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Finance Receivables (Tables) | 12 Months Ended
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Dec. 31, 2023
Receivables [Abstract] |
Schedule of Accounts Receivables | Accounts receivable consisted of the following:
|  | December 31,
($ in millions) |  | 2023 |  | 2022
Contracts in transit |  | $ | 559.7 |  |  | $ | 432.5 |
Trade receivables |  | 153.3 |  |  | 122.6 |
Vehicle receivables |  | 191.4 |  |  | 105.4 |
Manufacturer receivables |  | 216.5 |  |  | 151.9 |
Other receivables, current |  | 9.3 |  |  | 3.8 |
|  | 1,130.2 |  |  | 816.2 |
Less: Allowance for doubtful accounts |  | (7.1) |  |  | (3.1) |
Total accounts receivable, net |  | $ | 1,123.1 |  |  | $ | 813.1 |
| December 31,
($ in millions) | 2023 |  | 2022
Asset-backed term funding | $ | 2,146.5 |  |  | $ | 482.1 |
Warehouse facilities | 749.3 |  |  | 1,383.9 |
Other managed receivables | 452.9 |  |  | 390.9 |
Total finance receivables | 3,348.7 |  |  | 2,256.9 |
Less: Allowance for finance receivable losses | (106.4) |  |  | (69.3) |
Finance receivables, net | $ | 3,242.3 |  |  | $ | 2,187.6 |
Schedule of Financing Receivable Credit Quality Indicators |
| As of December 31, 2023
| Year of Origination
($ in millions) | 2023 |  | 2022 |  | 2021 |  | 2020 |  |  |  |  |  | Total
<599 1 | $ | 62.2 |  |  | $ | 39.0 |  |  | $ | 17.6 |  |  | $ | 2.4 |  |  |  |  |  |  | $ | 121.2 |
600-699 | 586.6 |  |  | 463.6 |  |  | 152.7 |  |  | 16.1 |  |  |  |  |  |  | 1,219.0 |
700-774 | 568.1 |  |  | 422.5 |  |  | 63.9 |  |  | 5.9 |  |  |  |  |  |  | 1,060.4 |
775+ | 490.3 |  |  | 263.5 |  |  | 14.7 |  |  | 2.7 |  |  |  |  |  |  | 771.2 |
Total auto loan receivables | $ | 1,707.2 |  |  | $ | 1,188.6 |  |  | $ | 248.9 |  |  | $ | 27.1 |  |  |  |  |  |  | 3,171.8 |
Other finance receivables (1) |  |  |  |  |  |  |  |  |  |  |  |  | 176.9 |
Total finance receivables |  |  |  |  |  |  |  |  |  |  |  |  | $ | 3,348.7 |
| As of December 31, 2022
| Year of Origination
($ in millions) | 2022 |  | 2021 |  | 2020 |  |  |  |  |  |  |  | Total
<599 1 | $ | 63.0 |  |  | $ | 30.3 |  |  | $ | 4.8 |  |  |  |  |  |  |  |  | $ | 98.1 |
600-699 | 652.6 |  |  | 243.4 |  |  | 27.2 |  |  |  |  |  |  |  |  | 923.2 |
700-774 | 575.9 |  |  | 97.9 |  |  | 10.0 |  |  |  |  |  |  |  |  | 683.8 |
775+ | 369.5 |  |  | 21.5 |  |  | 4.5 |  |  |  |  |  |  |  |  | 395.5 |
Total auto loan receivables | $ | 1,661.0 |  |  | $ | 393.1 |  |  | $ | 46.5 |  |  |  |  |  |  |  |  | 2,100.6 |
Other finance receivables (1) |  |  |  |  |  |  |  |  |  |  |  |  | 156.3 |
Total finance receivables |  |  |  |  |  |  |  |  |  |  |  |  | $ | 2,256.9 |
(1)Includes legacy portfolio, loans that are originated with no FICO score available, and lease receivables. In accordance with Topic 326, the allowance for loan and lease losses is estimated based on our historical write-off experience, current conditions and forecasts, as well as the value of any underlying assets securing these loans. Consideration is given to recent delinquency trends and recovery rates. Account balances are charged against the allowance upon reaching 120 days past due status. Rollforward of Allowance for Loan and Lease Losses Our allowance for finance receivable losses represents the net credit losses expected over the remaining contractual life of our managed receivables. During 2023, provision expense and net charge-offs increased primarily due to the higher volume of originations and resulting growth in the finance receivables balance. Also a contributing factor is the 3-4 month lag between charge-off and recovery. Collectively these factors drove an overall increase in the allowance. The allowances for credit losses related to finance receivables consisted of the following changes during the period:
| Year Ended December 31,
($ in millions) | 2023 |  | 2022
Allowance at beginning of period | $ | 69.3 |  |  | $ | 25.0 |
Charge-offs | (110.0) |  |  | (62.0) |
Recoveries | 47.6 |  |  | 19.1 |
Initial allowance for purchased credit-deteriorated loans | 4.6 |  |  | — |
Sold loans | (3.9) |  |  | — |
Provision expense | 98.8 |  |  | 87.2 |
Allowance at end of period | $ | 106.4 |  |  | $ | 69.3 |
See Note 1 – Summary of Significant Accounting Policies for additional information on the allowance for credit losses related to finance receivables. Charge-off Activity by Year of Origination
| Year Ended December 31,
($ in millions) | 2023 |  | 2022
2023 | $ | 14.2 |  |  | $ | — |
2022 | 61.9 |  |  | 17.3 |
2021 | 29.2 |  |  | 35.5 |
2020 | 2.8 |  |  | 5.1 |
Other finance receivables | 1.9 |  |  | 4.1 |
Total charge-offs | $ | 110.0 |  |  | $ | 62.0 |
Schedule of Purchased Financial Assets with Credit Deterioration | The following is a reconciliation of the difference between the purchase price paid by us for the financial assets and the par value (outstanding principal balance) of the assets on the date we acquired the portfolio:
($ in millions) |
Purchase price of PCD loans at acquisition | $ | 8.0 |
Initial allowance for credit losses of PCD loans at acquisition | 4.6 |
Noncredit premium of PCD loans at acquisition | (3.4) |
Par value of acquired PCD loans at acquisition | $ | 9.2 |

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- Definition Tabular disclosure of financing receivables by credit quality indicator. The credit quality indicator is a statistic about the credit quality of financing receivables. Examples include, but not limited to, consumer credit risk scores, credit-rating-agency ratings, an entity's internal credit risk grades, loan-to-value ratios, collateral, collection experience and other internal metrics. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 326 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479319/326-20-50-5 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 29 -Publisher FASB -URI https://asc.fasb.org//1943274/2147481962/310-10-50-29 + Details
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- Definition Tabular disclosure of the various types of trade accounts and notes receivable and for each the gross carrying value, allowance, and net carrying value as of the balance sheet date. Presentation is categorized by current, noncurrent and unclassified receivables. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.3,4) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480566/210-10-S99-1 + Details
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