| Delaware(State      or other jurisdiction of incorporation or organization) |   | 36-2472404(I.R.S.      Employer Identification No.)  |
|-----------------------------------------------------------------------------|--------|-----------------------------------------------------------|

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INDEX

INDEX

|   |          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | PageReference |
|--------|---------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------|
|   |          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |          |
|   | PART I.       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |          |
|   |          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |          |
|   | Item      1.  |   | Business      (A)                                                                                                                                          | 3             |
|   | Item      1A. |   | Risk      Factors                                                                                                                                          | 3             |
|   | Item      1B. |   | Unresolved Staff      Comments                                                                                                                             | 6             |
|   | Item      2.  |   | Properties      (A)                                                                                                                                        | 6             |
|   | Item      3.  |   | Legal      Proceedings                                                                                                                                     | 6             |
|   | Item      4.  |   | Submission of Matters to a Vote of Security Holder      (A)                                                                                                | 6             |
|   |          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |          |
|   | PART II.      |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |          |
|   |          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |          |
|   | Item      5.  |   | Market for the Registrant’s Common Equity and Related      Stockholder Matters                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 7             |
|   | Item      6.  |   | Selected Financial Data      (A)                                                                                                                           | 7             |
|   | Item      7.  |   | Management's Discussion and Analysis of Financial Condition      and Results of Operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | 7             |
|   | Item      7A. |   | Quantitative and Qualitative Disclosures About Market      Risk                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 20            |
|   | Item      8.  |   | Financial Statements and Supplementary Data                                                                                                                | 21            |
|   | Item      9.  |   | Changes in and Disagreements with Accountants on Accounting      and Financial Disclosure                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 58            |
|   | Item      9A. |   | Controls and      Procedures                                                                                                                               | 58            |
|   | Item      9B. |   | Other      Information                                                                                                                                     | 59            |
|   |          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |          |
|   | PART III.     |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |          |
|   |          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |          |
|   | Item      10. |   | Directors and Executive Officers of the Registrant      (A)                                                                                                | 60            |
|   | Item      11. |   | Executive Compensation      (A)                                                                                                                            | 60            |
|   | Item      12. |   | Security Ownership of Certain Beneficial Owners and      Management and Related Transactions (A)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | 60            |
|   | Item      13. |   | Certain Relationships and Related Transactions      (A)                                                                                                    | 60            |
|   | Item      14. |   | Principal Accountant Fees and      Services                                                                                                                | 60            |
|   |          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |          |
|   | PART IV.      |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |          |
|   |          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |          |
|   | Item      15. |   | Exhibits and Financial Statement Schedules                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | 61            |
|   |          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |          |
|   | Signature     |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 62            |

| (A)      -Omitted or amended or reduced as the registrant is a wholly-owned      subsidiary of Navistar, Inc., which is a wholly-owned subsidiary of      Navistar International Corporation, and meets the conditions set forth in      General Instructions I (1) (a) and (b) of Annual Report on Form 10-K and      is, therefore, filing this report with the reduced disclosure      format. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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INDEX

PART I

Item 1.       Business

Item 1A.          RiskFactors

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INDEX

----

INDEX

----

INDEX

Item1B.           Unresolved Staff Comments

Item2.              Properties

Item3.              Legal

Item4.              Submissionof Matters to a Vote of Security Holders

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INDEX

PARTII

Item5.              Marketfor the Registrant’s Common Equity and Related StockholderMatters

Item6.              SelectedFinancial Data

Item7.             Management’s Discussion and Analysis of Financial Condition and Results ofOperations

----

INDEX

|                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | 2009   |   |   | 2008   |   |   | Change |   |   | %      Change |   |
| Revenues                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Financing      revenue                                                                                           |   | $      | 209.8  |   |   | $      | 263.3 |   |   | $ | (53.5 | ) |   |   | (20.3 | ) |
| Securitization      income                                                                                       |   |   | 40.5   |   |   |   | 12.2 |   |   |   | 28.3 |   |   |   | 232.0 |   |
| Operating      leases and other      revenue                                                                     |   |   | 28.8   |   |   |   | 49.1 |   |   |   | (20.3 | ) |   |   | (41.3 | ) |
| Total      revenues                                                                                              |   |   | 279.1  |   |   |   | 324.6 |   |   |   | (45.5 | ) |   |   | (14.0 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Expenses                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost      of      borrowing                                                                                      |   |   | 83.0   |   |   |   | 199.1 |   |   |   | (116.1 | ) |   |   | (58.3 | ) |
| Credit,      collections and      administrative                                                                 |   |   | 57.4   |   |   |   | 56.9 |   |   |   | 0.5 |   |   |   | 0.9 |   |
| Provision      for credit      losses                                                                            |   |   | 29.7   |   |   |   | 32.2 |   |   |   | (2.5 | ) |   |   | (7.8 | ) |
| Depreciation      on operating      leases                                                                       |   |   | 16.3   |   |   |   | 17.0 |   |   |   | (0.7 | ) |   |   | (4.1 | ) |
| Derivative      expense                                                                                          |   |   | 40.6   |   |   |   | 55.0 |   |   |   | (14.4 | ) |   |   | (26.2 | ) |
| Other      expenses                                                                                              |   |   | 5.5    |   |   |   | 9.2 |   |   |   | (3.7 | ) |   |   | (40.2 | ) |
| Total      expenses                                                                                              |   |   | 232.5  |   |   |   | 369.4 |   |   |   | (136.9 | ) |   |   | (37.1 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income      (loss) before      taxes                                                                             |   |   | 46.6   |   |   |   | (44.8 | ) |   |   | 91.4 |   |   | N.M. |   |
| Income      tax expense      (benefit)                                                                           |   |   | 17.9   |   |   |   | (14.1 | ) |   |   | 32.0 |   |   | N.M. |   |
| Net      income                                                                                                  |   | $      | 28.7   |   |   | $      | (30.7 | ) |   | $ | 59.4 |   |   | N.M. |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | 2009   |   |   | 2008   |   |   | Change |   |   | %      Change |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
| Retail      notes and finance      leases                                                                 |   | $      | 174.8  |   |   | $      | 221.4 |   |   | $ | (46.6 | ) |   |   | (21.0 | ) |
| Wholesale      notes                                                                                      |   |   | 13.7   |   |   |   | 15.9 |   |   |   | (2.2 | ) |   |   | (13.8 | ) |
| Retail      and wholesale      accounts                                                                   |   |   | 21.3   |   |   |   | 26.0 |   |   |   | (4.7 | ) |   |   | (18.1 | ) |
| Total      financing      revenue                                                                         |   | $      | 209.8  |   |   | $      | 263.3 |   |   | $ | (53.5 | ) |   |   | (20.3 | ) |

----

INDEX

----

INDEX

|                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | 2008   |   |   | 2007   |   |   | Change |   |   | %      Change |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|---------------|--------|
| Revenues                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |          |   |
| Financing      revenue                                                                                           |   | $      | 263.3  |   |   | $      | 325.2  |   |   | $      | (61.9         | )      |   |   | (19.0 | ) |
| Securitization      income                                                                                       |   |   | 12.2   |   |   |   | 73.2   |   |   |   | (61.0         | )      |   |   | (83.3 | ) |
| Operating      leases and other      revenue                                                                     |   |   | 49.1   |   |   |   | 55.0   |   |   |   | (5.9          | )      |   |   | (10.7 | ) |
| Total      revenues                                                                                              |   |   | 324.6  |   |   |   | 453.4  |   |   |   | (128.8        | )      |   |   | (28.4 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |          |   |   |   |   |   |
| Expenses                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |          |   |   |   |   |   |
| Cost      of      borrowing                                                                                      |   |   | 199.1  |   |   |   | 248.2  |   |   |   | (49.1         | )      |   |   | (19.8 | ) |
| Credit,      collections and      administrative                                                                 |   |   | 56.9   |   |   |   | 50.6   |   |   |   | 6.3           |   |   |   | 12.5 |   |
| Provision      for credit      losses                                                                            |   |   | 32.2   |   |   |   | 19.6   |   |   |   | 12.6          |   |   |   | 64.3 |   |
| Depreciation      on operating      leases                                                                       |   |   | 17.0   |   |   |   | 18.5   |   |   |   | (1.5          | )      |   |   | (8.1 | ) |
| Derivative      expense                                                                                          |   |   | 55.0   |   |   |   | 8.9    |   |   |   | 46.1          |   |   |   | 518.0 |   |
| Other      expenses                                                                                              |   |   | 9.2    |   |   |   | 2.2    |   |   |   | 7.0           |   |   |   | 318.2 |   |
| Total      expenses                                                                                              |   |   | 369.4  |   |   |   | 348.0  |   |   |   | 21.4          |   |   |   | 6.1 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |          |   |   |   |   |   |
| Income      (loss) before      taxes                                                                             |   |   | (44.8  | )      |   |   | 105.4  |   |   |   | (150.2        | )      |   | N.M. |   |
| Income      tax (benefit)      expense                                                                           |   |   | (14.1  | )      |   |   | 38.1   |   |   |   | (52.2         | )      |   | N.M. |   |
| Net      income(loss)                                                                                            |   | $      | (30.7  | )      |   | $      | 67.3   |   |   | $      | (98.0         | )      |   | N.M. |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | 2008   |   |   | 2007   |   |   | Change |   |   | %      Change |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
| Retail      notes and finance      leases                                                                 |   | $      | 221.4  |   |   | $      | 262.4 |   |   | $ | (41.0 | ) |   |   | (15.6 | ) |
| Wholesale      notes                                                                                      |   |   | 15.9   |   |   |   | 28.1 |   |   |   | (12.2 | ) |   |   | (43.4 | ) |
| Retail      and wholesale      accounts                                                                   |   |   | 26.0   |   |   |   | 34.7 |   |   |   | (8.7 | ) |   |   | (25.1 | ) |
| Total      financing      revenue                                                                         |   | $      | 263.3  |   |   | $      | 325.2 |   |   | $ | (61.9 | ) |   |   | (19.0 | ) |

----

INDEX

|                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | As      of           |    |   |                 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------|---------|--------|----------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | October      31,2009 |    |   | October      31,2008 |   |   | Change |   |   | %      Change |   |
| Cash      and cash      equivalents                                                                             |   | $                    | 16.1    |   |                 | $      | 34.4 |   |   | $ | (18.3 | ) |   |   | (53.2 | ) |
| Finance      receivables,      net                                                                              |   |                 | 2,660.3 |   |                 |   | 3,090.2 |   |   |   | (429.9 | ) |   |   | (13.9 | ) |
| Amounts      due from sales of      receivables                                                                 |   |                 | 291.5   |   |                 |   | 229.6 |   |   |   | 61.9 |   |   |   | 27.0 |   |
| Net      accounts due from      affiliates                                                                      |   |                 | -       |   |                 |   | 17.5 |   |   |   | (17.5 | ) |   |   | N.M |   |
| Net      investment in operating      leases                                                                    |   |                 | 79.5    |   |                 |   | 72.9 |   |   |   | 6.6 |   |   |   | 9.1 |   |
| Vehicle      inventory                                                                                          |   |                 | 26.5    |   |                 |   | 42.0 |   |   |   | (15.5 | ) |   |   | (36.9 | ) |
| Restricted      cash and cash      equivalents                                                                  |   |                 | 421.8   |   |                 |   | 515.4 |   |   |   | (93.6 | ) |   |   | (18.2 | ) |
| Other      assets                                                                                               |   |                 | 107.7   |   |                 |   | 123.0 |   |   |   | (15.3 | ) |   |   | (12.4 | ) |
| Total      assets                                                                                               |   | $                    | 3,603.4 |   |                 | $      | 4,125.0 |   |   | $ | (521.6 | ) |   |   | (12.6 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                 |    |   |                 |   |   |   |   |   |   |   |   |   |   |   |
| Senior      and secured      borrowings                                                                         |   | $                    | 3,093.6 |   |                 | $      | 3,679.1 |   |   |   | (585.5 | ) |   |   | (15.9 | ) |
| Net      accounts due to      affiliates                                                                        |   |                 | 31.2    |   |                 |   | - |   |   |   | 31.2 |   |   |   | N.M |   |
| Other      liabilities                                                                                          |   |                 | 166.4   |   |                 |   | 173.3 |   |   | $ | (6.9 | ) |   |   | (4.0 | ) |
| Total      liabilities                                                                                          |   |                 | 3,291.2 |   |                 |   | 3,852.4 |   |   |   | (561.2 | ) |   |   | (14.6 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                 |    |   |                 |   |   |   |   |   |   |   |   |   |   |   |
| Total shareowner’sequity                                                                                  |   |                 | 312.2   |   |                 |   | 272.6 |   |   |   | 39.6 |   |   |   | 14.5 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                 |    |   |                 |   |   |   |   |   |   |   |   |   |   |   |
| Total      liabilities and shareowner’s equity                                                                                                                                                                                                                                                                                                                                                                                            |   | $                    | 3,603.4 |   |                 | $      | 4,125.0 |   |   | $ | (521.6 | ) |   |   | (12.6 | ) |

