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Finance Receivables, Net | 12 Months Ended
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Apr. 30, 2025
Receivables [Abstract] |
Finance Receivables, Net | C - Finance Receivables, Net The Company originates installment sale contracts from the sale of used vehicles at its dealerships. These installment sale contracts, which originate at interest rates ranging from 12.99% to 23.0%, are collateralized by the vehicle sold and typically provide for payments over periods ranging from 18 months to 79 months. The Company’s finance receivables are defined as one segment and one class of loans, which is sub-prime consumer automobile contracts. As of the fourth quarter of 2025, the Company maintains two distinct loan pools for the purpose of estimating expected credit losses under the CECL model in accordance with ASC 326. These pools are grouped based on origination method and are managed collectively under a unified credit risk management framework. Although not considered separate segments under applicable disclosure rules, each pool is evaluated separately for expected credit losses, and the allowance for credit losses is determined accordingly. The components of finance receivables as of April 30, 2025 and 2024 are as follows:
(In thousands) | April 30, 2025 |  | April 30, 2024
Gross contract amount | $ | 1,946,042 |  |  | $ | 1,844,392 |
Less: unearned finance charges | (436,887) |  |  | (409,004) |
Principal balance | 1,509,155 |  |  | 1,435,388 |
Less: estimated insurance receivables for APP claims | (2,910) |  |  | (3,026) |
Less: allowance for APP claims | (3,135) |  |  | (3,171) |
Less: allowance for credit losses | (323,100) |  |  | (331,260) |
Finance receivables, net | 1,180,010 |  |  | 1,097,931 |
Loan origination costs | 663 |  |  | 660 |
Finance receivables, net, including loan origination costs | $ | 1,180,673 |  |  | $ | 1,098,591 |
Auto finance receivables collateralizing the non-recourse notes payable related to the financing and securitization transactions completed during the fiscal year 2025 and 2024 were $844.5 million and $814.7 million, respectively. Changes in the finance receivables, net, for the years ended April 30, 2025, 2024 and 2023 are as follows:
| Years Ended April 30,
(In thousands) | 2025 |  | 2024 |  | 2023
Balance at beginning of period | $ | 1,097,931 |  |  | $ | 1,062,760 |  |  | $ | 855,424 |
Finance receivable originations | 1,075,080 |  |  | 1,079,946 |  |  | 1,161,132 |
Finance receivable collections | (469,379) |  |  | (455,828) |  |  | (434,458) |
Provision for credit losses | (374,559) |  |  | (423,406) |  |  | (352,860) |
Losses on claims for accident protection plan | (34,525) |  |  | (34,504) |  |  | (25,107) |
Inventory acquired in repossession and accident protection plan claims | (114,538) |  |  | (131,037) |  |  | (141,371) |
Balance at end of period | $ | 1,180,010 |  |  | $ | 1,097,931 |  |  | $ | 1,062,760 |
Changes in the finance receivables allowance for credit losses for the years ended April 30, 2025, 2024 and 2023 are as follows:
| Years Ended April 30,
(In thousands) | 2025 |  | 2024 |  | 2023
Balance at beginning of period | $ | 331,260 |  |  | $ | 299,608 |  |  | $ | 237,823 |
Provision for credit losses | 374,559 |  |  | 423,406 |  |  | 352,860 |
Charge-offs | (499,887) |  |  | (525,634) |  |  | (414,397) |
Recovered collateral | 117,168 |  |  | 133,880 |  |  | 123,322 |
Balance at end of period | $ | 323,100 |  |  | $ | 331,260 |  |  | $ | 299,608 |
Amounts recovered from previously written-off accounts were $3.5 million, $2.8 million, and $2.5 million for the years ended April 30, 2025, 2024 and 2023, respectively. These amounts are netted against recovered collateral in the table above. In fiscal year 2025, the Company reduced its allowance for credit losses due to improved performance from contracts initiated under tighter underwriting standards. In the fourth quarter, following refinements to the Company’s CECL methodology and continued strong collections performance, the Company further decreased the allowance for credit losses to 23.25%. Earlier, in fiscal year 2024, the Company increased the allowance for credit losses in the second quarter, primarily due to the implementation of third-party software for calculating credit losses. The allowance was reduced to 25.32% in the fourth quarter, driven by lower inflation, fewer past-due balances, and refinements to the underwriting process following the launch of the new loan origination system. The following table presents the finance receivables that are current and past due as follows:
(Dollars in thousands) | April 30, 2025 |  | April 30, 2024
| Principal Balance |  | Percent of Portfolio |  | Principal Balance |  | Percent of Portfolio
Current | $ | 1,208,330 |  |  | 80.06 | % |  | $ | 1,125,945 |  |  | 78.44 | %
3 - 29 days past due | 249,263 |  |  | 16.52 | % |  | 264,491 |  |  | 18.43 | %
30 - 60 days past due | 34,407 |  |  | 2.28 | % |  | 34,042 |  |  | 2.37 | %
61 - 90 days past due | 11,461 |  |  | 0.76 | % |  | 6,438 |  |  | 0.45 | %
