Financial Instruments and Fair Value Measurements (Tables)
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12 Months Ended |
Dec. 31, 2024 |
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| Financial Instruments and Fair Value Measurements [Abstract] |
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| 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):
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|
|
As of December 31, 2024
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| |
|
Level 1
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Level 2
|
|
Level 3
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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):
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|
|
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 |
|