SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): March 9, 2011

CarMax Auto Funding LLC

(Depositor)

CarMax Auto Owner Trust 2011-1

(Issuing Entity)

CarMax Business Services, LLC

(Sponsor)

(Exact name of registrant as specified in its charter)

Delaware

(State or other jurisdiction of

incorporation or organization)

12800 Tuckahoe Creek Parkway, Suite 400, Richmond, Virginia 23238

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (804) 935-4512

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

On March 9, 2011, CarMax Auto Funding LLC (“CarMax Funding”) and CarMax Business Services, LLC (“CarMax”) entered into an Underwriting Agreement with Merrill Lynch, Pierce, Fenner & Smith Incorporated, on behalf of itself and as representative of the several underwriters (collectively, the “Underwriters”), for the issuance and sale of certain asset backed notes of CarMax Auto Owner Trust 2011-1 in the following classes: Class A-1, Class A-2, Class A-3, Class A-4, Class B, Class C and Class D (collectively, the “Offered Notes”). The Offered Notes have an aggregate principal amount of $650,000,000. The Offered Notes have been registered pursuant to the Securities Act of 1933, as amended, under a Registration Statement on Form S-3 (Commission File No. 333-149075). It is expected that the Offered Notes will be issued on or about March 17, 2011.

The Underwriting Agreement is attached as Exhibit 1.1.

The registrant has filed a preliminary prospectus supplement dated March 4, 2011 and a free writing prospectus dated March 4, 2011 setting forth a description of the receivables pool and the structure of $128,000,000 aggregate principal amount of Class A-1 Asset Backed Notes, $147,000,000 aggregate principal amount of Class A-2 Asset Backed Notes, $225,000,000 aggregate principal amount of Class A-3 Asset Backed Notes, $110,050,000 aggregate principal amount of Class A-4 Asset Backed Notes, $15,900,000 aggregate principal amount of Class B Asset Backed Notes, $15,900,000 aggregate principal amount of Class C Asset Backed Notes and $8,150,000 aggregate principal amount of Class D Asset Backed Notes.

Legal opinions of McGuireWoods LLP are attached as Exhibit 5.1 and Exhibit 8.1.

FINANCIAL STATEMENTS AND EXHIBITS

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Signatures

Pursuant to the requirements of the Securities and Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

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Exhibit Index

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