
	March 31, 2025
	Retail		Dealer		Total

	(U.S. dollars in millions)
Finance receivables	$	48,698	$	4,344	$	53,042
Allowance for credit losses	(387)		(9)		(396)
Deferred dealer participation and other deferred costs	616		—		616
Unearned subsidy income	(746)		—		(746)
Finance receivables, net	$	48,181	$	4,335	$	52,516


	March 31, 2024
	Retail		Dealer		Total

	(U.S. dollars in millions)
Finance receivables	$	43,492	$	4,060	$	47,552
Allowance for credit losses	(345)		(8)		(353)
Deferred dealer participation and other deferred costs	600		—		600
Unearned subsidy income	(551)		—		(551)
Finance receivables, net	$	43,196	$	4,052	$	47,248

Finance receivables include retail loans with a net carrying amount of $13.0 billion and $9.8 billion as of March 31, 2025 and 2024, respectively, which have been transferred to bankruptcy-remote Special Purpose Entities (SPEs) and are considered to be legally isolated but do not qualify for sale accounting treatment. These retail loans are restricted and serve as collateral for the payment of the related secured debt obligations. Refer to Note 10 for additional information.

The allowance increased during the fiscal year ended March 31, 2025 primarily due to the expected credit losses recognized on the high volume of retail loan acquisitions during the period. The increase was also attributable to the increasing trend of delinquencies and net charge-offs.

Collection experience provides an indication of the credit quality of finance receivables. For retail loans, delinquencies are a good predictor of charge-offs in the near term. The likelihood of accounts charging off is significantly higher once an account becomes 60 days delinquent. Retail loans are considered delinquent if more than 10% of a scheduled payment is contractually past due on a cumulative basis. Dealer loans are considered delinquent when any payment is contractually past due.


	30 – 59 days past due		60 – 89 days past due		90 days or greater past due		Total past due		Current or less than 30 days past due		Total finance receivables

	(U.S. dollars in millions)
March 31, 2025
Retail loans:
New automobile	$	331	$	73	$	20	$	424	$	38,105	$	38,529
Used and certified automobile	155		38		10		203		8,291		8,494
Motorcycle and other	18		7		4		29		1,516		1,545
Total retail	504		118		34		656		47,912		48,568
Dealer loans:
Wholesale flooring	—		—		1		1		3,005		3,006
Commercial loans	—		—		—		—		1,338		1,338
Total dealer loans	—		—		1		1		4,343		4,344
Total finance receivables	$	504	$	118	$	35	$	657	$	52,255	$	52,912

March 31, 2024
Retail loans:
New automobile	$	253	$	59	$	15	$	327	$	33,858	$	34,185
Used and certified automobile	134		33		9		176		7,815		7,991
Motorcycle and other	15		6		3		24		1,341		1,365
Total retail	402		98		27		527		43,014		43,541
Dealer loans:
Wholesale flooring	1		—		—		1		2,785		2,786
Commercial loans	—		—		—		—		1,274		1,274
Total dealer loans	1		—		—		1		4,059		4,060
Total finance receivables	$	403	$	98	$	27	$	528	$	47,073	$	47,601

Credit losses are an expected cost of extending credit. The majority of our credit risk is with consumer financing and to a lesser extent with dealer financing. Exposure to credit risk in retail loans is managed through regular monitoring and periodic adjusting of underwriting standards, pricing of contracts for expected losses, and focusing collection efforts to minimize losses. Exposure to credit risk for dealers is managed through ongoing review of their financial condition and payment performance.

The Company utilizes proprietary credit scoring systems to evaluate the credit risk of applicants and assign internal credit grades at origination. Factors used to develop a customer’s credit grade include the terms of the contract, the loan-to-value ratio, the customer’s debt ratios, and credit bureau attributes such as the number of trade lines, utilization ratio, and number of credit inquiries. Different scorecards are utilized depending on the type of product financed. The Company regularly reviews and

analyzes the performance of the consumer financing portfolio to ensure the effectiveness of its underwriting guidelines, purchasing criteria and scorecard predictability of customers. Internal credit grades are determined only at the time of origination and are not reassessed during the life of the contract. The following describes the internal credit grade ratings:

A - Borrowers classified as very low credit risks. Based on their application and credit bureau report, they have the ability to pay and have shown a willingness to pay. Generally, A credit borrowers have an extensive credit history, an excellent payment record and extensive financial resources.

