Carmax S&P

Presale:
CarMax Auto Owner Trust 2022-3

July 7, 2022
PRIMARY CREDIT ANALYST
Preliminary Ratings Jack Zivitofsky

New York
Base Upsized Expected legal
+1 2124380548
Preliminary amount amount (mil. final maturity
jack.zivitofsky
Class rating Type Interest rate(i) (mil. $) $) date
@spglobal.com
A-1 A-1+ (sf) Senior Fixed 203.70 247.90 July 17, 2023 SECONDARY CONTACT
A-2a/A-2b(ii) AAA (sf) Senior Fixed/floating 406.00 494.26 Sept. 15, 2025 Steve D Martinez
A-3 AAA (sf) Senior Fixed 366.00 445.57 April 15, 2027 New York
+ 1 (212) 438 2881
A-4 AAA (sf) Senior Fixed 87.91 107.09 Feb. 15, 2028
steve.martinez
B AA (sf) Subordinate Fixed 29.19 35.54 Feb. 15, 2028 @spglobal.com
C A (sf) Subordinate Fixed 29.19 35.54 Feb. 15, 2028
D BBB (sf) Subordinate Fixed 28.01 34.10 Jan. 16, 2029
Note: This presale report is based on information as of July 7, 2022. The ratings shown are preliminary. This report does not constitute a
recommendation to buy, hold, or sell securities. Subsequent information may result in the assignment of final ratings that differ from the
preliminary ratings. (i)The tranches' coupons will be determined on the pricing date. (ii)The class A-2 notes may be split into fixed-rate class
A-2a notes and floating-rate class A-2b notes. The sizes of classes A-2a and A-2b will be determined at pricing, though the principal balance of
the class A-2b notes is not expected to exceed $203.00 million ($247.13 million for the upsized pool). The class A-2b coupon will initially be
expressed as a spread tied to the one-month SOFR. SOFR--Secured overnight financing rate.
Profile
Expected closing date July 20, 2022.
Collateral Prime auto loan receivables.
Issuer CarMax Auto Owner Trust 2022-3.
Originator, sponsor, and servicer CarMax Business Services LLC.
Depositor and seller CarMax Auto Funding LLC.
Indenture trustee Wilmington Trust N.A.
Owner trustee U.S. Bank Trust Co. N.A.
Lead underwriter RBC Capital Markets.
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Presale: CarMax Auto Owner Trust 2022-3
Credit Enhancement Summary (%)

CAOT 2022-3 CAOT 2022-2 CAOT 2022-1
Initial(i)(ii) Target(i)(ii) Floor(i)(ii) Initial(i)(ii) Target(i)(ii) Floor(i)(ii) Initial(i)(ii) Target(i)(ii) Floor(i)(ii)
Class A
Subordination 7.40 7.40 7.40 5.06 5.06 5.06 5.30 5.30 5.30
Reserve 0.40 0.40 0.40 0.50 0.50 0.50 0.25 0.25 0.25
account
O/C 1.50 1.50 1.50 2.35 2.35 2.35 0.25 0.25 0.25
Total 9.30 9.30 9.30 7.90 7.90 7.90 5.80 5.80 5.80
Class B
Subordination 4.90 4.90 4.90 3.50 3.50 3.50 4.20 4.20 4.20
Reserve 0.40 0.40 0.40 0.50 0.50 0.50 0.25 0.25 0.25
account
O/C 1.50 1.50 1.50 2.35 2.35 2.35 0.25 0.25 0.25
Total 6.80 6.80 6.80 6.35 6.35 6.35 4.70 4.70 4.70
Class C
Subordination 2.40 2.40 2.40 1.25 1.25 1.25 1.60 1.60 1.60
Reserve 0.40 0.40 0.40 0.50 0.50 0.50 0.25 0.25 0.25
account
O/C 1.50 1.50 1.50 2.35 2.35 2.35 0.25 0.25 0.25
Total 4.30 4.30 4.30 4.10 4.10 4.10 2.10 2.10 2.10
Class D
Reserve 0.40 0.40 0.40 0.50 0.50 0.50 0.25 0.25 0.25
account
O/C 1.50 1.50 1.50 2.35 2.35 2.35 0.25 0.25 0.25
Total 1.90 1.90 1.90 2.85 2.85 2.85 0.50 0.50 0.50
Estimated annual 2.86 -- -- 3.29 -- -- 5.66 -- --

