Ownership Submission
FORM 4
Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940
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(Print or Type Responses)
1. Name and Address of Reporting Person *
KUNKEL JOSEPH S
   2. Issuer Name and Ticker or Trading Symbol
CARMAX INC [KMX] 		5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
_____ Director _____ 10% Owner
__X__ Officer (give title below) _____ Other (specify below)
SR. VICE PRESIDENT, SUBSIDIA
(Last)
(First)
(Middle)
ATTN: STOCK OPTIONS, 4900 COX ROAD		 3. Date of Earliest Transaction (Month/Day/Year)
12/22/2004
(Street)

GLEN ALLEN, VA 23060		 4. If Amendment, Date Original Filed(Month/Day/Year)
 6. Individual or Joint/Group Filing(Check Applicable Line)
_X_ Form filed by One Reporting Person
___ Form filed by More than One Reporting Person
(City)
(State)
(Zip)
Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1.Title of Security
(Instr. 3)		 2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code
(Instr. 8)		 4. Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5)		 5. Amount of Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 3 and 4)		 6. Ownership Form: Direct (D) or Indirect (I)
(Instr. 4)		 7. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V Amount (A) or (D) Price
Common Stock 12/22/2004 12/22/2004 M   20,000 A $ 9.187 45,859 D  
Common Stock 12/22/2004 12/22/2004 S   10,750 D $ 30.57 35,109 D  

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Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 3)		 2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (Month/Day/Year) 3A. Deemed Execution Date, if any (Month/Day/Year) 4. Transaction Code
(Instr. 8)		 5. Number of Derivative Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4, and 5)		 6. Date Exercisable and Expiration Date
(Month/Day/Year)		 7. Title and Amount of Underlying Securities
(Instr. 3 and 4)		 8. Price of Derivative Security
(Instr. 5)		 9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 4)		 10. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 4)		 11. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
Stock Options (Right to buy) $ 1.625             10/01/2002 03/01/2007 Common Stock 34,500   34,500 D  
Stock Options (Right to buy) $ 4.885             10/01/2002 03/01/2008 Common Stock 70,000   70,000 D  
Stock Options (Right to buy) $ 6.0625             10/01/2002 06/15/2006 Common Stock 45,000   45,000 D  
Stock Options (Right to buy) $ 9.187 12/22/2004 12/22/2004 M     20,000 10/01/2002 02/17/2005 Common Stock 20,000 $ 9.187 0 D  
Stock Options (Right to buy) $ 14.285             04/02/2004 04/02/2013 Common Stock 65,000   65,000 D  
Stock Options (Right to buy) $ 26.83             10/01/2002 03/01/2009 Common Stock 45,000   45,000 D  
Stock Options (Right to buy) $ 29.605             04/01/2005 04/01/2014 Common Stock 50,000   50,000 D  
SARS $ 14.285             04/02/2004 04/02/2013 Common Stock 65,000   65,000 D  
SARS $ 29.605             04/01/2005 04/01/2014 Common Stock 50,000   50,000 D  

Reporting Owners

Reporting Owner Name / Address Relationships
 Director  10% Owner  Officer  Other
KUNKEL JOSEPH S
ATTN: STOCK OPTIONS
4900 COX ROAD
GLEN ALLEN, VA 23060		       SR. VICE PRESIDENT, SUBSIDIA  

Signatures

 Sherry Bauer   12/22/2004
**Signature of Reporting Person Date

Explanation of Responses:

* If the form is filed by more than one reporting person, see Instruction 4(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).

Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure.

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