CarMax : 2021 Proxy Statement

Dear Fellow CarMax Shareholders:

I am pleased to invite you to attend the 2021 annual meeting of CarMax, Inc. shareholders, which will be held on Tuesday, June 29, 2021. The attached notice of annual shareholders meeting and proxy statement are your guides to the meeting.

Our fiscal year began on March 1, 2020 and within weeks approximately half of our stores were closed or operating under significant restrictions due to the outbreak of the novel coronavirus ("COVID-19"). By early April our used vehicle sales were down by as much as 75% due to COVID-19's impact on consumer demand and the steps CarMax took to address public health concerns and government mandates. Even after this initial period, many of the limitations on our business - local and state

occupancy restrictions, social distancing measures, economic dislocations - continued throughout the fiscal year.

In response to the challenges presented by the pandemic, CarMax acted quickly to adapt operations to the new circumstances and position the company for success after the pandemic recedes. We were able to deliver exceptional customer experiences while remaining financially strong. That financial strength enabled us to continue to aggressively invest in our core business and pursue new growth opportunities. Among many other accomplishments, we:

• Completed the national rollout of our omni-channel experience, giving us a common platform across all of CarMax that leverages our scale, nationwide footprint and infrastructure;
• Moved all wholesale auctions into a virtual environment;
• Introduced a new online instant appraisal offering, strengthening our leadership as the largest buyer, and positioning us to become the largest online buyer, of used autos from consumers;
• Introduced the Love Your Car Guarantee, an industry-leading, signature customer experience; and
• Announced our agreement to acquire Edmunds, one of the most well established and trusted online guides for automotive information and a recognized industry leader in digital car shopping innovations.

On behalf of the Board of Directors, we are proud of the resiliency shown by the entire CarMax organization over the past year and look forward to the future with confidence and optimism.

Shareholders will be able to attend and participate in the virtual meeting online, including voting shares and submitting questions. Instructions and information on how to participate in the meeting can be found on page 68 of the proxy statement.

We also are pleased to furnish proxy materials to shareholders primarily over the internet. On or about May 11, 2021, we mailed our shareholders a Notice of Internet Availability of Proxy Materials containing instructions on how to access our proxy statement and annual report and to vote online. Internet distribution of our proxy materials expedites receipt by shareholders, lowers the cost of the annual shareholders meeting, and conserves natural resources. However, if you would prefer to receive paper copies of our proxy materials, please follow the instructions included in the Notice of Internet Availability of Proxy Materials.

Whether or not you will be attending our virtual annual shareholders meeting, your vote is very important to us. I encourage you to cast your ballot by internet, by telephone, by mail (if you request a paper copy), or during the annual shareholders meeting.

Thank you for your continued trust in CarMax.

Sincerely,

Thomas J. Folliard

Chair of the Board of Directors

May 11, 2021

NOTICE OF 2021 ANNUAL MEETING OF SHAREHOLDERS

When:	Tuesday, June 29, 2021, at 1:00 p.m. Eastern Time
Where:	This year's meeting is a virtual annual shareholders meeting held at:
	www.virtualshareholdermeeting.com/KMX2021
Items of Business:	(1)	To elect the twelve directors named in the proxy statement to our
		Board of Directors.
	(2)	To ratify the appointment of KPMG LLP as our independent registered
		public accounting firm.
	(3)	To vote on an advisory resolution to approve the compensation of our
		named executive officers.
	(4)	To vote on the shareholder proposal regarding a report on political
		contributions, if properly presented at the meeting.
	(5)	To transact any other business that may properly come before the
		annual shareholders meeting or any postponements or adjournments
		thereof.
Who May Vote:	You may	vote if you owned CarMax common stock at the close of business on
	April 23, 2021.
By order of the Board of Directors,

Eric M. Margolin

Executive Vice President,

General Counsel and Corporate Secretary

May 11, 2021

TABLE OF CONTENTS

PROXY SUMMARY.........................................................................................................................................	1
PROPOSAL ONE: ELECTION OF DIRECTORS............................................................................................	7
CORPORATE GOVERNANCE.......................................................................................................................	15
Overview..............................................................................................................................................................................	15
Corporate Responsibility and Sustainability.........................................................................................................................	16
Independence......................................................................................................................................................................	18
Board Leadership Structure.................................................................................................................................................	19
Board Committees...............................................................................................................................................................	19
Board and Committee Meetings..........................................................................................................................................	21
Selection of Directors...........................................................................................................................................................	22
Key Board Responsibilities..................................................................................................................................................	23
Related Person Transactions...............................................................................................................................................	24
Shareholder Communication with Directors.........................................................................................................................	25

PROPOSAL TWO: RATIFICATION OF THE APPOINTMENT OF THE INDEPENDENT REGISTERED

PUBLIC ACCOUNTING FIRM.........................................................................................................................

AUDIT COMMITTEE REPORT.......................................................................................................................

AUDITOR FEES AND PRE-APPROVALPOLICY...........................................................................................

PROPOSAL THREE: ADVISORY RESOLUTION TO APPROVE EXECUTIVE COMPENSATION...............

COMPENSATION DISCUSSION AND ANALYSIS.........................................................................................

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Overview..............................................................................................................................................................................	30
Executive Summary.............................................................................................................................................................	30
How We Make Compensation Decisions.............................................................................................................................	31
What We Pay and Why: Elements of Compensation...........................................................................................................	34
Base Salary..................................................................................................................................................................	34
Annual Incentive Bonus...............................................................................................................................................	35
Long-TermEquity Awards............................................................................................................................................	38
Compensation Mix.......................................................................................................................................................	40
Additional Elements of Compensation.........................................................................................................................	41
Additional Information..........................................................................................................................................................	42
COMPENSATION AND PERSONNEL COMMITTEE REPORT.....................................................................	45
COMPENSATION TABLES.............................................................................................................................	46
Summary Compensation Table............................................................................................................................................	46
All Other Compensation Table.............................................................................................................................................	47
Grants of Plan-BasedAwards Table....................................................................................................................................	48
Outstanding Equity Awards Table........................................................................................................................................	49
Option Exercises and Stock Vested Table...........................................................................................................................	51
Pension Benefits Table........................................................................................................................................................	51
Nonqualified Deferred Compensation Table........................................................................................................................	53

Potential Payments Upon Termination or Change-in-Control..............................................................................................	54
CEO Pay Ratio.....................................................................................................................................................................	59

DIRECTOR COMPENSATION........................................................................................................................

PROPOSAL FOUR: SHAREHOLDER PROPOSAL REGARDING A REPORT ON POLITICAL

CONTRIBUTIONS...........................................................................................................................................

CARMAX SHARE OWNERSHIP....................................................................................................................

GENERAL INFORMATION.............................................................................................................................

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