CarMax Auto Trust 2022-2 Files 10-K, Confirms Compliance

TL;DR

CarMax Auto Owner Trust 2022-2's 10-K is a routine compliance filing, signaling stability for ABS investors, so hold your position.

AI Summary

CarMax Auto Owner Trust 2022-2, an asset-backed securities issuer, filed its 10-K for the fiscal year ended February 28, 2025, confirming compliance with all Section 13 or 15(d) reporting requirements. 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's primary business is the collection of principal and interest from these auto loans and the distribution of these funds to investors holding the asset-backed securities. Key business changes are not applicable as the trust's structure is static post-issuance, focusing solely on servicing the existing loan pool. Risks primarily involve the performance of the underlying auto loans, including default rates and prepayment speeds, which directly impact investor returns. The strategic outlook remains focused on the efficient administration of the trust and adherence to all regulatory obligations, ensuring timely payments to security holders.

Why It Matters

This filing confirms CarMax Auto Owner Trust 2022-2's adherence to SEC reporting standards, providing transparency for investors in its asset-backed securities. For investors, it signals the continued, compliant operation of the trust, which is crucial for the stability and predictability of their fixed-income investments. Employees of CarMax Business Services, LLC, as the sponsor, are indirectly affected by the trust's performance, as it reflects on the quality of the loans they originate. Customers of CarMax are not directly impacted by this specific trust filing, but the health of the securitization market generally supports CarMax's ability to offer financing. The broader market relies on such filings for data on the performance of auto loan portfolios, offering insights into consumer credit health and competitive dynamics within the auto finance sector.

Risk Assessment

Risk Level: low — The risk level is low because the filing is a standard compliance report for an asset-backed securities trust, indicating that the registrant has filed all required reports under Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months. This suggests operational stability and adherence to regulatory obligations, rather than new or emerging financial risks for the trust itself.

Analyst Insight

Investors in CarMax Auto Owner Trust 2022-2 should view this filing as a confirmation of ongoing regulatory compliance and operational stability. No immediate action is required based on this routine filing, but investors should continue to monitor future servicer reports for performance metrics of the underlying auto loan pool.

Financial Highlights

debt To Equity

Not Disclosed

revenue

Not Disclosed

operating Margin

Not Disclosed

total Assets

Not Disclosed

total Debt

Not Disclosed

net Income

Not Disclosed

eps

Not Disclosed

gross Margin

Not Disclosed

cash Position

Not Disclosed

revenue Growth

Not Disclosed

Key Numbers

• 2025-02-28 — Fiscal Year End Date (The period covered by this 10-K filing.)
• 0001921745 — Issuing Entity CIK (Unique identifier for CarMax Auto Owner Trust 2022-2 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.)
• 333-260819-02 — Issuing Entity Commission File Number (SEC registration number for the issuing entity.)
• 87-6816158 — Issuing Entity IRS EIN (Employer Identification Number for CarMax Auto Owner Trust 2022-2.)
• 01-0794037 — Depositor IRS EIN (Employer Identification Number for CarMax Auto Funding LLC.)

Key Players & Entities

• CarMax Auto Owner Trust 2022-2 (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
• 0001921745 (company) — Central Index Key Number of issuing entity
• 0001259380 (company) — Central Index Key Number of depositor
• 0001601902 (company) — Central Index Key Number of sponsor
• 333-260819-02 (regulator) — Commission File Number of issuing entity
• 12800 Tuckahoe Creek Parkway, Richmond, VA 23238 (location) — Principal executive offices address

FAQ

Risk Factors

• Performance of Underlying Auto Loans [high — financial]: The primary risk to CarMax Auto Owner Trust 2022-2 is the performance of the underlying pool of auto loans. Delinquencies and defaults on these loans directly impact the cash flows available to pay investors. For instance, if a significant portion of borrowers default, the trust may not be able to meet its payment obligations to the noteholders.
• Prepayment Speeds [medium — financial]: Faster-than-expected prepayment speeds on the auto loans can lead to early return of principal to investors. While this might seem positive, it can reduce the overall yield an investor receives, especially if they expected to hold the securities for a longer duration and earn interest over that period. Conversely, slower prepayments can extend the investment horizon.
• Compliance with Reporting Requirements [medium — regulatory]: As an ABS issuer, the trust must adhere to stringent reporting requirements under Section 13 or 15(d) of the Securities Exchange Act of 1934. Failure to file timely and accurate reports, such as this 10-K, could result in regulatory penalties and damage investor confidence.
• Servicing and Administration of Loan Pool [low — operational]: The efficient servicing and administration of the auto loan pool by CarMax Business Services, LLC is critical. Any operational failures in collection, payment processing, or record-keeping could lead to disruptions in cash flows and potential disputes, impacting investor distributions.

Industry Context

The auto finance industry is characterized by the securitization of auto loans to provide liquidity and funding for originators. Key trends include evolving consumer credit profiles, interest rate sensitivity, and increasing regulatory scrutiny. Competition exists among various finance companies and captive finance arms of automakers.

Regulatory Implications

CarMax Auto Owner Trust 2022-2, as an ABS issuer, is subject to ongoing reporting obligations under the Securities Exchange Act of 1934. Compliance with these regulations is crucial to maintain market access and investor confidence. Any failure to meet these requirements could lead to penalties and reputational damage.

What Investors Should Do

1. Monitor underlying loan performance metrics, including delinquency and default rates, as reported by the servicer.
2. Analyze prepayment speeds and their impact on the expected yield and duration of the securities.
3. Review any updates to risk factors or legal proceedings disclosed in subsequent filings.

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 underlying auto loan portfolio.
• 2025-05-23: 10-K Filing Date — The date the annual report was officially submitted to the SEC, providing investors with audited financial information and disclosures for the fiscal year.

Glossary

Asset-Backed Securities (ABS)

Securities that are backed by a pool of assets such as loans, leases, or credit card debt. The cash flows from these assets are used to pay investors. (CarMax Auto Owner Trust 2022-2 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. It isolates the assets from the originator's balance sheet. (The Trust functions as a securitization vehicle, holding auto loans originated by CarMax Business Services, LLC.)

Depositor

The entity that purchases assets from the originator and sells them to the securitization trust. In this case, CarMax Auto Funding LLC. (CarMax Auto Funding LLC is the depositor, facilitating the transfer of auto loans to the Trust.)

Sponsor

The entity that originates the assets being securitized. Here, CarMax Business Services, LLC originates the auto loans. (CarMax Business Services, LLC is the sponsor, responsible for the initial origination of the auto loans in the pool.)

Prepayment Speeds

The rate at which borrowers pay down their loans ahead of schedule. This impacts the timing of principal payments to ABS investors. (Prepayment speeds are a key risk factor as they affect the yield and duration of the investment for noteholders.)

Year-Over-Year Comparison

As this is the first 10-K filing for CarMax Auto Owner Trust 2022-2, a direct comparison of key financial metrics and risk factors to a prior year's filing is not applicable. The filing confirms compliance with reporting requirements for the fiscal year ended February 28, 2025, and establishes the baseline for future comparative analysis.

Filing Details

This Form 10-K (Form 10-K) was filed with the SEC on May 23, 2025 regarding CarMax Auto Owner Trust 2022-2.

View full filing on EDGAR

View Full Filing

View this 10-K filing on SEC EDGAR