excess spread(iii)
(i)Applicable for the base and upsized structures. (ii)Percentage of the initial receivables balance. (iii)Estimated unstressed annual excess spread is
pre-pricing for series 2022-3 and post-pricing for series 2022-2 and 2022-1. CAOT--CarMax Auto Owner Trust. O/C--Overcollateralization.
Rationale
The preliminary ratings assigned to CarMax Auto Owner Trust 2022-3's (CAOT 2022-3) auto
receivables asset-backed notes reflect:
- The availability of approximately 11.56%, 9.27%, 6.98%, and 5.06% credit support for the class
A, B, C, and D notes in the base and upsized pools, respectively, based on our stressed
break-even cash flow scenarios (including haircuts to excess spread). These credit support
levels provide coverage of approximately 5.00x, 4.00x, 3.00x, and 2.00x our 2.20%-2.30%
expected net loss range for the respective classes, and are commensurate with the assigned
preliminary 'A-1+ (sf)' and 'AAA (sf)', 'AA (sf)', 'A (sf)', and 'BBB (sf)' ratings (see the S&P Global
Ratings' Expected Loss and Cash Flow Modeling sections below).

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- The timely interest and full principal payments made under the stressed cash flow modeling
scenarios appropriate for the assigned preliminary ratings (see the Cash Flow Modeling
section).
- Our expectation that under a moderate ('BBB') stress scenario (2.0x our expected loss level), all
else being equal, our preliminary ratings on the class A-1, A-2 through A-4, B, C, and D notes,
respectively, are consistent with the tolerances outlined in our credit stability criteria (see "S&P
Global Ratings Definitions," published Nov. 10, 2021).
- The performance of CarMax Business Services LLC's (CarMax) previous securitizations since
2001.
- The collateral characteristics of the securitized pool of auto loans, including a

weighted-average nonzero FICO score of approximately 710.
- The transaction's payment and legal structures.
Environmental, Social, And Governance (ESG) Factors

Our rating analysis considers a transaction's potential exposure to ESG credit factors. For the auto
ABS sector, we view the exposure to environmental credit factors as above average, to social
credit factors as average, and to governance credit factors as below average (see "ESG Industry
Report Card: Auto Asset-Backed Securities," published March 31, 2021).
In our view, the exposure to ESG credit factors in this transaction is in line with our sector
benchmark. Environmental credit factors are generally viewed as above average, given that the
collateral pool primarily comprises vehicles with internal combustion engines (ICEs), which emit
pollutants that contribute to climate transition risks. While the adoption of electric vehicles and
future regulation could in time lower ICE vehicle values, we believe our current approach to
evaluating recovery and residual values adequately accounts for vehicle values over the
transaction's relatively short expected life. As a result, we have not separately identified this as a
material ESG credit factor in our analysis.
SOFR Benchmark
CarMax intends to utilize the Secured Overnight Financing Rate (SOFR) interest rate benchmark
for CAOT 2022-3's floating-rate class A-2b notes. Prior to series 2022-3, CAOT transactions that
contained floating-rate tranches used one-month LIBOR as the benchmark. However, due to the
expected LIBOR cessation and regulatory guidance to transition away from using U.S. dollar LIBOR
on newly executed contracts after December 2021, many issuers are evaluating alternative
interest rate benchmarks for their securitizations.
The class A-2 notes will consist of two tranches: fixed-rate class A-2a and floating-rate class A-2b
notes. The class A-2b notes are indexed to SOFR plus a spread and may constitute up to 50.00% of
the class A-2 notes. The class A-2b coupons will initially be based on compounded SOFR (a 30-day
average SOFR calculated in advance by the calculation agent using the published rate on the
Federal Reserve Bank of New York's website). The spread added to SOFR is the total credit risk of
the transaction, and it does not contain a layer of bank credit risk as LIBOR does because SOFR is
essentially a risk-free rate. The guidelines for using SOFR are broadly consistent with The
Alternative Reference Rates Committee's March 2021 "Options for Using SOFR in New ABS, MBS,
CMBS Products" report.
In addition, provisions have been incorporated into securitization documents that govern rate

