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FINANCE RECEIVABLES | 6 Months Ended
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Jun. 30, 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) | June 30, 2024 |  | December 31, 2023
Asset-backed term funding | $ | 2,507.0 |  |  | $ | 2,146.5 |
Warehouse facilities | 890.4 |  |  | 749.3 |
Other managed receivables | 342.3 |  |  | 452.9 |
Total finance receivables | 3,739.7 |  |  | 3,348.7 |
Less: Allowance for finance receivable losses | (115.8) |  |  | (106.4) |
Finance receivables, net | $ | 3,623.9 |  |  | $ | 3,242.3 |
Finance Receivables by FICO Score
| As of June 30, 2024
| Year of Origination
($ in millions) | 2024 |  | 2023 |  | 2022 |  | 2021 |  | 2020 |  |  |  |  |  | Total
<599 | $ | 32.5 |  |  | $ | 51.8 |  |  | $ | 30.1 |  |  | $ | 13.4 |  |  | $ | 1.8 |  |  |  |  |  |  | $ | 129.6 |
600-699 | 296.3 |  |  | 500.5 |  |  | 377.5 |  |  | 119.0 |  |  | 11.7 |  |  |  |  |  |  | 1,305.0 |
700-774 | 295.9 |  |  | 487.5 |  |  | 350.8 |  |  | 50.5 |  |  | 4.4 |  |  |  |  |  |  | 1,189.1 |
775+ | 296.8 |  |  | 402.2 |  |  | 218.2 |  |  | 11.9 |  |  | 2.0 |  |  |  |  |  |  | 931.1 |
Total auto loan receivables | $ | 921.5 |  |  | $ | 1,442.0 |  |  | $ | 976.6 |  |  | $ | 194.8 |  |  | $ | 19.9 |  |  |  |  |  |  | 3,554.8 |
Other finance receivables 1 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 184.9 |
Total finance receivables |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 3,739.7 |
|  |  | As of December 31, 2023
|  |  | Year of Origination
($ in millions) | 2023 |  | 2022 |  | 2021 |  | 2020 |  |  |  |  |  |  |  | Total
<599 | $ | 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 |
1 Includes 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:
| Six Months Ended June 30,
(in millions) | 2024 |  | 2023
Allowance at beginning of period | $ | 106.4 |  |  | $ | 69.3 |
Charge-offs | (65.6) |  |  | (50.1) |
Recoveries | 30.1 |  |  | 23.6 |
Sold loans | (0.3) |  |  | — |
Initial allowance for credit-deteriorated loans | — |  |  | 2.3 |
Provision expense | 45.2 |  |  | 52.0 |
Allowance at end of period | $ | 115.8 |  |  | $ | 97.1 |
Charge-off Activity by Year of Origination
| Six Months Ended June 30,
(in millions) | 2024 |  | 2023
2024 | $ | 0.6 |  |  | $ | — |
2023 | 27.4 |  |  | 0.8 |
2022 | 26.2 |  |  | 31.0 |
2021 | 9.1 |  |  | 15.8 |
Other finance receivables 1 | 2.3 |  |  | 2.5 |
Total charge-offs | $ | 65.6 |  |  | $ | 50.1 |
1 Includes legacy portfolio, loans that are originated with no FICO score available, and lease receivables.

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