----

INDEX

----

INDEX

|                                                         |   | As      of October 31, |   |
|--------------------------------------------------------------|--------|------------------------|--------|
|                                                         |   | 2009                   |   |   | 2008 |   |   | Change |   |
|                                                         |   |                   |   |   |   |   |   |   |   |
| Delinquencies                                                |   |                   |   |   |   |   |   |   |   |
| Retail      notes & finance leases greater than 60 days. |   |                   | 0.7    | % |   |   | 0.7 | % |   |   | 0.0 | % |
| Wholesale      notes greater than 60 days                    |   |                   | 0.1    | % |   |   | 0.4 | % |   |   | (0.3 | %) |
| Wholesale      accounts greater than 60 days                 |   |                   | 0.9    | % |   |   | 2.0 | % |   |   | (1.1 | %) |
|                                                         |   |                   |   |   |   |   |   |   |   |   |   |   |
| Allowance      to finance receivable coverage ratio          |   |                   | 1.4    | % |   |   | 1.0 | % |   |   | 0.4 | % |

| Millions      of dollars                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | Years      Ended October 31, |    |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|---------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | 2009                         |    |   | 2008 |   |   | 2007 |   |
| Charge-offs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                         |    |   |   |   |   |   |   |
| Retail      notes & finance leases charge-offs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | $                            | 25.5    |   |   | $ | 25.4 |   |   | $ | 9.9 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                         |    |   |   |   |   |   |   |   |   |   |
|          Wholesale notes      charge-offs                                                                                  |   |                         | 1.1     |   |   |   | 1.8 |   |   |   | 1.0 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                         |    |   |   |   |   |   |   |   |   |   |
|          Wholesale accounts      charge-offs                                                                               |   |                         | -       |   |   |   | 0.5 |   |   |   | - |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                         |    |   |   |   |   |   |   |   |   |   |
| Retail      notes & finance leases charge-offs to liquidations                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                         | 2.3     | % |   |   | 1.9 | % |   |   | 1.0 | % |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                         |    |   |   |   |   |   |   |   |   |   |
|          Wholesale      notes charge-offs to liquidations                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                         |  - |   |   |   | 0.1 | % |   |   | - |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | 2009   |   |   | 2008   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Retail      Notes and Finance      Leases                                                                          |   | $      | 31.8   |   |   | $      | 27.5 |   |
| Accounts                                                                                                           |   |   | 0.8    |   |   |   | 0.9 |   |
| Total                                                                                                                                                                |   | $      | 32.6   |   |   | $      | 28.4 |   |

----

INDEX

|                                                                                                                                                                                                         |  Fitch | Standardand      Poor’s |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------|-------------------------------|
| Senior      unsecured debt                                                                                                                                                                                   | BB-         | BB-                           |
|                                                                                                                                                                                                         |        |                          |
| Outlook      as of October 20, 2009                                                                                                                                                                          | Negative    | Negative                      |
|                                                                                                                                                                                                         |        |                          |
| During      August 2009 and May 2008, Standard and Poor’s and Fitch, respectively,      removed both NIC and NFC from the credit watch with negative implications      while outlook remains Negative. |

----

INDEX

| Due      in Fiscal                                                                                                                                                                                                                                                                                                         |   | 2010   |   |   |   | 2011-2012 |   |   |   | 2013-2014 |    |   |  After      2014 |   |   | Total  |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|-----------|--------|--------|--------|-----------|---------|--------|-----------------------|--------|--------|--------|--------|
| Senior      borrowings (1)                                                 |   | $      | 651.4  |   |   | $         | 7.3    |   |   | $         | 884.3   |   |                  | $      | 224.9  |   |   | $ | 1,767.9 |   |
| Secured      borrowings(1)                                                 |   |   | 40.8   |   |   |      | 228.2  |   |   |      | 503.2   |   |                  |   | 553.5  |   |   |   | 1,325.7 |   |
| Operating      leases                                                      |   |   | 1.7    |   |   |      | 2.8    |   |   |      | 2.5     |   |                  |   | 1.5    |   |   |   | 8.5 |   |
| Interest      (2)                                                          |   |   | 78.8   |   |   |      | 154.7  |   |   |      | 61.0    |   |                  |   | 38.9   |   |   |   | 333.4 |   |
| Total                                                                                                                        |   | $      | 772.7  |   |   | $         | 393.0  |   |   | $         | 1,451.0 |   |                  | $      | 818.8  |   |   | $ | 3,435.5 |   |

----

INDEX

|                              | Maturity           |   | 2009   |   |   | 2008   |   |
|-----------------------------------|--------------------|--------|--------|--------|--------|--------|--------|
| Investor      certificate         | February      2010 |   | $      | 212.0  |   |   | $      | 212.0 |   |
| Variable      funding certificate | August      2010   |   |   | 650.0  |   |   |   | 800.0 |   |
|                              | Total              |   | $      | 862.0  |   |   | $      | 1,012.0 |   |

----

INDEX

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | 2009   |   |   | 2008   |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Revolver      bank      loan                                                                                                  |   | $      | 800.0  |   |   | $      | 800.0 |   |
| NFC      revolving loan      utilized                                                                                         |   |   | (670.5 | )      |   |   | (454.0 | ) |
| Mexican      sub-revolver loan      utilized                                                                                  |   |   | (14.0  | )      |   |   | (100.0 | ) |
| Total      availability                                                                                                                                |   | $      | 115.5  |   |   | $      | 246.0 |   |

| ·   | the      nature of the estimates or assumptions contains levels of subjectivity and      judgment necessary to account  for    highly      uncertain matters or the susceptibility of such matters to change;      and |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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INDEX

----

INDEX

----

INDEX

Item7A.               Quantitativeand Qualitative Disclosures About Market Risk

----

INDEX

Item 8.  Financial Statements and SupplementaryData

| Consolidated Financial      Statements:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | Page   |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|
| Report      of Independent Registered Public Accounting      Firm                                                                                                                                                             |   |   | 22     |   |
| Consolidated      Statements of OperationsYears      ended October 31, 2009, 2008 and      2007                                                                                                                                                                       |   |   | 23     |   |
| Consolidated      Statements of Shareowner’s Equity and Comprehensive Income      (Loss)Years      ended October 31, 2009, 2008 and      2007                                                                                                                   |   |   | 24     |   |
| Consolidated      Statements of Financial ConditionAs      of October 31, 2009 and      2008                                                                                                                                                                          |   |   | 25     |   |
| Consolidated      Statements of Cash FlowsYears      ended October 31, 2009, 2008 and      2007                                                                                                                                                                       |   |   | 26     |   |
| Notes      to  Consolidated Financial      Statements                                                                                                                                                               |   |   | 27     |   |

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INDEX

| /s/   KPMG      LLP |
|------------------------------------|

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INDEX

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | For      the years endedOctober      31, |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------|--------|
| Millions      of dollars                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | 2009                                     |   |   | 2008 |   |   | 2007 |   |
| Revenues                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                     |   |   |   |   |   |   |   |
| Retail      notes and finance leases      revenue                                                                                          |   | $                                        | 174.8  |   |   | $ | 221.4 |   |   | $ | 262.4 |   |
| Operating      leases      revenue                                                                                                         |   |                                     | 21.7   |   |   |   | 22.3 |   |   |   | 23.9 |   |
| Wholesale      notes      interest                                                                                                         |   |                                     | 13.7   |   |   |   | 15.9 |   |   |   | 28.1 |   |
| Retail      and wholesale accounts      interest                                                                                           |   |                                     | 21.3   |   |   |   | 26.0 |   |   |   | 34.7 |   |
| Securitization      income                                                                                                                 |   |                                     | 40.5   |   |   |   | 12.2 |   |   |   | 73.2 |   |
| Other      revenues                                                                                                                        |   |                                     | 7.1    |   |   |   | 26.8 |   |   |   | 31.1 |   |
| Total      revenues                                                                                                                                                      |   |                                     | 279.1  |   |   |   | 324.6 |   |   |   | 453.4 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                     |   |   |   |   |   |   |   |   |   |   |
| Expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                     |   |   |   |   |   |   |   |   |   |   |
| Cost      of borrowing:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                     |   |   |   |   |   |   |   |   |   |   |
| Interest      expense                                                                                                                                          |   |                                     | 69.6   |   |   |   | 186.8 |   |   |   | 238.0 |   |
| Other                                                                                                                                                          |   |                                     | 13.4   |   |   |   | 12.3 |   |   |   | 10.2 |   |
| Credit,      collections and      administrative                                                                                           |   |                                     | 57.4   |   |   |   | 56.9 |   |   |   | 50.6 |   |
| Provision      for credit      losses                                                                                                      |   |                                     | 29.7   |   |   |   | 32.2 |   |   |   | 19.6 |   |
| Depreciation      on operating      leases                                                                                                 |   |                                     | 16.3   |   |   |   | 17.0 |   |   |   | 18.5 |   |
| Derivative      expense                                                                                                                    |   |                                     | 40.6   |   |   |   | 55.0 |   |   |   | 8.9 |   |
| Other      expenses                                                                                                                        |   |                                     | 5.5    |   |   |   | 9.2 |   |   |   | 2.2 |   |
| Total      expenses                                                                                                                                                      |   |                                     | 232.5  |   |   |   | 369.4 |   |   |   | 348.0 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                     |   |   |   |   |   |   |   |   |   |   |
| Income      (loss) before      taxes                                                                                                       |   |                                     | 46.6   |   |   |   | (44.8 | ) |   |   | 105.4 |   |
| Income      tax expense      (benefit)                                                                                                     |   |                                     | 17.9   |   |   |   | (14.1 | ) |   |   | 38.1 |   |
| Net      income      (loss)                                                                                                                |   | $                                        | 28.7   |   |   | $ | (30.7 | ) |   | $ | 67.3 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                     |   |   |   |   |   |   |   |   |   |   |