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selection if SOFR becomes unavailable.
For the floating-rate tranche, we applied our stressed interest rates for one-month SOFR as
described in our criteria "Methodology To Derive Stressed Interest Rates In Structured Finance,"
published Oct. 18, 2019, and corresponding guidance.
Credit Enhancement Changes From Series 2022-2

CAOT 2022-3 includes some notable changes to credit enhancement compared with the CAOT
2022-2 transaction:
- Total hard credit enhancement increased to 9.30% from 7.90% for class A, to 6.80% from
6.35% for class B, to 4.30% from 4.10% for class C, and decreased to 1.90% from 2.85% for
class D.
- The initial, target, and floor overcollateralization (O/C) decreased to 1.50% of the initial
receivables balance from 2.35%.
- Subordination increased to 7.40% from 5.06% for class A, to 4.90% from 3.50% for class B, and
to 2.40% from 1.25% for class C.
- The reserve account decreased to 0.40% of the initial receivables balance from 0.50%.
- The estimated excess spread decreased to approximately 2.86% (pre-pricing) from 3.29%
(post-pricing) and 3.23% (pre-pricing).
The increase in total hard credit enhancement for class A, B, and C, (primarily due to a higher
percent of subordination) reflects an increase in our expected lifetime loss range to 2.20%-2.30%
from 2.15%-2.25% and the lower amount of available excess spread compared with those of
series 2022-2. Additionally, our preliminary rating on the class D notes is lower than that on the
series 2022-2 class D notes.
Collateral Changes From Series 2022-2

CAOT 2022-3's collateral credit quality is comparable to that of series 2022-2. The collateral pool
includes some notable characteristics, compared below with the same for CAOT 2022-2, that we
considered in our expected loss analysis:
- The down payment percentage increased to 19.33% (19.34% if upsized) from 19.20%.
- The percentage of the pool from the company's two highest internal credit score categories
(tiers A and B) decreased to 90.37% (90.39% if upsized) from 90.94%.
- The weighted average nonzero FICO score decreased to 710 from 711.
- The weighted average loan-to-value (LTV) ratio decreased to 87.57% (87.56% if upsized) from
87.74%.
- The weighted average annual percentage rate (APR) increased to 8.28% versus 7.80%.
Overall, we believe the series 2022-3 collateral credit characteristics are comparable to those of
series 2022-2 due to characteristics such as the two highest credit score categories and
percentage of long-term loans, both of which are generally comparable to those of series 2022-2.
In addition to the collateral characteristics, we also considered our most recent macroeconomic
outlook that incorporates a baseline forecast for U.S. GDP and unemployment. We have observed

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delinquencies in CarMax's portfolio and recent securitizations continuing to normalize and, in

some cases, rise above pre-COVID-19 pandemic levels. Considering these factors, our initial loss
expectation for series 2022-3 increased to 2.20%-2.30% from 2.15%-2.25% for 2022-2.
Transaction Structure
CarMax will sell a pool of auto loan receivables to CarMax Auto Funding LLC, which will then sell
the receivables to CAOT 2022-3, the transaction's issuing trust (see chart 1). In rating this
transaction, we will review the legal matters we believe are relevant to our analysis, as outlined in
our criteria.
Chart 1
Transaction Summary
CAOT 2022-3 transaction incorporates the following structural features:
- A sequential-pay mechanism among the class A, B, C, and D notes, which is expected to result
in more credit enhancement as a percentage of the current pool balance for the more-senior
classes as the pool amortizes.

