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

| Large Accelerated      filer   [   ] | Accelerated      filer                           [   ] |
|--------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Non-Accelerated      filer     [X]        | Smaller      reporting    company    [   ]                                                                                                  |

----

| NAVISTAR      FINANCIAL CORPORATION |
|-------------------------------------|
| AND      SUBSIDIARIES               |
|                                |
|                                |
| INDEX                               |
|                                |
|                                |   |   |   | PageReference |
|                                |   |   |   |   |
|                                | PART I. |   | FINANCIAL INFORMATION |   |
|                                |   |   |   |   |
|                                | Item 1. |   | Consolidated      Financial Statements: |   |
|                                |   |   |   |   |
|                                |   |   | Consolidated      Statements of  Operations - Three Months Ended January 31, 2009      and 2008 | 3 |
|                                |   |   |   |   |
|                                |   |   | Consolidated      Statements of Shareowner’s Equity and Comprehensive Loss – Three Months      Ended January 31, 2009 and 2008 | 4 |
|                                |   |   |   |   |
|                                |   |   | Consolidated      Statements of Financial Condition - January 31, 2009 and October 31,      2008 | 5 |
|                                |   |   |   |   |
|                                |   |   | Consolidated      Statements of Cash Flows - Three Months Ended January 31, 2009 and      2008 | 6 |
|                                |   |   |   |   |
|                                |   |   | Notes      to Consolidated Financial      Statements                                                                                               | 7 |
|                                |   |   |   |   |
|                                | Item 2. |   | Management's      Discussion and Analysis of Financial Condition  and Results of      Operations | 23 |
|                                |   |   |   |   |
|                                | Item 3. |   | Quantitative      and Qualitative Disclosures about Market Risk | 30 |
|                                |   |   |   |   |
|                                | Item 4. |   | Controls      and      Procedures                                                                                               | 31 |
|                                |   |   |   |   |
|                                |   |   |   |   |
|                                | PART II. |   | OTHER INFORMATION |   |
|                                |   |   |   |   |
|                                | Item 6. |   | Exhibits                                                                                              | 32 |
|                                |   |   |   |   |
|                                |   |   | Signature                                                                                              | 33 |
|                                |   |   |   |   |
|                                |   |   | Exhibit      Index                                                                                              | 34 |

----

INDEX

PART I

Item 1.  

|  Millions      of dollars                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | For      the Three Months Ended January      31 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | 2009                                            |   |   | 2008 |   |
| Revenues                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                            |   |   |   |   |
| Retail      notes and finance leases      revenue                                                                                                  |   | $                                               | 47.1   |   |   | $ | 61.3 |   |
| Operating      leases      revenue                                                                                                                 |   |                                            | 5.2    |   |   |   | 5.6 |   |
| Wholesale      notes      interest                                                                                                                 |   |                                            | 5.2    |   |   |   | 4.5 |   |
| Retail      and wholesale accounts      interest                                                                                                   |   |                                            | 5.3    |   |   |   | 7.4 |   |
| Securitization      income                                                                                                                         |   |                                            | 10.1   |   |   |   | 9.9 |   |
| Other      revenues                                                                                                                                |   |                                            | 2.8    |   |   |   | 8.3 |   |
| Total      revenues                                                                                                                                                                   |   |                                            | 75.7   |   |   |   | 97.0 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                            |   |   |   |   |   |   |
| Expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                            |   |   |   |   |   |   |
| Cost      of borrowing:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                            |   |   |   |   |   |   |
| Interest      expense                                                                                                                                                       |   |                                            | 26.9   |   |   |   | 62.3 |   |
| Other                                                                                                                                                                       |   |                                            | 3.3    |   |   |   | 2.3 |   |
| Credit,      collections and      administrative                                                                                                   |   |                                            | 15.4   |   |   |   | 12.2 |   |
| Provision      for credit      losses                                                                                                              |   |                                            | 4.0    |   |   |   | 4.6 |   |
| Depreciation      on operating      leases                                                                                                         |   |                                            | 3.9    |   |   |   | 4.5 |   |
| Derivative      expense                                                                                                                            |   |                                            | 22.4   |   |   |   | 40.2 |   |
| Other      expenses                                                                                                                                |   |                                            | 2.3    |   |   |   | 0.7 |   |
| Total      expenses                                                                                                                                                                   |   |                                            | 78.2   |   |   |   | 126.8 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                            |   |   |   |   |   |   |
| Loss      before      taxes                                                                                                                        |   |                                            | (2.5   | ) |   |   | (29.8 | ) |
| Income      tax benefit                                                                                                                       |   |                                            | (0.6   | ) |   |   | (10.6 | ) |
| Net      loss                                                                                                                                      |   | $                                               | (1.9   | ) |   | $ | (19.2 | ) |