> 90 days past due | 5,694 |  |  | 0.38 | % |  | 4,472 |  |  | 0.31 | %
Total | $ | 1,509,155 |  |  | 100.00 | % |  | $ | 1,435,388 |  |  | 100.00 | %
Accounts one and two days past due, as well as bankruptcy accounts, are considered current for this analysis, due to the varying payment dates and variation in the day of the week at each period end. The Company suspends its standard collections practices following a customer’s bankruptcy filing and treats these accounts as being administered by the bankruptcy trustee rather than the customer, conducting all account-related communications, payment processing, and modification activities with the trustee in accordance with the bankruptcy plan and applicable bankruptcy law. See Note B for further discussion of customer accounts in bankruptcy. Delinquencies may vary from period to period based on the average age of the portfolio, seasonality within the calendar year, the day of the week and overall economic factors. The above categories are consistent with internal operational measures used by the Company to monitor credit results. Substantially all of the Company’s installment sale contracts involve contracts made to individuals with impaired or limited credit histories, or higher debt-to-income ratios than permitted by traditional lenders. Contracts made with buyers who are restricted in their ability to obtain financing from traditional lenders generally entail a higher risk of delinquency, default and repossession, and higher losses than contracts made with buyers with better credit. The Company monitors customer scores, contract term length, payment to income, down payment percentages, and collections for credit quality indicators.
| Twelve Months Ended April 30,
| 2025 |  | 2024
Average total collected per active customer per month | $ | 575 |  |  | $ | 554 |
Principal collected as a percent of average finance receivables | 31.8 | % |  | 31.7 | %
Average down-payment percentage | 5.5 | % |  | 5.4 | %
Average originating contract term (in months) | 44.4 |  | 44.0
| April 30, 2025 |  | April 30, 2024
Portfolio weighted average contract term, including modifications (in months) | 48.3 |  | 47.9
Total dollars collected per active customer increased 3.8% year over year and principal collections as a percentage of average finance receivables increased slightly by 10 basis points compared to prior year. The average originating contract term increased slightly as the average retail sales price was up $285 and term is optimized to the distribution by score, shortening terms for higher credit risk customers and allowing additional terms for better credit scoring customers. When customers apply for financing, the Company’s proprietary scoring models rely on the customers’ credit histories and certain application information to evaluate and rank their risk. The Company obtains credit histories and other credit data that includes information such as number of different addresses, age of oldest record, high risk credit activity, job time, time at residence and other factors. The application information that is used includes income, collateral value and down payment. The scoring models yield credit grades that represent the relative likelihood of repayment. The Company has historically utilized a six-point scorecard for credit evaluation. In May 2024, a new seven-point scorecard was introduced, offering greater granularity and improving the accuracy of loss ratio projections. Under this enhanced scoring model, customers with the highest probability of repayment are 7-rated customers. Customers assigned a lower grade are determined to have a lower probability of repayment. For loans that are approved, the credit grade influences the terms of the agreement, such as the maximum amount financed, term length and minimum down payment. After origination, credit grades are generally not updated. The following table presents a summary of finance receivables by credit quality indicator, as of April 30, 2025, segregated by customer score and year of origination.
|  | Customer Score by Fiscal Year of Origination |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  | Prior to |  |  |  |
(Dollars in thousands) |  | 2025 |  | 2024 |  | 2023 |  | 2022 |  | 2021 |  | 2021 |  | Total |  | %
1-2 |  | $ | 46,422 |  |  | $ | 13,367 |  |  | $ | 4,584 |  |  | $ | 743 |  |  | $ | 45 |  |  | $ | 45 |  |  | $ | 65,206 |  |  | 4.3 | %
3-4 |  | 284,265 |  |  | 131,084 |  |  | 44,141 |  |  | 9,241 |  |  | 826 |  |  | 219 |  |  | 469,776 |  |  | 31.1 | %
5-7 |  | 509,740 |  |  | 277,865 |  |  | 138,342 |  |  | 42,843 |  |  | 4,856 |  |  | 527 |  |  | 974,173 |  |  | 64.6 | %
Total |  | $ | 840,427 |  |  | $ | 422,316 |  |  | $ | 187,067 |  |  | $ | 52,827 |  |  | $ | 5,727 |  |  | $ | 791 |  |  | $ | 1,509,155 |  |  | 100.0 | %
Gross charge-offs |  | $ | 120,995 |  |  | $ | 237,829 |  |  | $ | 109,105 |  |  | $ | 28,518 |  |  | $ | 2,842 |  |  | $ | 598 |  |  | $ | 499,887 |  |  |
The following table presents a summary of finance receivables by credit quality indicator, as of April 30, 2024, segregated by customer score and year of origination.
