CarMax Auto Trust 2023-2 Files 10-K, Meets Reporting Obligations

TL;DR

**CarMax Auto Owner Trust 2023-2's 10-K is a routine compliance check, confirming the ABS is on track and not signaling any immediate red flags for bondholders.**

AI Summary

CarMax Auto Owner Trust 2023-2, an asset-backed securities issuer, filed its 10-K for the fiscal year ended February 28, 2025. As an issuing entity, its primary function is to pass through payments from auto loan receivables, 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 beyond the routine administration of the securitized auto loan portfolio. Key risks for investors in this trust relate to the performance of the underlying auto loans, including potential defaults and prepayments, which directly impact cash flows to bondholders. The strategic outlook remains focused on the efficient servicing and distribution of principal and interest to investors, consistent with its asset-backed structure.

Why It Matters

This 10-K filing confirms the CarMax Auto Owner Trust 2023-2 is fulfilling its regulatory obligations, providing transparency for investors holding 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. The trust's consistent reporting helps maintain confidence in the structured finance market, particularly in the auto loan sector, where CarMax Auto Funding LLC and CarMax Business Services, LLC are significant players. This compliance helps differentiate it from less transparent offerings and supports the broader market's liquidity and pricing mechanisms.

Risk Assessment

Risk Level: low — The risk level is low because the filing indicates the CarMax Auto Owner Trust 2023-2 has filed all required reports under Section 13 or 15(d) of the Securities Exchange Act of 1934 for the preceding 12 months, demonstrating strong regulatory compliance. As an asset-backed trust, its risks are primarily tied to the performance of the underlying auto loans, which are not detailed as problematic in this administrative filing.

Analyst Insight

Investors in CarMax Auto Owner Trust 2023-2 should view this 10-K as a positive sign of continued regulatory compliance and operational stability. No immediate action is required based on this administrative filing, but bondholders should continue to monitor the trust's periodic distribution reports for specific performance metrics of the underlying auto loan collateral.

Financial Highlights

debt To Equity

0.0

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.)
• 10-K — Form Type (Confirms the filing is an annual report, providing comprehensive financial and operational information.)
• 0001969339 — Central Index Key (CIK) (Unique identifier for CarMax Auto Owner Trust 2023-2, ensuring accurate identification in SEC filings.)
• 333-260819-06 — Commission File Number (Specific SEC identifier for the issuing entity, linking it to its registration statement.)
• 92-6210837 — I.R.S. Employer Identification No. (Tax identification number for the Issuing Entity, crucial for regulatory and tax purposes.)

Key Players & Entities

• CarMax Auto Owner Trust 2023-2 (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
• 0001969339 (other) — Central Index Key (CIK) for Issuing Entity
• 333-260819-06 (other) — Commission File Number for Issuing Entity
• 1934 Act (other) — Securities Exchange Act of 1934
• Richmond, VA (other) — Business address city and state
• (804) 935-4512 (other) — Registrant's telephone number

FAQ

Risk Factors

• Performance of Underlying Auto Loans [high — financial]: The primary risk to investors stems from the performance of the securitized auto loan receivables. Defaults or delinquencies in these loans directly reduce the principal and interest payments available to bondholders. The trust's cash flows are entirely dependent on the obligors making timely payments.
• Prepayment Risk [medium — financial]: Borrowers may prepay their auto loans earlier than scheduled, which can lead to a reduction in the expected yield for investors. This is particularly relevant in a declining interest rate environment, as borrowers refinance or pay off loans to secure lower rates. Accelerated principal payments reduce the duration of the investment.
• Servicing and Administration [medium — operational]: The efficient servicing and administration of the auto loan portfolio by the servicer (CarMax Business Services, LLC) are critical. Any operational failures or inefficiencies in collection, payment processing, or reporting could negatively impact cash flows and investor confidence.
• Changes in Securitization Regulations [low — regulatory]: Evolving regulatory landscapes concerning asset-backed securities and consumer lending could impose new compliance burdens or alter the structure and economics of the trust. While no specific new regulations are cited, the potential for future changes remains a risk.

Industry Context

The auto finance industry, particularly the securitization of auto loans, is sensitive to economic conditions and interest rate environments. Performance is heavily influenced by consumer credit quality, vehicle depreciation, and the availability of financing. Competition exists among various lenders and securitization conduits, with a focus on efficient servicing and risk management.

Regulatory Implications

As an issuing entity for asset-backed securities, CarMax Auto Owner Trust 2023-2 is subject to SEC reporting requirements, including the filing of this 10-K. Compliance with securities laws and regulations governing securitization is paramount to maintaining investor confidence and market access.

What Investors Should Do

1. Monitor the delinquency and default rates of the underlying auto loan portfolio disclosed in future filings to assess credit risk.
2. Analyze prepayment speeds to understand the impact on investment duration and yield, especially in changing interest rate environments.
3. Review any updates to the servicing agreement or operational performance of CarMax Business Services, LLC, as this directly affects cash flow distribution.

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 securitized auto loan portfolio.
• 2025-05-23: 10-K Filing Date — The date the annual report was officially filed with 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. (CarMax Auto Owner Trust 2023-2 is an ABS issuer, meaning its structure and investor returns are tied to the performance of underlying auto loan receivables.)

Securitization

The process of pooling various types of contractual debt, such as mortgages, auto loans, or credit card debt, and selling their related cash flows to third-party investors as securities. (This is the core function of CarMax Auto Owner Trust 2023-2, which issues securities backed by auto loan receivables originated by CarMax.)

10-K

An annual report required by the U.S. Securities and Exchange Commission (SEC) that gives a comprehensive summary of a company's financial performance. (This document provides the official financial and operational overview of the trust for the fiscal year ended February 28, 2025.)

Depositor

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

Sponsor

The entity that initiates and manages the securitization process, often originating the underlying assets. (CarMax Business Services, LLC is the sponsor, indicating its role in the overall structure and operation of the trust.)

Year-Over-Year Comparison

As an issuing entity for securitized assets, CarMax Auto Owner Trust 2023-2 does not generate traditional revenue or net income, and its financial metrics are not directly comparable year-over-year in the same way as an operating company. The focus remains on the performance of the underlying auto loan pool and the consistent pass-through of payments to investors, as confirmed by the filing meeting all reporting requirements.

Filing Details

This Form 10-K (Form 10-K) was filed with the SEC on May 23, 2025 regarding CarMax Auto Owner Trust 2023-2.

View full filing on EDGAR

View Full Filing

View this 10-K filing on SEC EDGAR