----

INDEX

| Millions      of dollars                                                                                                                                                                                                                                      |   | CapitalStock |          |   | Paid-InCapital |   |       | RetainedEarnings |   |   | Accumulated      OtherComprehensive      Income (Loss) |   |   | Total  |    |   | Comprehensive Loss |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|---------------|--------|----------------|--------|------------|------------------|--------|--------|--------------------------------------------------------|--------|--------|--------|---------|--------|-------------------------|--------|
|                                                                                                                                                                                                                                                          |   |         |          |   |           |   |       |             |   |   |                                                   |   |   |   |    |   |                    |   |
| Balance      at October 31, 2007                                                                                                                                                                                                                              |   | $            | 1.6           |   |           | $      | 139.6      |             |   | $      | 127.1                                                  |   |   | $      | (0.2    | )      |                    | $      | 268.1 |   |   |   |   |
| 2008      Activity:                                                                                                                                                                                                                                           |   |         |          |   |           |   |       |             |   |   |                                                   |   |   |   |    |   |                    |   |   |   |   |   |   |
| Net      loss                                         |   |         | -             |   |           |   | -          |             |   |   | (19.2                                                  | )      |   |   | -       |   |                    |   | (19.2 | ) |   |   | (19.2 | ) |
| Pension      adjustment, (net of tax $0.2)                                                                                                                                                                                                                    |   |         | -             |   |           |   | -          |             |   |   | -                                                      |   |   |   | 0.4     |   |                    |   | 0.4 |   |   |   | 0.4 |   |
| Impact      of adopting FIN 48                                                                                                                                                                                                                                |   |         | -             |   |           |   | -          |             |   |   | (2.5                                                   | )      |   |   | -       |   |                    |   | (2.5 | ) |   |   | - |   |
| Cash      dividend paid to parent company                                                                                                                                                                                                                     |   |         | -             |   |           |   | -          |             |   |   | (14.8                                                  | )      |   |   | -       |   |                    |   | (14.8 | ) |   |   | - |   |
| Balance      at January 31, 2008                                                                                                                                                                                                                              |   | $            | 1.6           |   |           | $      | 139.6      |             |   | $      | 90.6                                                   |   |   | $      | 0.2     |   |                    | $      | 232.0 |   |   | $ | (18.8 | ) |
|                                                                                                                                                                                                                                                          |   |         |          |   |           |   |       |             |   |   |                                                   |   |   |   |    |   |                    |   |   |   |   |   |   |   |
| Balance      at October 31, 2008                                                                                                                                                                                                                              |   | $            | 1.6           |   |           | $      | 199.6      |             |   | $      | 79.1                                                   |   |   | $      | (7.7    | )      |                    | $      | 272.6 |   |   |   |   |   |
| 2009      Activity:                                                                                                                                                                                                                                           |   |         |          |   |           |   |       |             |   |   |                                                   |   |   |   |    |   |                    |   |   |   |   |   |   |   |
| Net      loss                                         |   |         | -             |   |           |   | -          |             |   |   | (1.9                                                   | )      |   |   | -       |   |                    |   | (1.9 | ) |   | $ | (1.9 | ) |
| Capital      contribution from parent company                                                                                                                                                                                                            |   |         |   - |   |           |   |  20.0 |             |   |   |  -                                                |   |   |   |  - |   |                    |   |  20.0 |   |   |   |  - |   |
| Pension      adjustment, (net of tax $0.1)                                                                                                                                                                                                                    |   |         | -             |   |           |   | -          |             |   |   | -                                                      |   |   |   | 0.2     |   |                    |   | 0.2 |   |   |   | 0.2 |   |
| Balance      at January 31, 2009                                                                                                                                                                                                                              |   | $            | 1.6           |   |           | $      | 219.6      |             |   | $      | 77.2                                                   |   |   | $      | (7.5    | )      |                    | $      | 290.9 |   |   | $ | (1.7 | ) |

