CarMax Auto Owner Trust 2022-1 Files 10-K, Confirms Compliance

TL;DR

**CarMax Auto Owner Trust 2022-1's 10-K is a routine compliance check, signaling business as usual for ABS investors.**

AI Summary

CarMax Auto Owner Trust 2022-1, an asset-backed securities issuer, filed its 10-K for the fiscal year ended February 28, 2025. As a securitization vehicle, it does not report traditional revenue or net income, but rather manages a pool of auto loans originated by CarMax Business Services, LLC. The trust confirmed it has filed all required reports under Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months. There were no significant business changes reported beyond the ongoing administration of the auto loan portfolio. Key risks are inherently tied to the performance of the underlying auto loans, including default rates and prepayment speeds, though specific metrics were not detailed in this summary section. The strategic outlook remains focused on the timely distribution of principal and interest to investors, as per the trust's governing documents.

Why It Matters

This filing confirms the CarMax Auto Owner Trust 2022-1 is meeting its regulatory obligations, providing transparency for investors in its asset-backed securities. For investors, this means continued access to information regarding the performance of the underlying auto loan collateral, which directly impacts their returns. Employees and customers of CarMax are indirectly affected as the trust's performance reflects on the broader financial health and lending practices of CarMax Business Services, LLC. In the competitive auto lending market, consistent compliance and reporting help maintain investor confidence in CarMax's securitization programs.

Risk Assessment

Risk Level: low — The risk level is low because this 10-K primarily confirms regulatory compliance for an asset-backed trust, not an operating company. The filing explicitly states the registrant "has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months," indicating good standing and transparency.

Analyst Insight

Investors in CarMax Auto Owner Trust 2022-1 should view this filing as a positive sign of ongoing regulatory compliance. They should continue to monitor the trust's periodic distribution reports for specific performance metrics of the underlying auto loan collateral, as this 10-K is largely administrative.

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

• 2025-02-28 — Fiscal Year End Date (The period covered by this annual report.)
• 0001899236 — Issuing Entity CIK (Unique identifier for CarMax Auto Owner Trust 2022-1 with the SEC.)
• 0001259380 — Depositor CIK (Unique identifier for CarMax Auto Funding LLC with the SEC.)
• 0001601902 — Sponsor CIK (Unique identifier for CarMax Business Services, LLC with the SEC.)
• 333-260819-01 — Issuing Entity Commission File Number (SEC file number for the issuing entity.)
• 87-6812822 — Issuing Entity IRS EIN (Employer Identification Number for CarMax Auto Owner Trust 2022-1.)
• 01-0794037 — Depositor IRS EIN (Employer Identification Number for CarMax Auto Funding LLC.)

Key Players & Entities

• CarMax Auto Owner Trust 2022-1 (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
• 0001899236 (regulator) — Central Index Key Number of issuing entity
• 333-260819-01 (regulator) — Commission File Number of issuing entity
• 12800 Tuckahoe Creek Parkway, Suite 400, Richmond, VA 23238 (location) — Principal executive offices address
• (804) 935-4512 (person) — Registrant's telephone number
• Delaware (location) — State of incorporation for Issuing Entity and Depositor

FAQ

Risk Factors

• Performance of Underlying Auto Loans [high — financial]: The primary risk for CarMax Auto Owner Trust 2022-1 is the credit performance of the securitized auto loan pool. Delinquencies and defaults on these loans directly impact the cash flows available for distribution to noteholders. Factors such as economic downturns, rising unemployment, and changes in consumer spending habits can increase default rates.
• Prepayment Speeds [medium — financial]: Variations in prepayment speeds of the auto loans can affect the timing and amount of principal payments to investors. Faster prepayments may lead to reinvestment risk for investors seeking specific yield targets, while slower prepayments can extend the life of the securities beyond expectations.
• Interest Rate Fluctuations [medium — market]: Changes in prevailing interest rates can impact the value of the outstanding notes. Rising interest rates generally lead to a decrease in the market value of fixed-rate securities, while falling rates can increase prepayment speeds.
• Servicing and Administration [low — operational]: The trust relies on CarMax Business Services, LLC as the servicer. Any operational failures or inefficiencies in loan servicing, collection, or administration could negatively affect the performance of the collateral and the trust's ability to meet its obligations.
• Compliance with Securitization Regulations [low — regulatory]: The trust must comply with all applicable federal and state regulations governing securitization and asset-backed securities. Non-compliance could lead to penalties, reputational damage, and potential legal challenges.

Industry Context

The auto finance industry is characterized by intense competition among lenders, including captive finance companies, banks, and independent finance firms. Key trends include the increasing use of technology for loan origination and servicing, evolving consumer preferences for vehicle ownership models, and the ongoing impact of economic conditions on borrower creditworthiness. The market for auto loan ABS is sensitive to interest rate movements and credit quality concerns.

Regulatory Implications

As an issuer of asset-backed securities, CarMax Auto Owner Trust 2022-1 is subject to various regulations, including those related to disclosure, risk retention, and consumer protection. Compliance with SEC reporting requirements (Form 10-K) is paramount. Changes in financial regulations or interpretations could impact the structure or operation of securitization trusts.

What Investors Should Do

1. Monitor Underlying Loan Performance
2. Assess Prepayment Risk
3. Review Servicer's Operational Capacity

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, credit card debt, or receivables. (CarMax Auto Owner Trust 2022-1 is an issuer of ABS, specifically backed by auto loans.)

Securitization Vehicle

An entity created to pool assets and issue securities backed by those assets, thereby transferring risk from the originator to investors. (CarMax Auto Owner Trust 2022-1 functions as a securitization vehicle for auto loans originated by CarMax Business Services, LLC.)

Depositor

The entity that purchases assets from the originator and sells them to the trust for securitization. (CarMax Auto Funding LLC is the depositor for this trust.)

Sponsor

The entity that originates the assets being securitized and typically plays a role in structuring the securitization transaction. (CarMax Business Services, LLC is the sponsor, originating the auto loans.)

Prepayment Speeds

The rate at which borrowers pay down their loans faster than the scheduled amortization. This affects the yield and duration of ABS. (Fluctuations in prepayment speeds are a key risk factor impacting investor returns.)

Default Rate

The percentage of loans in a pool that have defaulted, meaning borrowers have failed to make payments as agreed. (The default rate of the underlying auto loans is a critical determinant of the trust's performance.)

Year-Over-Year Comparison

As this is the first 10-K filing for the CarMax Auto Owner Trust 2022-1, a direct comparison of key metrics to a prior year's filing is not applicable. The filing confirms adherence to reporting requirements for the preceding 12 months and indicates no significant business changes beyond the ongoing administration of the auto loan portfolio. Future filings will allow for year-over-year comparisons of loan performance and risk factor evolution.

Filing Details

This Form 10-K (Form 10-K) was filed with the SEC on May 23, 2025 by (804) 935-4512 regarding CarMax Auto Owner Trust 2022-1.

View full filing on EDGAR

View Full Filing

View this 10-K filing on SEC EDGAR