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DEBT | 6 Months Ended
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Jun. 30, 2026
Debt Disclosure [Abstract] |
DEBT | DEBT Credit Facilities US Bank Syndicated Credit Facility On February 27, 2026, we amended our existing syndicated credit facility with US Bank as agent (USB credit facility), now comprised of 18 financial institutions, including six manufacturer-affiliated finance companies, maturing February 27, 2031. The amendment extended the maturity date, converted the existing used vehicle floorplan and service loaner floorplan facilities to VIN-specific facilities, eliminated the credit spread adjustment of 0.10%, and reduced the margin on used vehicle floor plan financing from 1.40% to 1.20%. This USB credit facility provides for a total financing commitment of $6.5 billion, which may be further expanded, subject to lender approval and the satisfaction of other conditions, up to a total of $7.0 billion. The allocation of the financing commitment is for up to $2.7 billion in new vehicle inventory floorplan financing, up to $1.3 billion in used vehicle inventory floorplan financing, up to $150 million in service loaner vehicle floorplan financing, and up to $2.4 billion in revolving financing for general corporate purposes, including acquisitions and working capital. We have the option to reallocate the commitments under this USB credit facility, provided that the aggregate revolving loan commitment may not be more than 50% of the amount of the aggregate commitment. All borrowings from, and repayments to, our lending group are presented in the Consolidated Statements of Cash Flows as part of Net cash provided by (used in) financing activities. Our obligations under our USB credit facility are secured by a substantial amount of our assets, including our inventory (including new and used vehicles, parts and accessories), equipment, accounts receivable (and other rights to payment), real property, and our equity interests in certain of our subsidiaries. The interest rate on the USB credit facility varies based on the type of debt, with the rate of Daily Simple SOFR plus a margin of 1.10% for new vehicle floor plan financing, 1.20% for used vehicle floor plan financing, 1.20% for service loaner floor plan financing, and a variable interest rate on the revolving financing ranging from 1.00% to 2.00% depending on our leverage ratio. The annual interest rates associated with our commitments are as follows:
Commitment | Annual Interest Rate at June 30, 2026
New vehicle floor plan | 4.78%
Used vehicle floor plan | 4.88%
Service loaner floor plan | 4.88%
Revolving line of credit | 4.93%
Bank of Nova Scotia Syndicated Credit Facility On February 27, 2026, we amended our syndicated credit agreement with The Bank of Nova Scotia as agent (BNS credit facility), which is comprised of six financing institutions, including two manufacturer-affiliated finance companies. The amendment extended the maturity date, converted the existing used vehicle floorplan facility to a VIN-specific facility, and reduced the margin on used vehicle floor plan financing from 1.25% to 1.10%. The BNS credit facility provides for a total financing commitment of approximately $1.1 billion CAD, including a working capital revolving credit facility of up to $125 million CAD, a wholesale flooring facility for new vehicles up to $375 million CAD, used vehicle flooring facility of up to $100 million CAD, wholesale leasing facility of up to $500 million CAD, and daily rental vehicle facility up to $25 million CAD. The interest rate on the BNS credit facility varies based on the type of debt, using either the Term or Daily Compounded rate of the Canadian Overnight Repo Rate Average (CORRA) plus a credit spread adjustment of 0.30% plus a margin of 1.25%-2.25%. The annual interest rates associated with our commitments are as follows:
Commitment | Annual Interest Rate at June 30, 2026
Wholesale flooring facility | 3.58%
Used vehicle flooring facility | 3.68%
Daily rental facility | 3.84%
Wholesale leasing facility | 3.94%
Working capital revolving facility | 3.89%
All BNS facilities other than the wholesale and used flooring facilities, which are demand facilities, mature on March 18, 2029. The credit agreement includes various financial and other covenants typical of such agreements. Non-Recourse Notes Payable In 2026, we issued $1,057.7 million in non-recourse notes payable related to asset-backed term funding transactions. Below is a summary of outstanding non-recourse notes payable issued:
($ in millions) | Balance as of June 30, 2026 | Initial Principal Amount | Issuance Date | Interest Rate Range | Final Distribution Date
LAD Auto Receivables Trust 2022-1 Class C | 11.5 | 23.0 | 08/17/22 | 6.85% to 6.85% | Various dates through Apr 2030
LAD Auto Receivables Trust 2023-1 Class D | 25.2 | 31.3 | 02/14/23 | 7.30% to 7.30% | Various dates through Jun 2030
LAD Auto Receivables Trust 2023-2 Class C-D | 58.8 | 79.5 | 05/24/23 | 5.58% to 6.30% | Various dates through Feb 2031
LAD Auto Receivables Trust 2023-3 Class B-D | 69.4 | 79.4 | 08/23/23 | 6.09% to 6.92% | Various dates through Dec 2030
LAD Auto Receivables Trust 2023-4 Class A-D | 86.5 | 121.1 | 11/15/23 | 6.24% to 7.37% | Various dates through Apr 2031
LAD Auto Receivables Trust 2024-1 Class A-D | 84.7 | 100.9 | 02/14/24 | 5.17% to 6.15% | Various dates through Jun 2031
LAD Auto Receivables Trust 2024-2 Class A-D | 138.3 | 232.2 | 06/20/24 | 5.46% to 6.37% | Various dates through Oct 2031
LAD Auto Receivables Trust 2024-3 Class A-D | 259.1 | 306.3 | 11/15/24 | 4.52% to 5.18% | Various dates through Feb 2032
LAD Auto Receivables Trust 2025-1 Class A-D | 284.8 | 311.4 | 02/12/25 | 4.69% to 5.52% | Various dates through May 2032
LAD Auto Receivables Trust 2025-2 Class A-D | 351.9 | 443.3 | 08/13/25 | 4.25% to 5.01% | Various dates through Dec 2032
LAD Auto Receivables Trust 2025-3 Class A-C | 440.9 | 477.4 | 11/13/25 | 4.03% to 4.60% | Various dates through Mar 2033
LAD Auto Receivables Trust 2026-1 Class A-C | 446.0 | 532.1 | 02/18/26 | 3.75% to 4.42% | Various dates through Aug 2033
LAD Auto Receivables Trust 2026-2 Class A-C | 484.3 | 525.6 | 05/13/26 | 3.92% to 4.94% | Various dates through Oct 2033
Total non-recourse notes payable | $2,741.4 | $3,263.5 |  |  |

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 942 -SubTopic 210 -Name Accounting Standards Codification -Section S45 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147477657/942-210-S45-1 Reference 2: http://www.xbrl.org/2003/role/disclosureRef 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