----

INDEX

|  Millions      of dollars                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | As      of January 31,2009 |       |   | As      of October 31, 2008 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------|------------|--------|-----------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | (Unaudited)                |       |   |                        |   |
| ASSETS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                       |       |   |                        |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                       |       |   |                        |   |
| Cash      and cash      equivalents                                                                                                     |   | $                          |  11.1 |   |                        | $      |  34.4 |   |
| Finance      receivables, net of unearned income:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                       |       |   |                        |   |   |   |
| Finance      receivables                                                                                                                                                   |   |                       | 2,731.7    |   |                        |   | 2,906.3 |   |
| Finance      receivables from      affiliates                                                                                                                              |   |                       | 158.6      |   |                        |   | 212.3 |   |
| Allowance      for      losses                                                                                                                                             |   |                       | (29.6      | )      |                        |   | (28.4 | ) |
| Finance      receivables,      net                                                                                                      |   |                       | 2,860.7    |   |                        |   | 3,090.2 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                       |       |   |                        |   |   |   |
| Amounts      due from sales of      receivables                                                                                         |   |                       | 198.8      |   |                        |   | 229.6 |   |
| Net      accounts due from      affiliates                                                                                              |   |                       | -          |   |                        |   | 17.5 |   |
| Net      investment in operating      leases                                                                                            |   |                       | 70.5       |   |                        |   | 72.9 |   |
| Vehicle      inventory                                                                                                                  |   |                       | 33.4       |   |                        |   | 42.0 |   |
| Restricted      cash and cash      equivalents                                                                                          |   |                       | 365.3      |   |                        |   | 515.4 |   |
| Other      assets                                                                                                                       |   |                       | 132.7      |   |                        |   | 123.0 |   |
| Total      assets                                                                                                                                                               |   | $                          | 3,672.5    |   |                        | $      | 4,125.0 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                       |       |   |                        |   |   |   |
| LIABILITIES      AND SHAREOWNER’S EQUITY                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                       |       |   |                        |   |   |   |
| Net      accounts due to      affiliates                                                                                                |   | $                          | 27.9       |   |                        | $      | - |   |
| Senior      and secured      borrowings                                                                                                 |   |                       | 3,169.8    |   |                        |   | 3,679.1 |   |
| Other      liabilities                                                                                                                  |   |                       | 183.9      |   |                        |   | 173.3 |   |
| Total      liabilities                                                                                                                                                          |   |                       | 3,381.6    |   |                        |   | 3,852.4 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                       |       |   |                        |   |   |   |
| Shareowner’s      equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                       |       |   |                        |   |   |   |
| Capital      stock ($1 par value, 2,000,000 shares authorized, 1,600,000 shares issued      and outstanding)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                       | 1.6        |   |                        |   | 1.6 |   |
| Paid-in      capital                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                       | 219.6      |   |                        |   | 199.6 |   |
| Retained      earnings                                                                                                                  |   |                       | 77.2       |   |                        |   | 79.1 |   |
| Accumulated      other comprehensive      loss                                                                                          |   |                       | (7.5       | )      |                        |   | (7.7 | ) |
| Total      shareowner’s      equity                                                                                               |   |                       | 290.9      |   |                        |   | 272.6 |   |
| Total      liabilities and shareowner’s      equity                                                                                                                       |   | $                          | 3,672.5    |   |                        | $      | 4,125.0 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                       |       |   |                        |   |   |   |

