Ford Credit finance, lease penetration rise

Ford Credit ’s U.S. finance penetration and lease share of retail sales increased in the first quarter, while delinquencies and losses climbed in line with seasonal trends. The captive’s finance share of U.S. Ford Motor sales rose 1 percentage point (ppt) year over year to 39%, according to Ford Credit’s April 29 earnings presentation. Ford’s sales fell 8.8% YoY in Q1 to 457,315 units. Retail contract terms held steady in the quarter at an average of 65 months, with the percentage of loans with terms longer than 84 months up 2 ppts YoY and 1 ppt QoQ to 14%, according to the captive’s presentation. Credit performance weakened, driven by seasonality, with the retail loss-to-receivables ratio at 0.72%, up 9 basis points (bps) YoY and 8 bps QoQ. The rate of delinquencies of 60-plus days was 0.21%, up 2 bps YoY and 1 bps QoQ. Lease share of retail sales rose to 16% in Q1, up 1 ppt YoY and QoQ. The U.S. and Canda lease portfolio landed at $26.4 billion in Q1, up 19.5% YoY and 2.3% QoQ, with most leases carrying terms of 36 months. The lease return rate was 48%, flat YoY and down 2 ppts QoQ. Customers and dealers chose to purchase off-lease vehicles because the average auction value rose 0.8% YoY and 3.7% to $31,655. Ford Credit’s U.S. and Canada outstanding consumer loans and leases totaled $93.5 billion, up 5.4% YoY but down 0.7% QoQ, according to the earnings presentations. Ford Credit was the sixth-largest auto lender by outstandings at yearend 2024, according to the latest Big Wheels ranking data . EBT increases The captive’s earnings before taxes climbed to $783 million, up 35% YoY and 11.7% QoQ largely due to improved finance margin, according to the presentation. Ford Credit paid a $950 million distribution to Ford Motor in Q1 compared with $200 million a year prior and $600 million in Q4 2025. Ford Motor also raised its EBIT forecast to a range of $8.5 billion to $10.5 billion, up $500 million from the previous outlook published in February; it comes amid an expected $1.3 billion tariff-related benefit after the Supreme Court ruled some levies were illegal . Ford Credit’s EBT projection remained the same at $2.5 billion for the year. The OEM noted that the updated guidance does not reflect potential effects of the Iran war. “We now expect commodity headwinds of just above $2 billion, about $1 billion higher than our previous estimate, largely due to higher aluminum pricing driven by global supply constraints,” Ford Chief Financial Officer Sherry House said on Ford’s earnings call. Ford Credit issues two floorplan ABS deals Ford Credit forecasts public debt issuance to land between $24 billion and $30 billion across secured and unsecured debt in 2026, compared with $26 billion in 2025, according to the presentation. Securitizations volume is projected at $13 billion to $16 billion in 2026 from $13 billion at yearend 2025. Year to date through April 28, the captive had issued about $4 billion in securitization transactions. Ford Credit came to market on April 30 with two auto asset-backed securitization deals backed by floorplan receivables, according to CreditFlow , which monitors securities. The deals totaled $287.8 million and $635.5 million. The captive had $29.8 billion in net liquidity in Q1, up 21.1% YoY, according to the presentation. Ford Credit also received approval in January from the FDIC and Utah Department of Financial Institutions to form Ford Credit Bank . Ford shares [NYSE:F] traded at $11.94 as of 1:04 p.m. ET on April 30, down 2.5% from market open after shares fell on April 29 following the release of earnings after markets closed. At 3:50 p.m. ET on April 30, shares were down 1.7% from market open to $12.03. Ford has a market capitalization of $48.4 billion. Auto Finance News will present multiple invaluable events for industry professionals in 2026, starting with Auto Finance Summit East and Auto Finance Capital Summit in May. To see event agendas and register, visit autofinance.live .

Federal Reserve announces emergency meeting on auto lending regulations • Click for details

MARKET SNAPSHOT

Earnings

Ford Credit finance, lease penetration rise

Related Posts

Lenders eye expanded leasing options as affordability challenges grow

Forward-flow picks up steam as private investors eye auto finance

Dealers fight growing transport fraud, when scammers impersonate shipping companies

Auto finance dealer strategies evolve as profitability tightens in 2026

Bank of America consumer vehicle net charge-offs tick down

CarMax Auto Finance originations down 1.5%

Wells Fargo Auto originations soar 110% YoY

Chase Auto originations down 3% YoY

Daily Intelligence Brief

Sponsored

Why credit unions give dealers an edge in today’s auto market

Driving better decision-making across auto finance operations with SAS

Auto finance’s first line of defense: Raising the standard in integrated software partnerships and data strategy

Driving Innovation in Automotive Refunds: How Onbe and Allied Solutions Are Modernizing the Payment Experience

Navigating the Margin Squeeze: EVs, Tariffs & Pricing — A Q&A with Earnix

Enhancing credit approaches to boost conversion and dealer loyalty

Tesla announces new fleet financing program

About

Company

Daily Newsletter