CarMax Auto Owner Trust 2023-4 Files Compliant 10-K

TL;DR

CarMax Auto Owner Trust 2023-4's 10-K is a routine compliance filing, offering no surprises but confirming the trust's operational stability for ABS investors.

AI Summary

CarMax Auto Owner Trust 2023-4, 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 for the preceding 12 months, indicating compliance and transparency in its operations. There are no reported key business changes or strategic outlooks for the trust itself, as its primary function is to pass through payments from the underlying auto loans to investors. Risks are inherently tied to the performance of the auto loan portfolio, including potential defaults and prepayments, though specific dollar amounts for these are not detailed in this high-level filing. The trust is not a well-known seasoned issuer and is not required to submit Interactive Data Files.

Why It Matters

This 10-K filing confirms CarMax Auto Owner Trust 2023-4's adherence to SEC reporting obligations, providing crucial 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. While not directly impacting CarMax's employees or customers, the trust's stability reflects on the broader auto ABS market, signaling a functioning securitization mechanism for CarMax's auto loan originations. In a competitive landscape, consistent compliance helps maintain investor confidence in CarMax's ability to manage its securitization programs.

Risk Assessment

Risk Level: low — The risk level is low because this 10-K is a compliance filing for an asset-backed trust, confirming it has met all reporting requirements under Section 13 or 15(d) of the Securities Exchange Act of 1934. There are no indications of financial distress or operational issues within the trust itself, which is a passive entity managing auto loans.

Analyst Insight

Investors in CarMax Auto Owner Trust 2023-4 should view this filing as a confirmation of ongoing regulatory compliance, not a signal for immediate action. Continue to monitor the performance of the underlying auto loan collateral through servicer reports for actual portfolio health.

Financial Highlights

total Assets

$X

total Debt

$X

Key Numbers

• 20250228 — Conformed Period of Report (Indicates the fiscal year end for this 10-K filing.)
• 0001995430 — Central Index Key (CIK) (Unique identifier for CarMax Auto Owner Trust 2023-4 with the SEC.)
• 333-260819-08 — Commission File Number (SEC registration number for the issuing entity's securities.)
• 1934 Act — SEC Act (The Securities Exchange Act of 1934 under which this report is filed.)
• 7 — Public Document Count (Number of public documents associated with this filing.)

Key Players & Entities

• CarMax Auto Owner Trust 2023-4 (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
• 0001995430 (company) — Central Index Key of Issuing Entity
• 333-260819-08 (regulator) — Commission File Number of Issuing Entity
• Delaware (location) — State of incorporation for Issuing Entity and Depositor
• 93-6673809 (company) — I.R.S. Employer Identification No. for the Issuing Entity
• 12800 Tuckahoe Creek Parkway, Suite 400, Richmond, VA 23238 (location) — Principal executive offices address

FAQ

Risk Factors

• Credit Risk of Underlying Auto Loans [high — financial]: The primary risk to CarMax Auto Owner Trust 2023-4 stems from the creditworthiness of the borrowers of the auto loans within the securitized pool. Defaults on these loans can lead to reduced cash flows available for distribution to noteholders, impacting their returns. The performance of the collateral is directly tied to economic conditions and borrower repayment behavior.
• 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 because the trust passes through principal payments as they are received, and if loans are paid off early, the principal is returned sooner than anticipated, potentially at a lower interest rate than initially expected.
• Interest Rate Risk [medium — market]: Changes in prevailing interest rates can affect the value of the trust's assets and liabilities. If interest rates rise, the market value of existing fixed-rate auto loans may decrease. Conversely, if interest rates fall, borrowers may be more inclined to prepay their loans.
• Servicing and Operational Failures [medium — operational]: The performance of the trust is dependent on the effective servicing of the auto loan portfolio by CarMax Business Services, LLC. Any failures in collection, administration, or reporting by the servicer could negatively impact the trust's operations and the timely distribution of payments to investors.

Industry Context

The auto finance industry is characterized by its reliance on consumer credit and is sensitive to economic cycles. Securitization, as employed by CarMax Auto Owner Trust 2023-4, is a common practice for auto lenders to access capital markets and manage their balance sheets. Competition in auto lending is significant, with both captive finance companies and independent lenders vying for market share.

Regulatory Implications

As an issuer of asset-backed securities, CarMax Auto Owner Trust 2023-4 must comply with SEC reporting requirements, including the filing of Form 10-K. The trust's operations are also indirectly influenced by regulations governing consumer lending and financial institutions, particularly concerning disclosure and fair lending practices.

What Investors Should Do

1. Review Servicer Reports
2. Assess Credit Quality Trends
3. Monitor Economic Indicators

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 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.

Glossary

Asset-Backed Securities (ABS)

Securities that are backed by a pool of assets such as auto loans, credit card receivables, or mortgages. (CarMax Auto Owner Trust 2023-4 is an issuer of ABS, specifically backed by auto loans.)

Securities Exchange Act of 1934

A U.S. federal law that governs the secondary trading of securities, including requirements for periodic reporting by public companies and issuers. (The trust is filing its 10-K report under this Act, demonstrating compliance with regulatory disclosure obligations.)

Depositor

An entity that purchases assets from originators and then sells them to a trust for securitization. (CarMax Auto Funding LLC is the depositor for this trust, facilitating the transfer of auto loans.)

Sponsor

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

Conformed Period of Report

The fiscal year or period to which the financial report pertains. (Indicates that the report covers the period ending February 28, 2025.)

Year-Over-Year Comparison

This filing represents the annual report for the fiscal year ended February 28, 2025. As this is a specific trust issuance (2023-4), direct year-over-year comparisons of financial metrics like revenue or net income are not applicable in the traditional sense, as the trust's primary function is to pass through payments from its underlying assets. The key focus for investors would be on the performance trends of the auto loan portfolio compared to previous periods, such as changes in delinquency and default rates, which are not detailed in this high-level summary.

Filing Details

This Form 10-K (Form 10-K) was filed with the SEC on May 23, 2025 regarding CarMax Auto Owner Trust 2023-4.

View full filing on EDGAR

View Full Filing

View this 10-K filing on SEC EDGAR