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INDEX

| Millions      of dollars                                                                                                                                                                                                                                                                                              |   | Capital      Stock |   |   | Paid-In      Capital |   |   | RetainedEarnings |   |   | AccumulatedOtherComprehensive      Loss |   |   | Total  |   |   | ComprehensiveIncome      (Loss) |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|--------|--------|----------------------|--------|--------|------------------|--------|--------|-----------------------------------------|--------|--------|--------|--------|--------|---------------------------------|--------|
| Balance      at October 31, 2006                                                                                                                                                                                                                                                                                      |   | $                  | 1.6    |   |                 | $      | 139.6  |             |   | $      | 459.8                                   |   |   | $      | (1.7   | )      |                            | $      | 599.3 |   |   | $ | 86.4 |   |
| 2007      Activity:                                                                                                                                                                                                                                                                                                   |   |               |   |   |                 |   |   |             |   |   |                                    |   |   |   |   |   |                            |   |   |   |   |   |   |   |
| Net      income                                                                           |   |               | -      |   |                 |   | -      |             |   |   | 67.3                                    |   |   |   | -      |   |                            |   | 67.3 |   |   |   | 67.3 |   |
| Pension      adjustment, (net of tax $0.2)                                                                                                                                                                                                                                                                            |   |               | -      |   |                 |   | -      |             |   |   | -                                       |   |   |   | 0.3    |   |                            |   | 0.3 |   |   |   | 0.3 |   |
| Impact      of  accounting for postretirement benefit plans (net of tax      $0.6)                                                                                                                                                                                                                          |   |               | -      |   |                 |   | -      |             |   |   | -                                       |   |   |   | 1.2    |   |                            |   | 1.2 |   |   |   | - |   |
| Cash      dividend paid to parent company                                                                                                                                                                                                                                                                             |   |               | -      |   |                 |   | -      |             |   |   | (400.0                                  | )      |   |   | -      |   |                            |   | (400.0 | ) |   |   | - |   |
| Balance      at October 31, 2007                                                                                                                                                                                                                                                                                      |   | $                  | 1.6    |   |                 | $      | 139.6  |             |   | $      | 127.1                                   |   |   | $      | (0.2   | )      |                            | $      | 268.1 |   |   | $ | 67.6 |   |
| 2008      Activity:                                                                                                                                                                                                                                                                                                   |   |               |   |   |                 |   |   |             |   |   |                                    |   |   |   |   |   |                            |   |   |   |   |   |   |   |
| Net      loss                                                                             |   |               | -      |   |                 |   | -      |             |   |   | (30.7                                   | )      |   |   | -      |   |                            |   | (30.7 | ) |   |   | (30.7 | ) |
| Pension      adjustment, (net of tax $4.5)                                                                                                                                                                                                                                                                            |   |               | -      |   |                 |   | -      |             |   |   | -                                       |   |   |   | (7.5   | )      |                            |   | (7.5 | ) |   |   | (7.5 | ) |
| Impact      of accounting for uncertainties for  income tax                                                                                                                                                                                                                                                 |   |               | -      |   |                 |   | -      |             |   |   | (2.5                                    | )      |   |   | -      |   |                            |   | (2.5 | ) |   |   | - |   |
| Capital      contribution from parent company                                             |   |               | -      |   |                 |   | 60.0   |             |   |   | -                                       |   |   |   | -      |   |                            |   | 60.0 |   |   |   | - |   |
| Cash      dividend paid to parent company                                                                                                                                                                                                                                                                             |   |               | -      |   |                 |   | -      |             |   |   | (14.8                                   | )      |   |   | -      |   |                            |   | (14.8 | ) |   |   | - |   |
| Balance      at October 31, 2008                                                                                                                                                                                                                                                                                      |   | $                  | 1.6    |   |                 | $      | 199.6  |             |   | $      | 79.1                                    |   |   | $      | (7.7   | )      |                            | $      | 272.6 |   |   | $ | (38.2 | ) |
| 2009      Activity:                                                                                                                                                                                                                                                                                                   |   |               |   |   |                 |   |   |             |   |   |                                    |   |   |   |   |   |                            |   |   |   |   |   |   |   |
| Net      income                                                                           |   |               | -      |   |                 |   | -      |             |   |   | 28.7                                    |   |   |   | -      |   |                            |   | 28.7 |   |   |   | 28.7 |   |
| Pension      adjustment, (net of tax $5.0)                                                                                                                                                                                                                                                                            |   |               | -      |   |                 |   | -      |             |   |   | -                                       |   |   |   | (9.1   | )      |                            |   | (9.1 | ) |   |   | (9.1 | ) |
| Capital      contribution from parent company                                                                                                                                                                                                                            |   |               | -      |   |                 |   | 20.0   |             |   |   | -                                       |   |   |   | -      |   |                            |   | 20.0 |   |   |   | - |   |
| Balance      at October 31, 2009                                                                                                                                                                                                                                                                                      |   | $                  | 1.6    |   |                 | $      | 219.6  |             |   | $      | 107.8                                   |   |   | $      | (16.8  | )      |                            | $      | 312.2 |   |   | $ | 19.6 |   |

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INDEX

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | As      ofOctober      31, |    |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------|---------|
| Millions      of dollars                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | 2009                       |    |   | 2008 |   |
| ASSETS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                       |    |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                       |    |   |   |   |
| Cash      and cash      equivalents                                                                                                        |   | $                          | 16.1    |   |   | $ | 34.4 |   |
| Finance      receivables, net of unearned income:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                       |    |   |   |   |   |   |
| Finance      receivables                                                                                                                                                           |   |                       | 2,538.6 |   |   |   | 2,906.3 |   |
| Finance      receivables from      affiliates                                                                                                                                      |   |                       | 154.3   |   |   |   | 212.3 |   |
| Allowance      for      losses                                                                                                                                                     |   |                       | (32.6   | ) |   |   | (28.4 | ) |
| Finance      receivables,      net                                                                                                         |   |                       | 2,660.3 |   |   |   | 3,090.2 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                       |    |   |   |   |   |   |
| Amounts      due from sales of      receivables                                                                                            |   |                       | 291.5   |   |   |   | 229.6 |   |
| Net      accounts due from      affiliates                                                                                                 |   |                       | -       |   |   |   | 17.5 |   |
| Net      investment in operating      leases                                                                                               |   |                       | 79.5    |   |   |   | 72.9 |   |
| Vehicle      inventory                                                                                                                     |   |                       | 26.5    |   |   |   | 42.0 |   |
| Restricted      cash and cash      equivalents                                                                                             |   |                       | 421.8   |   |   |   | 515.4 |   |
| Other      assets                                                                                                                          |   |                       | 107.7   |   |   |   | 123.0 |   |
| Total      assets                                                                                                                                                                  |   | $                          | 3,603.4 |   |   | $ | 4,125.0 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                       |    |   |   |   |   |   |
| LIABILITIES      AND SHAREOWNER’S EQUITY                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                       |    |   |   |   |   |   |
| Net      accounts due to      affiliates                                                                                                   |   | $                          | 31.2    |   |   | $ | - |   |
| Senior      and secured      borrowings                                                                                                    |   |                       | 3,093.6 |   |   |   | 3,679.1 |   |
| Other      liabilities                                                                                                                     |   |                       | 166.4   |   |   |   | 173.3 |   |
| Total      liabilities                                                                                                                                                             |   |                       | 3,291.2 |   |   |   | 3,852.4 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                       |    |   |   |   |   |   |
| Shareowner’s      equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                       |    |   |   |   |   |   |
| Capital      stock ($1 par value, 2,000,000 shares authorized, 1,600,000      sharesissued      and outstanding)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                       | 1.6     |   |   |   | 1.6 |   |
| Paid-in      capital                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                       | 219.6   |   |   |   | 199.6 |   |
| Retained      earnings                                                                                                                     |   |                       | 107.8   |   |   |   | 79.1 |   |
| Accumulated      other comprehensive      loss                                                                                             |   |                       | (16.8   | ) |   |   | (7.7 | ) |
| Total      shareowner’s      equity                                                                                                  |   |                       | 312.2   |   |   |   | 272.6 |   |
| Total      liabilities and shareowner’s      equity                                                                                                                          |   | $                          | 3,603.4 |   |   | $ | 4,125.0 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                       |    |   |   |   |   |   |

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INDEX

| Navistar      Financial Corporation and SubsidiariesConsolidated      Statements of Cash Flows                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | For      the years endedOctober      31 |   |
| Millions      of dollars                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | 2009 |   |   | 2008 |   |   | 2007 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |
| Cash      flow from operating activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |
| Net      income      (loss)                                                                                                                                             |   | $ | 28.7 |   |   | $ | (30.7 | ) |   | $ | 67.3 |   |
| Adjustments      to reconcile net income to cash flow from operations:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      loss on sales of finance      receivables                                                                                                                                                    |   |   | 48.1 |   |   |   | 23.8 |   |   |   | 9.3 |   |
| Net      loss on sale and impairment of equipment under operating leases and      vehicle inventory                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   | 7.5 |   |   |   | 9.7 |   |   |   | 1.5 |   |
| Depreciation      and      amortization                                                                                                                                                               |   |   | 27.7 |   |   |   | 24.8 |   |   |   | 25.2 |   |
| Provision      for credit      losses                                                                                                                                                                 |   |   | 29.7 |   |   |   | 32.2 |   |   |   | 19.6 |   |
| Net      change in amounts due from sales of receivables                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   | (61.9 | ) |   |   | 89.5 |   |   |   | 387.7 |   |
| Net      change in finance receivables - wholesale notes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   | (49.9 | ) |   |   | (12.4 | ) |   |   | 140.4 |   |
| Net      change in finance receivables from affiliates - wholesale                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   | 20.6 |   |   |   | (44.8 | ) |   |   | 37.7 |   |
| Net      change in net accounts due to/from      affiliates                                                                                                                                           |   |   | 48.7 |   |   |   | 42.6 |   |   |   | (41.4 | ) |
| Net      change in other assets and      liabilities                                                                                                                                                  |   |   | (10.3 | ) |   |   | (78.6 | ) |   |   | 7.8 |   |
| Net      cash provided by operating      activities                                                                                                                                                                                      |   |   | 88.9 |   |   |   | 56.1 |   |   |   | 655.1 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash      flow from investing activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| Originations      of retail notes and finance leases, includes affiliates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   | (585.6 | ) |   |   | (868.7 | ) |   |   | (1,185.6 | ) |
| Net      change in restricted cash and cash      equivalents                                                                                                            |   |   | 93.6 |   |   |   | (144.9 | ) |   |   | 280.5 |   |
| Collections      on retail notes and finance lease receivables,net      of change in unearned finance income, includes affiliates                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   | 1,011.1 |   |   |   | 1,312.0 |   |   |   | 1,305.7 |   |
| Net      change in finance receivables from affiliates - accounts                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   | 1.8 |   |   |   | 7.3 |   |   |   | (10.4 | ) |
| Net      change in finance receivables -      accounts                                                                                                                  |   |   | (96.4 | ) |   |   | 71.8 |   |   |   | (105.6 | ) |
| Proceeds      from sale of vehicle      inventory                                                                                                                       |   |   | 67.2 |   |   |   | 92.8 |   |   |   | 30.1 |   |
| Purchase      of equipment leased to      others                                                                                                                        |   |   | (35.0 | ) |   |   | (29.3 | ) |   |   | (24.3 | ) |
| Proceeds      from sale of equipment under operating leases                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   | 3.4 |   |   |   | 17.7 |   |   |   | 15.5 |   |
| Loans      to      affiliates                                                                                                                                           |   |   | - |   |   |   | (20.0 | ) |   |   | (110.0 | ) |
| Loan      repayment from      affiliates                                                                                                                                |   |   | - |   |   |   | 80.0 |   |   |   | 50.0 |   |
| Net      cash provided by investing      activities                                                                                                                                                                                      |   |   | 460.1 |   |   |   | 518.7 |   |   |   | 245.9 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash      flow from financing activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      change in senior bank revolver, net of issuance costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   | 216.5 |   |   |   | 35.0 |   |   |   | (253.7 | ) |
| Proceeds      from issuance of senior bank term debt, net of issuance    costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   | - |   |   |   | - |   |   |   | 217.2 |   |
| Principal      payments on senior bank term      debt                                                                                                                   |   |   | (6.2 | ) |   |   | (6.2 | ) |   |   | (5.1 | ) |
| Proceeds      from issuance of secured borrowings, net of issuance costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   | 346.3 |   |   |   | 1,069.9 |   |   |   | 887.0 |   |
| Payments      on secured      borrowings                                                                                                                                |   |   | (1,143.9 | ) |   |   | (1,694.9 | ) |   |   | (1,361.4 | ) |
| Dividends      paid to parent      company                                                                                                                              |   |   | - |   |   |   | (14.8 | ) |   |   | (400.0 | ) |
| Capital      contribution  from parent      company                                                                                                           |   |   | 20.0 |   |   |   | 60.0 |   |   |   | - |   |
| Net      cash used in financing      activities                                                                                                                                                                                          |   |   | (567.3 | ) |   |   | (551.0 | ) |   |   | (916.0 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| Change      in cash and cash      equivalents                                                                                                  |   |   | (18.3 | ) |   |   | 23.8 |   |   |   | (15.0 | ) |
| Cash      and cash equivalents, beginning of      year                                                                                         |   |   | 34.4 |   |   |   | 10.6 |   |   |   | 25.6 |   |
| Cash      and cash equivalents, end of      year                                                                                               |   | $ | 16.1 |   |   | $ | 34.4 |   |   | $ | 10.6 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| Supplemental      cash flow information:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      paid                                                                                                                                                      |   | $ | 75.6 |   |   | $ | 191.6 |   |   | $ | 237.5 |   |
| Income      taxes paid, net of      refunds                                                                                                                             |   |   | 0.6 |   |   |   | 73.0 |   |   |   | 32.4 |   |
| Transfers      of loans and leases to vehicle      inventory                                                                                                            |   |   | 67.3 |   |   |   | 129.0 |   |   |   | 49.6 |   |

