v3.25.3
Debt Under Vehicle Programs and Borrowing Arrangements
 9 Months Ended
Sep. 30, 2025
Debt Disclosure [Abstract]  
Debt Under Vehicle Programs and Borrowing Arrangements Debt Under Vehicle Programs and Borrowing Arrangements
Debt under vehicle programs, including related party debt due to Avis Budget Rental Car Funding (AESOP) LLC (“Avis Budget Rental Car Funding”), consisted of:
As ofAs of
September 30,December 31,
20252024
Americas - Debt due to Avis Budget Rental Car Funding (a)
$14,952 $14,143 
Americas - Debt borrowings (b)
1,276 1,160 
International - Debt borrowings2,967 2,159 
International - Finance leases 141 143 
Other— 8 
Deferred financing fees (c)
(74)(77)
Total$19,262 $17,536 
__________
(a)Includes approximately $814 million and $751 million of Class R notes as of September 30, 2025 and December 31, 2024, respectively, which are held by us.
(b)Includes our Repurchase Facilities.
(c)Deferred financing fees related to Debt due to Avis Budget Rental Car Funding as of September 30, 2025 and December 31, 2024 were $58 million and $60 million, respectively.

The following table provides a summary of debt issued by Avis Budget Rental Car Funding during the nine months ended September 30, 2025:
Issuance DateMaturity DateWeighted Average
Interest Rate		Amount
Issued
January 2025August 20277.31 %$41 
January 2025April 20287.59 %75 
January 2025June 20287.31 %75 
January 2025December 20287.37 %72 
January 2025February 20297.52 %95 
May 2025August 20284.94 %250 
May 2025August 20305.26 %400 
September 2025February 20294.27 %250 
September 2025February 20314.52 %450 
5.33 %$1,708 

In September 2025, we entered into an additional repurchase agreement. We have two repurchase agreements (the “Repurchase Facilities”), whereby we may sell our Class D notes issued by Avis Budget Rental Car Funding to the Repurchase Facilities’ counterparty and repurchase such notes.
Transactions under the first Repurchase Facility currently have a one-month tenor and may be extended thereafter at our discretion. In March 2025, we extended the maturity of certain transactions under the first Repurchase Facility from March 2025 to June 2025. Beginning with the extension in June 2025 to July 2025, transactions under the first Repurchase Facility began a one-month tenor, with a current maturity date of November 2025. Each period we extended the maturity, we simultaneously repriced the interest rate on these transactions. As of September 30, 2025, $112 million was outstanding under the first Repurchase Facility, which bears interest at a rate of 6.16%. Transactions under the second Repurchase Facility currently have a three-month tenor and may be extended thereafter at our discretion. As of September 30, 2025, $66 million was outstanding under the second Repurchase Facility, which bears interest at a rate of 5.10%.

As of September 30, 2025, we had $273 million of securities pledged as collateral for the Repurchase Facilities, included within investment in Avis Budget Rental Car Funding (AESOP) LLC—related party on our Condensed Consolidated Balance Sheets.

Debt Maturities

The following table provides the contractual maturities of our debt under vehicle programs, including related party debt due to Avis Budget Rental Car Funding, as of September 30, 2025:
 
Debt under Vehicle Programs (a)
Within 1 year (b)
$4,018 
Between 1 and 2 years (c)
8,169 
Between 2 and 3 years (d)
2,911 
Between 3 and 4 years
2,912 
Between 4 and 5 years
962 
Thereafter364 
Total$19,336 
__________
(a)    Vehicle-backed debt primarily represents asset-backed securities.
(b)    Includes $0.6 billion of bank and bank-sponsored facilities. These short-term borrowings have a weighted average interest rate of 4.52% as of September 30, 2025.
(c)    Includes $4.4 billion of bank and bank-sponsored facilities.
(d)    Includes $0.1 billion of bank and bank-sponsored facilities.

Committed Credit Facilities and Available Funding Arrangements

The following table presents available funding under our debt arrangements related to our vehicle programs, including related party debt due to Avis Budget Rental Car Funding, as of September 30, 2025:

Total
Capacity (a)
Outstanding
Borrowings (b)
Available
Capacity
Americas - Debt due to Avis Budget Rental Car Funding$16,187 $14,952 $1,235 
Americas - Debt borrowings1,561 1,276 285 
International - Debt borrowings3,359 2,967 392 
International - Finance leases163 141 22 
Total$21,270 $19,336 $1,934 
__________
(a)Capacity is subject to maintaining sufficient assets to collateralize debt. The total capacity for Americas - Debt due to Avis Budget Rental Car Funding includes increases from our asset-backed variable-funding financing facilities. These facilities were most recently amended and restated in April 2025.
(b)The outstanding debt is collateralized by vehicles and related assets of $15.9 billion for Americas - Debt due to Avis Budget Rental Car Funding; $1.7 billion for Americas - Debt borrowings; $3.8 billion for International - Debt borrowings; and $0.2 billion for International - Finance leases.
Debt Covenants

The agreements under our vehicle-backed funding programs contain restrictive covenants, including restrictions on dividends paid to us by certain of our subsidiaries and restrictions on indebtedness, mergers, liens, liquidations, and sale and leaseback transactions and in some cases also require compliance with certain financial requirements. As of September 30, 2025, we are not aware of any instances of non-compliance with any of the financial or restrictive covenants contained in the debt agreements under our vehicle-backed funding programs.