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**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

**FORM      10-K**

| (x) | ANNUAL                REPORT PURSUANT TO SECTION 13                OR 15(d) OF THE SECURITIES EXCHANGE ACT OF                1934 |
|-----|-----------------------------------------------------------------------------------------------------------------------------------|

|   | **For                the fiscal year ended February 28,                2007.** |
|--------|--------------------------------------------------------------------------------|

| (                ) | TRANSITION                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                ACT OF                1934 |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------|

**333-132357-02**

**CARMAX      AUTO OWNER TRUST **
**2006-2**

**333-132357**

**CARMAX      AUTO FUNDING LLC**

**CARMAX      BUSINESS SERVICES, LLC**

**Delaware**

**06-6553688**

**01-0794037**

**12800      Tuckahoe Creek Parkway, Suite 400, Richmond, VA 23238**

**(804)      935-4512**

**None**

**      None**

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| Large                accelerated Filer ( ) | Accelerated                Filer ( ) | Non-accelerated                Filer (X) |
|--------------------------------------------|--------------------------------------|------------------------------------------|

**Not      applicable.**

**Not      applicable.**

**See      Item 15(b).**

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**PART      I**

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

**ITEM      1A. RISK FACTORS**

**ITEM      1B. UNRESOLVED STAFF COMMENTS**

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

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

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

**SUBSTITUTE      INFORMATION PROVIDED IN ACCORDANCE WITH GENERAL INSTRUCTION J TO FORM      10-K**

**Item      1112(b) of Regulation AB. Significant Obligors of Pool Assets (Financial      Information).**

**Item      1114(b)(2) of Regulation AB. Credit Enhancement and Other Support, Except for      Certain Derivatives Instruments (Information Regarding Significant Enhancement      Providers).**

**Item      1115(b) of Regulation AB. Certain Derivatives Instruments (Financial      Information).**

**Item      1117 of Regulation AB. Legal Proceedings.**

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**PART      II**

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

**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**

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**PART      III**

**ITEM      10. **
**DIRECTORS,      EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE**

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

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

**ITEM      13.**
**CERTAIN      RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR      INDENPENDENCE**

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

**SUBSTITUTE      INFORMATION PROVIDED IN ACCORDANCE WITH GENERAL INSTRUCTION J TO FORM      10-K**

**Item      1119 of Regulation AB. Affiliations and Certain Relationships and Related      Transactions.**

**Item      1122 of Regulation AB. Compliance with Applicable Servicing      Criteria.**

| Exhibit                Number | Description                of Exhibit                                                                                                                |
|-------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------|
|                          |                                                                                                                                                 |
| 33.1                          | Report                on Assessment of Compliance with Applicable Servicing Criteria of                CarMax                Business Services, LLC. |
|                          |                                                                                                                                                 |
| 34.1                          | Report                of Independent Registered Public Accounting Firm.                                                                              |

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**Item      1123 of Regulation AB. Servicer Compliance Statement.**

| Exhibit                Number | Description                of Exhibit                                                                |
|-------------------------------|------------------------------------------------------------------------------------------------------|
|                          |                                                                                                 |
| 35.1                          | Annual                Servicer Compliance Statement of CarMax Business Services,                LLC. |

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**PART      IV**

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

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**SIGNATURES**

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**EXHIBIT      INDEX**

| Exhibit                Number | Description                of Exhibit                                                                                                                                                                                                                                                                          |
|-------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                          |                                                                                                                                                                                                                                                                                                           |
| 3.1                           | Certificate                of Formation of CarMax Auto Funding LLC.*                                                                                                                                                                                                                                           |
|                          |                                                                                                                                                                                                                                                                                                           |
| 3.2                           | Amended                and Restated Limited Liability Company Agreement of CarMax Auto Funding                LLC dated as of December 1, 2004.**                                                                                                                                                              |
|                          |                                                                                                                                                                                                                                                                                                           |
| 4.1                           | Amended                and Restated Trust Agreement dated as of September 1, 2006 among                CarMax                Auto Funding LLC, as depositor, The Bank of New York (Delaware),                as                Delaware trustee, and The Bank of New York, as owner                trustee.*** |
|                          |                                                                                                                                                                                                                                                                                                           |
| 4.2                           | Indenture                dated as of September 1, 2006 between the Issuing Entity and Wells                Fargo                Bank, National Association, as indenture trustee (including forms                of the                Notes).***                                                              |
|                          |                                                                                                                                                                                                                                                                                                           |
| 10.1                          | Sale                and Servicing Agreement dated as of September 1, 2006 among the Issuing                Entity, CarMax Auto Funding LLC, as depositor, and CarMax Business                Services, LLC, as servicer.***                                                                                    |
|                          |                                                                                                                                                                                                                                                                                                           |
| 10.2                          | Administration                Agreement dated as of September 1, 2006 among the Issuing Entity,                CarMax                Business Services, LLC, as administrator, and Wells Fargo Bank, National                Association, as indenture trustee.***                                             |
|                          |                                                                                                                                                                                                                                                                                                           |
| 10.3                          | Receivables                Purchase Agreement dated as of September 1, 2006 between CarMax Business                Services, LLC, as seller, and CarMax Auto Funding LLC, as                purchaser.***                                                                                                      |
|                          |                                                                                                                                                                                                                                                                                                           |
| 31.1                          | Certification                of CarMax Auto Funding LLC pursuant to Section 302 of the Sarbanes-Oxley                Act of 2002.                                                                                                                                                                              |
|                          |                                                                                                                                                                                                                                                                                                           |
| 33.1                          | Report                on Assessment of Compliance with Applicable Servicing Criteria of                CarMax                Business Services, LLC.                                                                                                                                                           |
|                          |                                                                                                                                                                                                                                                                                                           |
| 34.1                          | Report                of Independent Registered Public Accounting Firm.                                                                                                                                                                                                                                        |
|                          |                                                                                                                                                                                                                                                                                                           |
| 35.1                          | Annual                Servicing Compliance Statement of CarMax Business Services,                LLC.                                                                                                                                                                                                          |

| * | Incorporated                by reference from the registration statement on Form S-3 of CarMax                Auto                Funding LLC originally filed on August 13, 2003 (File No.                333-107925). |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ** | Incorporated                by reference from the registration statement on Form S-3 of CarMax                Auto                Funding LLC originally filed on August 4, 2005 (File No.                333-127189). |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *** | Incorporated                by reference from the current report on Form 8-K of CarMax Auto Funding                LLC and the Issuing Entity filed on September 15, 2006 (File No.                333-132357 and File No.                333-132357-02). |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|