v3.25.4
FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES (Tables)
 12 Months Ended
Dec. 31, 2025
Receivables [Abstract]  
Schedule of Total Finance Receivables, Net
Total finance receivables, net at December 31 were as follows (in millions):
20242025
Consumer
Retail installment contracts, gross$79,573 $80,584 
Finance leases, gross8,357 9,274 
Retail financing, gross87,930 89,858 
Unearned interest supplements from Ford and affiliated companies(4,598)(4,486)
   Consumer finance receivables 83,332 85,372 
Non-Consumer
Dealer financing (a)37,384 32,933 
Other financing (b)2,098 2,402 
Non-Consumer finance receivables 39,482 35,335 
Total recorded investment (c)$122,814 $120,707 
Recorded investment in finance receivables$122,814 $120,707 
Allowance for credit losses(864)(911)
Total finance receivables, net$121,950 $119,796 
Net finance receivables subject to fair value (d)$114,069 $111,039 
Fair value 113,545 111,716 
__________
(a)Includes $7.1 billion and $6.0 billion at December 31, 2024 and 2025, respectively, of receivables generated by divisions and affiliates of Ford in connection with vehicle inventories released from Ford and in transit to the destination dealers. Interest earned from Ford and affiliated companies associated with receivables from gate-released vehicles in transit to dealers for the years ended December 31, 2023, 2024, and 2025 was $640 million, $716 million, and $619 million, respectively. Balances at December 31, 2024 and 2025, also include $988 million and $747 million, respectively, of dealer financing receivables with entities (primarily dealers) that are reported as consolidated subsidiaries of Ford. For the years ended December 31, 2023, 2024, and 2025, the interest earned on receivables from consolidated subsidiaries of Ford to which we provide dealer financing was $19 million, $16 million, and $13 million, respectively.
(b)Primarily represents other financing receivables with Ford, which includes amounts associated with purchased receivables and receivables associated with the financing of vehicles that Ford leases to employees.
(c)Earned interest supplements on consumer and non-consumer receivables from Ford and affiliated companies totaled $2.3 billion, $2.9 billion, and $3.0 billion for the years ended December 31, 2023, 2024, and 2025, respectively. Cash received from interest supplements totaled $3.0 billion, $4.3 billion, and $2.8 billion for the years ended December 31, 2023, 2024, and 2025, respectively. Interest supplements due from Ford included in Notes and accounts receivable from affiliated companies totaled $318 million, $269 million, and $343 million for the years ended December 31, 2023, 2024, and 2025, respectively, and are non-cash investing transactions in our consolidated statement of cash flows.
(d)Net finance receivables subject to fair value exclude finance leases.
Schedule of Contractually Due on Finance Leases
The amounts contractually due on finance leases at December 31, 2025 were as follows (in millions):

Finance Lease Receivables
20262027202820292030ThereafterTotal
Contractual maturity$2,089 $1,975 $1,724 $1,068 $148 $6 $7,010 
Less: Present value discount602 
   Total finance lease receivables $6,408 

The reconciliation from finance lease receivables to finance leases, gross and finance leases, net at December 31 is as follows (in millions):
20242025
Finance lease receivables$5,367 $6,408 
Unguaranteed residual assets2,883 2,738 
Initial direct costs107 128 
   Finance leases, gross8,357 9,274 
Unearned interest supplements from Ford and affiliated companies(437)(470)
Allowance for credit losses(39)(47)
   Finance leases, net$7,881 $8,757 
Schedule of Credit Quality
The credit quality analysis of consumer receivables at December 31, 2024 and gross charge-offs during the year ended December 31, 2024 were as follows (in millions):
Amortized Cost Basis by Origination Year
Prior to 202020202021202220232024TotalPercent
Consumer
31-60 days past due$43 $93 $104 $187 $242 $203 $872 1.0 %
Greater than 60 days past due15 27 35 57 82 59 275 0.4 
Total past due58 120 139 244 324 262 1,147 1.4 
Current788 3,162 5,465 12,298 24,189 36,283 82,185 98.6 
Total$846 $3,282 $5,604 $12,542 $24,513 $36,545 $83,332 100.0 %
Gross charge-offs$46 $58 $71 $152 $191 $50 $568 

The credit quality analysis of consumer receivables at December 31, 2025 and gross charge-offs during the year ended December 31, 2025 were as follows (in millions):
Amortized Cost Basis by Origination Year
Prior to 202120212022202320242025TotalPercent
Consumer
31-60 days past due$61 $65 $139 $228 $275 $166 $934 1.1 %
Greater than 60 days past due21 24 51 75 89 60 320 0.4 
Total past due82 89 190 303 364 226 1,254 1.5 
Current1,139 2,206 6,299 15,096 26,754 32,624 84,118 98.5 
Total$1,221 $2,295 $6,489 $15,399 $27,118 $32,850 $85,372 100.0 %
Gross charge-offs$54 $54 $124 $187 $205 $42 $666 
Schedule of Credit Quality Analysis of Dealer Financing Receivables
The credit quality analysis of dealer financing receivables at December 31, 2024 and gross charge-offs during the year ended December 31, 2024 were as follows (in millions):
Amortized Cost Basis by Origination Year
Dealer Loans
Prior to 202020202021202220232024TotalWholesale LoansTotalPercent
Group I$270 $63 $97 $47 $231 $245 $953 $33,345 $34,298 91.7 %
Group II13 — 3 1 28 31 76 2,494 2,570 6.9 
Group III— — 2 — 1 4 7 462 469 1.3 
Group IV— — — — — 1 1 46 47 0.1 
Total (a)$283 $63 $102 $48 $260 $281 $1,037 $36,347 $37,384 100.0 %
Gross charge-offs$1 $— $— $— $— $— $1 $6 $7 
__________
(a)Total past due dealer financing receivables at December 31, 2024 were $8 million. 

The credit quality analysis of dealer financing receivables at December 31, 2025 and gross charge-offs during the year ended December 31, 2025 were as follows (in millions):
Amortized Cost Basis by Origination Year
Dealer Loans
Prior to 202120212022202320242025TotalWholesale LoansTotalPercent
Group I$269 $68 $31 $149 $78 $268 $863 $27,306 $28,169 85.5 %
Group II25 8 4 33 46 44 160 3,979 4,139 12.6 
Group III1 — — 2 1 11 15 584 599 1.8 
Group IV— — — — — 2 2 24 26 0.1 
Total (a)$295 $76 $35 $184 $125 $325 $1,040 $31,893 $32,933 100.0 %
Gross charge-offs$— $— $— $1 $— $— $1 $10 $11 
__________
(a)Total past due dealer financing receivables at December 31, 2025 were $8 million.
Schedule of Allowance for Credit Losses
An analysis of the allowance for credit losses related to finance receivables for the years ended December 31 was as follows (in millions):
20242025
ConsumerNon-ConsumerTotalConsumerNon-ConsumerTotal
Allowance for credit losses
Beginning balance$879 $3 $882 $860 $4 $864 
Charge-offs (568)(7)(575)(666)(11)(677)
Recoveries160 3 163 177 3 180 
Provision for credit losses412 5 417 516 12 528 
Other (a)(23)— (23)15 1 16 
Ending balance$860 $4 $864 $902 $9 $911 
_________
(a)Primarily represents amounts related to foreign currency translation adjustments.