Ford Credit Auto Owner Trust 2024-C Annual Report: Your Investment Snapshot

This report offers a clear, investor-focused summary of the Ford Credit Auto Owner Trust 2024-C's annual performance for the fiscal year ended December 31, 2025. We aim to highlight key operational and financial insights, helping you understand the Trust's performance and its potential impact on your investment.

Business Overview: What is Ford Credit Auto Owner Trust 2024-C?

The Ford Credit Auto Owner Trust 2024-C is a financial entity created to hold a diverse collection of car loans originated by Ford Credit. When you invest in this Trust, you are essentially investing in the income generated by these underlying car loan payments. This report details the Trust's activities and performance from January 1, 2025, through December 31, 2025.

Financial Performance Highlights

For the fiscal year ending December 31, 2025, the Trust generated $75.2 million in interest income from its auto loan portfolio. After deducting servicing fees of $5.1 million, trustee and administrative expenses of $0.6 million, and other operational costs, the Trust reported $69.5 million in net available funds for distribution to investors.

The outstanding principal balance of the underlying loan portfolio, which began at approximately $1.5 billion in 2024, decreased to $950 million as of December 31, 2025. This reduction reflects consistent principal payments and prepayments from borrowers.

Key performance indicators for the loan portfolio during 2025 include:

• 30-60 Day Delinquency Rate: Increased slightly to 1.8% as of December 31, 2025, up from 1.5% at the end of the prior year.
• Net Charge-Off Rate: The annualized net charge-off rate for 2025 was 0.75% of the average outstanding principal balance, a slight increase from 0.60% in 2024.
• Annualized Prepayment Rate: The portfolio maintained an annualized prepayment rate of 12.0% during 2025, aligning with expectations.

Management's Discussion and Analysis (MD&A)

This section offers a detailed discussion and analysis of the Trust's financial condition and operational results for the fiscal year ended December 31, 2025.

Results of Operations: During the fiscal year, the Trust generated $75.2 million in interest income from its auto loan portfolio. After deducting servicing fees of $5.1 million, trustee and administrative expenses of $0.6 million, and other operational costs, net available funds for distribution to investors totaled $69.5 million. This figure demonstrates the consistent cash flow generated by the underlying assets, after accounting for all operational expenses required to manage the portfolio.

Portfolio Performance and Credit Quality: The loan portfolio's outstanding principal balance decreased from an initial $1.5 billion to $950 million by December 31, 2025. Borrowers' consistent principal payments and prepayments primarily drove this reduction.

Credit quality metrics showed a slight softening throughout the year. The 30-60 day delinquency rate modestly increased to 1.8% from 1.5% in the prior year, indicating a slight uptick in borrowers experiencing payment difficulties. Similarly, the annualized net charge-off rate rose to 0.75% from 0.60% in 2024. These increases suggest a modest deterioration in the credit performance of the underlying loan pool, which warrants continued monitoring. The annualized prepayment rate remained stable at 12.0%, consistent with expectations and reflecting a steady refinancing environment.

Servicing and Administration: Servicer and trustee compliance represents a key operational aspect. Both Ford Credit, as the servicer, and The Bank of New York Mellon, as the Indenture Trustee, reported no material instances of noncompliance with their respective duties for the period from January 1, 2025, through December 31, 2025. This consistent compliance is critical for the accurate and timely collection, processing, and distribution of cash flows, thereby maintaining the Trust's operational integrity.

Financial Health and Protection

As of December 31, 2025, the Trust held a reserve account balance of $15.2 million, representing approximately 1.6% of the current outstanding principal balance. This reserve provides a critical layer of credit enhancement, designed to absorb potential losses from defaults and help ensure timely payments to investors. The Trust further benefits from other credit enhancement mechanisms, such as overcollateralization and excess spread, which collectively offer robust protection. The outstanding principal balance's reduction to $950 million reflects the natural amortization of the underlying debt, strengthening the portfolio's overall health.

Key Risk Factors for Investors

Investors in Ford Credit Auto Owner Trust 2024-C should consider several key risks:

• Credit Risk: The primary risk involves borrowers defaulting on their car loans, which could lead to losses for the Trust. The slight increase in delinquency and charge-off rates observed in 2025 highlights the need for continued monitoring.
• Prepayment Risk: While prepayments reduce the outstanding balance, higher-than-expected prepayments can decrease the total interest collected over time and may require investors to reinvest funds at potentially lower rates.
• Economic Downturn: A significant deterioration in economic conditions (e.g., rising unemployment, higher interest rates) could negatively impact borrowers' ability to make payments, leading to increased delinquencies and charge-offs.
• Used Vehicle Values: Declining used vehicle values could reduce recovery rates on repossessed vehicles, worsening losses from defaults.
• Servicer Performance: Although Ford Credit reported compliance for this period, any future material noncompliance or operational issues by the servicer could disrupt cash flows.

Future Outlook

The Trust's performance in 2025 reflects a generally stable, though slightly softening, consumer credit environment. Looking ahead, broader macroeconomic trends will influence the Trust's performance. Persistent inflation, interest rate fluctuations, and changes in consumer spending patterns could impact borrower payment behavior. Additionally, regulatory changes affecting consumer lending or vehicle financing could indirectly affect the servicer's operations or borrower incentives. We expect the Trust to continue its scheduled principal and interest distributions, with ongoing monitoring of credit performance metrics.