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Financial Instruments and Fair Value Measurements (Tables)
12 Months Ended
Dec. 31, 2024
Financial Instruments and Fair Value Measurements [Abstract]  
Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis

The following tables present the Company’s financial assets and liabilities measured at fair value on a recurring basis (in thousands):

 

As of December 31, 2024

   

Level 1

 

Level 2

 

Level 3

 

Total

Financial Assets

 

 

   

 

   

 

   

 

 

Cash and cash equivalents:

 

 

   

 

   

 

   

 

 

Money market funds

 

$

17,626

 

$

 

$

 

$

17,626

CFE assets:

 

 

   

 

   

 

   

 

 

Finance receivables

 

 

 

 

 

 

214,420

 

 

214,420

Finance receivables at fair value

 

 

 

 

 

 

289,428

 

 

289,428

Other assets (beneficial interests in securitizations)

 

 

 

 

2,184

 

 

 

 

2,184

Total financial assets

 

$

17,626

 

$

2,184

 

$

503,848

 

$

523,658

Financial Liabilities

 

 

   

 

   

 

   

 

 

CFE liabilities:

 

 

   

 

   

 

   

 

 

Securitization debt of consolidated VIEs

 

 

 

 

125,707

 

 

16,922

 

 

142,629

Total financial liabilities

 

$

 

$

125,707

 

$

16,922

 

$

142,629

 

As of December 31, 2023

   

Level 1

 

Level 2

 

Level 3

 

Total

Financial Assets

 

 

   

 

   

 

   

 

 

Cash and cash equivalents:

 

 

   

 

   

 

   

 

 

Money market funds

 

$

27,121

 

$

 

$

 

$

27,121

CFE assets:

 

 

   

 

   

 

   

 

 

Finance receivables

 

 

 

 

 

 

316,998

 

 

316,998

Finance receivables at fair value

 

 

 

 

 

 

31,672

 

 

31,672

Other assets (beneficial interests in securitizations)

 

 

 

 

4,485

 

 

 

 

4,485

Total financial assets

 

$

27,121

 

$

4,485

 

$

348,670

 

$

380,276

Financial Liabilities

 

 

   

 

   

 

   

 

 

CFE liabilities:

 

 

   

 

   

 

   

 

 

Securitization debt of consolidated VIEs

 

 

 

 

314,095

 

 

 

 

314,095

Total financial liabilities

 

$

 

$

314,095

 

$

 

$

314,095

Schedule of Reconciliation of Financial Assets Measured at Fair Value on a Recurring Basis Using Level 3 Inputs

The following table presents a reconciliation of the financial assets, which were measured at fair value on a recurring basis using Level 3 inputs (in thousands):

 

Finance
Receivables of
Consolidated
CFEs

 

Finance
Receivables at
Fair Value

 

Securitization
Debt of
Consolidated
CFEs

Fair value as of January 1, 2024

 

$

316,998

 

 

$

31,672

 

 

$

 

Transfer within Level 3 categories

 

 

52,279

 

 

 

(52,279

)

 

 

 

Transfers into Level 3

 

 

 

 

 

 

 

 

20,864

 

Losses included in realized and unrealized losses

 

 

(55,166

)

 

 

(21,513

)

 

 

(3,942

)

Losses included in Warranties and GAP

 

 

(2,571

)

 

 

(1,931

)

 

 

 

Issuances, net of discount

 

 

 

 

 

404,089

 

 

 

 

Paydowns

 

 

(109,136

)

 

 

(68,163

)

 

 

 

Other

 

 

12,016

 

 

 

(2,447

)

 

 

 

Fair value as of December 31, 2024

 

$

214,420

 

 

$

289,428

 

 

$

16,922

 

 

Finance
Receivables of
Consolidated
CFEs

 

Finance
Receivables at
Fair Value

Fair value as of January 1, 2023

 

$

77,904

 

 

$

75,270

 

Reclassification of finance receivables held for sale to finance receivables at fair value, net

 

 

248,081

 

 

 

 

Transfer within Level 3 categories

 

 

23,338

 

 

 

(23,338

)

Consolidation of VIEs

 

 

180,706

 

 

 

 

Losses included in realized and unrealized losses

 

 

(80,677

)

 

 

(1,398

)

Losses included in Warranties and GAP

 

 

(4,296

)

 

 

(78

)

Issuances, net of discount

 

 

 

 

 

3,392

 

Paydowns

 

 