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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | 2009   |   |   | 2008   |   |   | 2007   |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Net      losses on finance      receivables                                                                                 |   | $      | 18.4   |   |   | $      | 9.0    |   |   | $ | 6.8 |   |
| Impairment      losses on vehicle      inventory                                                                            |   |   | 9.2    |   |   |   | 7.7    |   |   |   | - |   |
| Net      losses on sales of vehicle      inventory                                                                          |   |   | 4.2    |   |   |   | 10.9   |   |   |   | 1.6 |   |

----

INDEX

|                                                                                                     |   | 2009   |   |   | 2008   |   |
|----------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Finance      receivables from affiliates net of unearned income and dealer reserve      (Dealcor retail) |   | $      | 104.8  |   |   | $      | 140.4 |   |
| Finance      receivables from affiliates (Dealcor wholesale)                                             |   |   | 49.5   |   |   |   | 71.9 |   |
| Net      accounts due (to) from affiliates (non-Dealcor)                                                 |   |   | (31.2  | )      |   |   | 17.5 |   |

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INDEX

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | 2009   |    |   | 2008   |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Retail      notes, net of unearned      income                                                                                                                                |   | $      | 1,955.2 |   |   | $      | 2,468.0 |   |
| Finance      leases, net of unearned      income                                                                                                                              |   |   | 121.5   |   |   |   | 122.7 |   |
| Wholesale      notes held for      sale                                                                                                                                       |   |   | 167.9   |   |   |   | 118.0 |   |
| Accounts      (includes retail and      wholesale)                                                                                                                            |   |   | 294.0   |   |   |   | 197.6 |   |
| Finance      receivables from affiliates, net of unearned      income                                                                                                         |   |   | 154.3   |   |   |   | 212.3 |   |
| Total      finance      receivables                                                                                                                                           |   |   | 2,692.9 |   |   |   | 3,118.6 |   |
| Allowance      for      losses                                                                                                                                                |   |   | (32.6   | )      |   |   | (28.4 | ) |
| Total      finance receivables,      net                                                                                                                                      |   | $      | 2,660.3 |   |   | $      | 3,090.2 |   |

|                                                                                                                                                                                                                                                                                                                    |   | Retail      notes |    |   | Finance      leases |   |   | Wholesale      notes |   |   | Accounts |   |   | Affiliates |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|---------|--------|---------------------|--------|--------|----------------------|--------|--------|----------|--------|--------|------------|--------|
| Due      in fiscal year:                                                                                                                                                                                                                                                                                                |   |              |    |   |                |   |   |                 |   |   |     |   |   |       |   |
| 2010                                                                    |   | $                 | 794.2   |   |                | $      | 47.4   |                 |   | $      | 167.9    |   |   | $          | 294.0  |   |   | $ | 81.4 |   |
| 2011                                                                    |   |              | 582.8   |   |                |   | 31.9   |                 |   |   | -        |   |   |       | -      |   |   |   | 31.4 |   |
| 2012                                                                    |   |              | 391.8   |   |                |   | 21.2   |                 |   |   | -        |   |   |       | -      |   |   |   | 20.7 |   |
| 2013                                                                    |   |              | 225.4   |   |                |   | 31.5   |                 |   |   | -        |   |   |       | -      |   |   |   | 11.6 |   |
| 2014                                                                    |   |              | 100.8   |   |                |   | 5.2    |                 |   |   | -        |   |   |       | -      |   |   |   | 6.2 |   |
| Thereafter                                                              |   |              | 40.2    |   |                |   | 2.3    |                 |   |   | -        |   |   |       | -      |   |   |   | 3.5 |   |
| Gross      finance      receivables                                               |   |              | 2,135.2 |   |                |   | 139.5  |                 |   |   | 167.9    |   |   |       | 294.0  |   |   |   | 154.8 |   |
| Unearned      finance      income                                                 |   |              | (180.0  | )      |                |   | (18.0  | )                    |   |   | -        |   |   |       | -      |   |   |   | (0.5 | ) |
| Finance      receivables, net of unearned income                                                                                                                                                                                                                                                                   |   | $                 | 1,955.2 |   |                | $      | 121.5  |                 |   | $      | 167.9    |   |   | $          | 294.0  |   |   | $ | 154.3 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | 2009   |   |   | 2008   |   |   | 2007   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Allowance      for losses, beginning of      year                                                                          |   | $      | 28.4   |   |   | $      | 23.9   |   |   | $ | 15.3 |   |
| Provision      for credit      losses                                                                                      |   |   | 29.7   |   |   |   | 32.2   |   |   |   | 19.6 |   |
| Net      charge-offs                                                                                                       |   |   | (25.5  | )      |   |   | (27.7  | )      |   |   | (11.0 | ) |
| Allowance      for losses, end of      year                                                                                                                                  |   | $      | 32.6   |   |   | $      | 28.4   |   |   | $ | 23.9 |   |

----

INDEX

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | 2009   |   |   | 2008   |   |   | 2007   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Impaired      receivables with specific loss reserves.                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | $      | 62.3   |   |   | $      | 55.8   |   |   | $ | 37.2 |   |
| Impaired      receivables without specific loss reserves.                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   | 2.5    |   |   |   | 3.8    |   |   |   | 0.9 |   |
| Total      impaired      receivables                                                                                                                                             |   | $      | 64.8   |   |   | $      | 59.6   |   |   | $ | 38.1 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Specific      loss reserves on impaired receivables recorded by NFC                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | $      | 10.3   |   |   | $      | 4.6    |   |   | $ | 3.1 |   |
| Specific      loss reserves on impaired receivables recorded by Navistar,      Inc.                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   | 14.2   |   |   |   | 16.1   |   |   |   | 6.8 |   |
| Finance      receivables over 60 days      delinquent                                                                          |   |   | 15.7   |   |   |   | 18.6   |   |   |   | 23.0 |   |

|                                         |   | 2009   |   |   | 2008   |   |   |  2007 |   |
|----------------------------------------------|--------|--------|--------|--------|--------|--------|--------|------------|--------|
| Impairment      losses on vehicle inventory  |   | $      | 13.1   |   |   | $      | 12.6   |       |   | $ | - |   |
| Net      losses on sale of vehicle inventory |   |   | 6.7    |   |   |   | 15.7   |       |   |   | 3.1 |   |

----

INDEX

|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | 2009   |   |   | 2008   |   |   | 2007   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Vehicle      inventory, beginning of period                                                                                                                                                                                                                                                                                                                                                                                                                  |   | $      | 42.0   |   |   | $      | 23.2   |   |   | $ | 5.2 |   |
| Net      additions                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   | 67.3   |   |   |   | 129.0  |   |   |   | 49.6 |   |
| Impairment      loss:                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Recorded      by      NFC                                                                                     |   |   | (3.9   | )      |   |   | (4.9   | )      |   |   | - |   |
| Recorded      by Navistar,      Inc.                                                                          |   |   | (9.2   | )      |   |   | (7.7   | )      |   |   | - |   |
| Net      book value of inventory sold                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   | (69.7  | )      |   |   | (97.6  | )      |   |   | (31.6 | ) |
| Vehicle      inventory, end of      period                                                                    |   | $      | 26.5   |   |   | $      | 42.0   |   |   | $ | 23.2 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | 2009   |   |   | 2008   |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Investment      in equipment under operating leases                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | $      | 119.8  |   |   | $      | 119.5 |   |
| Less:      Accumulated      depreciation                                                                              |   |   | (41.0  | )      |   |   | (47.5 | ) |
| Net      investment in equipment under operating leases                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   | 78.8   |   |   |   | 72.0 |   |
| Rent      receivable net of reserve for past due operating leases                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   | 0.7    |   |   |   | 0.9 |   |
| Net      investment in operating      leases                                                                          |   | $      | 79.5   |   |   | $      | 72.9 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | 2009   |   |   | 2008   |   |   | 2007   |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Federal      and      foreign                                                                             |   | $      | 14.8   |   |   | $      | 0.6    |   |   | $ | 43.2 |   |
| State      and      local                                                                                 |   |   | (0.4   | )      |   |   | 1.7    |   |   |   | 3.0 |   |
| Total      current                                                                                                            |   |   | 14.4   |   |   |   | 2.3    |   |   |   | 46.2 |   |
| Deferred      (primarily      federal)                                                                    |   |   | 3.5    |   |   |   | (16.4  | )      |   |   | (8.1 | ) |
| Total      income tax (benefit)      expense                                                                                       |   | $      | 17.9   |   |   | $      | (14.1  | )      |   | $ | 38.1 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                    |   | 2009   |   |   | 2008   |   |   | 2007   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Statutory      federal income tax expense (benefit)                                                                                                                                                                                                                                                                                                                                                                     |   | $      | 16.3   |   |   | $      | (15.7  | )      |   | $ | 36.9 |   |
| State      income taxes net of federal income taxes                                                                                                                                                                                                                                                                                                                                                                     |   |   | 0.6    |   |   |   | 0.5    |   |   |   | 1.4 |   |
| Other                                                                    |   |   | 1.0    |   |   |   | 1.1    |   |   |   | (0.2 | ) |
| Income      tax expense      (benefit)                                                                                          |   | $      | 17.9   |   |   | $      | (14.1  | )      |   | $ | 38.1 |   |

