AmeriCredit Automobile Receivables Trust 2023-2: Your Annual Update

Welcome! Let's chat about AmeriCredit Automobile Receivables Trust 2023-2. We will explain its annual report. You will easily understand what it does and how it performed. This helps you as an investor. We use plain English, not finance jargon.

This is not a typical company. It does not sell products or services. AmeriCredit Automobile Receivables Trust 2023-2 is an "asset-backed securities trust." Imagine it as a special fund holding many car loans. When you invest, you buy notes or certificates. These notes get paid from car loan payments. They come in different groups, called tranches. Each group has different credit ratings and payment rules. This is not like buying Apple or Amazon stock. There is no "stock price." It also has no "revenue" or "profit" like a regular business. The Trust started in 2023. This report covers its current activities.

This report covers the year ending December 31, 2025.

1. What does this "company" do and how did they perform this year?

This Trust owns many car loans. AmeriCredit Financial Services, Inc. created these loans. They also manage them as the "servicer." The Trust collects payments from these loans. It then sends that money to investors. The Trust's performance depends on borrowers repaying their car loans.

For the year ending December 31, 2025, there is good news. AmeriCredit Financial Services, Inc. followed all rules. They manage these car loans as the servicer. This means they properly collect payments and handle accounts. Their annual compliance certificate shows this. It confirms no major rule breaches happened.

No single borrower holds over 10% of the car loans. This is good for investors. It spreads out the risk. If one borrower defaults, it won't harm the whole pool. Car loans typically range from $15,000 to $30,000. This naturally diversifies the loans. The pool has thousands of individual loans.

2. Financial performance - revenue, profit, growth metrics

This Trust only holds car loans. It does not have "revenue" or "profit." It collects cash from loan payments. This includes principal and interest. It then pays noteholders based on set rules. Its "performance" depends on loan delinquency and default rates. Prepayment speeds also matter. These directly affect cash flow for investors.

For this Trust, financial details are provided in monthly or quarterly servicer reports and investor reports. These reports go to noteholders and rating agencies. This annual report (Form 10-K) mainly covers legal and structural information.

3. Major wins and challenges this year

Major Win:

• Solid Servicing: AmeriCredit Financial Services, Inc. manages the car loans. They fully followed all important rules this year. This is the biggest win. They properly handle payments and collections. This ensures timely payments to noteholders. This compliance shows operations work as expected.

Challenges/Potential Concerns:

• Servicer's Legal Issues: AmeriCredit Financial Services, Inc. faces lawsuits and investigations. These are part of business. But large fines could hurt their ability to manage loans. It could also damage their reputation. These issues might divert resources. This could impact their efficiency. It might even lower their servicer rating. A major breach could force a servicer change. This is complex and costly for the Trust.
• Trustee's Legal Issues: The Bank of New York Mellon is the Trustee. It also faces legal actions. These concern its role in other investments. They deny wrongdoing. These issues are a concern. They are less tied to this auto loan trust's performance. The Trustee mainly handles administration. It holds collateral and distributes payments. Issues in other trusts do not affect this Trust's loan quality. But they could signal risks for the Trustee. This might affect its ability to serve all trusts.

4. Financial health - cash, debt, liquidity

"Financial health" is different for this Trust. It only holds cash for immediate payments and reserves. It does not take on new debt. Its cash flow comes directly from car loan payments.

• No Outside Guarantees: No outside guarantees exist. No insurance or third-party guarantees would cover payments. This happens if car loans perform poorly. Your notes rely only on the car loans' performance. They also rely on internal protections. These protections include subordination. Junior groups absorb losses first. Overcollateralization means loan value exceeds note principal. Reserve accounts hold cash for shortfalls.
• Simple Structure: The Trust uses no complex financial tools. It does not change how car loan cash flows are paid. It is a simple setup. Borrowers' payments go directly to noteholders. This happens after servicing fees and expenses.
• Diversified Loan Pool: No single borrower holds over 10% of the loans. This spreads out the risk. It lessens the impact of individual defaults.

5. Key risks that could hurt the value of your investment

This is not a stock. We discuss risks affecting your notes' value or payments.

• Car Loan Performance: The biggest risk is how car loans perform. More unpaid loans (higher delinquencies) could impact investor payments. An economic downturn can affect borrowers. Rising unemployment or fuel prices also hurt. This can lead to higher loan losses for the Trust.
• Servicer's Performance: AmeriCredit Financial Services, Inc. faces legal issues. These could affect their ability to collect payments. This might impact the Trust. Poor servicing could cause more delinquencies. This could happen even with stable borrower credit.
• No Outside Guarantees: No outside credit protection exists. Investors face direct risk from car loan borrowers. Internal protections offer a buffer. These include subordination and overcollateralization. But severe loan performance issues could exhaust them. This might cause principal losses. Interest shortfalls could affect junior noteholders. In extreme cases, senior noteholders could also be affected.