Finance Receivable Sale Agreements |
9 Months Ended |
|---|---|
Sep. 30, 2026 | |
| 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. Ally Master Purchase and Sale Agreement In December 2016, the Company entered into a master purchase and sale agreement (the "Ally MPSA") with Ally Bank and Ally Financial Inc. (together, "Ally"). Pursuant to the Ally 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 July 27, 2026, the Company and Ally amended the Ally MPSA to, among other things, increase the purchase commitment by Ally from $6.0 billion to a commitment to purchase up to $8.0 billion of principal balances of finance receivables between July 27, 2026 and July 26, 2027, on substantially similar terms as the preceding Ally MPSA. During the three months ended September 30, 2026 and 2025, the Company sold $2.0 billion and $1.2 billion, respectively, in principal balances of finance receivables under the Ally MPSA. During the nine months ended September 30, 2026 and 2025, the Company sold $5.7 billion and $3.2 billion, respectively, in principal balances of finance receivables under the Ally MPSA, and had $6.0 billion of unused capacity as of September 30, 2026. 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 September 30, 2026 and 2025, the Company sold $1.55 billion and $1.0 billion, respectively, in principal balances of finance receivables through securitization transactions. During the nine months ended September 30, 2026 and 2025, the Company sold $3.7 billion and $2.6 billion, respectively, in principal balances of finance receivables through securitization transactions. Fixed Pool Loan Sales During the year ended December 31, 2025, the Company entered into three separate definitive loan purchase agreements with three separate independent, third-party purchasers for the sale of up to a total of $12 billion of principal balance of finance receivables through the fourth quarter of 2027. During the three months ended September 30, 2026, the Company amended one of these agreements to increase the commitment by $500 million and extend its term through January 2028, resulting in total commitments of up to $12.5 billion of principal balance of finance receivables. The Company also completes fixed pool loan sales to unrelated third parties outside of these agreements. During the three months ended September 30, 2026 and 2025, the Company completed fixed pool loan sales of $1.6 billion and $1.1 billion, respectively, in principal balances of finance receivables to unrelated third parties. During the nine months ended September 30, 2026 and 2025, the Company completed fixed pool loan sales of $4.5 billion and $3.1 billion, respectively, in principal balances of finance receivables to unrelated third parties and had $8.3 billion of unused capacity as of September 30, 2026. Gain on Loan Sales The total gain related to finance receivables sold to financing partners and pursuant to securitization transactions was $381 million and $331 million during the three months ended September 30, 2026 and 2025, respectively, and $1.1 billion and $878 million during the nine months ended September 30, 2026 and 2025, respectively, which is included in other sales and revenues in the accompanying unaudited condensed consolidated statements of operations.
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