CarMax Auto Trust 2023-3 Files 10-K, Confirms Compliance

TL;DR

**This 10-K is a routine compliance check for CarMax's auto loan ABS, signaling business as usual for investors in the 2023-3 trust.**

AI Summary

CarMax Auto Owner Trust 2023-3, an asset-backed securities issuer, filed its 10-K for the fiscal year ended February 28, 2025, confirming its compliance with Section 13 or 15(d) of the Securities Exchange Act of 1934. The trust, sponsored by CarMax Business Services, LLC and deposited by CarMax Auto Funding LLC, operates out of Richmond, VA. As an asset-backed issuer focused on auto loans, its financial performance is directly tied to the underlying collateral's credit quality and payment behavior. The filing indicates no securities registered under Section 12(b) or 12(g) of the Act, and it is not a well-known seasoned issuer. The trust has filed all required reports during the preceding 12 months and has been subject to filing requirements for the past 90 days, demonstrating regulatory adherence. The report also notes that disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained within the filing.

Why It Matters

This 10-K filing provides transparency for investors in CarMax Auto Owner Trust 2023-3, an asset-backed security (ABS) vehicle. It confirms the trust's ongoing regulatory compliance, which is crucial for maintaining investor confidence in the stability and oversight of the underlying auto loan portfolio. For employees of CarMax Business Services, LLC and CarMax Auto Funding LLC, it signifies the continued operational integrity of their securitization programs. In the broader market, this filing contributes to the overall health and transparency of the auto ABS sector, a key component of consumer credit and the automotive industry, especially as interest rates and consumer credit quality are closely watched.

Risk Assessment

Risk Level: low — The filing is a standard 10-K for an asset-backed trust, primarily confirming regulatory compliance for the fiscal year ended February 28, 2025. It explicitly states the registrant has filed all required reports and is not a delinquent filer, indicating strong adherence to SEC regulations. The nature of the filing itself, a compliance report for an established trust, inherently carries lower immediate risk compared to filings detailing significant operational changes or financial distress.

Analyst Insight

Investors in CarMax Auto Owner Trust 2023-3 should view this filing as a confirmation of ongoing regulatory compliance and operational stability. No immediate action is required based on this routine compliance report, but investors should continue to monitor future servicer reports for performance metrics of the underlying auto loan collateral.

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.)
• 10-K — Form Type (The specific SEC filing type for this annual report.)
• 333-260819-07 — Commission File Number (Unique identifier for the issuing entity's SEC registration.)
• 0001980857 — Central Index Key (CIK) (Unique identifier for the issuing entity in the SEC's EDGAR system.)

Key Players & Entities

• CarMax Auto Owner Trust 2023-3 (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
• Richmond, VA (location) — Principal executive offices
• 333-260819-07 (identifier) — Commission File Number of issuing entity
• 0001980857 (identifier) — Central Index Key Number of issuing entity
• 92-6684339 (identifier) — I.R.S. Employer Identification No. for the Issuing Entity

FAQ

Risk Factors

• Reliance on CarMax Auto Funding LLC for Loan Originating and Servicing [high — financial]: The Trust's operations are entirely dependent on CarMax Auto Funding LLC (CAF) for the origination and servicing of the auto loans that serve as collateral. Any disruption in CAF's ability to originate new loans or service existing ones due to financial distress, operational issues, or regulatory changes could materially impact the Trust's ability to generate cash flows and meet its obligations.
• Credit Risk of Underlying Auto Loans [high — financial]: The primary risk to the Trust is the credit quality of the underlying auto loans. Defaults or higher-than-expected delinquencies on these loans will reduce the cash flows available to pay the asset-backed securities. The performance of these loans is sensitive to economic conditions, unemployment rates, and consumer spending habits, which can impact borrowers' ability to repay.
• Changes in Consumer Protection Laws [medium — regulatory]: The Trust's operations and the underlying auto loans are subject to various federal and state consumer protection laws. Changes in these regulations, such as those related to lending practices, disclosure requirements, or debt collection, could increase compliance costs or restrict lending activities, thereby affecting the value and performance of the collateral.
• Servicing and Collection Performance [medium — operational]: The effectiveness of CarMax Auto Funding LLC in servicing the loans, including collection efforts, is critical. Inefficient or inadequate servicing could lead to increased delinquencies and losses, impacting the cash flows available to the Trust. The Trust relies on CAF's established processes and systems for these functions.
• Interest Rate Fluctuations [low — market]: While the Trust issues asset-backed securities, the underlying auto loans may have fixed or variable interest rates. Significant fluctuations in market interest rates could affect the yield on the collateral and the cost of funding for the Trust, potentially impacting its profitability and the attractiveness of its securities to investors.

Industry Context

The asset-backed securities market, particularly for auto loans, is a significant component of the broader financial services industry. It allows originators like CarMax Auto Funding LLC to access capital markets for funding. The industry is characterized by its reliance on credit quality of the underlying assets and is sensitive to economic cycles, interest rate movements, and regulatory oversight.

Regulatory Implications

As an asset-backed issuer, CarMax Auto Owner Trust 2023-3 must adhere to SEC reporting requirements, including timely filing of its 10-K. Compliance with consumer protection laws governing auto loans is also critical, as any violations could lead to penalties and impact the value of the collateral.

What Investors Should Do

1. Review the credit quality and performance metrics of the underlying auto loan portfolio.
2. Assess the operational stability and financial health of CarMax Auto Funding LLC and CarMax Business Services, LLC.
3. Monitor changes in consumer lending regulations and economic conditions.

Key Dates

• 2025-02-28: Fiscal Year End — Marks the end of the reporting period for the 10-K filing, encompassing the financial performance and operational activities of the Trust.
• 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. The cash flows from these assets are used to pay investors in the ABS. (CarMax Auto Owner Trust 2023-3 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. In this case, CarMax Auto Funding LLC is the depositor. (The depositor plays a crucial role in the securitization process by providing the underlying collateral.)

Sponsor

The entity that initiates and manages the securitization process, often originating or acquiring the assets to be securitized. CarMax Business Services, LLC is the sponsor. (The sponsor's reputation and operational capabilities are indirectly linked to the performance of the ABS.)

Collateral

The underlying assets that back a security. For CarMax Auto Owner Trust 2023-3, the collateral consists of auto loans. (The quality and performance of the collateral directly determine the cash flows available to pay the ABS holders.)

Fiscal Year End

The last day of a company's accounting year. For this Trust, it is February 28, 2025. (Defines the period covered by the financial statements and disclosures in the 10-K.)

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 is the primary document providing detailed financial and operational information about the Trust.)

Year-Over-Year Comparison

This 10-K filing for the fiscal year ended February 28, 2025, confirms the Trust's ongoing compliance with its reporting obligations. As an asset-backed issuer, specific year-over-year financial metrics like revenue growth or net income are not directly applicable in the same way as for a typical operating company. Instead, investors should focus on the performance of the underlying auto loan portfolio and any changes in risk factors or servicing arrangements compared to prior periods.

Filing Details

This Form 10-K (Form 10-K) was filed with the SEC on May 23, 2025 regarding CarMax Auto Owner Trust 2023-3.

View full filing on EDGAR

View Full Filing

View this 10-K filing on SEC EDGAR