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Fair Value Measurements
 9 Months Ended
Sep. 30, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements

Note 8. Fair Value Measurements

The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value:

Cash and restricted cash: Cash and restricted cash is recorded at cost, which approximates fair value due to its highly liquid nature.

Restricted AFS investments: The fair value of U.S. Treasury securities is priced using an external pricing service which the Company corroborates using a secondary external vendor. For additional information on the Company's restricted AFS investments, see Note 4, "Restricted Available-for-Sale Investments."

Net finance receivables: The Company determines the fair value of net finance receivables using a discounted cash flows methodology. The application of this methodology requires the Company to make certain estimates and judgments. These estimates and judgments include, but are not limited to, prepayment rates, default rates, loss severity, and risk-adjusted discount rates.

Debt: The Company estimates the fair value of debt using estimated credit marks based on an index of similar financial instruments (credit facilities) and projected cash flows from the underlying collateralized finance receivables (securitizations), each discounted using a risk-adjusted discount rate.

Certain of the Company’s assets estimated fair value are classified and disclosed in one of the following three categories:

Level 1 – Quoted market prices in active markets for identical assets or liabilities.

Level 2 – Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.

Level 3 – Unobservable inputs that are not corroborated by market data.

In determining the appropriate levels, the Company performs an analysis of the assets and liabilities that are estimated at fair value. At each reporting period, all assets and liabilities for which the fair value measurement is based on significant unobservable inputs are classified as Level 3.

The following table includes the carrying amounts and estimated fair values of financial assets and liabilities disclosed but not carried at fair value:

 

 

September 30, 2025

 

 

December 31, 2024

 

Dollars in thousands

 

Carrying
Amount

 

 

Estimated
Fair Value

 

 

Carrying
Amount

 

 

Estimated
Fair Value

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Level 1

 

 

 

 

 

 

 

 

 

 

 

 

Cash

 

$

4,084

 

 

$

4,084

 

 

$

3,951

 

 

$

3,951

 

Restricted cash

 

 

104,459

 

 

 

104,459

 

 

 

131,684

 

 

 

131,684

 

Level 3

 

 

 

 

 

 

 

 

 

 

 

 

Net finance receivables, less unearned insurance
   premiums and allowance for credit losses

 

 

1,790,030

 

 

 

1,820,986

 

 

 

1,644,967

 

 

 

1,695,325

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Level 3

 

 

 

 

 

 

 

 

 

 

 

 

Debt

 

 

1,581,992

 

 

 

1,556,879

 

 

 

1,478,336

 

 

 

1,428,607

 

 

The following table includes the carrying amounts and estimated fair values of amounts the Company measures at fair value on a recurring basis:

 

 

September 30, 2025

 

 

December 31, 2024

 

Dollars in thousands

 

Carrying
Amount

 

 

Estimated
Fair Value

 

 

Carrying
Amount

 

 

Estimated
Fair Value

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Level 2

 

 

 

 

 

 

 

 

 

 

 

 

Restricted AFS investments

 

$

22,344

 

 

$

22,344

 

 

$

21,712

 

 

$

21,712

 

As of the periods indicated above, there were no financial assets or liabilities measured at fair value on a non-recurring basis.