(151,032

)

 

 

(23,716

)

Other

 

 

22,974

 

 

 

1,540

 

Fair value as of December 31, 2023

 

$

316,998

 

 

$

31,672

 

Schedule of Gains or Losses Recorded Related to Eligible Financial Instruments

The following table presents the gains or losses recorded in “Realized and unrealized losses, net of recoveries” in the consolidated statements of operations related to the eligible financial instruments for which the fair value option was elected (in thousands):

 

Year Ended
December 31,

   

2024

 

2023

Financial Assets

 

 

 

 

 

 

 

 

Finance receivables of CFEs

 

$

45,569

 

 

$

75,064

 

Finance receivables at fair value

 

 

21,455

 

 

 

(2,103

)

Beneficial interests in securitizations

 

 

(216

)

 

 

1,103

 

Financial Liabilities

 

 

 

 

 

 

 

 

Debt of securitized VIEs

 

 

(7,358

)

 

 

(5,635

)

Total net loss included in “Realized and unrealized losses, net of recoveries”

 

$

59,450

 

 

$

68,429

 

Schedule of Other Relevant Data Related to Finance Receivables Carried at Fair Value

The following table presents other relevant data related to the finance receivables carried at fair value (in thousands):

As of December 31, 2024

 

Finance
Receivables of
CFEs at
Fair Value

 

Finance
Receivables at
Fair Value

Aggregate unpaid principal balance included within finance receivables that are reported at fair value

 

$

244,345

 

$

331,882

Aggregate fair value of finance receivables that are reported at fair value

 

$

214,420

 

$

289,428

Unpaid principal balance of receivables within finance receivables that are reported at fair value and are on nonaccrual status (90 days or more past due)

 

$

5,969

 

$

3,663

Aggregate fair value of receivables carried at fair value that are on nonaccrual status (90 days or more past due)

 

$

5,228

 

$

2,551

As of December 31, 2023

 

Finance
Receivables of
CFEs at
Fair Value

 

Finance
Receivables at
Fair Value

Aggregate unpaid principal balance included within finance receivables that are reported at fair value

 

$

361,609

 

$

36,207

Aggregate fair value of finance receivables that are reported at fair value

 

$

316,998

 

$

31,672

Unpaid principal balance of receivables within finance receivables that are reported at fair value and are on nonaccrual status (90 days or more past due)

 

$

6,700

 

$

717

Aggregate fair value of receivables carried at fair value that are on nonaccrual status (90 days or more past due)

 

$

5,921

 

$

544

Schedule of Other Relevant Data Related to Debt of Securitized VIEs Carried at Fair Value

The following table presents other relevant data related to securitization debt of consolidated VIEs carried at fair value (in thousands):

As of December 31, 2024

 

Securitization
debt of
consolidated
VIEs at
Fair Value

Aggregate unpaid principal balance of rated notes of securitized VIEs

 

$

153,160

Aggregate fair value of rated notes of securitized VIEs

 

$

142,629

As of December 31, 2023

 

Securitization
debt of
consolidated
VIEs at
Fair Value

Aggregate unpaid principal balance of rated notes of securitized VIEs

 

$

318,085

Aggregate fair value of rated notes of securitized VIEs

 

$

314,095

Schedule of Significant Unobservable Inputs in Discounted Cashflow The significant unobservable inputs utilized in the discounted cashflow model include the following:

Unobservable inputs

 

Inputs as of
December 31,
2024

Cumulative net loss

 

24.2%

Recoveries

 

30%

Discount Rate

 

17% – 19%

The significant unobservable inputs utilized in the discounted cashflow model include the following:
 

Inputs as of
December 31,

Unobservable inputs

 

2024

 

2023

Cumulative net loss

 

19.3% – 33.2%

 

20.6% – 27.3%

Recoveries

 

26.3% – 47.2%

 

12.7% – 20.1%

Discount Rate

 

14.5%

 

15.0%

Schedule of Fair Value of Financial Instruments Not Carried at Fair Value The fair value of the Notes, which are not carried at fair value on the accompanying consolidated balance sheets, was determined utilizing actual bids and offer prices of the Notes in markets that are not active and are classified within Level 2 of the fair value hierarchy.
 

December 31,

   

2024

 

2023

Carrying value

 

$

290,488

 

$

286,800

Fair value

 

$

145,244

 

$

152,506

 

December 31,
2024

Carrying value

 

$

210,727

Fair value

 

$

213,988