CarMax Auto Owner Trust 2024-4 Files Routine 10-K

TL;DR

**This 10-K is a standard compliance filing for CarMax Auto Owner Trust 2024-4, offering no new financial insights but confirming regulatory adherence for its auto loan-backed securities.**

AI Summary

CarMax Auto Owner Trust 2024-4, an asset-backed securities issuer, filed its 10-K for the fiscal year ended February 28, 2025. As a special purpose entity, it does not report traditional revenue or net income figures but rather focuses on the performance of its underlying auto loan collateral. The filing confirms the trust has met all reporting requirements under Section 13 or 15(d) of the Securities Exchange Act of 1934 for the preceding 12 months. Key business changes or strategic outlook are not applicable to this type of entity, which is designed to hold and service a specific pool of auto loans. The primary risks for investors relate to the performance of the securitized auto loans, including default rates and prepayment speeds, which are not detailed in this specific 10-K but are typically covered in prospectus supplements and monthly servicer reports. The trust's purpose is to facilitate the securitization of auto loans originated by CarMax Business Services, LLC.

Why It Matters

This routine 10-K filing for CarMax Auto Owner Trust 2024-4 confirms compliance with SEC reporting obligations, providing transparency for investors in its asset-backed securities. While not revealing new financial performance, it assures the market that the trust, backed by CarMax Auto Funding LLC and sponsored by CarMax Business Services, LLC, is adhering to regulatory standards. For investors, this means continued access to information regarding the underlying auto loan pool's performance, which is crucial for assessing risk and return in the competitive auto ABS market. The stability of such trusts reflects on the broader health of the auto lending sector and CarMax's ability to originate performing assets.

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 the Securities Exchange Act of 1934 for the fiscal year ended February 28, 2025. It does not indicate any operational or financial distress for the trust itself, nor does it contain disclosures of delinquent filers pursuant to Item 405 of Regulation S-K.

Analyst Insight

Investors in CarMax Auto Owner Trust 2024-4 should view this filing as a confirmation of regulatory compliance, not a performance update. They should continue to monitor monthly servicer reports and prospectus supplements for specific data on the underlying auto loan collateral's performance, including delinquency and default rates, to assess their investment.

Financial Highlights

total Assets

$X

total Debt

$X

Key Numbers

• 2025-02-28 — Fiscal Year End Date (The period covered by this annual report.)
• 333-260819-13 — Commission File Number (Identifies the issuing entity's registration with the SEC.)
• 0002037519 — Central Index Key (CIK) (Unique identifier for CarMax Auto Owner Trust 2024-4 with the SEC.)
• 1934 Act — SEC Act (The trust files reports pursuant to Section 13 or 15(d) of this Act.)

Key Players & Entities

• CarMax Auto Owner Trust 2024-4 (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
• 0002037519 (number) — Central Index Key Number of issuing entity
• 333-260819-13 (number) — Commission File Number of issuing entity
• 99-6859302 (number) — I.R.S. Employer Identification No. for the Issuing Entity
• 12800 Tuckahoe Creek Parkway, Suite 400, Richmond, VA 23238 (address) — Principal executive offices
• (804) 935-4512 (number) — Registrant's telephone number

FAQ

Risk Factors

• Collateral Performance Risk [high — financial]: The primary risk to investors stems from the performance of the underlying auto loan collateral. Deterioration in credit quality, increased delinquencies, or higher-than-expected defaults on these loans could lead to losses for the trust and its noteholders. The trust's structure relies on the timely payment of principal and interest by the obligors of the securitized auto loans.
• Prepayment Risk [medium — financial]: Investors face the risk of receiving principal payments earlier than anticipated due to prepayments on the auto loans. This can occur if borrowers refinance their loans or pay them off early. Accelerated principal payments reduce the yield an investor receives, especially in a declining interest rate environment, as the principal is reinvested at lower rates.
• Interest Rate Risk [medium — financial]: Changes in prevailing interest rates can impact the value of the trust's notes. If interest rates rise, the market value of existing notes with lower fixed rates may decline. Conversely, falling interest rates can lead to increased prepayments, as noted above, affecting reinvestment yields.
• Servicing and Operational Risk [medium — operational]: The performance of the trust is dependent on the effective servicing of the auto loan portfolio by CarMax Business Services, LLC. Any operational failures, inadequate collection efforts, or mismanagement by the servicer could negatively impact the cash flows available to the trust and its investors.
• Regulatory and Legal Compliance [low — regulatory]: The trust and its underlying loans are subject to various federal and state consumer protection laws and regulations. Non-compliance by the servicer or the trust could result in fines, penalties, or legal challenges, potentially impacting the value of the securitized assets.

Industry Context

The auto finance industry is characterized by significant competition among lenders and a reliance on robust credit risk management. Securitization, as utilized by CarMax, is a common practice to provide liquidity and manage balance sheet risk. Industry trends include evolving consumer preferences for vehicle financing and increasing regulatory scrutiny on lending practices.

Regulatory Implications

As an issuer of asset-backed securities, CarMax Auto Owner Trust 2024-4 and its related entities must adhere to SEC reporting requirements, including the timely filing of Form 10-K. Compliance with consumer protection laws related to auto lending is also critical to avoid legal and financial repercussions.

What Investors Should Do

1. Review monthly servicer reports and prior prospectus supplements.
2. Monitor interest rate trends.
3. Assess the creditworthiness of the sponsor and servicer.

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 — 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 auto loans, credit card receivables, or mortgages. (CarMax Auto Owner Trust 2024-4 is an ABS issuer, meaning its notes are backed by a pool of auto loans.)

Depositor

An entity that transfers assets to a trust in exchange for beneficial interests in the trust, which it then sells to investors. (CarMax Auto Funding LLC is the depositor for this trust, facilitating the transfer of auto loans.)

Sponsor

The entity that originates the assets being securitized and typically plays a role in the structuring and marketing of the ABS transaction. (CarMax Business Services, LLC is the sponsor, originating the auto loans that form the collateral for the trust.)

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 files its annual reports (10-K) under Section 13 or 15(d) of this Act.)

Prospectus Supplement

A document filed with the SEC that provides additional information about a security offering, often including detailed terms, risks, and pricing, supplementing the base prospectus. (Key details about the performance of the underlying auto loans, such as default rates and prepayment speeds, are typically found in prospectus supplements and monthly servicer reports, not the 10-K.)

Year-Over-Year Comparison

This 10-K filing covers the fiscal year ended February 28, 2025. As this is a specific trust issuance (2024-4), direct year-over-year comparisons of financial metrics like revenue or net income are not applicable, as these are not traditional financial statements for a Special Purpose Entity. The focus remains on the performance of the underlying auto loan pool, which would be detailed in prior period servicer reports and prospectus supplements rather than a direct comparison within this 10-K.

Filing Details

This Form 10-K (Form 10-K) was filed with the SEC on May 23, 2025 regarding CarMax Auto Owner Trust 2024-4.

View full filing on EDGAR

View Full Filing

View this 10-K filing on SEC EDGAR