XML 352 R13.htm IDEA: XBRL DOCUMENT v3.24.1.u1
FINANCE RECEIVABLES
 3 Months Ended
Mar. 31, 2024
Receivables [Abstract]  
FINANCE RECEIVABLES FINANCE RECEIVABLES
Interest income on finance receivables is recognized based on the contractual terms of each loan and is accrued until repayment, reaching non-accrual status, charge-off, or repossession. Direct costs associated with loan originations are capitalized and expensed as an offset to interest income when recognized on the loans.

The balances of finance receivables are made up of loans and leases secured by the related vehicles. More than 99% of the portfolio is aged less than 60 days past due with less than 1% on non-accrual status.


Finance Receivables, net
(in millions)March 31, 2024December 31, 2023
Asset-backed term funding$2,298.0 $2,146.5 
Warehouse facilities808.3 749.3 
Other managed receivables418.0 452.9 
Total finance receivables3,524.3 3,348.7 
Less: Allowance for finance receivable losses(111.8)(106.4)
Finance receivables, net$3,412.5 $3,242.3 

Finance Receivables by FICO Score
As of March 31, 2024
Year of Origination
($ in millions)20242023202220212020Total
<599
$16.8 $57.3 $34.0 $15.6 $2.1 $125.8 
600-699140.3 549.1 418.8 135.3 13.9 1,257.4 
700-774135.4 532.7 386.5 57.0 5.1 1,116.7 
775+141.7 445.8 240.4 13.1 2.3 843.3 
Total auto loan receivables$434.2 $1,584.9 $1,079.7 $221.0 $23.4 3,343.2 
Other finance receivables 1
181.1 
Total finance receivables$3,524.3 
As of December 31, 2023
Year of Origination
($ in millions)2023202220212020Total
<599
$62.2 $39.0 $17.6 $2.4 $121.2 
600-699586.6 463.6 152.7 16.1 1,219.0 
700-774568.1 422.5 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 
1Includes legacy portfolio, loans that are originated with no FICO score available, and lease receivables.

In accordance with ASC 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 loan and lease losses represents the net credit losses expected over the remaining contractual life of our managed receivables. The allowances for credit losses related to finance receivables consisted of the following changes during the period:
Three Months Ended March 31,
(in millions)20242023
Allowance at beginning of period$106.4 $69.3 
Charge-offs(34.1)(24.8)
Recoveries14.8 11.4 
Sold loans
(0.3)— 
Provision expense25.0 26.3 
Allowance at end of period$111.8 $82.2 

Charge-off Activity by Year of Origination
Three Months Ended March 31,
(in millions)20242023
2024$— $— 
202313.4 0.1 
202215.1 14.2 
20214.9 8.9 
Other finance receivables 1
0.7 1.6 
Total charge-offs$34.1 $24.8 
1Includes legacy portfolio, loans that are originated with no FICO score available, and lease receivables.