CarMax 2007 Annual Report Download - page 43

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33
Off-Balance Sheet Arrangements
CAF provides financing for our used and new car sales. We use a securitization program to fund substantially all of
the automobile loan receivables originated by CAF. We sell the automobile loan receivables to a wholly owned,
bankruptcy-remote, special purpose entity that transfers an undivided interest in the receivables to a group of third-
party investors. This program is referred to as the warehouse facility.
We periodically use public securitizations to refinance the receivables previously securitized through the warehouse
facility. In a public securitization, a pool of automobile loan receivables is sold to a bankruptcy-remote, special
purpose entity that in turn transfers the receivables to a special purpose securitization trust.
Additional information regarding the nature, business purposes, and importance of our off-balance sheet
arrangement to our liquidity and capital resources can be found in the CarMax Auto Finance Income, Financial
Condition, and Market Risk sections of this MD&A, as well as in Notes 3 and 4.