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- Notes that pay a fixed interest rate except for the class A-2b notes, which pay a floating interest
rate tied to one-month SOFR. The exact amounts of the class A-2a and A-2b notes will be
determined at pricing, though the principal balance of the class A-2b notes is not expected to
exceed $203.0 million ($247.1 million for the upsized structure).
- Subordination of approximately 7.40%, 4.90%, and 2.40% for classes A, B, and C, respectively.
- A nonamortizing reserve account that will equal 0.40% of the initial pool balance.
- Initial and target O/C of 1.50% of the initial pool balance.
- The collateral characteristics for the base and upsized pool are similar.
Payment Structure
The trust will pay scheduled interest and principal on the rated notes on each monthly distribution
date beginning Aug. 15, 2022. The payment priority that CarMax presented to S&P Global Ratings
indicated that the trust will use the auto loan collections to make the distributions shown in table
1. In addition, the reserve account's funds are intended to be available to pay interest shortfalls
and make priority principal payments.
Table 1
Payment Waterfall
Priority Payment
1 Servicer fee (1.00% per year).
2 Pro rata: the successor servicer fees (if the servicer has been replaced) and transition expenses, capped at
$175,000; and any asset representation reviewer fees and expenses, capped at $175,000.
3 Class A note interest, pro rata.
4 The first-priority principal distributable amount to the class A noteholders, sequentially, to maintain the class A
notes' parity with the receivables.
5 Class B note interest.
6 The second-priority principal distributable amount sequentially to maintain the class A and B notes' parity with
the receivables.
7 Class C note interest.
8 The third-priority principal distributable amount sequentially to maintain the class A, B, and C notes' parity with
the receivables.
9 Class D note interest.
10 The fourth-priority principal distributable amount sequentially to maintain the class A, B, C, and D notes' parity
with the receivables.
11 To the reserve account until the required amount is met.
12 The regular principal distributable amount sequentially to the class A-1, A-2, A-3, A-4, B, C, and D notes until
each class is paid in full. This will also maintain overcollateralization to the target amount.
13 Pro rata: unpaid transition expenses exceeding the cap amounts listed in item 2 above that are due in the event
of a servicer termination; any additional servicing fees that are to be paid to the successor servicer and any
unpaid fees; any unpaid indemnity amounts due to the successor servicer that exceed the cap amounts listed in
item 2; any expenses due to the asset representations reviewer that exceed the related cap amounts listed in
item 2; and any amounts due and owing to the indenture trustee under the indenture that have not been paid in
full.
14 Any remainder to the certificateholders.

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Pool Analysis
As of the June 30, 2022, cutoff date, the series 2022-3 pool consists of 58,060 (70,744 if upsized)
loans totaling $1.17 billion ($1.42 billion if upsized) in motor vehicle loans originated by CarMax's
affiliates (see table 2).
Table 2
Collateral Comparison(i)
CAOT
2022-3 2022-3
(base) (upsized) 2022-2 2022-1 2021-3 2021-2 2021-1 2020-4 2020-3
Receivable 1.167 1.421 1.432 1.604 1.754 1.558 1.505 1.506 1.358
balance (bil. $)
No. of 58,060 70,744 74,036 86,274 102,990 109,955 89,890 82,341 89,174
receivables
Avg. loan 20,109 20,091 19,345 18,592 17,035 14,177 16,746 18,290 15,230
balance ($)
Weighted avg. 8.28 8.28 7.80 8.14 8.24 7.82 8.25 7.87 7.77
APR (%)
Weighted avg. 66.38 66.39 66.65 66.78 66.12 66.25 66.51 65.86 66.20
original term
(mos.)
Weighted avg. 60.61 60.63 60.40 60.94 61.42 58.52 61.76 62.80 58.61
remaining
term (mos.)
Weighted avg. 5.77 5.76 6.25 5.84 4.70 7.73 4.75 3.06 7.59
seasoning
(mos.)
Weighted avg. 710 709 711 707 706 708 711 713 714
FICO score
Original term 65.99 66.03 66.49 66.89 62.08 63.02 63.82 60.19 61.08
61–72 months
(%)
New vehicles 0.01 0.01 0.02 0.02 0.10 0.22 0.26 0.49 0.10
(%)
Used vehicles 99.99 99.99 99.98 99.98 99.90 99.78 99.74 99.51 99.90
(%)
Top five state concentrations (%)
CA=18.70 CA=18.69 CA=18.41 CA=18.89 CA=17.66 CA=16.83 CA=17.63 CA=18.43 CA=16.65
TX=11.73 TX=11.74 TX=11.50 TX=11.23 TX=10.07 TX=11.16 TX=10.59 TX=9.80 TX=12.36
FL=9.29 FL=9.29 FL=9.00 FL=8.72 FL=8.28 FL=9.03 FL=8.23 FL=7.29 FL=8.87
GA=7.13 GA=7.18 GA=6.80 GA=6.85 GA=7.17 GA=7.14 GA=7.21 MD=6.58 GA=6.96
NC=5.26 NC=5.25 VA=5.20 NC=5.65 NC=5.63 NC=5.90 VA=5.41 GA=6.36 NC=6.04
(i)All percentages are of the initial receivables balance. APR--Annual percentage rate. CAOT--CarMax Auto Owner Trust.

