Toyota Auto Receivables 2023-D Owner Trust Annual Report - How They Did This Year

I’ve put together this guide to help you understand how the Toyota Auto Receivables 2023-D Owner Trust performed this year. Think of this as a plain-English breakdown rather than a dense financial document.

1. What does this trust do and how did it perform?

This isn't a typical company that makes products. It is a financial trust created on October 25, 2023. Think of it as a bucket holding 64,579 individual car loan contracts for new and used Toyotas. These loans had an initial total value of about $1.54 billion. Investors buy into this trust through different classes of Notes (A-1, A-2, A-3, and A-4). These notes are backed by the cash from those car payments.

In 2025, the trust worked exactly as designed. It collected payments from borrowers and passed them to investors based on the agreed-upon schedule. There were no surprises in how the trust operated.

2. Financial performance

Because this is a trust, it doesn't earn "profit" like a normal business. Its goal is to act as a stable pass-through for cash. The big takeaway for 2025 is that the trust is running smoothly. Toyota Motor Credit Corporation and Citibank confirmed they are following all the rules. The trust also kept its required reserve account of about $3.85 million, which acts as a cash cushion for investors.

3. Major wins and oversight

The trust is running by the book. Independent auditors at Deloitte & Touche LLP checked the records and found no issues. The people managing the cash flow are performing their duties according to the established agreements. Regarding the trustee, Wilmington Trust, N.A., they are currently involved in various lawsuits regarding their broader business. The trust has indicated that these legal issues are not expected to affect this specific pool of loans.

4. Financial health

The trust is in good shape. The portfolio is highly diversified, with no single borrower accounting for more than 0.01% of the total pool. This means the trust is not overly reliant on any one individual. Furthermore, the trust is "bankruptcy remote," meaning it stands on its own and relies only on the car loans inside the bucket, rather than Toyota’s general corporate credit.

5. Key risks

The primary risk is that borrowers might stop making their car payments, which would reduce the cash available for investors. Currently, the loss rate remains within the expected range of 0.50% to 1.50%. While the legal issues involving the trustee are noted, they are primarily an administrative consideration rather than a direct threat to the underlying loan assets.

6. Competitive positioning

This is a straightforward, conservative investment. It is designed to collect interest from car loans rather than pursue aggressive growth. It offers a predictable return profile compared to the volatility often found in the stock market.

7. Future outlook

The trust is in "maintenance mode." It will continue collecting payments until the loans are paid off, which is expected by late 2028. There are no major strategy shifts ahead; the focus remains entirely on collecting and distributing cash to investors.

Investor Takeaway: If you are looking for a predictable, low-maintenance investment backed by a diversified pool of auto loans, this trust continues to operate exactly as intended. It is best suited for those who prioritize steady cash flow over high-growth potential.