World Omni Auto Receivables Trust 2024-C Annual Report - How They Did This Year

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Let's chat about World Omni Auto Receivables Trust 2024-C. We'll keep it in plain English.

Important First Note: This isn't your typical company!

Before we dive in, it's important to know that World Omni Auto Receivables Trust 2024-C isn't a regular company like Apple. It's a special financial setup called an Asset-Backed Securities (ABS) Trust.

Think of it this way:

• World Omni Financial Corp. (the "Sponsor" and "Servicer") makes car loans to people. It then collects payments on these loans.
• They bundle these car loans and sell them to World Omni Auto Receivables LLC (the "Depositor"). This often involves hundreds of millions or even billions of dollars in total loan value.
• The Depositor then puts these loans into the World Omni Auto Receivables Trust 2024-C (our "Trust"). This Trust simply holds these loans and issues investments.
• The Trust issues "Notes" (like bonds) and "Certificates" to investors. These Notes come in different classes (like A-1, B, C). They have various repayment dates, interest rates (fixed or changing, often linked to SOFR), and credit ratings (like AAA or BBB from S&P and Fitch). Certificates get paid only after all Noteholders receive their money. They represent the remaining value in the Trust. When you invest, you buy these Notes or Certificates. This means you own a share of the income from those car loans. You are not buying stock in a regular company.

We don't look at car sales or company profits. Instead, we check how well the car loans perform. This includes looking at late payments and defaults. We also ensure the Trust manages them correctly to pay investors as promised.

1. What they do and how they performed this year

   • What they do: World Omni Auto Receivables Trust 2024-C is a special setup that holds a pool of car loans. World Omni Financial Corp. originally made these loans. The Trust's main job is to collect payments from these car loans. This includes principal, interest, early payments, and late fees. It then uses this money to pay investors who bought its Notes and Certificates. This setup helps World Omni Financial Corp. turn loans into tradable investments. This frees up money to make new loans.
   • How they performed this year (Fiscal Year Ended December 31, 2025): This year's reports confirm the Trust's operations run smoothly. Its servicing and administrative tasks are especially good. PricewaterhouseCoopers LLP (PwC) provided an independent report. This report confirms the smooth operations. PwC checked World Omni Financial Corp.'s (the "Servicer") claim. The Servicer said it followed all important rules for managing car loans. These rules, called "servicing criteria," apply to all its asset-backed securities deals, including our Trust. This review covered the year ended December 31, 2025. PwC found that World Omni Financial Corp.'s claim of compliance was "fairly stated, in all material respects." This is great news for investors. It means collecting payments, managing late accounts, and handling repossessions are all on track. Independent experts verified this across all World Omni's similar investments. This lowers operational risk for the Trust. To add to this, Matthew Hoole, World Omni Financial Corp.'s Chief Financial Officer, signed the official "Servicer Compliance Statement." He certified that the Servicer met all its important duties throughout the year. This internal check, with the external audit, boosts accountability.
     • For more confidence, Ernst & Young LLP also did an independent review. They reviewed U.S. Bank National Association and U.S. Bank Trust Company, National Association. These banks act as the "Indenture Trustee" and administrator for this Trust and others. Ernst & Young confirmed U.S. Bank's claim. U.S. Bank said it met servicing rules for its asset-backed securities platform, including our Trust. Ernst & Young found this claim "fairly stated, in all material respects" for the year ended December 31, 2025. This means the company collecting loan payments does its job well. The bank overseeing the Trust's legal and administrative tasks also follows all rules. This ensures the Trust's structure and cash flow distribution remain sound.

2. Financial performance - income, profit, growth

   • Diversification: No single borrower holds a large portion of the loans. Specifically, no one borrower has 10% or more of the total loans. This is a good sign. Risk is spread out. If a few borrowers struggle, it won't greatly affect the Trust's cash flow. This protects against too much risk in one place.