----

INDEX

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | 2009   |   |   | 2008   |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Deferred      tax assets:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |
| Pension      and other postretirement      benefits                                                                                               |   | $      | 13.8   |   |   | $      | 8.6 |   |
| Allowance      for      losses                                                                                                                    |   |   | 11.9   |   |   |   | 10.4 |   |
| Secured      borrowings                                                                                                                           |   |   | 48.0   |   |   |   | 47.8 |   |
| Market      value adjustments on derivatives and retained interest                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   | 16.3   |   |   |   | 23.1 |   |
| Other                                                                                                                                             |   |   | 6.2    |   |   |   | 8.6 |   |
| Less      valuation      allowance                                                                                                                |   |   | (0.9   | )      |   |   | (1.5 | ) |
| Total      deferred tax      assets                                                                                                                         |   |   | 95.3   |   |   |   | 97.0 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |
| Deferred      tax liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |
| Lease      transactions                                                                                                                           |   |   | (24.1  | )      |   |   | (27.0 | ) |
| Equipment      under operating      lease                                                                                                         |   |   | (24.7  | )      |   |   | (23.6 | ) |
| Total      deferred tax      liabilities                                                                                                                    |   |   | (48.8  | )      |   |   | (50.6 | ) |
| Net      deferred tax      assets                                                                                                                                                                                                                          |   | $      | 46.5   |   |   | $      | 46.4 |   |

| Balance      at November 1,      2008                                                                                                |   | $      | 10.3 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------|--------|
| Increase      related to prior year tax      positions                                                                               |   |   | -    |   |
| Decrease      related to prior year tax      positions                                                                               |   |   | (0.5 | )      |
| Decrease      related to current year tax      positions                                                                             |   |   | (0.8 | )      |
| Reductions      related to lapse in applicable statute of limitations                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   | (1.1 | )      |
| Balance      at October 31,      2009                                                                                                                                                       |   | $      | 7.9  |   |

----

INDEX

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |    |   |   |   |    | Weighted      Average Interest Rate |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|-------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | 2009   |    |   | 2008   |   |    | 2009                                |   |   | 2008 |   |
| Senior      bank credit facility at variable rates due July 2010, refinanced      subsequent  to year end                                                                                                                                                                                                                                                                                                                                                                                                                     |   | $      | 1,267.9 |   |   | $      | 1,057.6 |                                |   |   | 2.3 | % |   |   | 5.7 | % |
| Revolving      retail warehouse facility at variable rates due June 2010                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   | 500.0   |   |   |   | 500.0   |                                |   |   | 0.5 | % |   |   | 4.6 | % |
| Borrowings      secured by asset-backed securities at various      rates,   currently between 0.5% and 4.4% due serially      through 2016                                                                                                                                                                                                                                                                                                                                                                               |   |   | 1,191.5 |   |   |   | 1,989.6 |                                |   |   | 1.6 | % |   |   | 3.8 | % |
| Borrowings      secured by operating and finance leases at rates currently between 2.6%      and 6.6% due serially through July 2016                                                                                                                                                                                                                                                                                                                                                                                                    |   |   | 134.2   |   |   |   | 131.9   |                                |   |   | 4.0 | % |   |   | 4.5 | % |
| Total      senior and secured      borrowings                                                                                |   | $      | 3,093.6 |   |   | $      | 3,679.1 |                                |   |   | 1.8 | % |   |   | 4.5 | % |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | 2009   |   |   | 2008   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Revolver      bank      loan                                                                                           |   | $      | 800.0  |   |   | $      | 800.0 |   |
| NFC      revolving loan      utilized                                                                                  |   |   | (670.5 | )      |   |   | (454.0 | ) |
| Mexican      sub-revolver loan utilized                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   | (14.0  | )      |   |   | (100.0 | ) |
| Total      availability                                                                                                                         |   | $      | 115.5  |   |   | $      | 246.0 |   |

----

INDEX

| Year      ended October 31                                                                                                                                                                                                                                                                                                                           |   |   |    |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|
| 2010                                                         |   | $      | 692.2   |   |
| 2011                                                         |   |   | 210.4   |   |
| 2012                                                         |   |   | 25.1    |   |
| 2013                                                                                                                                                                                                                                                                                                                                                 |   |   | 1,042.8 |   |
| 2014                                                                                                                                                                                                                                                                                                                                                 |   |   | 344.7   |   |
| Thereafter                                                                                                                                                                                                                                                                                                                                           |   |   | 778.4   |   |
| Total                                                                                                          |   | $      | 3,093.6 |   |

----

INDEX

|                                                                                                                                                                                                                                                                                                                                                                                             |   | Pension      Benefits |   |   | Other      Benefits |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------|--------|--------|---------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                             |   | 2009                  |   |   | 2008                |   |   | 2009 |   |   | 2008 |   |
| Change in benefitobligation                                                                                                                                                                                                                                                                                                                                                                      |   |                  |   |   |                |   |   |   |   |   |   |   |
| Benefit      obligation at beginning of year                                                                                                                                                                                                                                                                                                                                                     |   | $                     | 51.9   |   |                | $      | 65.5 |   |   | $ | 15.2 |   |   | $ | 20.4 |   |
| Amendments                                                                                               |   |                  | 0.5    |   |                |   | - |   |   |   | - |   |   |   | - |   |
| Service      cost                                                                                        |   |                  | 0.3    |   |                |   | 0.3 |   |   |   | 0.1 |   |   |   | 0.1 |   |
| Interest      on      obligation                                                                         |   |                  | 4.2    |   |                |   | 3.9 |   |   |   | 1.2 |   |   |   | 1.2 |   |
| Actuarial      net loss      (gain)                                                                      |   |                  | 13.0   |   |                |   | (13.1 | ) |   |   | 3.0 |   |   |   | (5.4 | ) |
| Plan      participants’      contributions                                                         |   |                  | -      |   |                |   | - |   |   |   | 0.3 |   |   |   | 0.2 |   |
| Benefits      paid                                                                                       |   |                  | (4.3   | )      |                |   | (4.7 | ) |   |   | (1.6 | ) |   |   | (1.5 | ) |
| Subsidy      receipts                                                                                    |   |                  | -      |   |                |   | - |   |   |   | 0.2 |   |   |   | 0.2 |   |
| Benefit      obligation at end of      year                                                              |   | $                     | 65.6   |   |                | $      | 51.9 |   |   | $ | 18.4 |   |   | $ | 15.2 |   |
|                                                                                                                                                                                                                                                                                                                                                                                             |   |                  |   |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Change in plan assets                                                                                                                                                                                                                                                                                                                                                                            |   |                  |   |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Fair      value of plan assets at beginning of year                                                                                                                                                                                                                                                                                                                                              |   | $                     | 42.4   |   |                | $      | 68.1 |   |   | $ | 6.0 |   |   | $ | 9.5 |   |
| Actual      return on plan      assets                                                                   |   |                  | 5.5    |   |                |   | (21.5 | ) |   |   | 0.9 |   |   |   | (3.1 | ) |
| Employer      contributions                                                                              |   |                  | 0.5    |   |                |   | 0.5 |   |   |   | - |   |   |   | 0.1 |   |
| Benefits      paid                                                                                       |   |                  | (4.3   | )      |                |   | (4.7 | ) |   |   | (0.4 | ) |   |   | (0.5 | ) |
| Fair      value of plan assets at end of year                                                                                                                                                                                                                                                                                                                                                    |   | $                     | 44.1   |   |                | $      | 42.4 |   |   | $ | 6.5 |   |   | $ | 6.0 |   |
|                                                                                                                                                                                                                                                                                                                                                                                             |   |                  |   |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Unfunded      status                                                                                     |   | $                     | (21.5  | )      |                | $      | (9.5 | ) |   | $ | (11.9 | ) |   | $ | (9.2 | ) |

| Amounts      recognized in the consolidated statements of      financial condition consist of:                                                                                                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Other      assets                                                                       |   | $      | -      |   |   | $      | -      |   |   | $      | -      |   |   | $ | - |   |
| Other      liabilities                                                                  |   |   | (21.5  | )      |   |   | (9.5   | )      |   |   | (11.9  | )      |   |   | (9.2 | ) |
| Net      amount      recognized                                                         |   | $      | (21.5  | )      |   | $      | (9.5   | )      |   | $      | (11.9  | )      |   | $ | (9.2 | ) |

| Amounts      recognized in our accumulated other comprehensive loss (pretax) consist      of:                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Net      actuarial loss      (gain)                                                         |   | $      | 25.8   |   |   | $      | 15.0   |   |   | $      | 0.2    |   |   | $ | (2.7 | ) |
| Prior      service      cost                                                                |   |   | 0.5    |   |   |   | 0.1    |   |   |   | -      |   |   |   | - |   |
| Net      amount      recognized                                                             |   | $      | 26.3   |   |   | $      | 15.1   |   |   | $      | 0.2    |   |   | $ | (2.7 | ) |

----

INDEX

|                                                                                                                                                                                                                                                                                         |   | Pension      Benefits |   |   | Other      Benefits |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------|--------|--------|---------------------|--------|
|                                                                                                                                                                                                                                                                                         |   | 2009                  |   |   | 2008                |   |   | 2007 |   |   | 2009 |   |   | 2008 |   |   | 2007 |   |
| Service      cost for benefits earned during   theperiod                                                                                                                                                                                                                      |   | $                     | 0.3    |   |                | $      | 0.3 |   |   | $ | 0.3 |   |   | $ | 0.1 |   |   | $ | 0.1 |   |   | $ | 0.1 |   |
| Interest      on      obligation                                           |   |                  | 4.2    |   |                |   | 3.9 |   |   |   | 3.9 |   |   |   | 1.2 |   |   |   | 1.2 |   |   |   | 1.2 |   |
| Amortization      of cumulative losses (gains)                                                                                                                                                                                                                                          |   |                  | 0.5    |   |                |   | 0.2 |   |   |   | 0.5 |   |   |   | (0.2 | ) |   |   | - |   |   |   | - |   |
| Less      expected return on assets                                                                                                                                                                                                                                                          |   |                  | (3.6   | )      |                |   | (5.9 | ) |   |   | (5.3 | ) |   |   | (0.5 | ) |   |   | (0.8 | ) |   |   | (0.7 | ) |
| Net      postretirement benefits expense (income):                                                                                                                                                                                                                                           |   | $                     | 1.4    |   |                | $      | (1.5 | ) |   | $ | (0.6 | ) |   | $ | 0.6 |   |   | $ | 0.5 |   |   | $ | 0.6 |   |

| Actuarial      net loss      (gain)                                             |   | $      | 11.2 |   |   | $      | 13.6 |   |   | $      | -    |   |   | $      | 2.7 |   |   | $      | (1.5 | )      |   | $      | -   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------|--------|--------|--------|------|--------|--------|--------|------|--------|--------|--------|-----|--------|--------|--------|------|--------|--------|--------|-----|--------|
| Prior      service cost      (credit)                                           |   |   | 0.5  |   |   |   | 0.1  |   |   |   | -    |   |   |   | -   |   |   |   | -    |   |   |   | -   |   |
| Amortization      of cumulative losses                                                                                                                                                                                                                                                            |   |   | (0.5 | )      |   |   | (0.2 | )      |   |   | -    |   |   |   | .2  |   |   |   | -    |   |   |   | -   |   |
| Minimum      pension liability adjustment                                                                                                                                                                                                                                                    |   |   | -    |   |   |   | -    |   |   |   | (0.5 | )      |   |   | -   |   |   |   | -    |   |   |   | -   |   |
| Total      recognized in other comprehensive loss                                                                                                                                                                                                                                                 |   |   | 11.2 |   |   |   | 13.5 |   |   |   | (0.5 | )      |   |   | 2.9 |   |   |   | (1.5 | )      |   |   | -   |   |
| Total      recognized in net periodic benefit cost (income) and other comprehensive      loss                                                                                                                                                                                                     |   | $      | 12.6 |   |   | $      | 12.0 |   |   | $      | (1.1 | )      |   | $      | 3.5 |   |   | $      | (1.0 | )      |   | $      | 0.6 |   |

