v3.25.2
Finance Receivables
 6 Months Ended
Jun. 30, 2025
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]  
Finance Receivables Finance Receivables
June 30, 2025December 31, 2024
Retail finance receivables
Retail finance receivables(a)
$77,837 $76,066 
Less: allowance for loan losses(2,630)(2,400)
Total retail finance receivables, net75,207 73,667 
Commercial finance receivables
Commercial finance receivables(a)(b)
16,723 19,901 
Less: allowance for loan losses
(91)(58)
Total commercial finance receivables, net16,633 19,843 
Total finance receivables, net$91,840 $93,510 
Fair value utilizing Level 2 inputs$16,633 $19,843 
Fair value utilizing Level 3 inputs$76,842 $74,729 
________________
(a)    Net of unearned income, unamortized premiums and discounts, and deferred fees and costs.
(b)    Includes dealer financing of $16.2 billion and $18.9 billion, and other financing of $571 million and $999 million at June 30, 2025 and December 31, 2024. Commercial finance receivables are presented net of dealer cash management balances of $3.2 billion and $3.4 billion at June 30, 2025 and December 31, 2024.
Rollforward of Allowance for Retail Loan Losses A summary of the activity in the allowance for retail loan losses is as follows:
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Allowance for retail loan losses beginning balance$2,479 $2,320 $2,400 $2,308 
Provision for loan losses349 159 648 364 
Charge-offs(488)(411)(967)(816)
Recoveries270 222 520 434 
Foreign currency translation
19 (28)28 (30)
Allowance for retail loan losses ending balance$2,630 $2,261 $2,630 $2,261 
The allowance for retail loan losses as a percentage of retail finance receivables was 3.4% and 3.2% at June 30, 2025 and December 31, 2024. The allowance ratio is based on factors including portfolio credit quality, expectations for recovery rates and economic outlook.
Retail Credit Quality Our retail finance receivables portfolio includes loans made to consumers and businesses to finance the purchase of vehicles for personal and commercial use. The following tables are consolidated summaries of the amortized cost of the retail finance receivables by FICO score or its equivalent, determined at origination, for each vintage of the portfolio at June 30, 2025 and December 31, 2024:
Year of OriginationJune 30, 2025
 20252024202320222021PriorTotalPercent
Prime - FICO Score 680 and greater$13,597 $20,025 $12,446 $7,360 $3,959 $1,810 $59,196 76.1 %
Near-prime - FICO Score 620 to 6792,048 3,046 1,821 1,194 804 393 9,306 12.0 
Sub-prime - FICO Score less than 6201,992 2,992 1,719 1,234 857 541 9,335 12.0 
Retail finance receivables$17,636 $26,063 $15,986 $9,788 $5,620 $2,744 $77,837 100.0 %
Year of OriginationDecember 31, 2024
 20242023202220212020PriorTotalPercent
Prime - FICO Score 680 and greater$24,155 $15,814 $9,749 $5,424 $2,559 $366 $58,067 76.3 %
Near-prime - FICO Score 620 to 6793,547 2,227 1,507 1,077 473 159 8,990 11.8 
Sub-prime - FICO Score less than 6203,399 2,059 1,546 1,141 543 322 9,008 11.8 
Retail finance receivables$31,101 $20,100 $12,802 $7,642 $3,575 $847 $76,066 100.0 %
We review the ongoing credit quality of our retail finance receivables based on customer payment activity. A retail account is considered delinquent if a substantial portion of a scheduled payment has not been received by the date the payment was contractually due. Retail finance receivables are collateralized by vehicle titles, and, subject to local laws, we generally have the right to repossess the vehicle in the event the customer defaults on the payment terms of the contract. The following tables are consolidated summaries of the amortized cost of retail finance receivables by delinquency status for each vintage of the portfolio at June 30, 2025 and December 31, 2024, as well as summary totals for June 30, 2024. The tables also present gross charge-offs by vintage for the six months ended June 30, 2025 and the year ended December 31, 2024:
Year of OriginationJune 30, 2025June 30, 2024
20252024202320222021PriorTotalPercentTotalPercent
0 - 30 days$17,493 $25,437 $15,415 $9,327 $5,280 $2,523 $75,474 97.0 %$71,211 97.1 %
31 - 60 days103 435 394 325 247 161 1,665 2.1 1,551 2.1 
Greater than 60 days36 167 157 125 85 57 626 0.8 509 0.7 
Finance receivables more than 30 days delinquent139 602 550 450 333 218 2,291 2.9 2,060 2.8 
In repossession4 24 21 11 7 3 71 0.1 64 0.1 
Finance receivables more than 30 days delinquent or in repossession143 626 571 461 340 221 2,362 3.0 2,124 2.9 
Retail finance receivables$17,636 $26,063 $15,986 $9,788 $5,620 $2,744 $77,837 100.0 %$73,335 100.0 %
Gross charge-offs$16 $292 $283 $195 $113 $67 $967 
Year of OriginationDecember 31, 2024
20242023202220212020PriorTotalPercent
0 - 30 days$30,581 $19,411 $12,207 $7,178 $3,350 $710 $73,438 96.5 %
31 - 60 days374 481 425 340 166 99 1,885 2.5 
Greater than 60 days128 188 155 115 55 36 677 0.9 
Finance receivables more than 30 days delinquent502 669 580 455 221 135 2,562 3.4 
In repossession17 19 14 10 3 2 66 0.1 
Finance receivables more than 30 days delinquent or in repossession519 689 595 464 225 136 2,628 3.5 
Retail finance receivables$31,101 $20,100 $12,802 $7,642 $3,575 $847 $76,066 100.0 %
Gross charge-offs$171 $556 $495 $305 $126 $102 $1,754 
The accrual of finance charge income had been suspended on retail finance receivables with contractual amounts due of $910 million and $958 million at June 30, 2025 and December 31, 2024. Accrual of finance charge income on retail finance receivables is generally suspended on accounts that are more than 60 days delinquent, accounts in bankruptcy and accounts in repossession.
Loan Modifications Under certain circumstances, we may agree to modify the terms of an existing loan with a borrower for various reasons, including financial difficulties. For those borrowers experiencing financial difficulties, we may provide interest rate reductions, principal forgiveness, payment deferments, term extensions or a combination thereof. A loan that is deferred greater than six months in the preceding twelve months would be considered to be other-than-insignificantly delayed. In such circumstances, we must determine whether the modification should be accounted for as an extinguishment of the original loan and a creation of a new loan, or the continuation of the original loan with modifications.
The amortized costs at June 30, 2025 and 2024 of the loans modified during the three and six months ended June 30, 2025 and 2024 were insignificant. The unpaid principal balances, net of recoveries, of loans charged off during the reporting period that were modified within 12 months preceding default were insignificant for the three and six months ended June 30, 2025 and 2024.
Commercial Credit Quality Our commercial finance receivables consist of dealer financing, primarily for dealer inventory purchases, and other financing, which includes loans to commercial vehicle upfitters, as well as advances to certain GM subsidiaries.
For our dealer financing, we use proprietary models to assign a risk rating to each dealer. We perform periodic credit reviews of each dealership and adjust the dealership's risk rating, if necessary. There is limited credit risk associated with other financing due to the structure of the business relationships.
Our dealer risk model and risk rating categories are as follows:
Dealer Risk RatingDescription
IPerforming accounts with strong to acceptable financial metrics with at least satisfactory capacity to meet financial commitments.
IIPerforming accounts experiencing potential weakness in financial metrics and repayment prospects resulting in increased monitoring.
IIINon-Performing accounts with inadequate paying capacity for current obligations and that have the distinct possibility of creating a loss if deficiencies are not corrected.
IVNon-Performing accounts with inadequate paying capacity for current obligations and inherent weaknesses that make collection or liquidation in full highly questionable or improbable.
Dealers with III and IV risk ratings are subject to additional monitoring and restrictions on funding, including suspension of lines of credit and liquidation of assets. The following tables summarize the dealer finance receivables portfolio by dealer risk rating at June 30, 2025 and December 31, 2024:
Year of OriginationJune 30, 2025
Dealer Risk RatingRevolving20252024202320222021PriorTotalPercent
I
$13,089 $167 $252 $159 $331 $184 $242 $14,423 89.3 %
II
910 10 27 29 14 36 5 1,031 6.4 
III
587 4 50 5 14 23 15 699 4.3 
IV
— — — — — — — — 0.0 
Balance at end of period$14,586 $181 $329 $192 $359 $243 $263 $16,152 100.0 %
Year of OriginationDecember 31, 2024
Dealer Risk RatingRevolving20242023202220212020PriorTotalPercent
I
$16,429 $350 $211 $360 $237 $267 $32 $17,885 94.6 %
II
621 — 10 26 3 2 — 663 3.5 
III
305 10 4 — 22 — 12 354 1.9 
IV
1 — — — — — — 1 0.0 
Balance at end of period$17,356 $360 $225 $385 $263 $269 $44 $18,902 100.0 %
Floorplan advances comprise 99.1% and 99.5% of the total revolving balances at June 30, 2025 and December 31, 2024. Dealer term loans are presented by year of origination.
At June 30, 2025 and December 31, 2024, substantially all of our commercial finance receivables were current with respect to payment status, and activity in the allowance for commercial loan losses was insignificant for the three and six months ended June 30, 2025 and 2024. There were no commercial finance receivables on nonaccrual status at June 30, 2025 and December 31, 2024.
There were insignificant charge-offs during the six months ended June 30, 2025, and no loan modifications were extended to borrowers experiencing financial difficulty during the three and six months ended June 30, 2025 and 2024.