatory obligations. No immediate action is warranted based solely on this filing, but investors should continue to monitor the performance of the underlying auto loan collateral for any changes in default or prepayment rates.

Financial Highlights

debt To Equity

N/A

revenue

N/A

operating Margin

N/A

total Assets

N/A

total Debt

N/A

net Income

N/A

eps

N/A

gross Margin

N/A

cash Position

N/A

revenue Growth

N/A

Key Numbers

• 20250228 — Conformed Period of Report (Indicates the fiscal year ended February 28, 2025, for which the 10-K is filed.)
• 333-228379-11 — Commission File Number (Identifies the specific registration for CarMax Auto Owner Trust 2021-3 with the SEC.)
• 0001867436 — Central Index Key (CIK) (Unique identifier for CarMax Auto Owner Trust 2021-3 in SEC filings.)
• 12 months — Reporting Period (The Trust has filed all required reports during the preceding 12 months, indicating compliance.)
• 86-6744107 — IRS Employer Identification No. (Identifies the Issuing Entity for tax purposes.)

Key Players & Entities

• CarMax Auto Owner Trust 2021-3 (company) — Issuing Entity
• CarMax Auto Funding LLC (company) — Depositor
• CarMax Business Services, LLC (company) — Sponsor
• SEC (regulator) — Securities and Exchange Commission
• February 28, 2025 (date) — Fiscal year end
• 333-228379-11 (dollar_amount) — Commission File Number of issuing entity
• 0001867436 (dollar_amount) — Central Index Key Number of issuing entity
• 1934 Act (regulator) — Securities Exchange Act of 1934
• Richmond, VA (company) — Business address city and state
• (804) 935-4512 (dollar_amount) — Registrant's telephone number

FAQ

Risk Factors

• Collateral Performance Risk [high — financial]: The primary risk to CarMax Auto Owner Trust 2021-3 stems from the performance of the underlying auto loan collateral. Factors such as default rates and prepayment speeds directly impact the cash flows available to investors. While specific figures were not detailed in the provided excerpt, these are inherent risks in asset-backed securities backed by auto loans.
• Reporting Compliance [medium — regulatory]: The Trust is required to meet Section 13 or 15(d) reporting requirements under the Securities Exchange Act of 1934. The filing confirms that all such requirements have been met for the preceding 12 months, indicating ongoing compliance. Failure to meet these requirements could lead to regulatory scrutiny.

Industry Context

The auto loan securitization market is a significant component of the broader asset-backed securities industry. It provides essential financing for vehicle purchases by pooling loans and selling them to investors. Key trends include evolving credit standards, interest rate sensitivity, and regulatory oversight aimed at investor protection. The performance of these securities is closely tied to macroeconomic conditions and consumer credit health.

Regulatory Implications

CarMax Auto Owner Trust 2021-3 operates within a regulated framework, primarily governed by the Securities Exchange Act of 1934. The Trust's confirmation of meeting all reporting requirements for the preceding 12 months indicates adherence to these obligations. Ongoing compliance is crucial to maintain market access and investor confidence.

What Investors Should Do

1. Monitor underlying auto loan performance metrics, specifically default rates and prepayment speeds, as these directly impact cash flows.
2. Review any future filings for disclosures related to changes in the collateral pool or servicing practices.
3. Stay informed about broader economic conditions and consumer credit trends that could affect auto loan repayment.

Key Dates

• 2025-02-28: Fiscal Year End — Marks the end of the reporting period for the 10-K filing.
• 2025-05-23: 10-K Filing Date — The date the annual report was officially submitted to the SEC.

Glossary

Asset-Backed Securities (ABS)

Securities that are backed by a pool of assets such as loans, leases, or credit card debt. (CarMax Auto Owner Trust 2021-3 is an issuer of ABS, specifically backed by auto loans.)

Securitization Entity

A legal entity created to pool assets and issue securities backed by those assets. (The Trust functions as a securitization entity, passing through collections from auto loans to investors.)

Collateral

The underlying assets that back a security, in this case, auto loans. (The performance of the auto loan collateral is the primary driver of the Trust's cash flows and investor returns.)

Prepayment Speeds

The rate at which borrowers pay off their loans ahead of schedule. (Higher prepayment speeds can affect the timing and amount of cash flows to investors in ABS.)

Default Rates

The percentage of loans in a pool that have gone into default. (Higher default rates directly reduce the cash available for distribution to investors.)

10-K

An annual report required by the U.S. Securities and Exchange Commission (SEC), which gives a comprehensive summary of a company's financial performance. (This document is the 10-K filing for CarMax Auto Owner Trust 2021-3 for the fiscal year ended February 28, 2025.)

Year-Over-Year Comparison

As the provided text is the first detailed excerpt for the fiscal year ended February 28, 2025, a direct comparison to the previous year's filing (ending February 28, 2024) regarding specific financial metrics like revenue growth or margin changes is not possible. The filing confirms continued compliance with reporting requirements, and the core risks related to collateral performance remain consistent with typical ABS structures.

Filing Details

This Form 10-K (Form 10-K) was filed with the SEC on May 23, 2025 regarding CarMax Auto Owner Trust 2021-3.

View full filing on EDGAR

View Full Filing

View this 10-K filing on SEC EDGAR