----

INDEX

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | For      the Three Months EndedJanuary      31 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------|--------|
|  Millions      of dollars                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | 2009                                           |   |   | 2008 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                           |   |   |   |   |
| Cash      flow from operating activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                           |   |   |   |   |
| Net      loss                                                                                                                                                           |   | $                                              | (1.9   | ) |   | $ | (19.2 | ) |
| Adjustments      to reconcile net loss to cash flow from operations:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                           |   |   |   |   |   |   |
| Net      loss on sales of finance      receivables                                                                                                                                                    |   |                                           | 14.8   |   |   |   | 2.9 |   |
| Net      loss on sale and impairment of equipment under operating leases      and vehicle inventory                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                           | 2.1    |   |   |   | 0.9  |   |
| Depreciation      and      amortization                                                                                                                                                               |   |                                           | 6.5    |   |   |   | 5.4 |   |
| Provision      for credit      losses                                                                                                                                                                 |   |                                           | 4.0    |   |   |   | 4.6 |   |
| Net      change in amounts due from sales of receivables                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                           | 30.8   |   |   |   | 113.3 |   |
| Net      change in finance receivables - wholesale notes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                           | 6.6    |   |   |   | (105.7 | ) |
| Net      change in finance receivables from affiliates - wholesale                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                           | 34.6   |   |   |   | (0.1 | ) |
| Net      change in net accounts due from /to affiliates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                           | 45.4   |   |   |   | (27.3 | ) |
| Net      change in other assets and      liabilities                                                                                                                                                  |   |                                           | (1.2   | ) |   |   | (27.5 | ) |
| Net      cash provided by (used in) operating activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                           | 141.7  |   |   |   | (52.7 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                           |   |   |   |   |   |   |
| Cash      flow from investing activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                           |   |   |   |   |   |   |
| Originations      of retail notes and finance leases, includes affiliates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                           | (206.7 | ) |   |   | (192.4 | ) |
| Net      change in restricted cash and cash equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                           | 150.1  |   |   |   | (447.2 | ) |
| Collections      on retail notes and finance lease receivables,net      of change in unearned finance income, includes affiliates                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                           | 282.1  |   |   |   | 322.8 |   |
| Net      change in finance receivables from affiliates - accounts                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                           | 3.7    |   |   |   | 1.8 |   |
| Net      change in finance receivables -      accounts                                                                                                                  |   |                                           | 85.7   |   |   |   | (31.6 | ) |
| Proceeds      from sale of vehicle      inventory                                                                                                                       |   |                                           | 14.3   |   |   |   | 12.0 |   |
| Purchase      of equipment leased to      others                                                                                                                        |   |                                           | (5.3   | ) |   |   | (5.3 | ) |
| Proceeds      from sale of equipment under operating leases                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                           | 0.7    |   |   |   | 4.1 |   |
| Loan      repayment from      affiliates                                                                                                                                |   |                                           | -      |   |   |   | 35.0 |   |
| Net      cash provided by (used in) investing activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                           | 324.6  |   |   |   | (300.8 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                           |   |   |   |   |   |   |
| Cash      flow from financing activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                           |   |   |   |   |   |   |
| Net      change in senior bank revolver, net of issuance costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                           | (202.9 | ) |   |   | 207.2 |   |
| Principal      payments on senior bank term      debt                                                                                                                   |   |                                           | (1.6   | ) |   |   | (1.6 | ) |
| Proceeds      from issuance of secured borrowings, net of issuance costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                           | 11.5   |   |   |   | 508.1 |   |
| Payments      on secured      borrowings                                                                                                                                |   |                                           | (316.6 | ) |   |   | (332.1 | ) |
| Dividends      paid to parent      company                                                                                                                              |   |                                           | -      |   |   |   | (14.8 | ) |
| Capital      contribution  from parent      company                                                                                                           |   |                                           | 20.0   |   |   |   | - |   |
| Net      cash (used in) provided by financing activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                           | (489.6 | ) |   |   | 366.8 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                           |   |   |   |   |   |   |
| Change      in cash and cash      equivalents                                                                                                  |   |                                           | (23.3  | ) |   |   | 13.3 |   |
| Cash      and cash equivalents, beginning of      year                                                                                         |   |                                           | 34.4   |   |   |   | 10.6 |   |
| Cash      and cash equivalents, end of      period                                                                                             |   | $                                              | 11.1   |   |   | $ | 23.9 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                           |   |   |   |   |   |   |
| Supplemental      cash flow information:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                           |   |   |   |   |   |   |
| Interest      paid                                                                                                                                                      |   | $                                              | 31.4   |   |   | $ | 61.9 |   |
| Income      taxes paid, net of      refunds                                                                                                                             |   |                                           | 0.1    |   |   |   | 54.0 |   |
| Transfers      of loans and leases to vehicle      inventory                                                                                                            |   |                                           | 12.5   |   |   |   | 19.5 |   |

