CarMax Auto Trust 2024-2 Files 10-K, Confirms Compliance

TL;DR

**This trust is a compliant, low-risk vehicle for CarMax's auto loan securitization, offering predictable, albeit limited, insight into its underlying asset performance.**

AI Summary

CarMax Auto Owner Trust 2024-2, 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 special purpose entity, its primary function is to hold and manage a pool of auto loans originated by CarMax Business Services, LLC, and issue securities backed by these assets. The filing indicates no revenue or net income in the traditional sense, as its financial performance is tied to the performance of the underlying auto loan collateral. Key business changes are not applicable as the trust's structure is static post-issuance, focusing on servicing and distributing cash flows. Risks are inherently tied to the credit performance of the auto loan portfolio, including potential defaults and prepayments, though specific dollar amounts for these risks are not detailed in this summary filing. The strategic outlook remains consistent with its securitization purpose: to provide investors with returns based on the performance of the specified auto loan pool.

Why It Matters

This 10-K filing confirms CarMax Auto Owner Trust 2024-2's ongoing compliance with SEC reporting, providing transparency for investors holding its asset-backed securities. For investors, this ensures 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 ability to issue securities supports CarMax's broader financing operations and liquidity. In the competitive auto finance market, consistent and timely SEC filings like this maintain investor confidence in CarMax's securitization programs, distinguishing it from less transparent issuers.

Risk Assessment

Risk Level: low — The risk level is low because CarMax Auto Owner Trust 2024-2 is a special purpose entity primarily focused on servicing existing asset-backed securities, as indicated by its 'ASSET-BACKED SECURITIES [6189]' SIC code. The filing confirms it 'has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934,' demonstrating strong regulatory compliance and operational stability for its specific function.

Analyst Insight

Investors in CarMax Auto Owner Trust 2024-2 should view this filing as a confirmation of ongoing regulatory compliance and operational stability. They should continue to monitor the performance of the underlying auto loan collateral through servicer reports, as this 10-K primarily addresses structural and compliance aspects rather than detailed financial performance.

Financial Highlights

debt To Equity

N/A

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

• 0002016948 — Central Index Key (CIK) (Identifies CarMax Auto Owner Trust 2024-2 with the SEC.)
• 333-260819-10 — Commission File Number (Specific SEC file number for the issuing entity.)
• February 28, 2025 — Fiscal Year End (The period covered by this annual report.)
• 10-K — Form Type (Indicates an annual report filing.)
• 1934 Act — SEC Act (Governing act for this filing.)
• 99-6326125 — IRS EIN (Employer Identification Number for the Issuing Entity.)
• 6189 — SIC Code (Classifies the entity as 'ASSET-BACKED SECURITIES'.)
• 1 — Public Document Count (Indicates a single primary document in the filing.)

Key Players & Entities

• CarMax Auto Owner Trust 2024-2 (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
• 333-260819-10 (regulator) — Commission File Number of issuing entity
• 0002016948 (company) — Central Index Key Number of issuing entity
• 12800 Tuckahoe Creek Parkway, Suite 400, Richmond, VA 23238 (location) — Principal executive offices
• 99-6326125 (company) — I.R.S. Employer Identification No. for the Issuing Entity
• Delaware (location) — State of incorporation for the Issuing Entity and the Depositor

FAQ

Risk Factors

• Credit Risk of Underlying Auto Loans [high — financial]: The primary risk to CarMax Auto Owner Trust 2024-2 is the credit performance of the pool of auto loans. Defaults by borrowers on these loans can lead to reduced cash flows available to pay the securities. The trust's performance is directly tied to the ability of obligors to make timely payments.
• Prepayment Risk [medium — financial]: Borrowers may prepay their auto loans earlier than scheduled, which can reduce the expected yield on the securities. This is particularly relevant in a declining interest rate environment. Accelerated principal payments due to prepayments can impact the timing and amount of distributions to investors.
• Servicing and Administration [medium — operational]: The trust relies on CarMax Business Services, LLC as the servicer. Any failures in the servicing function, including collection, record-keeping, or remittance of payments, could adversely affect the trust's operations and the rights of security holders.
• Compliance with Securitization Regulations [low — regulatory]: As an ABS issuer, the trust must comply with various regulations governing securitization, including those related to disclosure and risk retention. Non-compliance could lead to penalties or reputational damage.

Industry Context

The asset-backed securities market, particularly for auto loans, is a significant component of the broader fixed-income landscape. It provides a mechanism for originators like CarMax to access funding by pooling and securitizing loans. The industry is sensitive to macroeconomic factors such as interest rates, consumer credit quality, and overall economic growth, which influence both loan origination and borrower repayment behavior.

Regulatory Implications

As an ABS issuer, CarMax Auto Owner Trust 2024-2 is subject to SEC reporting requirements under the 1934 Act. Compliance with these regulations ensures transparency for investors. Additionally, the structure of securitization itself is subject to evolving regulatory scrutiny, particularly concerning risk retention and consumer protection, which could impact future issuances.

What Investors Should Do

1. Review the underlying loan pool characteristics.
2. Monitor prepayment speeds and interest rate trends.
3. Assess the performance of the servicer, CarMax Business Services, LLC.

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 — Indicates 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, or credit card debt. (CarMax Auto Owner Trust 2024-2 is an issuer of ABS, specifically backed by auto loans.)

Special Purpose Entity (SPE)

A legal entity created for a specific, narrow purpose, often used in securitization to isolate assets and liabilities. (The trust is structured as an SPE to hold the auto loan collateral and issue securities.)

Servicer

The entity responsible for managing the underlying assets, including collecting payments, handling delinquencies, and remitting funds to the trust. (CarMax Business Services, LLC acts as the servicer for the auto loan pool.)

Collateral

The underlying assets that back the securities issued by the trust. (The pool of auto loans originated by CarMax Business Services, LLC serves as the collateral for the 2024-2 securities.)

Prepayment Risk

The risk that borrowers will repay their loans earlier than scheduled, affecting the expected cash flows and yield for investors. (A key risk factor for investors in ABS, as it impacts the timing of principal repayment.)

Credit Risk

The risk of loss due to a borrower's failure to repay a loan or meet contractual obligations. (The primary risk for the trust, as it directly impacts the performance of the underlying auto loan pool.)

Year-Over-Year Comparison

As this is the first 10-K filing for CarMax Auto Owner Trust 2024-2, a direct comparison to a previous year's filing is not applicable. The filing confirms compliance with reporting requirements for the fiscal year ended February 28, 2025. Future filings will provide year-over-year comparisons of the underlying loan portfolio's performance, delinquency rates, and prepayment activity.

Filing Details

This Form 10-K (Form 10-K) was filed with the SEC on May 23, 2025 regarding CarMax Auto Owner Trust 2024-2.

View full filing on EDGAR

View Full Filing

View this 10-K filing on SEC EDGAR