Interest income on finance receivables is recognized based on the contractual terms of each receivable and is accrued until repayment, reaching non-accrual status, charge-off, or repossession. Direct costs associated with originations are capitalized and expensed as an offset to interest income when recognized on the receivables.

The balances of finance receivables are made up of loans and finance leases secured by the related vehicles. More than 98% of the portfolio is aged less than 60 days past due with less than 2% on non-accrual status.


(in millions)	September 30, 2024		December 31, 2023
Asset-backed term funding	$	2,267.8	$	2,146.5
Warehouse facilities	1,332.5		749.3
Other managed receivables	285.7		452.9
Total finance receivables	3,886.0		3,348.7
Less: Allowance for finance receivable losses	(120.5)		(106.4)
Finance receivables, net	$	3,765.5	$	3,242.3


	As of September 30, 2024
	Year of Origination
($ in millions)	2024		2023		2022		2021		2020		Total
<599	$	44.4	$	45.3	$	26.1	$	11.9	$	1.6	$	129.3
600-699	428.7		452.6		338.2		103.9		10.0		1,333.4
700-774	434.4		444.4		317.9		44.8		3.8		1,245.3
775+	418.9		364.0		197.4		10.4		1.6		992.3
Total auto loan receivables	$	1,326.4	$	1,306.3	$	879.6	$	171.0	$	17.0	3,700.3
Other finance receivables 1											185.7
Total finance receivables											$	3,886.0


			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

1Includes legacy portfolio, loans that are originated with no FICO score available, lease receivables, and deferred origination fees.

In accordance with ASC Topic 326, the allowance for finance receivable 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 receivables. Consideration is given to recent delinquency trends and recovery rates. Account balances are charged against the allowance upon reaching 120 days past due status.

Our allowance for finance receivable 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:


	Nine Months Ended September 30,
(in millions)	2024		2023
Allowance at beginning of period	$	106.4	$	69.3
Charge-offs	(106.8)		(79.1)
Recoveries	44.2		35.5
Sold loans	(0.3)		—
Initial allowance for credit-deteriorated receivables	—		2.3
Provision expense	77.0		75.0
Allowance at end of period	$	120.5	$	103.0


	Nine Months Ended September 30,
(in millions)	2024		2023
2024	$	5.3	$	—
2023	45.4		5.0
2022	39.5		47.1
2021	13.6		23.0
2020	1.2		2.3
Other finance receivables 1	1.8		1.7
Total charge-offs	$	106.8	$	79.1

1Includes legacy portfolio, loans that are originated with no FICO score available, and finance lease receivables.