----

INDEX

----

INDEX

----

INDEX

----

INDEX

----

INDEX

|                                                         |   | January      31,2009 |   |   | October      31,2008 |   |
|--------------------------------------------------------------|--------|----------------------|--------|--------|----------------------|--------|
| Finance      receivables from affiliates (Dealcor retail)    |   | $                    | 125.0  |   |                 | $      | 140.4 |   |
| Finance      receivables from affiliates (Dealcor wholesale) |   |                 | 33.6   |   |                 |   | 71.9 |   |
| Net      accounts due (to) from affiliates (non-Dealcor)     |   |                 | (27.9  | )      |                 |   | 17.5 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | January      31,2009 |    |   | October      31, 2008 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------|---------|--------|-----------------------|--------|
| Retail      notes, net of unearned      income                                                                                                   |   | $                    | 2,363.3 |   |                  | $      | 2,468.0 |   |
| Finance      leases, net of unearned      income                                                                                                 |   |                 | 145.1   |   |                  |   | 122.7 |   |
| Wholesale      notes held for      sale                                                                                                          |   |                 | 111.4   |   |                  |   | 118.0 |   |
| Accounts      (includes retail and      wholesale)                                                                                               |   |                 | 111.9   |   |                  |   | 197.6 |   |
| Finance      receivables from affiliates, net of unearned income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                 | 158.6   |   |                  |   | 212.3 |   |
| Total      finance      receivables                                                                                                              |   |                 | 2,890.3 |   |                  |   | 3,118.6 |   |
| Allowance      for      losses                                                                                                                   |   |                 | (29.6   | )      |                  |   | (28.4 | ) |
| Total      finance receivables,      net                                                                                                         |   | $                    | 2,860.7 |   |                  | $      | 3,090.2 |   |

----

INDEX

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | Three      Months Ended January 31,2009 |   |   | Three      Months Ended January      31,2008 |   |   | Year      Ended October      31, 2008 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------|--------|--------|---------------------------------------------------|--------|--------|---------------------------------------|--------|
| Allowance      for losses, beginning of      period                                                                          |   | $                                       | 28.4   |   |                                              | $      | 23.9   |                                  |   | $ | 23.9 |   |
| Provision      for credit      losses                                                                                        |   |                                    | 4.0    |   |                                              |   | 4.6    |                                  |   |   | 32.2 |   |
| Net      charge-offs                                                                                                         |   |                                    | (2.8   | )      |                                              |   | (3.8   | )                                     |   |   | (27.7 | ) |
| Allowance      for losses, end of      period                                                                                                                                  |   | $                                       | 29.6   |   |                                              | $      | 24.7   |                                  |   | $ | 28.4 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | January      31,2009 |   |   | October      31,2008 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------|--------|--------|----------------------|--------|
| Impaired      receivables with specific loss      reserves                                                                                                   |   | $                    | 44.3   |   |                 | $      | 47.1 |   |
| Impaired      receivables without specific loss      reserves                                                                                                |   |                 | 6.3    |   |                 |   | 3.8 |   |
| Impaired      receivables guaranteed by Navistar,      Inc                                                                                                   |   |                 | 9.4    |   |                 |   | 8.7 |   |
| Total      impaired      receivables                                                                                                                                                                           |   | $                    | 60.0   |   |                 | $      | 59.6 |   |

| Specific      loss reserves on impaired receivables recorded by NFC                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | $      | 4.8  |   |   | $      | 4.6  |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------|--------|--------|--------|------|--------|
| Specific      loss reserves recorded by Navistar,      Inc.                                                                                                |   |   | 16.6 |   |   |   | 16.1 |   |
| Average      balance of impaired finance      receivables                                                                                                  |   |   | 62.2 |   |   |   | 46.8 |   |
| Finance      receivables over 60 days      delinquent                                                                                                      |   |   | 28.2 |   |   |   | 18.6 |   |

