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DEALER FINANCED RECEIVABLES

12 Months Ended

Dec. 31, 2024

7. DEALER FINANCED RECEIVABLES

Dealer finance receivable are receivables for loans that we make to independent retailers, or dealers, for the purchase of mobile homes so that dealers can then market them for sale to consumers. The loans are part of our inventory finance program. In late 2022 and early 2023, the Company transitioned many of its dealers from a traditional consignment arrangement to an inventory finance arrangement. The terms of the financing typically include a three year term, a monthly interest payment, an annual curtailment payment and require the retailer to pay the principal amount of the loan to the Company upon the earlier of the sale of the home by the retailer to its customer or the end of the term.

Dealer financed notes receivable, net of allowance for loan losses and deferred financing fees, consisted of the following at December 31, 2024, 2023 and 2022:


	As of December 31,		As of December 31,		As of December 31,
	2024		2023		2022
Outstanding principal balance	$	32,779	$	32,980	$	30,049
Allowance for loan losses		(194)		(442)		(13)
Total	$	32,585	$	32,538	$	30,036

The following table presents a detail of the activity in the allowance for loan losses for the years ended December 31, 2024 and 2023:


	Year ended
	December 31,
	2024		2023
Allowance for loan losses, beginning of period	$	442	$	13
Provision for loan losses		(248)		429
(Charge offs) recoveries		—		—
Allowance for loan losses, end of period	$	194	$	442

The dealer financed loan portfolio was established primarily in late 2022 and 2023 as a result of converting from consignment arrangements with dealers to inventory finance arrangements with dealers. As such, there is relatively little historical data to measure credit quality of the loans in this portfolio.