Presale Report  ·  Data as of 2024-01-24

CarMax Auto Owner Trust 2024-1 Auto Loan near-prime FINAL · CLOSED 2024-01-24

Notes
$1,550.0MM
Pool
$1,565.7MM
Reserve
1.00%
AAA Sub
8.0%
Sponsor: CarMax Business Services, LLC  ·  Servicer: CarMax Business Services, LLC  ·  Trustee: U.S. Bank Trust Company, National Association

Capital Structure

ClassSize ($MM)% of PoolSub %CPN / SpreadWALLegal FinalS&PFitch
Class A-1275.117.6%81.4%+13 bps0.262025-01-15A-1+F1+
Class A-2A325.020.8%60.7%+62 bps1.122027-03-15AAAAAA
Class A-2B237.715.2%45.5%+62 bps SOFR1.122027-03-15AAAAAA
Class A-3500.332.0%13.5%+75 bps2.592028-10-16AAAAAA
Class A-486.75.5%8.0%+90 bps3.712029-08-15AAAAAA
Class B46.93.0%5.0%+115 bps3.892029-08-15AAAA
Class C44.62.8%2.2%+145 bps3.892029-08-15AA
Class D33.72.2%0.0%+200 bps3.892030-07-15BBBBBB

Transaction Parties

SponsorCarMax Business Services, LLC
ServicerCarMax Business Services, LLC
Depositor / Transferor
Indenture TrusteeU.S. Bank Trust Company, National Association
Owner TrusteeWilmington Trust, National Association
Asset Rep. ReviewerClayton Fixed Income Services LLC
UnderwritersBarclays Capital, TD Securities, Wells Fargo Securities, Scotia Capital, Mizuho Securities, SMBC Nikko Securities

Issuer Track Record

CAOT 2024-1CAOT 2023-4CAOT 2023-3CAOT 2023-2CAOT 2023-1CAOT 2022-4
Collateral (pool at cut-off)
Closing date2024-01-242023-10-182023-07-262023-04-262023-01-252022-10-31
Pool balance$1,565.7MM$1,519.0MM$1,522.8MM$1,530.6MM$1,491.0MM$1,430.0MM
WA Credit Score719+3718717716714714
WA APR10.90%+1.34pp10.71%10.38%9.56%9.08%8.84%
WA original term mo65.4−0.565.4 mo65.4 mo65.9 mo66.4 mo66.2 mo
% new vehicles0.0%0.0%0.0%0.0%0.0%0.0%
Reserve %1.00%1.25%1.50%2.00%2.40%2.40%
Geo top-3CA 16.4%
TX 11.3%
FL 8.1%
CA 16.9%
TX 11.5%
FL 8.3%
CA 16.8%
TX 11.8%
FL 8.8%
CA 16.6%
TX 11.7%
FL 8.4%
CA 16.5%
TX 11.8%
FL 8.2%
CA 17.8%
TX 12.5%
FL 8.2%
Structure (at issuance)
AAA spread+62 bps−18bps+80 bps+60 bps+85 bps+70 bps+90 bps
AAA % of pool73.4%+2.4pp73.3%70.5%71.0%70.3%72.3%
Subordination below AAA8.0%−0.2pp8.2%8.0%7.4%8.2%8.2%
OC (initial)1.00%1.25%1.50%2.00%2.40%2.40%
OC target1.00%1.25%1.50%2.00%2.40%2.40%
OC floor1.00%1.25%1.50%2.00%2.40%2.40%
YSOCn.a.n.a.n.a.n.a.n.a.n.a.
Tranches888888

OC shown net of any yield-supplement overcollateralization (YSOC); YSOC is a yield mechanism for subvented low-APR pools and is reported separately. OC target is a % of the pool balance — current (amortizing) for greater-of/sum-of structures, original (cut-off) for flat structures; OC floor is a % of the original pool balance.

Peer Set

CAOT 2024-1MBART 2024-1BLAST 2024-1SDART 2024-1VALET 2023-2FCAOT 2023-C
Collateral (pool at cut-off)
Closing date2024-01-242024-01-242024-01-242024-01-182023-11-212023-11-21
Pool balance$1,565.7MM$700.0MM$1,731.8MM$1,418.8MM$1,443.4MM
WA Credit Score719−34754554606774753
WA APR10.90%+3.16pp7.74%19.10%17.63%5.69%4.92%
WA original term mo65.4−1.469.6 mo64.0 mo71.8 mo63.6 mo
% new vehicles0.0%40.3%0.1%31.1%73.4%91.2%
Reserve %1.00%1.50%1.00%0.23%0.23%
Geo top-3CA 16.4%
TX 11.3%
FL 8.1%
CA 21.6%
FL 15.3%
TX 14.3%
TX 13.8%
FL 12.1%
GA 10.0%
TX 14.4%
FL 11.2%
CA 8.9%
TX 14.8%
CA 13.6%
FL 9.6%
TX 16.0%
CA 9.6%
FL 8.4%
Structure (at issuance)
AAA spread+62 bps−4bps+66 bps+70 bps+72 bps+64 bps+55 bps
AAA % of pool73.4%+26.1pp42.3%35.0%47.4%70.8%68.2%
Subordination below AAA8.0%+3.4pp0.0%41.0%29.7%0.0%4.6%
OC (initial)1.00%2.50%15.50%9.50%3.00%2.00%
OC target1.00%2.50%20.80%15.20%2.00%
OC floor1.00%2.50%3.25%2.00%2.00%
YSOCn.a.n.a.n.a.9.17%7.07%
Tranches857657

OC shown net of any yield-supplement overcollateralization (YSOC); YSOC is a yield mechanism for subvented low-APR pools and is reported separately. OC target is a % of the pool balance — current (amortizing) for greater-of/sum-of structures, original (cut-off) for flat structures; OC floor is a % of the original pool balance.

Historical Performance Context

Anchor expectations in empirical base rates from the sponsor's prior series and FICO-tier peer set.

Left: per-series cumulative NET loss at matched seasoning 10-D (10-D servicer distribution reports). IQR band uses a fixed cohort of all peer series with ≥18 months of data (4 series across 3 issuers). Right: portfolio-level 60+ DQ rate aggregated across all active deals per issuer (calendar time, last 3 years), from ABS-EE loan-level data ABS-EE.

CNL by seasoning — CAOT vs. near-prime peers0.3%0.6%1.0%1.3%M0M12M24M36M48Seasoning (months from cut-off)CNLCAOT 2023-4CAOT 2023-3CAOT 2023-2CAOT 2023-1
Portfolio 60+ DQ — CAOT vs. peers (calendar time)0.75%1.49%2.24%2.98%2021-012021-092022-062023-032023-12Calendar date60+ DQ rateCAOTWOSAT

CarMax Business Services, LLC — ticker CAOT. Peer tier: near-prime.
Open in Explorer ↗ for FICO sub-band and new/used stratification.