CarMax Auto Trust 2021-4 Files 10-K, Confirms Compliance

TL;DR

CarMax Auto Owner Trust 2021-4's 10-K is a routine compliance filing, signaling stability for ABS investors but offering no new operational insights.

AI Summary

CarMax Auto Owner Trust 2021-4, an asset-backed securities issuer, filed its 10-K for the fiscal year ended February 28, 2025. As a trust, it does not report traditional revenue or net income, but rather manages a pool of auto loans originated by CarMax Business Services, LLC. 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 are no significant business changes reported for the trust itself, as its primary function is to pass through payments from the underlying auto loan collateral to investors. Key risks are inherently tied to the performance of the auto loan portfolio, including default rates and prepayment speeds, though specific dollar amounts for these were not detailed in the provided excerpt. The strategic outlook remains focused on the continued administration of the existing securitized auto loan pool.

Why It Matters

This 10-K filing confirms CarMax Auto Owner Trust 2021-4's ongoing compliance with SEC reporting requirements, which is crucial for maintaining investor confidence in the transparency and regulatory adherence of asset-backed securities. For investors holding these auto loan-backed notes, it signals continued oversight of the underlying collateral performance. Employees of CarMax Business Services, LLC, the sponsor, are indirectly affected as the trust's performance reflects on the quality of their loan originations. In the broader market, the consistent filing by such trusts helps maintain liquidity and investor appetite for the auto ABS sector, providing competitive financing avenues for CarMax customers.

Risk Assessment

Risk Level: low — The risk level is low because the filing is a routine 10-K for an asset-backed trust, primarily confirming compliance with SEC regulations. The trust itself, CarMax Auto Owner Trust 2021-4, is not an operating company and its risks are tied to the performance of its underlying auto loan collateral, which is not detailed as deteriorating in this compliance-focused excerpt. The filing explicitly states the registrant has filed all required reports for the preceding 12 months.

Analyst Insight

Investors in CarMax Auto Owner Trust 2021-4 should view this filing as a confirmation of regulatory compliance, not an indicator of significant operational changes. Continue to monitor the performance of the underlying auto loan collateral through servicer reports and other disclosures for actual credit performance metrics.

Financial Highlights

debt To Equity

N/A

revenue

$0

operating Margin

N/A

total Assets

$0

total Debt

$0

net Income

$0

eps

$0

gross Margin

N/A

cash Position

$0

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.)
• 0001879747-25-000027 — Accession Number (Unique identifier for the SEC filing, confirming its submission.)
• 10-K — Form Type (Specifies the annual report type filed by the trust.)
• 333-228379-12 — Commission File Number (Identifies the specific registration statement for the issuing entity with the SEC.)
• 86-6768080 — I.R.S. Employer Identification No. (Unique tax identifier for CarMax Auto Owner Trust 2021-4.)

Key Players & Entities

• CarMax Auto Owner Trust 2021-4 (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
• 333-228379-12 (regulator) — Commission File Number of issuing entity
• 0001879747 (company) — Central Index Key Number of issuing entity
• 1934 Act (regulator) — Securities Exchange Act of 1934
• Richmond, VA (company) — Business address location
• (804) 935-4512 (company) — Registrant's telephone number

FAQ

Risk Factors

• Performance of Underlying Auto Loan Pool [high — financial]: The primary risk for CarMax Auto Owner Trust 2021-4 is the performance of the auto loan collateral. Delinquencies and defaults within the pool directly impact the cash flows available to pay investors. Prepayment speeds also pose a risk, as faster-than-expected prepayments can lead to reinvestment risk for investors.
• Economic Downturn Impact on Borrowers [medium — market]: A general economic downturn could lead to increased unemployment and reduced disposable income for auto loan borrowers. This would likely result in higher default rates on the underlying loans, negatively affecting the trust's performance.
• Servicing and Administration of Loans [medium — operational]: The efficient servicing and administration of the auto loan portfolio by CarMax Business Services, LLC are critical. Any operational failures or inefficiencies in loan collection, payment processing, or reporting could adversely affect investor returns.

Industry Context

The auto finance industry is closely tied to the overall health of the economy and consumer credit availability. Trends include increasing adoption of digital loan origination and servicing, as well as evolving consumer preferences for vehicle purchasing. Competition remains strong among traditional lenders, captive finance companies, and fintech platforms.

Regulatory Implications

As an ABS issuer, CarMax Auto Owner Trust 2021-4 is subject to SEC reporting requirements, including the filing of Form 10-K. Compliance with securities laws and regulations is paramount to maintaining investor confidence and market access.

What Investors Should Do

1. Monitor auto loan portfolio performance metrics, particularly delinquency and default rates, in subsequent filings.
2. Assess the impact of macroeconomic factors, such as interest rate changes and economic slowdowns, on borrower repayment capacity.

Key Dates

• 2025-02-28: Fiscal Year End — Marks the end of the reporting period for the 10-K filing, encompassing the performance of the auto loan pool.
• 2025-05-23: 10-K Filing Date — The date the annual report was officially submitted to the SEC, providing investors with the latest financial and operational information.

Glossary

Asset-Backed Securities (ABS)

Securities that are backed by a pool of assets such as loans, leases, credit card debt, or receivables. (CarMax Auto Owner Trust 2021-4 is an issuer of ABS, specifically backed by auto loans.)

Depositor

An entity that transfers assets to a trust in exchange for securities issued by the trust. (CarMax Auto Funding LLC is the depositor for this trust, originating and transferring the auto loans.)

Sponsor

The entity that initiates and manages the securitization process, often originating the assets being securitized. (CarMax Business Services, LLC is the sponsor, originating the auto loans that form the collateral for the trust.)

Collateral

The underlying assets that secure a loan or security. In this case, the auto loans themselves. (The performance of the auto loan collateral is the primary driver of returns for investors in the trust.)

Prepayment Speeds

The rate at which borrowers pay off their loans earlier than scheduled. (Affects the timing of cash flows to investors and can lead to reinvestment risk.)

Year-Over-Year Comparison

As this is the first 10-K filing for the fiscal year ending February 28, 2025, a direct comparison to the previous year's filing is not possible within this report. Future filings will provide the necessary data to analyze year-over-year changes in the performance of the auto loan portfolio and any shifts in risk factors.

Filing Details

This Form 10-K (Form 10-K) was filed with the SEC on May 23, 2025 regarding CarMax Auto Owner Trust 2021-4.

View full filing on EDGAR

View Full Filing

View this 10-K filing on SEC EDGAR