U.S. Floorplan Risk Management

U.S. Lease Residual Setting and Remarketing Residual Values Models • Ford Credit sets residual values quarterly for each vehicle line at various lease terms and mileage allowances • • Ford Credit uses proprietary models and leverages its relationship with Ford to establish residual values based on a number of predictive factors, including MSRP, wholesale price, planned production volume, rental and fleet sales, consumer acceptance, life cycle, recent/seasonal auction trends and economic factors Ford Credit's internal review process considers: - Current or planned marketing programs - Market acceptance of vehicles - Competitive actions with the vehicle segment Ford Credit reviews residual value performance and compares published residual values to: - Historical auction values for returned lease vehicles - Residual value forecasts published independently in industry guides such as Automotive Lease Guide (ALG) 67 Ford FORD CREDIT

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