3. Major wins and challenges this year

   • Major Wins: The biggest win in this report is successfully following all servicing rules. World Omni Financial Corp. (the Servicer) confirmed it met all its duties without major problems. An independent "Attestation Report" from PricewaterhouseCoopers LLP supported this positive review. PwC clearly stated that World Omni Financial Corp. "fairly stated, in all material respects" its compliance. This covered rules for managing car loans across all its asset-backed securities, including our Trust. This was for the year ended December 31, 2025. This means loans are managed correctly and openly. This is key for investors, as it directly affects how reliable cash flows are. Also, Matthew Hoole, World Omni Financial Corp.'s Chief Financial Officer, signed a "Servicer Compliance Statement." He confirmed the Servicer met all its important duties throughout the year. This internal check, with the external audit, boosts accountability.
     • Another big win is U.S. Bank's independently verified compliance. U.S. Bank acts as the Indenture Trustee and administrator. Ernst & Young LLP confirmed U.S. Bank's claim. U.S. Bank said it met servicing rules for its asset-backed securities platform, including our Trust. Ernst & Young found this claim "fairly stated, in all material respects" for the year ended December 31, 2025. This is great. Both the loan manager (World Omni Financial Corp.) and the Trust's overseeing bank (U.S. Bank) got clean bills of health. They hold the collateral, distribute payments, and enforce the rules. Independent auditors confirmed their operational compliance. It shows key players manage your investment properly and by the book. This is vital for the Trust's credit ratings and investor confidence.

4. Financial health - cash, debt, liquidity

   • No Outside Guarantees: The report states no outside credit support exists. The Trust relies solely on car loan payments and its internal setup to pay investors. No outside company guarantees payments if loans go bad. So, investors face direct risk from the car loan pool.

5. Key risks to your investment

   • No Stock Price: First, remember this Trust has no traditional "stock price." It does not issue common stock. Your investment's value (Notes or Certificates) depends on the car loans' performance. It also depends on the Trust's ability to pay on time.
   • Loan Performance (Credit Risk): The main risk is many people stopping car loan payments. This means more late payments (30, 60, 90+ days past due). It also means more defaults (uncollectible loans) and higher net losses (defaults minus recovered money from repossessions). A tough economy, rising unemployment, or job losses could cause this. Any factor making debt repayment hard for borrowers could also be a cause. If losses are too high, even with protections like extra collateral and reserves, some Noteholders could lose money. This could affect both junior and senior Noteholders. Interest payments might also be delayed.
   • Prepayment Risk: Borrowers might pay off loans early. They might refinance at lower rates, sell their car, or pay in full. This lowers credit risk. But it can reduce the Trust's total interest collected. Investors might also have to reinvest their money at lower rates, hurting their overall returns.
   • Servicer Risk: The compliance report was positive. Still, if World Omni Financial Corp. (the Servicer) fails to collect payments, manage repossessions, or administer loans well, it could hurt the Trust's cash flow. This would then affect its ability to pay investors.
   • Economic Conditions: Wider economic slowdowns, rising interest rates, or changes in how people spend money can all affect the loan pool. They impact borrowers' ability to pay or the value of repossessed cars.
   • Indenture Trustee Lawsuits (Indirect Risk): U.S. Bank, the Indenture Trustee for this Trust, faces lawsuits. These relate to other trusts, specifically home mortgages and student loans. These lawsuits often claim U.S. Bank failed its trustee duties. They allege breach of trust or negligence. The report clearly states these lawsuits are not against our Trust. They are also not "material" to its investors. Still, it's good to know. It's reassuring that Ernst & Young LLP audited U.S. Bank. Despite the lawsuits, they confirmed U.S. Bank followed all rules for its asset-backed securities platform, including our Trust. This was for the year ended December 31, 2025. This suggests their main trustee operations remain strong, even with other legal issues. However, if these lawsuits severely hurt U.S. Bank's finances or its ability to be a trustee, it could indirectly affect trusts it manages. A replacement trustee might be needed, causing costs or disruptions. The report considers this a remote risk for our Trust.

6. Leadership or strategy changes

   • This Trust has no traditional leadership team or changing "strategy." Agreements created it and govern its operations. These define roles for parties like the Servicer, Indenture Trustee, and Administrator. Michael Hollis, Group Vice President at World Omni Financial Corp., signed the report. He acts as Servicer for the Trust. Matthew Hoole, CFO of World Omni Financial Corp., also signed. This shows continuity in oversight.