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**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      DC 20549**

**Form      10-K**

|   | **(Mark                  One)** |                                                                              |
|--------|---------------------------------|-----------------------------------------------------------------------------------|
|   |                            |                                                                              |
|   | **[x]**                         | **ANNUAL                  REPORT PURSUANT TO SECTION 13 OR 15(d)**                |
|   |                            | **OF                  THE SECURITIES EXCHANGE ACT OF 1934**                       |
|   |                            |                                                                              |
|   |                            | **For                  the fiscal year ended February 28,                  2006** |

**OR**

|   | **[                  ]** | **TRANSITION                  REPORT PURSUANT TO SECTION 13 OR 15(d)**                        |
|--------|--------------------------|-----------------------------------------------------------------------------------------------|
|   |                     | **OF                  THE SECURITIES EXCHANGE ACT OF 1934**                                   |
|   |                     |                                                                                          |
|   |                     | **For                  the transition period from __________ to                  __________** |
|   |                     |                                                                                          |

**Commission      file number 333-107925-04**

**CARMAX      AUTO OWNER TRUST 2005-1**

*(Exact      name of registrant as specified in its charter)*

| **Delaware**                                                                                     | **73-6359234**                                                          |
|--------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------|
| *(**State                or other jurisdiction of incorporation or                organization)* | *(I.R.S.                Employer Identification                Number)* |

| **CarMax                Business Services, LLC (as Servicer)**      |                        |
|---------------------------------------------------------------------|-----------------------------|
| **12800                Tuckahoe Creek Parkway, Richmond, Virginia** | **23238**                   |
| *(Address                of Principal Executive Offices)*           | *(Zip                Code)* |

**(804)      747-0422**

*(Registrant’s      telephone number, including area code)*

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| Large                accelerated filer                [                ] | Accelerated                filer [ ] | Non-accelerated                filer [x] |
|--------------------------------------------------------------------------|--------------------------------------|------------------------------------------|

**CarMax      Auto Owner Trust 2005-1**

**Part      I**

**ITEM      1.**
**BUSINESS**

**ITEM      1A.**
**RISK      FACTORS**

**ITEM      1B.**
**UNRESOLVED      STAFF COMMENTS**

**ITEM      2.**
**PROPERTIES**

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| Aggregate                principal balance of Receivables outstanding: |   | $      | 421,402,360.60 |   |
|------------------------------------------------------------------------|--------|--------|----------------|--------|
|                                                                   |   |   |           |   |
| Aggregate                principal balance of defaultedReceivables:    |   | $      | 3,032,313.46   |   |
|                                                                   |   |   |           |   |
| Aggregate                liquidation proceeds:                    |   | $      | 467,874.21     |   |
|                                                                   |   |   |           |   |
| Aggregate                net losses:                                   |   | $      | 2,564,439.25   |   |
|                                                                   |   |   |           |   |
| Cumulative                net loss percentage:                    |   |   | 0.4156         | %      |

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|                                         |   |   | Number                of Loans  |   |   | Principal                Balance |   |
|-----------------------------------------|--------|--------|--------------------------------------|--------|--------|----------------------------------|--------|
|                                    |   |   |                                 |   |   |                             |   |
| 31-60                days past due      |   |   | 315                                  |   | $      | 3,888,684.59                     |   |
| 61-90                days past due      |   |   | 75                                   |   | $      | 822,226.17                       |   |
| 91                or more days past due |   |   | 51                                   |   | $      | 580,315.24                       |   |
| Total                              |   |   | 441                                  |   | $      | 5,291,226.00                     |   |

|                                        |   |   | Ending                Balance  |   |   | Note                Pool Factor |   |   | Aggregate                Interest |   |
|---------------------------------------------|--------|--------|-------------------------------------|--------|--------|---------------------------------|--------|--------|-----------------------------------|--------|
|                                        |   |   |                                |   |   |                            |   |   |                              |   |
| Class                A-1 Note Balance       |   | $      | 0.00                                |   |   | 0.0                             | %      | $      | 838,264.89                        |   |
| Class                A-2 Note Balance  |   | $      | 105,081,325.19                      |   |   | 0.515104535                     | %      | $      | 5,920,468.38                      |   |
| Class                A-3 Note Balance  |   | $      | 167,000,000.00                      |   |   | 1.000000000                     | %      | $      | 5,785,900.53                      |   |
| Class                A-4 Note Balance       |   | $      | 101,352,000.00                      |   |   | 1.000000000                     | %      | $      | 3,698,503.40                      |   |
| Class                B Note Balance         |   | $      | 20,053,000.00                       |   |   | 1.000000000                     | %      | $      | 768,776.33                        |   |
| Class                C Note Balance         |   | $      | 21,595,000.00                       |   |   | 1.000000000                     | %      | $      | 873,181.86                        |   |
|                                        |   |   |                                |   |   |                            |   |   |                              |   |

**ITEM      3.**
**LEGAL      PROCEEDINGS**

**ITEM      4.**
**SUBMISSION      OF MATTERS TO A VOTE OF SECURITY HOLDERS**

**Part      II**

**ITEM      5.**
**MARKET      FOR REGISTRANT’S COMMON EQUITY, RELATED SHAREHOLDER **
**MATTERS      AND ISSUER PURCHASES OF EQUITY SECURITIES**

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**ITEM      6.**
**SELECTED      FINANCIAL DATA**

