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Finance Receivables
 12 Months Ended
Dec. 31, 2024
Receivables [Abstract]  
Finance Receivables FINANCE RECEIVABLES
Our finance receivables are comprised of auto loan and lease receivables. Our auto loan receivables include amounts due from customers related to vehicle sales financed through U.S. and Canada Financing Operations, secured by the related vehicles. Lease receivables include amounts related to vehicles leased through Canadian Financing Operations, also secured by the related vehicles. These amounts are presented net of an allowance for credit losses.

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 finance receivable originations are capitalized and expensed as an offset to interest income when recognized on the finance receivables.

More than 98% of the portfolio is aged less than 60 days past due with less than 2% on non-accrual status. As of December 31, 2024, the allowance for credit losses related to finance receivables was $123.4 million and was included in finance receivables, net. In accordance with ASC Topic 326, the allowance for credit losses is estimated based on our historical write-off experience, current conditions and reasonable and supportable forecasts as well as the value of any underlying assets securing these receivables and is reviewed monthly. Consideration is given to recent delinquency trends and recovery rates. Account balances are charged against the allowance for credit losses upon the earlier of reaching 120 days past due status, the repossession of the vehicle, or the determination that the account is uncollectible.
Finance Receivables, net
December 31,
($ in millions)20242023
Asset-backed term funding$2,604.9 $2,146.5 
Warehouse facilities1,052.0 749.3 
Other managed receivables314.2 452.9 
Total finance receivables3,971.1 3,348.7 
Accrued interest and fees27.5 17.6 
Less: Allowance for credit losses(123.4)(106.4)
Finance receivables, net$3,875.2 $3,259.9 

Finance Receivables by FICO Score
As of December 31, 2024
Year of Origination
($ in millions)20242023202220212020Total
<5991
$53.0 $39.7 $22.4 $9.9 $1.4 $126.4 
600-699534.1 406.2 298.8 90.2 8.3 1,337.6 
700-774560.2 402.5 284.9 39.5 3.2 1,290.3 
775+528.1 324.9 176.6 9.1 1.3 1,040.0 
Total auto loan receivables$1,675.4 $1,173.3 $782.7 $148.7 $14.2 3,794.3 
Other finance receivables (1)
176.8 
Total finance receivables$3,971.1 
As of December 31, 2023
Year of Origination
($ in millions)2023202220212020Total
<5991
$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 
(1)Includes legacy portfolio, loans that are originated with no FICO score available, and finance lease receivables.

Rollforward of Allowance for Credit Losses
Our allowance for credit losses represents the net credit losses expected over the remaining contractual life of our managed finance receivables. During 2024, 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 for credit losses. The allowance for credit losses related to finance receivables consisted of the following changes during the period:

Year Ended December 31,
($ in millions)20242023
Allowance for credit losses at beginning of period$106.4 $69.3 
Charge-offs(152.7)(110.0)
Recoveries63.3 47.6 
Initial allowance for purchased credit-deteriorated loans— 4.6 
Sold loans(0.3)(3.9)
Provision expense106.7 98.8 
Allowance for credit losses at end of period$123.4 $106.4 

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)20242023
2024$15.3 $— 
202362.8 14.2 
202253.5 61.9 
202117.0 29.2 
20201.5 2.8 
Other finance receivables2.6 1.9 
Total charge-offs$152.7 $110.0