CarMax Auto Funding LLC Announces Underwriting for $600M Auto-Loan ABS

What Happened

• On September 22, 2026, CarMax Business Services, LLC and CarMax Auto Funding LLC entered an underwriting agreement with J.P. Morgan Securities LLC (as representative) for the sale of $600,000,000 aggregate principal balance of asset-backed notes issued by CarMax Select Receivables Trust 2026‑C. The offering is registered on Form SF-3 (File No. 333-288943) and the notes are expected to be issued on or about September 28, 2026. The transaction involves amended and restated trust and grantor trust agreements, an indenture, and related sale, servicing and contribution agreements.

Key Details

• Total offering: $600,000,000 aggregate principal amount of Notes (Offered Notes totaling $588,240,000 plus $11,760,000 Class E Notes not publicly offered).
  • Class A-1: $99,400,000
  • Class A-2: $203,400,000
  • Class A-3: $153,380,000
  • Class B: $32,470,000
  • Class C: $54,130,000
  • Class D: $45,460,000
  • Class E (not publicly offered): $11,760,000
• Issuance/closing timeline: Underwriting agreement dated Sept 22, 2026; Amended and Restated Trust and related transaction documents dated or to be dated Sept 1, 2026; expected issuance on or about Sept 28, 2026.
• Roles: CarMax Business Services acts as servicer/administrator; Wilmington Trust, National Association serves as owner trustee and grantor trust trustee; U.S. Bank Trust Company, N.A. is indenture trustee; Clayton Fixed Income Services LLC is asset representations reviewer.
• Filings and legal items: Final prospectus dated Sept 22, 2026 filed; legal opinions and consents from Mayer Brown LLP and Richards, Layton & Finger, P.A. attached; CEO certification (Form SF-3 paragraph) filed as Exhibit 36.1.

Why It Matters

• This filing documents a securitization financing of CarMax retail installment contracts, providing CarMax Auto Funding with $600M of funded notes backed by auto loan receivables. For investors, the deal creates multiple note classes with different risk/priority levels (A through E), and the majority of the Offered Notes are being publicly sold. The transaction is a source of funding and liquidity for CarMax’s vehicle-financing operations; details in the prospectus (collateral mix, credit enhancement, payment priorities) will determine credit risk and potential investor returns.