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Securitization Performance
We currently rate 16 CAOT transactions that closed in 2018 through 2022 (see table 3). In June
2022, we revised our lifetime loss expectations on one of the transactions (see "Two Ratings
Raised And Five Affirmed On CarMax Auto Owner Trust 2021-2," published June 14, 2022). The
outstanding classes all have adequate credit enhancement at their current rating levels, in our
view. We will continue to monitor the performance of the outstanding transactions to ensure that
the credit enhancement remains sufficient to cover our revised cumulative net loss expectations
under our stress scenarios for each of the rated classes (see charts 2 and 3).
Table 3
Performance Data For Outstanding CarMax Auto Owner Trust Transactions(i)
Pool factor 60+ day delinq. Initial lifetime CNL Revised lifetime CNL
Series Month (%) CNL (%) (%) exp. (%) exp. (%)(ii)
2018-3 47 11.92 1.71 2.34 2.20-2.30 1.90-2.00
2018-4 44 14.79 1.59 2.24 2.20-2.30 1.90-2.00
2019-1 41 17.74 1.54 2.08 2.20-2.30 1.95-2.05
2019-2 38 20.43 1.36 1.99 2.15-2.25 1.95-2.05
2019-3 35 25.04 1.23 1.74 2.20-2.30 1.95-2.05
2019-4 32 28.39 1.09 1.72 2.20-2.30 1.95-2.05
2020-1 29 32.53 0.94 1.44 2.15-2.25 1.95-2.05
2020-2 26 34.94 0.68 1.17 2.80-3.00 1.95-2.05
2020-3 23 38.87 0.73 1.44 2.80-3.00 1.95-2.05
2020-4 20 48.44 0.57 1.13 2.80-3.00 1.95-2.05
2021-1 17 52.26 0.63 1.44 2.65-2.85 2.05-2.15
2021-2 14 55.96 0.51 1.38 2.35-2.45 2.05-2.15
2021-3 11 66.80 0.60 1.67 2.15-2.25 N/A
2021-4 9 73.03 0.50 1.44 2.15-2.25 N/A
2022-1 5 82.67 0.11 0.81 2.15-2.25 N/A
2022-2 2 92.87 0.01 0.35 2.15-2.25 N/A
(i)As of the June 2022 distribution date. (ii)Revised August 2021, except for series 2020-3, 2020-4, and 2021-1, which were revised in February
2022 and series 2022-2, which was revised in June 2022. CNL--Cumulative net loss. Delinq.—Delinquency. CNL exp.--Cumulative net loss
expectation. N/A--Not applicable.

