Company: KMX
Filing Date: 2025-04-11
Form Type: 10-K
Source: 0001170010-25-000024
Chunk: 110

Company: CARMAX INC
Filing Date: 2025-04-11
Form: 10-K
Item: Item 8
Chunk 110
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.  Customers with the highest probability of repayment are A-grade customers.  Customers assigned a lower grade are determined to have a lower probability of repayment.  For loans that are approved, the credit grade influences the terms of the agreement, such as the required loan-to-value ratio and interest rate.  After origination, credit grades are generally not updated.  CAF uses a combination of the initial credit grades and historical performance to monitor the credit quality of the auto loans receivable on an ongoing basis.  We validate the accuracy of the scoring models periodically.  Loan performance is reviewed on a recurring basis to identify whether the assigned grades adequately reflect the customers’ likelihood of repayment.Ending Managed Receivables by Major Credit GradeAs of February 28, 2025Fiscal Year of Origination (1)(In millions)20252024202320222021Prior to 2021Total% (2)Tier 1 managed receivables:A$4,132.0 $2,607.9 $1,673.9 $894.1 $243.9 $48.9 $9,600.7 54.5 B2,041.1 1,664.0 1,163.0 746.4 244.9 69.7 5,929.1 33.7 C and other422.1 277.0 324.5 242.5 99.4 35.0 1,400.5 8.0 Total Tier 1 managed receivables6,595.2 4,548.9 3,161.4 1,883.0 588.2 153.6 16,930.3 96.2 Tier 2 and Tier 3 managed receivables:C and other311.9 177.1 116.9 46.3 5.4 6.7 664.3 3.8 Total ending managed receivables$6,907.1 $4,726.0 $3,278.3 $1,929.3 $593.6 $160.3 $17,594.6 100.0 Gross charge-offs$44.7 $193.2 $196.2 $107.2 $30.3 $17.6 $589.2 

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