----

INDEX

|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | Three      Months      Ended January 31,2009 |   |   | Three      Months Ended      January 31,2008 |   |   |  Year      Ended October      31, 2008 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------|--------|--------|---------------------------------------------------|--------|--------|---------------------------------------------|--------|
| Vehicle      inventory, beginning of period                                                                                                                                                                                                                                                                                                                                                                                                                  |   | $                                            | 42.0   |   |                                              | $      | 23.2   |                                        |   | $ | 23.2 |   |
| Net      additions                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                         | 12.5   |   |                                              |   | 19.5   |                                        |   |   | 129.0 |   |
| Impairment      loss:                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                         |   |   |                                              |   |   |                                        |   |   |   |   |
| Recorded      by      NFC                                                                                     |   |                                         | (0.7   | )      |                                              |   | -      |                                        |   |   | (4.9 | ) |
| Recorded      by Navistar,      Inc.                                                                          |   |                                         | (4.8   | )      |                                              |   | -      |                                        |   |   | (7.7 | ) |
| Net      book value of repossessed assets sold                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                         | (15.6  | )      |                                              |   | (12.9  | )                                           |   |   | (97.6 | ) |
| Vehicle      inventory, end of      period                                                                    |   | $                                            | 33.4   |   |                                              | $      | 29.8   |                                        |   | $ | 42.0 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | January      31,2009 |   |   | October      31,2008 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------|--------|--------|----------------------|--------|
| Investment      in operating      leases                                                                                             |   | $                    | 116.9  |   |                 | $      | 119.5 |   |
| Less:      Accumulated      depreciation                                                                                             |   |                 | (47.2  | )      |                 |   | (47.5 | ) |
| Net      investment in equipment under operating leases                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                 | 69.7   |   |                 |   | 72.0 |   |
| Rent      receivable net of reserve for past due operating leases                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                 | 0.8    |   |                 |   | 0.9 |   |
| Net      investment in operating      leases                                                                                         |   | $                    | 70.5   |   |                 | $      | 72.9 |   |

----

INDEX

|                                                                                                                                                   |   |                 |    |   |                 |   |    | Weighted      AverageInterest      Rate |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------|---------|--------|----------------------|--------|---------|-----------------------------------------|--------|
|                                                                                                                                                   |   | January      31,2009 |    |   | October      31,2008 |   |    | January      31,2009                    |   |   | October      31,2008 |   |
| Bank      credit facility at variable rates due July 2010                                                                                              |   | $                    | 853.1   |   |                 | $      | 1,057.6 |                                    |   |   | 2.3 | % |   |   | 5.7 | % |
| Revolving      retail warehouse facility at variable rates, due June 2010                                                                              |   |                 | 500.0   |   |                 |   | 500.0   |                                    |   |   | 1.5 | % |   |   | 4.6 | % |
| Borrowings      secured by asset-backed securities at various rates,  currently      between 0.6% to 4.4%, due serially through October 2015 |   |                 | 1,682.0 |   |                 |   | 1,989.6 |                                    |   |   | 2.3 | % |   |   | 3.8 | % |
| Borrowings      secured by operating and finance leases due serially through November 2015      at rates currently between 2.6% to 6.6%                |   |                 | 134.7   |   |                 |   | 131.9   |                                    |   |   | 4.5 | % |   |   | 4.5 | % |
| Total      senior and secured borrowings                                                                                                               |   | $                    | 3,169.8 |   |                 | $      | 3,679.1 |                                    |   |   | 2.2 | % |   |   | 4.5 | % |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |             |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | Pension Benefits |   |   | Other Benefits |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | 2009             |   |   | 2008 |   |   | 2009 |   |   | 2008 |   |
| Service      cost for benefits earned during the period                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | $                | 0.1    |   |   | $ | 0.1 |   |   | $ | - |   |   | $ | - |   |
| Interest      on      obligation                                                                                    |   |             | 1.0    |   |   |   | 1.0 |   |   |   | 0.3 |   |   |   | 0.3 |   |
| Amortization      of cumulative      losses                                                                         |   |             | 0.1    |   |   |   | 0.6 |   |   |   | - |   |   |   | - |   |
| Less      expected return on      assets                                                                            |   |             | (0.9   | ) |   |   | (1.5 | ) |   |   | (0.1 | ) |   |   | (0.2 | ) |
| Net      postretirement benefits      expense                                                                                                |   | $                | 0.3    |   |   | $ | 0.2 |   |   | $ | 0.2 |   |   | $ | 0.1 |   |

----

INDEX

----

INDEX

|                                                                                                                                                                                                                                                                                    |   | Other      Assets    |    |   | Other      Liabilities |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------|---------|--------|------------------------|--------|
| As      of January 31, 2009                                                                                                                                                                                                                                                             |   | Notional      Amount |    |   | Fair      Value        |   |   | Notional      Amount |   |   | Fair      Value |   |
| Interest      rate      swaps                                              |   | $                    | 1,409.0 |   |                   | $      | 52.6 |   |   | $ | 3,004.8 |   |   | $ | 105.0 |   |
| Interest      rate caps purchased                                                                                                                                                                                                                                                       |   |                 | 500.0   |   |                   |   | 1.3 |   |   |   | - |   |   |   | - |   |
| Interest      rate caps      sold                                          |   |                 | -       |   |                   |   | - |   |   |   | 500.0 |   |   |   | 1.3 |   |
| Total      derivatives                                                                         |   | $                    | 1,909.0 |   |                   | $      | 53.9 |   |   | $ | 3,504.8 |   |   | $ | 106.3 |   |