----

INDEX

|                                                                                         |   | Pension      Benefits |   |   | Other      Benefits |   |
|----------------------------------------------------------------------------------------------|--------|-----------------------|--------|--------|---------------------|--------|
|                                                                                         |   | 2009                  |   |   | 2008                |   |   | 2009 |   |   | 2008 |   |
| Discount      rate used to determine present value of benefit obligation at end of      year |   |                  | 5.4    | %      |                |   | 8.4 | % |   |   | 5.4 | % |   |   | 8.4 | % |
|  Expected      rate of increase in future compensation levels                           |   |                  | 3.5    | %      |                |   | 3.5 | % |   |   | N/A |   |   |   | N/A |   |

|                                                                                                                                                                                                                                                                                                        |   | Pension      Benefits |   |   | Other      Benefits |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------|--------|--------|---------------------|--------|
|                                                                                                                                                                                                                                                                                                        |   | 2009                  |   |   | 2008                |   |   | 2007 |   |   | 2009 |   |   | 2008 |   |   | 2007 |   |
| Discount      rate                                                                                                                                                                                                                                                                                          |   |                  | 8.4    | %      |                |   | 6.1 | % |   |   | 5.7 | % |   |   | 8.4 | % |   |   | 6.1 | % |   |   | 5.7 | % |
| Expected      long-term rate of return on plan      assets                                               |   |                  | 9.0    | %      |                |   | 9.0 | % |   |   | 9.0 | % |   |   | 9.0 | % |   |   | 9.0 | % |   |   | 9.0 | % |
| Expected      rate of increase in future compensation      levels                                        |   |                  | 3.5    | %      |                |   | 3.5 | % |   |   | 3.5 | % |   |   | N/A |   |   |   | N/A |   |   |   | N/A |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | One-PercentagePoint      Increase |   |   | One-PercentagePoint      Decrease |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|--------|--------|-----------------------------------|--------|
| Effect      on total of service and interest cost components                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | $                                 | 0.1    |   |                              | $      | (0.1 | ) |
|  Effect      on postretirement benefit      obligation                                                                           |   |                              | 1.8    |   |                              |   | (1.6 | ) |

----

INDEX

|                                                                                                                                                                                                                                                       |   | Pension      Benefits |   |   | Other      Benefits |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------|--------|--------|---------------------|--------|
|  Asset      Category                                                                                                                                                                                                                                  |   | Target      Range     |   |   | 2009                |   |   | 2008 |   |   | TargetRange |   |   | 2009 |   |   | 2008 |   |
| Equity      securities                                       |   |                  |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        NIC common      stock                                           |   |                  |   |   |                | -      |   |   |   | - |   |   |   |   |   |   | 8 | % |   |   | 10 | % |
|        Other equity securities                                                                                                                                                                                                                        |   |                  |   |   |                | 65     | % |   |   | 73 | % |   |   |   |   |   | 46 | % |   |   | 50 | % |
|        Hedge      funds                                                |   |                  |   |   |                | -      |   |   |   | - |   |   |   |   |   |   | 7 | % |   |   | 15 | % |
| Private      equity                                                                                                                                                                                                                                        |   |                  |   |   |                | -      |   |   |   | - |   |   |   |   |   |   | 2 | % |   |   | - |   |
| Total      equity securities                                                                                                                                                                                                                               |   |                  | 60-80  | %      |                |   | 65 | % |   |   | 73 | % |   |   | 50-85 | % |   |   | 63 | % |   |   | 75 | % |
|                                                                                                                                                                                                                                                       |   |                  |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        Debt      securities                                            |   |                  |   |   |                |   | 30 | % |   |   | 27 | % |   |   |   |   |   |   | 32 | % |   |   | 20 | % |
|        Other, including      cash                                      |   |                  |   |   |                |   | 5 | % |   |   | - |   |   |   |   |   |   |   | 5 | % |   |   | 5 | % |
| Total      debt securities and other                                                       |   |                  | 20-40  | %      |                |   | 35 | % |   |   | 27 | % |   |   | 15-50 | % |   |   | 37 | % |   |   | 25 | % |
|                                                                                                                                                                                                                                                       |   |                  |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                                                                                                                                                                                                                                                            |   | PensionBenefit      Payments |   |   | Other      PostretirementBenefit      Payments |   |   | PostretirementBenefit      Subsidy Receipts |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|--------|--------|------------------------------------------------|--------|--------|---------------------------------------------|--------|
| 2010                                                              |   | $                            | 4.8    |   |                                           | $      | 1.5    |                                        |   | $ | 0.2 |   |
| 2011                                                              |   |                         | 4.9    |   |                                           |   | 1.6    |                                        |   |   | 0.3 |   |
| 2012                                                              |   |                         | 4.9    |   |                                           |   | 1.6    |                                        |   |   | 0.3 |   |
| 2013                                                              |   |                         | 4.9    |   |                                           |   | 1.7    |                                        |   |   | 0.3 |   |
| 2014                                                              |   |                         | 5.0    |   |                                           |   | 1.7    |                                        |   |   | 0.3 |   |
| 2015      through      2019                                       |   |                         | 24.5   |   |                                           |   | 8.6    |                                        |   |   | 1.8 |   |

----

INDEX

| Year      Ended October 31                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|
| 2010                                                                                       |   | $      | 1.7    |   |
| 2011                                                                                       |   |   | 1.4    |   |
| 2012                                                                                       |   |   | 1.4    |   |
| 2013                                                                                       |   |   | 1.2    |   |
| 2014                                                                                       |   |   | 1.3    |   |
| 2015      and      beyond                                                                  |   |   | 1.5    |   |
| Total                                                                                                                    |   | $      | 8.5    |   |

| Type      of Funding           |   |  Maturity |   | Maximum      Amountof      Guaranty |                |   | OutstandingBalance |   |
|--------------------------------|--------|----------------|--------|-------------------------------------|---------------------|--------|--------------------|--------|
| Revolving      credit facility |   |           | (1     | )                                   | August      2013    |   | $                  | 13.3   |   |   | $ | 8.0 |   |
| Revolving      credit facility |   |           | (1     | )                                   | May      2011       |   |               | 15.2   |   |   |   | 5.6 |   |
| Revolving      credit facility |   |           | (1     | )                                   | June      2010      |   |               | 25.0   |   |   |   | 23.8 |   |
| Revolving      credit facility |   |           | (1     | )                                   | October      2011   |   |               | 20.9   |   |   |   | 19.6 |   |
| Revolving      credit facility |   |           | (1     | )                                   | September      2015 |   |               | 136.9  |   |   |   | 128.5 |   |
| Revolving      credit facility |   |           | (2     | )                                   | July      2010      |   |               | 100.0  |   |   |   | 14.0 |   |
|                           |   |           |   |                                | Total               |   | $                  | 311.3  |   |   | $ | 199.5 |   |

----

INDEX

----

INDEX

|                                                                                                                                                                                                                                                                                                                             |   | Other      Assets |    |   | Other      Liabilities |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|---------|--------|------------------------|--------|
| October      31, 2009                                                                                                                                                                                                                                                                                                            |   | NotionalAmount    |    |   | Fair      Value        |   |   | NotionalAmount |   |   | Fair      Value |   |
| Interest      rate      swaps                                                         |   | $                 | 1,124.7 |   |                   | $      | 32.4 |   |   | $ | 2,314.1 |   |   | $ | 61.1 |   |
| Interest      rate caps      purchased                                                |   |              | 500.0   |   |                   |   | 4.8 |   |   |   | - |   |   |   | - |   |
| Interest      rate caps      sold                                                     |   |              | -       |   |                   |   | - |   |   |   | 500.0 |   |   |   | 4.1 |   |
| Total      derivatives                                                                                    |   | $                 | 1,624.7 |   |                   | $      | 37.2 |   |   | $ | 2,814.1 |   |   | $ | 65.2 |   |

|                                                                                                                                                                                                                                                                                                                             |   | Other      Assets |    |   | Other      Liabilities |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|---------|--------|------------------------|--------|
| October      31, 2008                                                                                                                                                                                                                                                                                                            |   | NotionalAmount    |    |   | Fair      Value        |   |   | NotionalAmount |   |   | Fair      Value |   |
| Interest      rate      swaps                                                         |   | $                 | 1,636.4 |   |                   | $      | 38.7 |   |   | $ | 3,469.0 |   |   | $ | 79.6 |   |
| Interest      rate caps      purchased                                                |   |              | 500.0   |   |                   |   | 3.3 |   |   |   | - |   |   |   | - |   |
| Interest      rate caps      sold                                                     |   |              | -       |   |                   |   | - |   |   |   | 500.0 |   |   |   | 3.3 |   |
| Total      derivatives                                                                                    |   | $                 | 2,136.4 |   |                   | $      | 42.0 |   |   | $ | 3,969.0 |   |   | $ | 82.9 |   |

|                                                                                                                                                                                                                                                                                                                         |   | 2009   |   |   | 2008   |   |   | 2007   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|          Interest rate      swaps                                                 |   | $      | 41.3   |   |   | $      | 55.0   |   |   | $ | 8.9 |   |
|          Interest rate caps purchased                                                                                                                                                                                                                                                                         |   |   | (1.5   | )      |   |   | (1.2   | )      |   |   | 1.0 |   |
|          Interest rate caps      sold                                             |   |   | 0.8    |   |   |   | 1.2    |   |   |   | (1.0 | ) |
| Total                                                                                                                     |   | $      | 40.6   |   |   | $      | 55.0   |   |   | $ | 8.9 |   |

----

INDEX

|                                                                                                                                                                                                                                                                                                                |  Maturity     |   | October      31,2009 |   |   | October      31,2008 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------|--------|----------------------|--------|--------|----------------------|--------|
| Investor      certificate                                                | February      2010 |   | $                    | 212.0  |   |                 | $      | 212.0 |   |
| Variable      funding certificate (“VFC”)                                                                                                                                                                                                                                                               | August      2010   |   |                 | 650.0  |   |                 |   | 800.0 |   |
| Total                                                                                   |               |   | $                    | 862.0  |   |                 | $      | 1,012.0 |   |

|                                                                                                                                                                                                                                                                                                                         |  Maturity    |   | October      31,2009 |   |   | October      31,2008 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------|--------|----------------------|--------|--------|----------------------|--------|
| Conduit      funding      facility                                                | October      2010 |   | $                    | 100.0  |   |                 | $      | 100.0 |   |
| Funding      utilized                                                             |              |   |                 | (7.7   | )      |                 |   | (47.5 | ) |
| Total      availability                                                                          |              |   | $                    | 92.3   |   |                 | $      | 52.5 |   |