|  | Customer Score by Fiscal Year of Origination |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  | Prior to |  |  |  |
(Dollars in thousands) |  | 2024 |  | 2023 |  | 2022 |  | 2021 |  | 2020 |  | 2020 |  | Total |  | %
1-2 |  | $ | 43,445 |  |  | $ | 13,757 |  |  | $ | 3,668 |  |  | $ | 375 |  |  | $ | 95 |  |  | $ | 6 |  |  | $ | 61,346 |  |  | 4.3 | %
3-4 |  | 300,323 |  |  | 117,904 |  |  | 36,349 |  |  | 4,552 |  |  | 325 |  |  | 158 |  |  | 459,611 |  |  | 32.0 | %
5-6 |  | 485,535 |  |  | 291,198 |  |  | 116,611 |  |  | 19,452 |  |  | 1,216 |  |  | 419 |  |  | 914,431 |  |  | 63.7 | %
Total |  | $ | 829,303 |  |  | $ | 422,859 |  |  | $ | 156,628 |  |  | $ | 24,379 |  |  | $ | 1,636 |  |  | $ | 583 |  |  | $ | 1,435,388 |  |  | 100.0 | %
Gross charge-offs |  | $ | 155,385 |  |  | $ | 265,609 |  |  | $ | 88,160 |  |  | $ | 14,835 |  |  | $ | 1,081 |  |  | $ | 564 |  |  | $ | 525,634 |  |  |
Contract Modifications During the preparation of the financial statements for the fiscal year ended April 30, 2025, management identified that our previously issued financial statements contained material omissions of required disclosures under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 310-10-50-42 through 50-44 related to loan modifications for borrowers experiencing financial difficulty. Specifically, we determined that we did not provide the following required disclosures by class of financing receivable in our previously issued financial statements: (1) qualitative and quantitative information about the types of modifications we utilized, including the total period-end amortized cost basis of modified receivables and the percentage of modifications of receivables made to debtors experiencing financial difficulty relative to the total period-end amortized cost basis of receivables in each class of financing receivable; (2) the financial effect of modifications by type, including information about changes to contractual terms resulting from the modification and the incremental effect of principal forgiveness on the amortized cost basis of modified receivables, as applicable, or the reduction in weighted-average interest rates for interest rate reductions; and (3) receivable performance in the 12 months after modification of receivables made to debtors experiencing financial difficulty. As a result of these material disclosure omissions, our annual Consolidated Financial Statements for fiscal year 2024 are being restated to reflect the added disclosures regarding contract modifications made to borrowers experiencing financial difficulty. The restatement to include these disclosures did not impact previously reported amounts on the Company’s Consolidated Statements of Operations, Consolidated Balance Sheets, Consolidated Statements of Cash Flow, or Consolidated Statements of Equity. The Company identifies and discloses modifications made to customers experiencing financial difficulty after the origination date. Due to the subprime nature and limited financial resources of the majority of the Company’s customers, all modifications that result in a term extension are identified by the Company as modifications made to customers experiencing financial difficulty and therefore included in the related disclosures. See Note B for additional information on contract modifications. These modifications are made with the intent to support customers while preserving asset value and minimizing credit losses. The following tables present the aggregate outstanding principal balance of contracts that have been modified during the fiscal year, categorized by type of modification. These modifications represent management’s efforts to work with customers experiencing financial difficulty to help them maintain their vehicle ownership while preserving asset value for the Company. The percentages shown represent the portion of the total gross finance receivables portfolio as of the end of the fiscal year that has been modified at least once during the year. The following table presents contract modifications by type of modification at April 30, 2025, 2024 and 2023:
(Dollars in thousands) |  | Contract Modifications by Type
|  | April 30, 2025 |  | April 30, 2024 (Restated) |  | April 30, 2023
