Ford Credit Finance Receivables and Allowance for Credit Losses (Tables)

12 Months Ended

Dec. 31, 2024

Receivables [Abstract]

Net finance receivables [Table Text Block]

Ford Credit finance receivables, net at December 31 were as follows (in millions):

	2023		2024
Consumer
Retail installment contracts, gross	$	73,825	$	79,459
Finance leases, gross	7,793		8,357
Retail financing, gross	81,618		87,816
Unearned interest supplements	(3,344)		(4,598)
Consumer finance receivables	78,274		83,218
Non-Consumer
Dealer financing	24,683		29,282
Non-Consumer finance receivables	24,683		29,282
Total recorded investment	$	102,957	$	112,500
Recorded investment in finance receivables	$	102,957	$	112,500
Allowance for credit losses	(882)		(864)
Total finance receivables, net	$	102,075	$	111,636
Current portion	$	46,425	$	51,850
Non-current portion	55,650		59,786
Total finance receivables, net	$	102,075	$	111,636
Net finance receivables subject to fair value (a)	$	94,728	$	103,755
Fair value (b)	93,189		103,231

__________

(a)Net finance receivables subject to fair value exclude finance leases.

(b)The fair value of finance receivables is categorized within Level 3 of the fair value hierarchy.

Sales-type and Direct Financing Leases, Lease Receivable, Maturity [Table Text Block]

The amounts contractually due on Ford Credit’s finance leases at December 31 were as follows (in millions):

	2024
2025	$	1,848
2026	1,658
2027	1,345
2028	868
2029	122
Thereafter	4
Total future cash payments	5,845
Less: Present value discount	478
Finance lease receivables	$	5,367

Sales-Type and Direct Financing Leases [Table Text Block]

The reconciliation from finance lease receivables to finance leases, gross and finance leases, net at December 31 is as follows (in millions):

	2023		2024
Finance lease receivables	$	4,787	$	5,367
Unguaranteed residual assets	2,910		2,883
Initial direct costs	96		107
Finance leases, gross	7,793		8,357
Unearned interest supplements from Ford and affiliated companies	(408)		(437)
Allowance for credit losses	(38)		(39)
Finance leases, net	$	7,347	$	7,881

Financing Receivable, Past Due

The credit quality analysis of consumer receivables at December 31, 2023 was as follows (in millions):

	Amortized Cost Basis by Origination Year
	Prior to 2019		2019		2020		2021		2022		2023		Total		Percent
Consumer
31 - 60 days past due	$	40	$	49	$	130	$	125	$	187	$	159	$	690	0.9	%
61 - 120 days past due	9		11		30		37		58		50		195		0.2
Greater than 120 days past due	7		4		7		10		10		5		43		0.1
Total past due	56		64		167		172		255		214		928		1.2
Current	891		2,359		7,385		11,301		20,247		35,163		77,346		98.8
Total	$	947	$	2,423	$	7,552	$	11,473	$	20,502	$	35,377	$	78,274	100.0	%
Gross charge-offs	$	47	$	40	$	75	$	85	$	117	$	37	$	401

The credit quality analysis of consumer receivables at December 31, 2024 was as follows (in millions):

	Amortized Cost Basis by Origination Year
	Prior to 2020		2020		2021		2022		2023		2024		Total		Percent
Consumer
31 - 60 days past due	$	43	$	93	$	104	$	187	$	242	$	203	$	872	1.0	%
61 - 120 days past due	8		20		27		46		70		54		225		0.3
Greater than 120 days past due	7		7		8		11		12		5		50		0.1
Total past due	58		120		139		244		324		262		1,147		1.4
Current	788		3,162		5,458		12,275		24,153		36,235		82,071		98.6
Total	$	846	$	3,282	$	5,597	$	12,519	$	24,477	$	36,497	$	83,218	100.0	%
Gross charge-offs	$	46	$	58	$	71	$	152	$	191	$	50	$	568

Financing receivable credit quality indicators [Table Text Block]

The credit quality analysis of dealer financing receivables at December 31, 2023 was as follows (in millions):

	Amortized Cost Basis by Origination Year														Wholesale Loans
	Dealer Loans
	Prior to 2019		2019		2020		2021		2022		2023		Total				Total		Percent
Group I	$	383	$	30	$	58	$	156	$	61	$	331	$	1,019	$	20,419	$	21,438	86.9	%
Group II	16		—		1		3		2		44		66		2,834		2,900		11.7
Group III	—		—		—		—		1		8		9		292		301		1.2
Group IV	—		1		—		—		—		2		3		41		44		0.2
Total (a)	$	399	$	31	$	59	$	159	$	64	$	385	$	1,097	$	23,586	$	24,683	100.0	%
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	1	$	1	$	3	$	4

__________

(a)Total past due dealer financing receivables at December 31, 2023 were $33 million.

The credit quality analysis of dealer financing receivables at December 31, 2024 was as follows (in millions):

	Amortized Cost Basis by Origination Year														Wholesale Loans
	Dealer Loans
	Prior to 2020		2020		2021		2022		2023		2024		Total				Total		Percent
Group I	$	270	$	63	$	97	$	47	$	217	$	245	$	939	$	25,257	$	26,196	89.4	%
Group II	13		—		3		1		28		31		76		2,494		2,570		8.8
Group III	—		—		2		—		1		4		7		462		469		1.6
Group IV	—		—		—		—		—		1		1		46		47		0.2
Total (a)	$	283	$	63	$	102	$	48	$	246	$	281	$	1,023	$	28,259	$	29,282	100.0	%
Gross charge-offs	$	1	$	—	$	—	$	—	$	—	$	—	$	1	$	6	$	7

__________

(a)Total past due dealer financing receivables at December 31, 2024 were $8 million.

Allowance For Credit Losses on Financing And Loans And Leases Receivable [Table Text Block]

An analysis of the allowance for credit losses related to finance receivables for the years ended December 31 was as follows (in millions):

	2023
	Consumer		Non-Consumer		Total
Allowance for credit losses
Beginning balance	$	838	$	7	$	845
Charge-offs	(401)		(4)		(405)
Recoveries	151		2		153
Provision for credit losses	280		(2)		278
Other (a)	11		—		11
Ending balance	$	879	$	3	$	882

	2024
	Consumer		Non-Consumer		Total
Allowance for credit losses
Beginning balance	$	879	$	3	$	882
Charge-offs	(568)		(7)		(575)
Recoveries	160		3		163
Provision for credit losses	412		5		417
Other (a)	(23)		—		(23)
Ending balance	$	860	$	4	$	864

__________

(a)Primarily represents amounts related to foreign currency translation adjustments.