----

INDEX

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | October      31,2009 |   |   | October      31,2008 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------|--------|--------|----------------------|--------|
| Excess      seller’s      interest                                                                                               |   | $                    | 275.3  |   |                 | $      | 218.7 |   |
| Interest      only      strip                                                                                                          |   |                 | 9.6    |   |                 |   | 2.1 |   |
| Restricted      cash      reserves                                                                                                     |   |                 | 6.6    |   |                 |   | 8.8 |   |
| Total      amounts due from sales of      receivables                                                                                                 |   | $                    | 291.5  |   |                 | $      | 229.6 |   |

|                                                                                                                                                                                                                                                                                                                                                                        | October      31,                                | October      31,                                |   | Adverse      Fair ValueChange      atOctober      31, 2009 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------|-------------------------------------------------|--------|------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                        | 2009                                            | 2008                                            |   |                                                       | 10     | % |   |   | 20 | % |
| Discount      rate      (annual)                                                         |    9.1  to      20.5 % |  14.6  to      23.0 %            |   | $                                                          | 2.4    |   |   | $ | 5.5 |   |
| Estimated      credit      losses                                                        |    0.0  to      0.24 % |    0.0  to      0.24 % |   |                                                       | 0.1    |   |   |   | 0.2 |   |
| Payment      speed (percent of portfolio per month)                                                                                                                                                                                                                                                                                                                         |    4.9  to      70.8 % |    8.8  to      75.7 % |   |                                                       | 0.4    |   |   |   | 0.9 |   |

|  2009                                                                                                                                                                                                                                    |   | Retail      Notes |    |   | Finance      Leases |   |   | Wholesale      Notes |   |   | Accounts |   |   | Affiliates |   |   | Total  |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|---------|--------|---------------------|--------|--------|----------------------|--------|--------|----------|--------|--------|------------|--------|--------|--------|--------|
| Serviced      portfolio                                             |   | $                 | 1,955.2 |   |                | $      | 121.5  |                 |   | $      | 835.3    |   |   | $          | 383.2  |   |   | $      | 250.0 |   |   | $ | 3,545.2 |   |
| Less      sold receivables – off-balance      sheet                               |   |              | -       |   |                |   | -      |                 |   |   | (667.4   | )      |   |       | (89.2  | )      |   |   | (95.7 | ) |   |   | (852.3 | ) |
| Total      on-balance sheet.                                                                                                                                                                                                                  |   | $                 | 1,955.2 |   |                | $      | 121.5  |                 |   | $      | 167.9    |   |   | $          | 294.0  |   |   | $      | 154.3 |   |   | $ | 2,692.9 |   |

|  2008                                                                                                                                                                                                                                         |   | Retail      Notes |    |   | Finance      Leases |   |   | Wholesale      Notes |   |   | Accounts |   |   | Affiliates |   |   | Total  |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|---------|--------|---------------------|--------|--------|----------------------|--------|--------|----------|--------|--------|------------|--------|--------|--------|--------|
| Serviced      portfolio                                             |   | $                 | 2,468.0 |   |                | $      | 122.7  |                 |   | $      | 839.4    |   |   | $          | 320.7  |   |   | $      | 309.5 |   |   | $ | 4,060.3 |   |
| Less      sold receivables –off-balance      sheet                                |   |              | -       |   |                |   | -      |                 |   |   | (721.4   | )      |   |       | (123.1 | )      |   |   | (97.2 | ) |   |   | (941.7 | ) |
| Total      on-balance sheet                                                                                                                                                                                                                        |   | $                 | 2,468.0 |   |                | $      | 122.7  |                 |   | $      | 118.0    |   |   | $          | 197.6  |   |   | $      | 212.3 |   |   | $ | 3,118.6 |   |

----

INDEX

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | 2009   |   |   | 2008   |   |   | 2007   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Fair      value      adjustments                                                                                  |   | $      | 50.2   |   |   | $      | 1.3    |   |   | $ | 4.6 |   |
| Excess      spread      income                                                                                    |   |   | 28.8   |   |   |   | 19.6   |   |   |   | 53.5 |   |
| Servicing      fees      revenue                                                                                  |   |   | 8.1    |   |   |   | 10.0   |   |   |   | 15.3 |   |
| Losses      on sales of      receivables                                                                          |   |   | (48.1  | )      |   |   | (23.8  | )      |   |   | (9.3 | ) |
| Investment      income                                                                                            |   |   | 1.5    |   |   |   | 5.1    |   |   |   | 9.1 |   |
| Securitization      income                                                                                                                                          |   | $      | 40.5   |   |   | $      | 12.2   |   |   | $ | 73.2 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | 2009   |    |   | 2008   |   |    | 2007   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
| Proceeds      from sales of finance      receivables                                                                          |   | $      | 4,125.0 |   |   | $      | 4,455.8 |   |   | $ | 5,056.1 |   |
| Servicing      fees                                                                                                           |   |   | 8.1     |   |   |   | 9.2     |   |   |   | 15.9 |   |
| Cash      from net excess      spread                                                                                         |   |   | 30.4    |   |   |   | 16.9    |   |   |   | 49.7 |   |
| Investment      income                                                                                                        |   |   | 1.2     |   |   |   | 3.7     |   |   |   | 7.1 |   |
| Net      cash from securitization transactions                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | $      | 4,164.7 |   |   | $      | 4,485.6 |   |   | $ | 5,128.8 |   |

----

INDEX

|                                       |   | Consolidated |     |   | Other           |   |   |   |   |
|--------------------------------------------|--------|--------------|----------|--------|-----------------|--------|--------|--------|--------|
| October      31, 2009                      |   | VIEs         |     |   | Securitizations |   |   | Total  |   |
| Finance      receivables, net of allowance |   | $            | 1,310.8  |   |            | $      | 404.9  |   |   | $ | 1,715.7 |   |
| Net      investment in operating leases    |   |         | -        |   |            |   | 79.5   |   |   |   | 79.5 |   |
| Restricted      cash and cash equivalents  |   |         | 134.9    |   |            |   | 286.7  |   |   |   | 421.6 |   |
| Vehicle      inventory                     |   |         | 13.9     |   |            |   | 5.6    |   |   |   | 19.5 |   |
| Net      derivative fair value             |   |         | (31.6    | )      |            |   | 4.8    |   |   |   | (26.8 | ) |
| Secured      borrowings                    |   |         | (1,191.5 | )      |            |   | (634.2 | )      |   |   | (1,825.7 | ) |

|                                       |   | Consolidated |     |   | Other           |   |   |   |   |
|--------------------------------------------|--------|--------------|----------|--------|-----------------|--------|--------|--------|--------|
| October      31, 2008                      |   | VIEs         |     |   | Securitizations |   |   | Total  |   |
| Finance      receivables, net of allowance |   | $            | 1,983.1  |   |            | $      | 333.6  |   |   | $ | 2,316.7 |   |
| Net      investment in operating leases    |   |         | -        |   |            |   | 72.9   |   |   |   | 72.9 |   |
| Restricted      cash and cash equivalents  |   |         | 205.5    |   |            |   | 309.7  |   |   |   | 515.2 |   |
| Vehicle      inventory                     |   |         | 22.8     |   |            |   | 7.9    |   |   |   | 30.7 |   |
| Net      derivative fair value             |   |         | (38.7    | )      |            |   | 3.3    |   |   |   | (35.4 | ) |
| Secured      borrowings                    |   |         | (1,989.6 | )      |            |   | (631.9 | )      |   |   | (2,621.5 | ) |

|   |    |                                                                                                                                                                                                                                                             |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | • | Defines      fair value as the price that would be received to sell an asset or paid to      transfer a liability in an orderly transaction between market participants      at the measurement date, and establishes a framework for measuring fair      value; |
|   |    |                                                                                                                                                                                                                                                             |
|   | • | Establishes      a three-level hierarchy of fair value measurements based upon the      observability of inputs used to value assets and liabilities as of the      measurement date;                                                                            |
|   |    |                                                                                                                                                                                                                                                             |
|   | • | Requires      consideration of  non-performance risk ; and                                                                                                                                                                                             |
|   |    |                                                                                                                                                                                                                                                             |
|   | • | Expands      disclosures about instruments measured at fair value.                                                                                                                                                                                     |

----

INDEX

|   |    |                                                                                                                                                                                                                                                                          |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | • | Level 1 —      based upon quoted prices for identical instruments      in active markets;                                                                                                                                                                     |
|   |    |                                                                                                                                                                                                                                                                          |
|   | • | Level 2 —      based upon quoted prices for similar instruments in      active markets; quoted prices for identical or similar instruments in      markets that are not active; or model-derived valuations whose significant      inputs are observable: and |
|   |    |                                                                                                                                                                                                                                                                          |
|   | • | Level 3 —      based upon one or more significant unobservable  input                                                                                                                                                                                         |

----

INDEX

|                                                                                                                                                                                                                                                                                                                                                                                                |   | 2009                |    |   | 2008      |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|---------|--------|-----------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                |   | Carrying      Value |    |   | FairValue |   |   | Carrying      Value |   |   | FairValue |   |
| Financial      assets:                                                                                                                                                                                                                                                                                                                                                                              |   |                |    |   |      |   |   |   |   |   |   |   |
| Cash      and cash      equivalents                                                                    |   | $                   | 16.1    |   |      | $      | 16.1 |   |   | $ | 34.4 |   |   | $ | 34.4 |   |
| Retail      notes                                                                                      |   |                | 1,955.2 |   |      |   | 1,814.5 |   |   |   | 2,468.0 |   |   |   | 2,220.5 |   |
| Finance      receivables from      affiliates                                                          |   |                | 154.3   |   |      |   | 144.1 |   |   |   | 212.3 |   |   |   | 198.6 |   |
| Accounts      (wholesale and      retail)                                                              |   |                | 294.0   |   |      |   | 294.0 |   |   |   | 197.6 |   |   |   | 197.6 |   |
| Wholesale      notes                                                                                   |   |                | 167.9   |   |      |   | 167.9 |   |   |   | 118.0 |   |   |   | 118.0 |   |
| Amounts      due from sales of receivables                                                                                                                                                                                                                                                                                                                                                          |   |                | 291.5   |   |      |   | 291.5 |   |   |   | 229.6 |   |   |   | 229.6 |   |
| Restricted      cash and cash  equivalents                                                                                                                                                                                                                                                                                                                                                |   |                | 421.8   |   |      |   | 421.8 |   |   |   | 515.4 |   |   |   | 515.4 |   |
| Derivative      financial      instruments                                                             |   |                | 37.2    |   |      |   | 37.2 |   |   |   | 42.0 |   |   |   | 42.0 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                |   |                |    |   |      |   |   |   |   |   |   |   |   |   |   |   |
| Financial      liabilities:                                                                                                                                                                                                                                                                                                                                                                         |   |                |    |   |      |   |   |   |   |   |   |   |   |   |   |   |
| Senior      and secured      borrowings                                                                |   |                | 3,093.6 |   |      |   | 3,008.2 |   |   |   | 3,679.1 |   |   |   | 3,662.5 |   |
| Derivative      financial      instruments                                                             |   |                | 65.2    |   |      |   | 65.2 |   |   |   | 82.9 |   |   |   | 82.9 |   |

|                                                                                                                                                                                                                                                                                                                                                                           |   |         |   |   |         |   |   |         |   |   |   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|--------|--------|--------------|--------|--------|--------------|--------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                           |   | Level      1 |   |   | Level      2 |   |   | Level      3 |   |   | Total  |   |
| Assets:                                                                                                                                                                                                                                                                                                                                                                        |   |         |   |   |         |   |   |         |   |   |   |   |
| Derivative      financial instruments                                                                                                                                                                                                                                                                                                                                          |   | $            | -      |   |         | $      | 4.8    |         |   | $      | 32.4   |   |   | $ | 37.2 |   |
| Amounts      due from sales of receivables                                                                                                                                                                                                                                                                                                                                     |   |         | -      |   |         |   | -      |         |   |   | 291.5  |   |   |   | 291.5 |   |
| Assets      total                                                                                               |   | $            | -      |   |         | $      | 4.8    |         |   | $      | 323.9  |   |   | $ | 328.7 |   |
| Liabilities:                                                                                                                                                                                                                                                                                                                                                                   |   |         |   |   |         |   |   |         |   |   |   |   |   |   |   |   |
| Derivative      financial      instruments                                                       |   |         | -      |   |         |   | 33.6   |         |   |   | 31.6   |   |   |   | 65.2 |   |
| Liabilities      total                                                                                          |   | $            | -      |   |         | $      | 33.6   |         |   | $      | 31.6   |   |   | $ | 65.2 |   |

|                                                                                                                                                                                                                                                                                                                                           |   | NetDerivatives |   |   | Retained      Interests |   |   | Total  |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|--------|--------|-------------------------|--------|--------|--------|--------|
| Beginning      balance                                                     |   | $              | -      |   |                    | $      | 229.6  |   |   | $ | 229.6 |   |
| Realized      gains included in earnings                                                                                                                                                                                                                                                                                                       |   |           | 0.8    |   |                    |   | 5.0    |   |   |   | 5.8 |   |
| Purchases,      issuances and settlements                                                                                                                                                                                                                                                                                                      |   |           | -      |   |                    |   | 56.9   |   |   |   | 56.9 |   |
| Ending      balance                                                                       |   | $              | 0.8    |   |                    | $      | 291.5  |   |   | $ | 292.3 |   |
|                                                                                                                                                                                                                                                                                                                                           |   |           |   |   |                    |   |   |   |   |   |   |   |

