
	September 30, 2020						December 31, 2019
	Retail		Commercial(a)		Total		Retail		Commercial(a)		Total


GM Financial receivables, net of fees	$	48,694	$	8,062	$	56,756	$	42,229	$	11,671	$	53,900
Less: allowance for loan losses	(1,936)		(67)		(2,003)		(866)		(78)		(944)
GM Financial receivables, net	$	46,758	$	7,995	$	54,753	$	41,363	$	11,593	$	52,956

Fair value of GM Financial receivables utilizing Level 2 inputs					$	7,995					$	11,593
Fair value of GM Financial receivables utilizing Level 3 inputs					$	48,972					$	41,973

(a)Net of dealer cash management balances of $1.4 billion and $1.2 billion at September 30, 2020 and December 31, 2019. Under the cash management program, subject to certain conditions, a dealer may choose to reduce the amount of interest on its floorplan line by making principal payments to GM Financial in advance.


	Three Months Ended				Nine Months Ended
	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Allowance for loan losses at beginning of period	$	2,111	$	957	$	944	$	911
Impact of adoption ASU 2016-13 (Note 1)	—		—		801		—
Provision for loan losses	31		150		824		504
Charge-offs	(282)		(300)		(895)		(888)
Recoveries	136		134		383		411
Effect of foreign currency	7		(8)		(54)		(5)
Allowance for loan losses at end of period	$	2,003	$	933	$	2,003	$	933

GM Financial's forecast for recovery rates improved during the three months ended September 30, 2020, resulting in decreased provision for loan losses. In the nine months ended September 30, 2020, the provision for loan losses increased primarily due to increased expected charge-offs and decreased expected recoveries as a result of the economic impact of the novel strain of the coronavirus (COVID-19) pandemic.

Retail Finance Receivables GM Financial's retail finance receivable portfolio includes loans made to consumers and businesses to finance the purchase of vehicles for personal and commercial use. A summary of the amortized cost of the retail finance receivables by FICO score or its equivalent, determined at origination, for each vintage of the retail finance receivables portfolio at September 30, 2020 is as follows:


	Year of Origination														September 30, 2020				December 31, 2019
	2020		2019		2018		2017		2016		2015		Prior		Total		Percent		Total		Percent
Prime – FICO score 680 and greater	$	14,746	$	8,064	$	5,295	$	2,348	$	744	$	177	$	5	$	31,379	64.4	%	$	25,400	60.1	%
Near-prime – FICO score 620 to 679	2,725		2,293		1,392		712		280		103		15		7,520		15.5	%	6,862		16.3	%
Sub-prime – FICO score less than 620	2,701		2,922		1,785		1,265		707		311		104		9,795		20.1	%	9,967		23.6	%
Retail finance receivables, net of fees	$	20,172	$	13,279	$	8,472	$	4,325	$	1,731	$	591	$	124	$	48,694	100.0	%	$	42,229	100.0	%

GM Financial reviews the ongoing credit quality of retail finance receivables based on customer payment activity. A retail account is considered delinquent if a substantial portion of a scheduled payment has not been received by the date the payment was contractually due. Retail finance receivables are collateralized by vehicle titles and, subject to local laws, GM Financial generally has the right to repossess the vehicle in the event the customer defaults on the payment terms of the contract. The accrual of finance charge income had been suspended on delinquent retail finance receivables with contractual amounts due of $742 million and $875 million at September 30, 2020 and December 31, 2019. The following table is a consolidated summary of the delinquency status of the outstanding amortized cost of retail finance receivables for each vintage of the portfolio at September 30, 2020:


	Year of Origination														September 30, 2020				September 30, 2019
	2020		2019		2018		2017		2016		2015		Prior		Total		Percent		Total(a)		Percent
Current	$	19,962	$	12,848	$	8,142	$	4,083	$	1,580	$	513	$	93	$	47,221	97.0	%
31-to-60 days	147		294		227		167		102		53		19		1,009		2.1	%	$	1,252	3.0	%
Greater-than-60 days	57		122		92		69		45		23		11		419		0.8	%	514		1.2	%
Finance receivables more than 30 days delinquent	204		416		319		236		147		76		30		1,428		2.9	%	1,766		4.2	%
In repossession	6		15		11		6		4		2		1		45		0.1	%	48		0.1	%
Finance receivables more than 30 days delinquent or in repossession	210		431		330		242		151		78		31		1,473		3.0	%	$	1,814	4.3	%
Retail finance receivables, net of fees	$	20,172	$	13,279	$	8,472	$	4,325	$	1,731	$	591	$	124	$	48,694	100.0	%

Commercial Finance Receivables GM Financial's commercial finance receivables consist of dealer financings, primarily for inventory purchases. Proprietary models are used to assign a risk rating to each dealer. GM Financial performs periodic credit reviews of each dealership and adjusts the dealership's risk rating, if necessary. The commercial finance receivables on nonaccrual status were insignificant at September 30, 2020.

Prior to January 1, 2020, GM Financial estimated the allowance for loan losses based on an analysis of the experience of comparable commercial lenders. Effective January 1, 2020, GM Financial establishes the allowance for loan losses based on historical loss experience for the consolidated portfolio, in addition to forecast for industry vehicle sales. The updated risk rating categories are as follows:


Rating						Description
I						Performing accounts with strong to acceptable financial metrics with at least satisfactory capacity to meet financial commitments.
II						Performing accounts experiencing potential weakness in financial metrics and repayment prospects resulting in increased monitoring.
III						Non-Performing accounts with inadequate paying capacity for current obligations and have the distinct possibility of creating a loss if deficiencies are not corrected.
IV						Non-Performing accounts with inadequate paying capacity for current obligations and inherent weaknesses that make collection of liquidation in full highly questionable or improbable.

Dealers with III and IV risk ratings are subject to additional monitoring and restrictions on funding, including suspension of lines of credit and liquidation of assets. The following table summarizes the credit risk profile by dealer risk rating of commercial finance receivables at September 30, 2020:


	Year of Origination(a)																September 30, 2020
	Revolving		2020		2019		2018		2017		2016		2015		Prior		Total		Percent
I	$	6,468	$	355	$	177	$	73	$	98	$	93	$	38	$	—	$	7,302	90.6	%
II	411		1		7		3		3		13		13		22		473		5.9	%
III	227		—		9		29		2		11		1		—		279		3.4	%
IV	4		—		—		—		—		—		4		—		8		0.1	%
Commercial finance receivables, net of fees	$	7,110	$	356	$	193	$	105	$	103	$	117	$	56	$	22	$	8,062	100.0	%

Transactions with GM Financial The following table shows transactions between our Automotive segments and GM Financial. These amounts are presented in GM Financial's condensed consolidated balance sheets and statements of income.


	September 30, 2020		December 31, 2019
Condensed Consolidated Balance Sheets(a)
Commercial finance receivables, net due from GM consolidated dealers	$	399	$	478

Subvention receivable(b)	$	566	$	676

Commercial loan funding payable	$	75	$	74


	Three Months Ended				Nine Months Ended
	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Condensed Consolidated Statements of Income
Interest subvention earned on finance receivables	$	178	$	153	$	496	$	448
Leased vehicle subvention earned	$	749	$	814	$	2,319	$	2,467

(b)Cash paid by Automotive segments to GM Financial for subvention was $943 million and $1.0 billion in the three months ended September 30, 2020 and 2019 and $3.0 billion and $3.1 billion in the nine months ended September 30, 2020 and 2019.