Type of Modification |  | Principal Balance |  | % of Portfolio |  | Principal Balance |  | % of Portfolio |  | Principal Balance |  | % of Portfolio
Term extension |  | $ | 425,791 |  |  | 28.2 | % |  | $ | 462,992 |  |  | 32.2 | % |  | $ | 445,288 |  |  | 32.4 | %
Combination (1) |  | 10,350 |  |  | 0.7 | % |  | 10,929 |  |  | 0.8 | % |  | 8,764 |  |  | 0.6 | %
Total |  | $ | 436,141 |  |  | 28.9 | % |  | $ | 473,921 |  |  | 33.0 | % |  | $ | 454,052 |  |  | 33.0 | %
(1)These modifications result from customer bankruptcy filings and have been made in accordance with bankruptcy court requirements. They generally consist of a reduction in the contractual interest rate and/or an extension of the contract term as part of the customer’s court-approved payment restructuring plan. The following table describes the financial effect of the modifications for each fiscal year:
Type of Modification |  | Fiscal Year 2025 |  | Fiscal Year 2024 (Restated) |  | Fiscal Year 2023
Term extension |  | Added a weighted average of 2.2 months to the life of contracts, which reduced payment amounts due from borrowers. |  | Added a weighted average of 2.3 months to the life of contracts, which reduced payment amounts due from borrowers. |  | Added a weighted average of 2.6 months to the life of contracts, which reduced payment amounts due from borrowers.
Combination |  | Added a weighted average of 10.5 months to the life of contracts, which reduced payment amounts due from borrowers and/or reduced interest rates to rates ranging from 4.25% to 10.5%. |  | Added a weighted average of 11.6 months to the life of contracts, which reduced payment amounts due from borrowers and/or reduced interest rates to rates ranging from 4.25% to 18%. |  | Added a weighted average of 13.9 months to the life of contracts, which reduced payment amounts due from borrowers and/or reduced interest rates to rates ranging from 5% to 16.9%.
The Company closely monitors the performance of the contracts that are modified to understand the effectiveness of its modification efforts. The following table depicts the status of contracts that have term modifications in the last 12 months of the applicable fiscal year:
|  | Payment Status (Principal Balance)
(In thousands) |  | Total |  | Current |  | 3-29 Days Past Due |  | 30-60 Days Past Due |  | 61-90 Days Past Due |  | 90+ Days Past Due
For Fiscal Year 2025 |  | $ | 425,791 |  |  | $ | 304,859 |  |  | $ | 100,554 |  |  | $ | 14,149 |  |  | $ | 3,900 |  |  | $ | 2,329 |
For Fiscal Year 2024 (Restated) |  | 462,992 |  |  | 326,937 |  |  | 117,390 |  |  | 13,890 |  |  | 2,724 |  |  | 2,051 |
For Fiscal Year 2023 |  | 445,288 |  |  | 352,013 |  |  | 72,146 |  |  | 15,397 |  |  | 3,583 |  |  | 2,149 |
The following table depicts the status of contracts that have term modifications due to the combination of modifications due to bankruptcies for the periods presented:
|  | Payment Status (Principal Balance) |  |
(In thousands) |  | Total |  | Payment Received in Last 30 Days |  | Payment Received in Last 31-60 Days |  | Payment Received in Last 61-90 Days |  | Payment Received in Last 90+ Days |  |
For Fiscal Year 2025 |  | $ | 10,350 |  |  | $ | 5,864 |  |  | $ | 1,596 |  |  | $ | 843 |  |  | $ | 2,047 |  |  |
For Fiscal Year 2024 (Restated) |  | 10,929 |  |  | 5,528 |  |  | 1,808 |  |  | 1,366 |  |  | 2,227 |  |  |
For Fiscal Year 2023 |  | 8,764 |  |  | 4,957 |  |  | 1,213 |  |  | 828 |  |  | 1,766 |  |  |
As of April 30, 2025, customer contracts with an aggregate principal balance of $133.0 million were charged off within 12 months following contract modifications. For comparative purposes, as of April 30, 2024 and April 30, 2023, customer contracts with aggregate principal balances of $153.9 million and $118.0 million, respectively, were charged off within 12 months following contract modifications. These modifications and their subsequent performance were evaluated under the Company’s CECL methodology, and the related allowance for credit losses reflects expected future losses based on borrower performance, economic conditions, and the nature of the modifications. The Company continues to monitor the performance of all modified contracts and has credit risk management processes in place to assess and manage these exposures.

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