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INDEX

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INDEX

|                                                                                                                                                                                                                                                                                                                                                                                 |   | 1st      Quarter EndedJanuary      31, |   |   | 2nd Quarter      EndedApril      30, |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------|--------|--------|-------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                 |   | 2009                                   |   |   | 2008                                      |   |   | 2009 |   |   | 2008 |   |
| Financing      revenue                                                                            |   | $                                      | 57.6   |   |                                      | $      | 73.2 |   |   | $ | 53.5 |   |   | $ | 69.8 |   |
| Securitization      income                                                                        |   |                                   | 10.1   |   |                                      |   | 9.9 |   |   |   | 11.4 |   |   |   | 8.1 |   |
| Operating      leases and other revenue                                                                                                                                                                                                                                                                                                                                              |   |                                   | 8.0    |   |                                      |   | 13.9 |   |   |   | 6.8 |   |   |   | 12.7 |   |
| Interest      expense                                                                             |   |                                   | 26.9   |   |                                      |   | 62.3 |   |   |   | 15.1 |   |   |   | 46.8 |   |
| Credit,      collection and administrative                                                                                                                                                                                                                                                                                                                                           |   |                                   | 15.4   |   |                                      |   | 12.2 |   |   |   | 15.0 |   |   |   | 18.0 |   |
| Provision      for credit      losses                                                             |   |                                   | 4.0    |   |                                      |   | 4.6 |   |   |   | 8.4 |   |   |   | 6.0 |   |
| Depreciation      on operating      leases                                                        |   |                                   | 3.9    |   |                                      |   | 4.5 |   |   |   | 4.1 |   |   |   | 4.0 |   |
| Derivative      expense      (income)                                                             |   |                                   | 22.4   |   |                                      |   | 40.2 |   |   |   | 9.2 |   |   |   | (1.7 | ) |
| Net      income      (loss)                                                                       |   |                                   | (1.9   | )      |                                      |   | (19.2 | ) |   |   | 9.8 |   |   |   | 7.3 |   |

|                                                                                                                                                                                                                                                                                                                                                                                 |   | 3rd      Quarter EndedJuly      31, |   |   | 4th Quarter      EndedOctober      31, |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------|--------|--------|---------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                 |   | 2009                                |   |   | 2008                                        |   |   | 2009 |   |   | 2008 |   |
| Financing      revenue                                                                            |   | $                                   | 50.3   |   |                                        | $      | 61.8 |   |   | $ | 48.4 |   |   | $ | 58.5 |   |
| Securitization      income                                                                        |   |                                | 16.2   |   |                                        |   | 2.7 |   |   |   | 2.8 |   |   |   | (8.5 | ) |
| Operating      leases and other revenue                                                                                                                                                                                                                                                                                                                                              |   |                                | 7.1    |   |                                        |   | 9.6 |   |   |   | 6.9 |   |   |   | 12.9 |   |
| Interest      expense                                                                             |   |                                | 15.7   |   |                                        |   | 38.3 |   |   |   | 11.9 |   |   |   | 39.4 |   |
| Credit,      collection and administrative                                                                                                                                                                                                                                                                                                                                           |   |                                | 13.0   |   |                                        |   | 13.4 |   |   |   | 14.0 |   |   |   | 13.3 |   |
| Provision      for credit      losses                                                             |   |                                | 9.1    |   |                                        |   | 13.3 |   |   |   | 8.2 |   |   |   | 8.3 |   |
| Depreciation      on operating      leases                                                        |   |                                | 4.1    |   |                                        |   | 4.3 |   |   |   | 4.2 |   |   |   | 4.2 |   |
| Derivative      expense      (income)                                                             |   |                                | 4.5    |   |                                        |   | 1.1 |   |   |   | 4.5 |   |   |   | 15.4 |   |
| Net      income      (loss)                                                                       |   |                                | 13.9   |   |                                        |   | (1.4 | ) |   |   | 6.9 |   |   |   | (17.4 | ) |

|                                                                                                                                                                                                                                                                                                                               |   | As      ofJanuary      31, |    |   | As      of April      30, |   |    | As      ofJuly      31, |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------|---------|--------|--------------------------------|--------|---------|-------------------------|--------|
|                                                                                                                                                                                                                                                                                                                               |   | 2009                       |    |   | 2008                           |   |    | 2009                    |   |   | 2008 |   |   | 2009 |   |   | 2008 |   |
| Finance      receivables,      net                                                 |   | $                          | 2,860.7 |   |                           | $      | 3,710.9 |                    |   | $ | 2,823.3 |   |   | $ | 3,556.1 |   |   | $ | 2,582.8 |   |   | $ | 3,136.2 |   |
| Amounts      due from sales of receivables                                                                                                                                                                                                                                                                                         |   |                       | 198.8   |   |                           |   | 205.8   |                    |   |   | 239.2 |   |   |   | 240.1 |   |   |   | 220.3 |   |   |   | 263.4 |   |
| Restricted      cash and cash equivalents                                                                                                                                                                                                                                                                                          |   |                       | 365.3   |   |                           |   | 817.7   |                    |   |   | 619.5 |   |   |   | 691.2 |   |   |   | 475.5 |   |   |   | 636.7 |   |
| Total      assets                                                                  |   |                       | 3,672.5 |   |                           |   | 5,105.4 |                    |   |   | 3,922.5 |   |   |   | 4,792.1 |   |   |   | 3,513.9 |   |   |   | 4,359.3 |   |
| Senior      and secured borrowings                                                                                                                                                                                                                                                                                                 |   |                       | 3,169.8 |   |                           |   | 4,653.5 |                    |   |   | 3,431.4 |   |   |   | 4,352.7 |   |   |   | 3,031.3 |   |   |   | 3,926.2 |   |
| Total      liabilities and shareowner’s equity                                                                                                                                                                                                                                                                               |   |                       | 3,672.5 |   |                           |   | 5,105.4 |                    |   |   | 3,922.5 |   |   |   | 4,792.1 |   |   |   | 3,513.9 |   |   |   | 4,359.3 |   |

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INDEX

Item 9.   Changes in and Disagreements withAccountants on Accounting and Financial Disclosure

Item 9A.  Controls and Procedures

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INDEX

| ·   | Pertain      to the maintenance of records that, in reasonable detail, accurately and      fairly reflect the transactions and dispositions of assets of the      company. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Provide      reasonable assurance that transactions are recorded as necessary to permit      preparation of financial statements in accordance with GAAP and that      receipts and expenditures of the company are being made in accordance with      authorization of Management and the Board of  Directors. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Provide      reasonable assurance regarding prevention or timely detection of      unauthorized acquisition, use, or disposition of assets that could have a      material effect on the consolidated financial  statements. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Item 9B.  Other Information

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INDEX

PART III

Items 10, 11, 12 and 13

Item 14.  Principal Accountant Fees andServices

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INDEX

PART IV

Item 15.  Exhibits and Financial Statement Schedules

|   | 3        | Articles of Incorporation and      By-Laws                                                                                                                                  | E-1  |
|--------|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------|
|   | 4        |  Instruments Defining Rights of Security Holders,      including      Indentures                                                                                       | E-2  |
|   |  10 | Material      Contracts                                                                                                                                                     | E-3  |
|   |  12 | Calculation of Ratio of Earnings to Fixed      Charges                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | E-24 |
|   | 31.1     |  CEO Certification Pursuant to Rule 13a-14(a) and      15d-14(a)                                                                                                       | E-25 |
|   | 31.2     |  CFO Certification Pursuant to Rule 13a-14(a) and      15d-14(a)                                                                                                       | E-27 |
|   | 32       |  CEO and CFO Certification Pursuant to Section 1350      of Chapter 1350 of Chapter 63 of Title 18 of the United States      Code                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | E-29 |

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INDEX

SIGNATURE

|                         | Navistar Financial    Corporation                                                                                                                            |
|------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                         |                                                                                                                                                         | (Registrant) |
|                         |                                                                                                                                                         |   |
| Date:      December 21, 2009 |                             By:  /s/ | DAVID L. DERFELT |
|                         |                                                                                                                                                         | David      L. Derfelt |
|                         |                                                                                                                                                         | V.P.,      and Controller |
|                         |                                                                                                                                                         | (Principal      Accounting  Officer) |

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INDEX

|   | Signature                                                  |   | Title                                                                                                  |   | Date              |
|--------|------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------|--------|-------------------|
|   |                                                       |   |                                                                                                   |   |              |
| /s/    | WILLIAM V. MCMENAMINWilliam      V. McMenamin              |   | Vice      President, Chief Financial Officer and Treasurer; Director(Principal      Financial Officer) |   | December 21, 2009 |
|   |                                                       |   |                                                                                                   |   |              |
| /s/    | DAVID L.  DERFELTDavid      L. Derfelt           |   | Vice      President and Controller(Principal      Accounting Officer)                                  |   | December 21, 2009 |
|   |                                                       |   |                                                                                                   |   |              |
| /s/    | DAVID J.      JOHANNESON David      J. Johanneson     |   | President      and Chief Executive Officer; Director(Principal      Executive Officer)                 |   | December 21, 2009 |
|   |                                                       |   |                                                                                                   |   |              |
| /s/    | JOHN V. MULVANEY,      SR. John      V. Mulvaney, Sr. |   | Director                                                                                          |   | December 21, 2009 |
|   |                                                       |   |                                                                                                   |   |              |
| /s/    | RICHARD C.      TARAPCHAK Richard      C. Tarapchak   |   | Director                                                                                          |   | December 21, 2009 |
|   |                                                       |   |                                                                                                   |   |              |
| /s/    | ANDREW J. CEDEROTHAndrew      J. Cederoth                  |   | Director                                                                                          |   | December 21, 2009 |
|   |                                                       |   |                                                                                                   |   |              |
| /s/    | JACK J. ALLENJack      J.  Allen                 |   | Director                                                                                          |   | December 21, 2009 |
|   |                                                       |   |                                                                                                   |   |              |
| /s/    | ALICE M. PETERSONAlice      M. Peterson                    |   | Director                                                                                          |   | December 21,2009  |

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INDEX