**ITEM      7.**
**MANAGEMENT’S      DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION **
**AND      RESULTS OF OPERATIONS**

**ITEM      7A.**
**QUANTITATIVE      AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**

**ITEM      8.**
**FINANCIAL      STATEMENTS AND SUPPLEMENTARY DATA**

**ITEM      9.**
**CHANGES      IN AND DISAGREEMENTS WITH ACCOUNTANTS ON **
**ACCOUNTING      AND FINANCIAL DISCLOSURE**

**ITEM      9A.**
**CONTROLS      AND PROCEDURES**

**ITEM      9B.**
**OTHER      INFORMATION**

**Part      III**

**ITEM      10.**
**DIRECTORS      AND EXECUTIVE OFFICERS OF THE REGISTRANT**

**ITEM      11.**
**EXECUTIVE      COMPENSATION**

**ITEM      12.**
**SECURITY      OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND **
**MANAGEMENT      AND RELATED STOCKHOLDER MATTERS**

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| Name                and Address of Beneficial Owner    | Amount                of CertificatesBeneficially                Owned | Percent                of CertificatesBeneficially                Owned |
|--------------------------------------------------------|------------------------------------------------------------------------|-------------------------------------------------------------------------|
|                                                   |                                                                   |                                                                    |
| CarMax                Auto Funding LLC                 | No                Face Amount                                     | 100%                                                                    |
| 12800                Tuckahoe Creek Parkway, Suite 400 |                                                                   |                                                                    |
| Richmond,                Virginia 23238                |                                                                   |                                                                    |

**ITEM      13.**
**CERTAIN      RELATIONSHIPS AND RELATED TRANSACTIONS**

**ITEM      14.**
**PRINCIPAL      ACCOUNTANT FEES AND SERVICES**

**Part      IV**

**ITEM      15.**
**EXHIBITS      AND FINANCIAL STATEMENT SCHEDULES**

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**SIGNATURES**

|                          | CARMAX                  AUTO OWNER TRUST 2005-1               |
|-------------------------------|---------------------------------------------------------------|
|                          | BY:                  CARMAX BUSINESS SERVICES, LLC,           |
|                          | as                  Servicer                                  |
|                          |                                                          |
| May                  26, 2006 | /s/                  Keith D. Browning                   |
|                          | Keith                  D. Browning                            |
|                          | Executive                  Vice President and Chief Financial |
|                          | Officer                                                       |

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**INDEX      TO EXHIBITS**

| Exhibit                  Number | Description                  of Exhibit                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|---------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 20.1                            | Current                  Reports on Form 8-K filed with respect to the period covered by                  this                  report for (i) the May 16, 2005 Distribution Date (incorporated                  herein by                  reference to the CarMax Auto Owner Trust 2005-1 Form 8-K filed                  on May 16,                  2005, file number 333-107925-04), (ii) the June 15, 2005 Distribution                  Date                  (incorporated herein by reference to the CarMax Auto Owner Trust                  2005-1                  Form 8-K filed on June 15, 2005, file number 333-107925-04), (iii)                  the                  July 15, 2005 Distribution Date (incorporated herein by reference                  to the                  CarMax Auto Owner Trust 2005-1 Form 8-K filed on July 15, 2005,                  file                  number 333-107925-04), (iv) the August 15, 2005 Distribution Date                  (incorporated herein by reference to the CarMax Auto Owner Trust                  2005-1                  Form 8-K filed on August 15, 2005, file number 333-107925-04),                  (v) the                  September 15, 2005 Distribution Date (incorporated herein by reference                  to                  the CarMax Auto Owner Trust 2005-1 Form 8-K filed on September                  15, 2005,                  file number 333-107925-04), (vi) the October 17, 2005 Distribution                  Date                  (incorporated herein by reference to the CarMax Auto Owner Trust                  2005-1                  Form 8-K filed on October 17, 2005, file number 333-107925-04),                  (vii) the                  November 15, 2005 Distribution Date (incorporated herein by reference                  to                  the CarMax Auto Owner Trust 2005-1 Form 8-K filed on November 15,                  2005,                  file number 333-107925-04), (viii) the December 15, 2005 Distribution                  Date                  (incorporated herein by reference to the CarMax Auto Owner Trust                  2005-1                  Form 8-K filed on December 15, 2005, file number 333-107925-04),                  (ix) the                  January 17, 2006 Distribution Date (incorporated herein by reference                  to                  the CarMax Auto Owner Trust 2005-1 Form 8-K filed on January 17,                  2006,                  file number 333-107925-04), (x) the February 15, 2006 Distribution                  Date                  (incorporated herein by reference to the CarMax Auto Owner Trust                  2005-1                  Form 8-K filed on February 15, 2006, file number 333-107925-04)                  and (xi)                  the March 15, 2006 Distribution Date (incorporated                  herein by reference to the CarMax Auto Owner Trust 2005-1 Form                  8-K filed                  on March 15, 2006, file number 333-107925-04);                  and with respect to execution copies of various agreements (incorporated                  herein by reference to the CarMax Auto Owner Trust 2005-1 Form                  8-K filed                  on April 18, 2005, file number 333-107925-04). |
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| 31.1                            | Certification                  Pursuant to Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
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| 99.1                            | Annual                  Servicer Statement of Compliance.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
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| 99.2                            | Annual                  Report of Accountant Relative to                  Servicing.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |