Finance Receivable Sale Agreements |
6 Months Ended |
|---|---|
Jun. 30, 2025 | |
| Transfers and Servicing [Abstract] | |
| Finance Receivable Sale Agreements | NOTE 7 — FINANCE RECEIVABLE SALE AGREEMENTS The Company originates loans for its customers and sells them to partners and investors pursuant to finance receivable sale agreements. Historically, the Company has sold loans through two types of arrangements: forward flow agreements and fixed pool loan sales, including securitization transactions. The Company completes loan sales without recourse for their post-sale performance and makes customary representations and warranties as part of these transactions. Generally, the premiums are consistent across loan sale channels, but may vary depending upon the composition of the loan pool within each loan sale transaction and capital market conditions at the time premiums are finalized. Master Purchase and Sale Agreement In December 2016, the Company entered into a master purchase and sale agreement (the "Master Purchase and Sale Agreement" or "MPSA") with the Ally Parties. Pursuant to the MPSA, the Company sells finance receivables meeting certain underwriting criteria under a committed forward flow arrangement without recourse to the Company for their post-sale performance. On January 3, 2025, the Company and the Ally Parties amended the MPSA to reestablish the commitment by the Ally Parties to purchase up to $4.0 billion of principal balances of finance receivables between January 3, 2025 and January 2, 2026, and further amended the MPSA on April 29, 2025 to reestablish the commitment by the Ally Parties to purchase up to $4.0 billion of principal balance of finance receivables between April 30, 2025 and April 29, 2026. During the three months ended June 30, 2025 and 2024, the Company sold $1.2 billion and $0.5 billion, respectively, in principal balances of finance receivables under the MPSA. During the six months ended June 30, 2025 and 2024, the Company sold $2.0 billion and $1.4 billion, respectively, in principal balances of finance receivables under the MPSA, and had $3.2 billion of unused capacity as of June 30, 2025. Securitization Transactions The Company sponsors and establishes securitization trusts to purchase finance receivables from the Company. The securitization trusts issue asset-backed securities, some of which are collateralized by the finance receivables that the Company sells to the securitization trusts. Upon sale of the finance receivables to the securitization trusts, the Company recognizes a gain or loss on sales of finance receivables. The net proceeds from the sales are the fair value of the assets obtained as part of the transactions and typically include cash and at least 5% of the beneficial interests issued by the securitization trusts to comply with the Risk Retention Rules as defined and further discussed in Note 8 — Securitizations and Variable Interest Entities. During the three months ended June 30, 2025 and 2024, the Company sold $0.7 billion and $1.2 billion, respectively, in principal balances of finance receivables through securitization transactions. During the six months ended June 30, 2025 and 2024, the Company sold $1.6 billion and $2.0 billion, respectively, in principal balances of finance receivables through securitization transactions. Fixed Pool Loan Sales During the three months ended June 30, 2025 and 2024, the Company completed fixed pool loan sales of $1.2 billion and $0.4 billion, respectively, in principal balances of finance receivables to unrelated third parties. During the six months ended June 30, 2025 and 2024, the Company completed fixed pool loan sales of $2.0 billion and $0.4 billion, respectively, in principal balances of finance receivables to unrelated third parties. Gain on Loan Sales The total gain related to finance receivables sold to financing partners and pursuant to securitization transactions was $274 million and $173 million during the three months ended June 30, 2025 and 2024, respectively, and $547 million and $317 million during the six months ended June 30, 2025 and 2024, respectively, which is included in other sales and revenues in the accompanying unaudited condensed consolidated statements of operations.
|