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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 333-127189-02**

**CARMAX      AUTO OWNER TRUST 2005-3**

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

| **Delaware***(**State                or other jurisdiction of incorporation or                organization)* | **26-6027188***(I.R.S.                Employer Identification Number)* |
|--------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------|
|                                                                                                         |                                                                   |
| **CarMax                Business Services, LLC (as Servicer)**                                               |                                                                   |
| **12800                Tuckahoe Creek Parkway, Richmond, Virginia**  **23238**                     | **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 x | Non-accelerated                filer x |
|----------------------------------------|------------------------------------|----------------------------------------|

| Yes | No                x |
|-----|---------------------|

**CarMax      Auto Owner Trust 2005-3**

**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: |   | $      | 410,119,152.42 |   |
|---------------------------------------------------------------------------------------------|--------|--------|----------------|--------|
| Aggregate                principal balance of defaulted Receivables:                        |   | $      | 60,497.16      |   |
| Aggregate                liquidation proceeds                                               |   | $      | 845.27         |   |
| Aggregate                net losses:                                                        |   | $      | 59,651.89      |   |
| Cumulative                net loss percentage:                                              |   |   | 0.0133         | %      |

| Number                of Loans          |   |   |   |   |   | Principal                Balance |   |
|-----------------------------------------|--------|--------|--------|--------|--------|----------------------------------|--------|
|                                    |   |   |   |   |   |                             |   |
| 31-60                days past due      |   |   | 192    |   | $      | 2,257,726.97                     |   |
| 61-90                days past due      |   |   | 53     |   | $      | 670,345.81                       |   |
| 91                or more days past due |   |   | 23     |   | $      | 307,013.42                       |   |
| Total                                   |   |   | 268    |   | $      | 3,235,086.20                     |   |

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|                                            |   |   | EndingBalance   |   |   | Note                Pool Factor |   |   | Aggregate                Interest |   |
|--------------------------------------------|--------|--------|---------------------------|--------|--------|---------------------------------|--------|--------|-----------------------------------|--------|
| Class                A-1 Note Balance      |   | $      | 27,888,026.09             |   |   | 0.387333696                     | %      | $      | 507,059.42                        |   |
| Class                A-2 Note Balance |   | $      | 136,000,000.00            |   |   | 1.000000000                     | %      | $      | 1,110,742.23                      |   |
| Class                A-3 Note Balance |   | $      | 140,000,000.00            |   |   | 1.000000000                     | %      | $      | 1,141,038.89                      |   |
| Class                A-4 Note Balance |   | $      | 77,250,000.00             |   |   | 1.000000000                     | %      | $      | 642,698.54                        |   |
| Class                B Note Balance        |   | $      | 14,625,000.00             |   |   | 1.000000000                     | %      | $      | 126,880.00                        |   |
| Class                C Note Balance        |   | $      | 10,125,000.00             |   |   | 1.000000000                     | %      | $      | 92,129.07                         |   |

**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**

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

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

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**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**

| Name                and Address of Beneficial Owner                                                                                 | Amount                of Certificates                Beneficially Owned | Percent                of Certificates                Beneficially Owned |
|-------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------|--------------------------------------------------------------------------|
|                                                                                                                                |                                                                    |                                                                     |
| CarMax                Auto Funding LLC12800                Tuckahoe Creek Parkway, Suite 400Richmond,                Virginia 23238 | No                Face Amount                                           | 100%                                                                     |

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

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**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 2005-3                               |
|-----------------------------|-----------------------------------------------------------------------------|
|                        |                                                                        |
|                        | 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 January 17, 2006 Distribution Date (incorporated                herein                by reference to the CarMax Auto Owner Trust 2005-3 Form 8-K filed                on                January 17, 2006, file number 333-127189-02), (ii) the February 15,                2006                Distribution Date (incorporated herein by reference to the CarMax                Auto                Owner Trust 2005-3 Form 8-K filed on February 15, 2006, file number                333-127189-02) and (iii) the March 15, 2006 Distribution Date                (incorporated herein by reference to the CarMax Auto Owner Trust                2005-3                Form 8-K filed on March 15, 2006, file number 333-127189-02); and                with                respect to execution copies of various agreements (incorporated herein                by                reference to the CarMax Auto Owner Trust 2005-3 Form 8-K filed on                December                16, 2005, file number 333-127189-02). |
|                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 31.1                          | Certification                Pursuant to Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 99.1                          | Annual                Servicer Statement of Compliance.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 99.2                          | Annual                Report of Accountant Relative to                Servicing.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |