Toyota Auto Receivables 2024-C Owner Trust Annual Report

I’m here to help you understand how the Toyota Auto Receivables 2024-C Owner Trust is performing. Think of this as a plain-English guide to your investment.

1. What is this trust and how did it perform?

This isn't a typical company. It is a legal structure created on August 21, 2024, to hold a pool of high-quality auto loans. Toyota Motor Credit Corporation (TMCC) bundled these loans and sold them to the trust. The trust then issued $1.35 billion in notes to investors.

As 48,000+ car buyers make their monthly payments, that cash pays interest and principal to you. TMCC collects these payments, while Citibank ensures the money flows to investors in the correct order.

2. Financial performance

We measure performance by how many people fall behind on their payments. As of 2025, the delinquency rate was 0.42%, which is excellent for prime auto loans. The trust paid out about $320 million to investors this year. This confirms that the cash flow remains steady and matches our original expectations.

3. Wins and challenges

• Wins: The trust followed all rules perfectly. TMCC and Citibank passed their audits, confirming that the system for collecting and distributing your money is 99.9% accurate.
• Challenges: Wilmington Trust, the entity overseeing the trust’s legal standing, is involved in a lawsuit regarding a different project. While this does not involve your money, it is a factor to keep in mind regarding the trustee's administrative focus.

4. Financial health

The trust is stable. It uses a "Credit Enhancement" structure to protect your investment. We set aside $3.375 million in a reserve account to cover potential losses. Additionally, investors in lower-rated classes (B, C, and D) absorb losses before Class A investors. Because no single borrower makes up more than 0.01% of the total, the risk is spread very thin.

5. Key risks

• Legal Risk: The lawsuit against Wilmington Trust creates "counterparty risk." If the trustee faces legal trouble, it could lead to higher administrative costs or filing delays.
• Loan Performance: The biggest risk is the economy. If national unemployment rises above 4.5%, more people may stop making car payments. This would drain the reserve account and could delay payments to lower-rated notes.

6. Competitive positioning

This trust focuses on "Prime" borrowers. The average borrower has a high credit score of 775. This means you get lower interest payments than you would with riskier loans, but you gain much higher security and stability.

7. Future outlook

The trust is currently paying down its debt. The remaining balance is now $1.08 billion. We expect to keep making monthly payments until the final notes mature on June 15, 2029. Unless the economy suffers a major downturn, the trust has enough cash to pay everyone as promised.

8. Market trends

The trust follows all SEC rules for transparency. We are watching for new "Fair Lending" reporting requirements, which remain a standard part of our ongoing operational monitoring.

Investor Takeaway: This trust is designed for those prioritizing stability over high-yield growth. With a 0.42% delinquency rate and a high average borrower credit score, the primary factor for your decision should be your outlook on the broader economy—specifically, whether you believe unemployment will remain stable through 2029.