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Chart 2 Chart 3
Managed Portfolio
CarMax's serviced portfolio under its primary underwriting program totaled approximately
$15.679 billion as of May 31, 2022--an approximately 10.02% year-over-year increase. The
31-plus-day delinquency rate, which had dipped to 1.89% as of May 31, 2021, increased to 3.64%
for the same period in 2022. Annualized net charge-offs, as a percentage of the average
outstanding, increased to 0.77% as of May 31, 2022, from 0.27% for the same period in 2021 (see
table 4). We have observed delinquencies in CarMax's portfolio continuing to normalize and, in
some cases, rise above pre-COVID-19 pandemic levels. In addition, CarMax experienced a
servicing platform transition in fourth-quarter 2021, which may have contributed in part to the
observed delinquency and loss levels.
Table 4
Managed Portfolio Performance

Five months ended
May 31 Year ended Dec. 31
2022 2021 2021 2020 2019 2018 2017 2016
Portfolio at end of period (bil. 15.679 14.252 15.285 13.431 13.211 12.238 11.372 10.367
$)
No. of contracts 1,058,263 1,058,659 1,068,653 1,026,142 1,009,267 944,952 875,063 782,772
Delinquencies (%)
31-60 days 2.26 1.24 2.35 1.81 2.31 2.30 2.15 2.09
61-90 days 1.12 0.52 1.09 0.82 1.08 1.03 0.93 0.87
91 days or more 0.27 0.13 0.30 0.20 0.27 0.27 0.27 0.29
Total delinquencies (% of 3.64 1.89 3.75 2.83 3.66 3.61 3.35 3.25
the portfolio)

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Table 4
Managed Portfolio Performance (cont.)

Five months ended
May 31 Year ended Dec. 31
2022 2021 2021 2020 2019 2018 2017 2016
Avg. month-end amount 15.414 13.783 14.387 13.216 12.728 11.828 10.907 9.863
outstanding during the period
(bil. $)
Net charge-offs (mil. $) 49.660 15.717 77.829 86.473 128.056 118.881 111.189 97.912
Net charge-offs (% of avg. 0.77 0.27 0.54 0.65 1.01 1.01 1.02 0.99
month-end amount
outstanding)(i)
(i)Annualized.
S&P Global Ratings' Expected Loss: 2.20%-2.30%

To derive the base-case loss assumptions for the series 2022-3 transaction, we examined
CarMax's static pool performance data for CAOT 2007-1 through 2022-2, stratified by CarMax's
proprietary credit grades. The proprietary credit grade incorporates the loan structure (term and
advance rate) and demographic data (income, debt-to-income ratio, and payment-to-income
ratio).
We used the 2007-2018 paid-off loss curves to project losses for the outstanding 2018-2021
vintages that are not fully liquidated. We applied the pool composition weights by credit grade to
determine a weighted average loss projection for the series 2022-3 pool.
Based on our analysis of the static pool performance by credit grade, the pool's credit quality, a
peer comparison of the collateral pool, the recent securitization performance of CarMax pools,
and our forward-looking view of the economy, we expect the CAOT 2022-3 pool to experience
cumulative net losses in the 2.20%-2.30% range.
Cash Flow Modeling Assumptions And Results

We modeled the transaction to simulate stress scenarios commensurate with the preliminary 'AAA
(sf)', 'AA (sf)', 'A (sf)', and 'BBB (sf)' ratings (see table 5).
Table 5
Cash Flow Assumptions And Results

Class
A B C D
Front-loaded loss curve
Preliminary rating AAA (sf) AA (sf) A(sf) BBB (sf)
Net loss timing (mos.) 12/24/36/48 12/24/36/48 12/24/36/48 12/24/36/48
Net loss (%) 30-35-25-10 30-35-25-10 30-35-25-10 30-35-25-10
ABS voluntary prepayments (%) 1.50 1.50 1.50 1.50
Recovery rate (%) 50.00 50.00 50.00 50.00

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Table 5
Cash Flow Assumptions And Results (cont.)

