Auto loans receivable primarily consist of amounts due from customers related to retail vehicle sales financed through AutoNation Finance, our captive auto finance company. Auto loans receivable are presented net of an allowance for expected credit losses. Auto loans receivable represent a large group of smaller-balance homogeneous loans, which we consider to be part of one class of financing receivable and one portfolio segment for purposes of determining our allowance for expected credit losses.


	June 30, 2026		December 31, 2025




Total auto loans receivable	$	2,667.6	$	2,209.9
Accrued interest and fees	15.7		14.1
Deferred loan origination costs	15.6		11.8
Less: unearned discounts	—		(0.2)
Less: allowances for expected credit losses	(109.8)		(95.4)
Auto loans receivable, net	$	2,589.1	$	2,140.2

We utilize proprietary credit scoring models to rate the risk of default for customers that apply for financing by evaluating customer credit history, including FICO scores, and certain credit application information, including information such as income, collateral, and down payment. The scoring models yield credit program tiers that reflect our internal credit risk ratings and represent the relative likelihood of repayment. The assigned credit tier influences the terms of the agreement, such as the required loan-to-value ratio and interest rate. After origination, credit tier assignments by customer are generally not updated. We monitor the credit quality of the auto loans receivable on an ongoing basis and validate the accuracy of the credit scoring models periodically. Loan performance is reviewed on a recurring basis to identify whether the assigned credit tiers adequately reflect the customers’ likelihood of repayment, and if needed, adjustments are made to the scoring models on a prospective basis.



		Fiscal Year of Origination
As of June 30, 2026	Weighted Average FICO Score	2026		2025		2024		2023		2022		Prior to 2022		Total
Credit Program Tier(1):
Palladium	734	$	362.2	$	463.8	$	101.5	$	—	$	—	$	—	$	927.5
Rhodium	691	331.0		309.9		79.3		8.2		—		—		728.4
Platinum	650	168.3		426.5		287.3		40.4		0.7		1.1		924.3
Gold	622	5.2		20.2		34.0		10.8		0.4		1.9		72.5
Silver	574	1.2		2.4		0.2		5.7		0.4		0.9		10.8
Bronze	548	0.6		0.9		—		1.8		0.1		0.3		3.7
Copper	537	—		0.2		—		0.1		—		0.1		0.4
Total auto loans receivable		$	868.5	$	1,223.9	$	502.3	$	67.0	$	1.6	$	4.3	$	2,667.6

Current-period gross write-offs		$	1.2	$	27.6	$	23.0	$	7.1	$	0.2	$	0.8	$	59.9

		Fiscal Year of Origination
As of December 31, 2025	Weighted Average FICO Score	2025		2024		2023		2022		2021		Prior to 2021		Total
Credit Program Tier(1):
Palladium	732	$	569.6	$	127.0	$	—	$	—	$	—	$	—	$	696.6
Rhodium	695	369.6		98.9		10.9		—		—		—		479.4
Platinum	651	513.1		359.0		52.5		1.0		1.8		0.3		927.7
Gold	623	25.5		43.3		14.7		0.6		3.1		0.5		87.7
Silver	575	3.0		0.2		7.8		0.5		1.7		0.2		13.4
Bronze	548	1.0		0.1		2.3		0.1		0.9		0.1		4.5
Copper	549	0.3		—		0.1		—		0.2		—		0.6
Total auto loans receivable		$	1,482.1	$	628.5	$	88.3	$	2.2	$	7.7	$	1.1	$	2,209.9

(1) Classified based on credit grade assigned when customer was initially approved for financing.

The allowance for credit losses represents the net credit losses expected over the remaining contractual life of our auto loans receivable. The allowance for credit losses is determined using a vintage-level statistical model that captures the relationship between historical changes in gross losses and the lifetime loss curves by month on book, credit tiers at origination, and seasonality, adjusted for expected recoveries based on historical recovery trends. The credit loss model also considers reasonable and supportable forecasts about the future based on a forecast of various macroeconomic variables that we believe are strongly correlated to evaluating and predicting expected credit losses of our auto loans receivable. We utilize a reasonable and supportable forecast period of one year, after which we immediately revert to historical experience.

We periodically consider whether the use of alternative variables would result in improved credit loss model accuracy and revise the model when appropriate. We also consider whether qualitative adjustments are necessary for factors that are not reflected in the quantitative methods but impact the measurement of estimated credit losses. Such adjustments include the expectations of the impact of changes in underwriting standards and recent economic trends.

The net loss estimate is calculated by applying the loss rates developed using the methods described above to the amortized cost basis of the auto loans receivable including accrued interest receivable. The change in the allowance for credit losses is recognized through an adjustment to the provision for credit losses. The provision for credit losses for the six months ended June 30, 2026, as compared to the six months ended June 30, 2025, reflects an increase as a result of the growth of our auto loans receivable portfolio, largely offset by a decrease in expected credit loss rates reflecting improved quality of new loan originations.


	Six Months Ended June 30,
	2026		2025
Balance as of beginning of year	$	95.4	$	54.8
Provision for credit losses	39.6		39.4

Write-offs	(59.9)		(31.4)
Recoveries(1)	34.7		15.4

Balance as of end of period	$	109.8	$	78.2

(1) Includes proceeds from the recovery of vehicle collateral, net of costs incurred.

We also estimate expected credit losses related to unfunded loan commitments and record a liability within Other Current Liabilities in our Unaudited Condensed Consolidated Balance Sheet. The change in the liability is recognized through an adjustment to the provision for credit losses. The credit loss liability totaled $0.9 million at June 30, 2026, and $0.9 million at December 31, 2025.

An account is considered delinquent if 95% of the required principal and interest payments have not been received as of the date such payments were due. All loans continue to accrue interest until repayment, write-off, or when a loan reaches 75 days past due. If payment is received after a loan has stopped accruing interest due to reaching 75 days past due, the loan will be deemed current and the accrual of interest resumes. When a write-off occurs, accrued interest is written off by reversing interest income. Payments received on nonaccrual assets are recorded using a combination of the cost recovery method and the cash basis method depending on whether the related loan has been written off. In general, accounts are written off on the last business day of the month during which the earliest of the following occurs: the receivable is 120 days or more delinquent as of the last business day of the month and the related vehicle has not been repossessed, the vehicle has been repossessed and liquidated, or the related vehicle has been in repossession inventory for at least 60 days. The following table presents an age analysis of past due auto loans receivable, as of June 30, 2026, and December 31, 2025: