Finance Receivables

3 Months Ended

Mar. 31, 2024

Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]

Finance Receivables

Finance Receivables

	March 31, 2024		December 31, 2023
Retail finance receivables
Retail finance receivables(a)	$	73,230	$	72,729
Less: allowance for loan losses	(2,320)		(2,308)
Total retail finance receivables, net	70,911		70,421
Commercial finance receivables
Commercial finance receivables(a)(b)	14,895		14,251
Less: allowance for loan losses	(35)		(36)
Total commercial finance receivables, net	14,860		14,216
Total finance receivables, net	$	85,771	$	84,637
Fair value utilizing Level 2 inputs	$	14,860	$	14,216
Fair value utilizing Level 3 inputs	$	71,427	$	70,911

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(a)    Net of unearned income, unamortized premiums and discounts, and deferred fees and costs.

(b)    Includes dealer financing of $14.1 billion and $13.4 billion, and other financing of $773 million and $830 million at March 31, 2024 and December 31, 2023. Commercial finance receivables are presented net of dealer cash management balances of $2.8 billion and $2.6 billion at March 31, 2024 and December 31, 2023.

Rollforward of Allowance for Retail Loan Losses A summary of the activity in the allowance for retail loan losses is as follows:

	Three Months Ended March 31,
	2024		2023
Allowance for retail loan losses beginning balance	$	2,308	$	2,062
Provision for loan losses	205		137
Charge-offs	(405)		(322)
Recoveries	213		186
Foreign currency translation and other	(1)		60
Allowance for retail loan losses ending balance	$	2,320	$	2,123

The allowance for retail loan losses as a percentage of retail finance receivables was 3.2% at both March 31, 2024 and December 31, 2023.

Retail Credit Quality Our retail finance receivables portfolio includes loans made to consumers and businesses to finance the purchase of vehicles for personal and commercial use. The following tables are consolidated summaries of the amortized cost of the retail finance receivables by FICO score or its equivalent, determined at origination, for each vintage of the portfolio at March 31, 2024 and December 31, 2023:

	Year of Origination												March 31, 2024
	2024		2023		2022		2021		2020		Prior		Total		Percent
Prime - FICO Score 680 and greater	$	6,124	$	21,739	$	14,060	$	8,080	$	4,274	$	1,055	$	55,332	75.6	%
Near-prime - FICO Score 620 to 679	902		2,981		2,076		1,566		787		380		8,692		11.9
Sub-prime - FICO Score less than 620	967		2,821		2,172		1,682		878		685		9,206		12.6
Retail finance receivables	$	7,993	$	27,542	$	18,308	$	11,329	$	5,938	$	2,120	$	73,230	100.0	%

	Year of Origination												December 31, 2023
	2023		2022		2021		2020		2019		Prior		Total		Percent
Prime - FICO Score 680 and greater	$	23,940	$	15,581	$	9,039	$	4,926	$	1,076	$	320	$	54,882	75.5	%
Near-prime - FICO Score 620 to 679	3,234		2,281		1,746		906		350		129		8,647		11.9
Sub-prime - FICO Score less than 620	3,079		2,397		1,884		1,010		573		257		9,200		12.6
Retail finance receivables	$	30,253	$	20,259	$	12,670	$	6,842	$	2,000	$	707	$	72,729	100.0	%

We review the ongoing credit quality of our retail finance receivables based on customer payment activity. A retail account is considered delinquent if a substantial portion of a scheduled payment has not been received by the date the payment was contractually due. Retail finance receivables are collateralized by vehicle titles, and, subject to local laws, we generally have the right to repossess the vehicle in the event the customer defaults on the payment terms of the contract. The following tables are consolidated summaries of the amortized cost of retail finance receivables by delinquency status, for each vintage of the portfolio at March 31, 2024 and December 31, 2023, as well as summary totals for March 31, 2023. The first table also presents our charge-offs by vintage for the three months ended March 31, 2024:

	Year of Origination												March 31, 2024				March 31, 2023
	2024		2023		2022		2021		2020		Prior		Total		Percent		Total		Percent
0 - 30 days	$	7,973	$	27,054	$	17,743	$	10,856	$	5,689	$	1,911	$	71,225	97.3	%	$	66,109	97.6	%
31 - 60 days	19		342		406		352		188		156		1,463		2.0		1,188		1.8
Greater than 60 days	1		125		140		109		56		50		482		0.7		363		0.5
Finance receivables more than 30 days delinquent	20		467		547		461		245		206		1,945		2.7		1,551		2.3
In repossession	—		21		19		12		4		3		60		0.1		44		0.1
Finance receivables more than 30 days delinquent or in repossession	20		488		566		473		249		209		2,005		2.7		1,595		2.4
Retail finance receivables	$	7,993	$	27,542	$	18,308	$	11,329	$	5,938	$	2,120	$	73,230	100.0	%	$	67,704	100.0	%
Charge-offs	$	18	$	119	$	123	$	80	$	34	$	31	$	405

	Year of Origination												December 31, 2023
	2023		2022		2021		2020		2019		Prior		Total		Percent
0 - 30 days	$	29,816	$	19,602	$	12,098	$	6,533	$	1,825	$	599	$	70,472	96.9	%
31 - 60 days	318		470		415		227		130		78		1,637		2.3
Greater than 60 days	102		168		142		76		42		29		559		0.8
Finance receivables more than 30 days delinquent	421		637		557		302		172		107		2,196		3.0
In repossession	17		20		14		6		3		1		61		0.1
Finance receivables more than 30 days delinquent or in repossession	437		657		572		308		175		108		2,257		3.1
Retail finance receivables	$	30,253	$	20,259	$	12,670	$	6,842	$	2,000	$	707	$	72,729	100.0	%

The accrual of finance charge income had been suspended on retail finance receivables with contractual amounts due of $721 million and $809 million at March 31, 2024 and December 31, 2023. Accrual of finance charge income on retail finance receivables is generally suspended on accounts that are more than 60 days delinquent, accounts in bankruptcy and accounts in repossession.

Loan Modifications Under certain circumstances, we may agree to modify the terms of an existing loan with a borrower for various reasons, including financial difficulties, and we may provide interest rate reductions, principal forgiveness, payment deferments, term extensions or a combination thereof. A loan that is deferred greater than six months in the preceding twelve months would be considered to be other-than-insignificantly delayed. In such circumstances, we must determine whether the modification should be accounted for as an extinguishment of the original loan and a creation of a new loan, or the continuation of the original loan with modifications.

The amortized costs at March 31, 2024 and 2023 of the loans modified during the three months ended March 31, 2024 and 2023 were insignificant. The unpaid principal balances, net of recoveries, of loans charged off during the reporting period that were modified within 12 months preceding default were insignificant for the three months ended March 31, 2024 and 2023.

Commercial Credit Quality Our commercial finance receivables consist of dealer financing, primarily for dealer inventory purchases, and other financing, which includes loans to commercial vehicle upfitters, as well as advances to certain GM subsidiaries.

For our dealer financing, we use proprietary models to assign a risk rating to each dealer and perform periodic credit reviews of each dealership. We adjust the dealership's risk rating, if necessary. There is limited credit risk associated with other financing due to the structure of the business relationships.

Our dealer risk model and risk rating categories are as follows:

Dealer Risk Rating	Description
I	Performing accounts with strong to acceptable financial metrics with at least satisfactory capacity to meet financial commitments.
II	Performing accounts experiencing potential weakness in financial metrics and repayment prospects resulting in increased monitoring.
III	Non-Performing accounts with inadequate paying capacity for current obligations and that have the distinct possibility of creating a loss if deficiencies are not corrected.
IV	Non-Performing accounts with inadequate paying capacity for current obligations and inherent weaknesses that make collection or liquidation in full highly questionable or improbable.

Dealers with III and IV risk ratings are subject to additional monitoring and restrictions on funding, including suspension of lines of credit and liquidation of assets. The following tables summarize the dealer credit risk profile by dealer risk rating at March 31, 2024 and December 31, 2023:

	Year of Origination														March 31, 2024
Dealer Risk Rating	Revolving		2024		2023		2022		2021		2020		Prior		Total		Percent
I	$	12,192	$	64	$	263	$	403	$	289	$	294	$	72	$	13,578	96.1	%
II	274		—		3		7		—		—		—		284		2.0
III	217		4		5		15		12		—		7		261		1.8
IV	—		—		—		—		—		—		—		—		—
Balance at end of period	$	12,682	$	68	$	271	$	425	$	302	$	294	$	79	$	14,122	100.0	%

	Year of Origination														December 31, 2023
Dealer Risk Rating	Revolving		2023		2022		2021		2020		2019		Prior		Total		Percent
I	$	11,638	$	295	$	417	$	297	$	301	$	85	$	11	$	13,043	97.2	%
II	182		—		2		2		—		—		—		187		1.4
III	152		1		15		12		—		11		—		192		1.4
IV	—		—		—		—		—		—		—		—		—
Balance at end of period	$	11,971	$	296	$	435	$	311	$	301	$	96	$	11	$	13,422	100.0	%

Floorplan advances comprise 99.1% and 99.7% of the total revolving balances at March 31, 2024 and December 31, 2023. Dealer term loans are presented by year of origination.

At March 31, 2024 and December 31, 2023, substantially all of our commercial finance receivables were current with respect to payment status, and activity in the allowance for commercial loan losses was insignificant for the three months ended March 31, 2024 and 2023. There were no commercial finance receivables on nonaccrual status at March 31, 2024 and December 31, 2023.

There were no charge-offs, and no loan modifications were extended to borrowers experiencing financial difficulty during the three months ended March 31, 2024 and 2023.