Class
A B C D
Recovery lag (mos.) 3 3 3 3
Approximate break-even levels (%)(i) 11.56 9.27 6.98 5.10
Back-loaded loss curve
Preliminary rating AAA (sf) AA (sf) A (sf) BBB (sf)
Net loss timing (mos.) 12/24/36/48 12/24/36/48 12/24/36/48 12/24/36/48
Net loss (%) 25-30-30-15 25-30-30-15 25-30-30-15 25-30-30-15
ABS voluntary prepayments (%) 1.50 1.50 1.50 1.50
Recovery rate (%) 50.00 50.00 50.00 50.00
Recovery lag (mos.) 3 3 3 3
Approximate break-even levels (%)(i) 11.58 9.32 7.05 5.06
(i)Our stressed cash flows assume a 10.00% haircut to stressed excess spread. ABS--Absolute prepayment speed.
Based on the cash flow stress results, each class in the CAOT 2022-3 transaction is, in our view,
enhanced to the degree necessary to withstand a stressed level of net losses consistent with the
assigned preliminary ratings. The cash flow runs for the upsized pool yielded similar results.
Sensitivity Analysis
In addition to analyzing break-even cash flows, we conducted a sensitivity analysis to determine
whether under a moderate ('BBB') stress scenario, all else being equal, our preliminary ratings
would remain within the tolerances outlined in our credit stability criteria (see "S&P Global
Ratings Definitions," published Nov. 10, 2021) (see table 6). We found that our preliminary 'A-1+
(sf)' and 'AAA (sf)', 'AA (sf)', 'A (sf)', and 'BBB (sf)' ratings on the class A, B, C, and D notes,
respectively, are consistent with the tolerances outlined in our credit stability criteria.
Table 6
Scenario Analysis Summary
CNL level (%) 4.50
Loss timing (month 12/24/36/48) (%) 30/30/25/15
Voluntary ABS (%) 1.50
Servicing fee (%) 1.00
Recovery rate (%) 50.00
CNL--Cumulative net loss. ABS--Absolute prepayment speed.
Chart 4 shows the coverage multiples for the class A through D notes over time under a moderate
'BBB' stress scenario.

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Chart 4
We also ran a supplemental moderate stress scenario to stress excess spread by utilizing a
bifurcated pool method whereby loans with APRs less than or equal to 5.75% (approximately 30%
of the collateral pool) prepay at much slower rates than do loans with APRs above 5.75%. By
running low prepayments on the lower-APR contracts and applying a slower loss curve to these
contracts than to the higher-APR contracts, the cash flows stressed the weighted average APR on
the collateral and excess spread. The results of the supplemental moderate stress scenario were
generally consistent with the tolerances outlined in our credit stability criteria.
Money Market Tranche Sizing

The proposed money market tranche's (class A-1) legal final maturity date is July 17, 2023. To test
whether the money market tranche can be repaid by its maturity date, we ran cash flows using
assumptions to delay the principal collections. We assumed zero defaults and a 0.50% absolute
prepayment speed for our cash flow run, and we checked that 11 months or less of principal
collections would be sufficient to pay off the money market tranche.

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Legal Final Maturity

To test the legal final maturity dates set for the long-dated tranches (classes A-2 through C), we
determined the date when the respective notes were fully amortized in a zero-loss and
zero-prepayment scenario and then added three months to the result. For the longest-dated
security (class D), we added six months to the longest receivables' remaining term to
accommodate extensions on the receivables. Furthermore, in the break-even scenario for each
rating level, we confirmed that credit enhancement was sufficient to cover losses and to repay the
related notes in full by the legal final maturity date.
CarMax
CarMax is the largest retailer of used cars in the U.S., with 230 used-car stores in 107 television
markets as of February 2022. The company primarily purchases, reconditions, and sells used
vehicles under various franchise agreements. CarMax also provides a range of related products
and services, including financing, extended service contracts, accessories, and repair service. The
company has employed the used-car store concept since 1993.
Related Criteria
- Criteria | Structured Finance | ABS: Global Auto ABS Methodology And Assumptions, March 31,
2022
- General Criteria: Environmental, Social, And Governance Principles In Credit Ratings, Oct. 10,
2021
- Criteria | Structured Finance | General: Global Framework For Payment Structure And Cash
Flow Analysis Of Structured Finance Securities, Dec. 22, 2020
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CarMax Auto Owner Trust 2022-3

PRIMARY CREDIT ANALYST

Preliminary Ratings Jack Zivitofsky

C A (sf) Subordinate Fixed 29.19 35.54 Feb. 15, 2028

D BBB (sf) Subordinate Fixed 28.01 34.10 Jan. 16, 2029

Expected closing date July 20, 2022.