B - Borrowers classified as relatively low credit risks. Based on their application and credit bureau report, they have the ability to pay and have shown a willingness to pay. Generally, B credit borrowers may have one or more conditions that could reduce the internal credit score, such as a shorter credit history or a minor credit weakness.


	Retail loans by vintage year
	2025		2024		2023		2022		2021		Prior		Total

March 31, 2025	(U.S. dollars in millions)
Credit grade A	$	14,245	$	9,403	$	3,620	$	1,838	$	1,140	$	136	$	30,382
Credit grade B	3,800		2,919		1,365		639		371		73		9,167
Credit grade C	2,830		2,006		869		439		259		66		6,469
Credit grade D	879		516		190		103		73		38		1,799
Others	351		221		89		54		25		11		751
Total retail loans	$	22,105	$	15,065	$	6,133	$	3,073	$	1,868	$	324	$	48,568
Gross charge-offs for the fiscal year ended March 31, 2025	$	62	$	188	$	88	$	38	$	18	$	12	$	406


	Retail loans by vintage year
	2024		2023		2022		2021		2020		Prior		Total

March 31, 2024	(U.S. dollars in millions)
Credit grade A	$	14,094	$	5,788	$	3,713	$	2,907	$	597	$	121	$	27,220
Credit grade B	4,110		2,065		1,113		778		237		66		8,369
Credit grade C	2,853		1,338		758		526		200		61		5,736
Credit grade D	779		306		182		149		97		36		1,549
Others	338		142		96		57		22		12		667
Total retail loans	$	22,174	$	9,639	$	5,862	$	4,417	$	1,153	$	296	$	43,541
Gross charge-offs for the fiscal year ended March 31, 2024	$	58	$	109	$	61	$	34	$	19	$	12	$	293

The Company utilizes an internal risk rating system to evaluate dealer credit risk. Dealerships are assigned an internal risk rating based on an assessment of their financial condition and other factors. Factors including liquidity, financial strength, management effectiveness, and operating efficiency, are evaluated when assessing their financial condition. Financing limits and interest rates are based upon these risk ratings. Monitoring activities including financial reviews and inventory inspections are performed more frequently for dealerships with weaker risk ratings. The financial conditions of dealerships are reviewed, and their risk ratings are updated at least annually.


	Commercial loans by vintage fiscal year
	2025		2024		2023		2022		2021		Prior		Revolving loans		Wholesale Flooring		Total

March 31, 2025	(U.S. dollars in millions)
Group I	$	149	$	110	$	52	$	13	$	86	$	53	$	762	$	1,764	$	2,989
Group II	23		56		3		—		6		25		—		1,241		1,354
Group III	—		—		—		—		—		—		—		1		1
Total dealer loans	$	172	$	166	$	55	$	13	$	92	$	78	$	762	$	3,006	$	4,344
Gross charge-offs for the fiscal year ended March 31, 2025	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—


	Commercial loans by vintage fiscal year
	2024		2023		2022		2021		2020		Prior		Revolving loans		Wholesale Flooring		Total

March 31, 2024	(U.S. dollars in millions)
Group I	$	146	$	55	$	9	$	114	$	45	$	84	$	748	$	1,874	$	3,075
Group II	44		3		5		1		—		20		—		911		984
Group III	—		—		—		—		—		—		—		1		1
Total dealer loans	$	190	$	58	$	14	$	115	$	45	$	104	$	748	$	2,786	$	4,060
Gross charge-offs for the fiscal year ended March 31, 2024	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

The contractual terms of loans may be modified when borrowers are experiencing financial difficulties in an effort to mitigate losses. There were no dealer loans that were modified for dealers experiencing financial difficulties during the fiscal year ended March 31, 2025. Payment deferrals are granted on retail loans, however the delays in payments are considered insignificant since the number of deferred payments are limited and interest continues to accrue during the deferral period. In certain situations, the Company may grant term extensions on retail loans in the United States. Term extensions extend the maturity date of the loan which reduces the monthly payments over the remaining extended term of the loan. Term extensions do not change the contractual interest rates or reduce the outstanding principal balances. During the fiscal year ended March 31, 2025, term extensions were not material to the Company’s consolidated financial statements. Retail loans may also be modified in reorganization proceedings pursuant to the U.S. Bankruptcy Code which may include interest rate adjustments, term extensions, and principal forgiveness. Retail loans modified under bankruptcy protection were not material to the Company’s consolidated financial statements during the fiscal year ended March 31, 2025.