Collateral Prime auto loan receivables.

Issuer CarMax Auto Owner Trust 2022-3.

Originator, sponsor, and servicer CarMax Business Services LLC.

Depositor and seller CarMax Auto Funding LLC.

Indenture trustee Wilmington Trust N.A.

Owner trustee U.S. Bank Trust Co. N.A.

Lead underwriter RBC Capital Markets.

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Credit Enhancement Summary (%)

Initial(i)(ii) Target(i)(ii) Floor(i)(ii) Initial(i)(ii) Target(i)(ii) Floor(i)(ii) Initial(i)(ii) Target(i)(ii) Floor(i)(ii)

Estimated annual 2.86 -- -- 3.29 -- -- 5.66 -- --

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- The collateral characteristics of the securitized pool of auto loans, including a

- The transaction's payment and legal structures.

Environmental, Social, And Governance (ESG) Factors

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selection if SOFR becomes unavailable.

Credit Enhancement Changes From Series 2022-2

Collateral Changes From Series 2022-2

www.spglobal.com July 7, 2022 4

delinquencies in CarMax's portfolio and recent securitizations continuing to normalize and, in

www.spglobal.com July 7, 2022 5

- Initial and target O/C of 1.50% of the initial pool balance.

1 Servicer fee (1.00% per year).

3 Class A note interest, pro rata.

5 Class B note interest.

7 Class C note interest.

9 Class D note interest.

11 To the reserve account until the required amount is met.

14 Any remainder to the certificateholders.

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Top five state concentrations (%)

CA=18.70 CA=18.69 CA=18.41 CA=18.89 CA=17.66 CA=16.83 CA=17.63 CA=18.43 CA=16.65

TX=11.73 TX=11.74 TX=11.50 TX=11.23 TX=10.07 TX=11.16 TX=10.59 TX=9.80 TX=12.36

FL=9.29 FL=9.29 FL=9.00 FL=8.72 FL=8.28 FL=9.03 FL=8.23 FL=7.29 FL=8.87

GA=7.13 GA=7.18 GA=6.80 GA=6.85 GA=7.17 GA=7.14 GA=7.21 MD=6.58 GA=6.96

NC=5.26 NC=5.25 VA=5.20 NC=5.65 NC=5.63 NC=5.90 VA=5.41 GA=6.36 NC=6.04

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Performance Data For Outstanding CarMax Auto Owner Trust Transactions(i)

2018-3 47 11.92 1.71 2.34 2.20-2.30 1.90-2.00

2018-4 44 14.79 1.59 2.24 2.20-2.30 1.90-2.00

2019-1 41 17.74 1.54 2.08 2.20-2.30 1.95-2.05

2019-2 38 20.43 1.36 1.99 2.15-2.25 1.95-2.05

2019-3 35 25.04 1.23 1.74 2.20-2.30 1.95-2.05

2019-4 32 28.39 1.09 1.72 2.20-2.30 1.95-2.05

2020-1 29 32.53 0.94 1.44 2.15-2.25 1.95-2.05

2020-2 26 34.94 0.68 1.17 2.80-3.00 1.95-2.05

2020-3 23 38.87 0.73 1.44 2.80-3.00 1.95-2.05

2020-4 20 48.44 0.57 1.13 2.80-3.00 1.95-2.05

2021-1 17 52.26 0.63 1.44 2.65-2.85 2.05-2.15

2021-2 14 55.96 0.51 1.38 2.35-2.45 2.05-2.15

2021-3 11 66.80 0.60 1.67 2.15-2.25 N/A

2021-4 9 73.03 0.50 1.44 2.15-2.25 N/A

2022-1 5 82.67 0.11 0.81 2.15-2.25 N/A

2022-2 2 92.87 0.01 0.35 2.15-2.25 N/A

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