|                                                                                                                                                                                                                                                                                    |   | Other      Assets    |    |   | Other      Liabilities |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------|---------|--------|------------------------|--------|
| As      of October 31, 2008                                                                                                                                                                                                                                                             |   | Notional      Amount |    |   | Fair      Value        |   |   | Notional      Amount |   |   | 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 |   |

|                                                                                                                                                                                                                                                        | Location      in Consolidated Statements of Operations |   | Amount      of Gain (Loss) Recognized |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------|--------|---------------------------------------|--------|
|                                                                                                                                                                                                                                                        |                                                   |   | 2009                                  |   |   | 2008 |   |
| Interest      rate      swaps                                      | Derivative      expense                                |   | $                                     | (22.4  | ) |   | $ | (40.2 | ) |
| Interest      rate caps purchased                                                                                                                                                                                                                           | Derivative      expense                                |   |                                  | (2.0   | ) |   |   | (0.1 | ) |
| Interest      rate caps sold                                                                                                                                                                                                                                | Derivative      expense                                |   |                                  | 2.0    |   |   |   | 0.1 |   |
| Total                                                                                  |                                                   |   | $                                     | (22.4  | ) |   | $ | (40.2 | ) |

----

INDEX

|                                                                                                                                                                                                                                                                                                                |  Maturity     |   | January      31,2009 |   |   | October      31,2008 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------|--------|----------------------|--------|--------|----------------------|--------|
| Investor      certificate                                                | February      2010 |   | $                    | 212.0  |   |                 | $      | 212.0 |   |
| Variable      funding certificate (“VFC”)                                                                                                                                                                                                                                                               | October      2009  |   |                 | 750.0  |   |                 |   | 800.0 |   |
| Total                                                                                   |               |   | $                    | 962.0  |   |                 | $      | 1,012.0 |   |

|                                                                                                                                                                                                                                                                                                                         |  Maturity   |   | January      31,2009 |   |   | October      31,2008 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------|--------|----------------------|--------|--------|----------------------|--------|
| Conduit      funding      facility                                                | August 2009 |   | $                    | 100.0  |   |                 | $      | 100.0 |   |
| Funding      utilized                                                             |             |   |                 | (13.2  | )      |                 |   | (47.5 | ) |
| Total      availability                                                                          |             |   | $                    | 86.8   |   |                 | $      | 52.5 |   |

----

INDEX

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | January      31,2009 |   |   | October      31,2008 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------|--------|--------|----------------------|--------|
| Excess      seller’s      interest                                                                                               |   | $                    | 186.2  |   |                 | $      | 218.7 |   |
| Interest      only      strip                                                                                                          |   |                 | 4.4    |   |                 |   | 2.1 |   |
| Restricted      cash      reserves                                                                                                     |   |                 | 8.2    |   |                 |   | 8.8 |   |
| Total      amounts due from sales of      receivables                                                                                                 |   | $                    | 198.8  |   |                 | $      | 229.6 |   |

|                                                                                                                                                                                                                                                                                                                                                                        | January      31,                                            | October      31,                                |   | Adverse      Fair ValueChange      atJanuary      31, 2009 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------|-------------------------------------------------|--------|------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                        | 2009                                                        | 2008                                            |   |                                                       | 10%    |   |   |   | 20% |   |
| Discount      rate      (annual)                                                         |    16.2  to      24.9 %            |  14.6  to      23.0 %            |   | $                                                          | 2.2    |   |   | $ | 4.4 |   |
| Estimated      credit      losses                                                        |      0.0  to      0.24 % |    0.0  to      0.24 % |   |                                                       | 0.1    |   |   |   | 0.1 |   |
| Payment      speed (percent of portfolio per month)                                                                                                                                                                                                                                                                                                                         |    10.1  to      82.9 %            |    8.8  to      75.7 % |   |                                                       | 1.0    |   |   |   | 1.9 |   |

|  January      31, 2009                                                                                                                                                                                                         |   | Retail      Notes |    |   | Finance      Leases |   |   | Wholesale      Notes |   |   | Accounts |   |   | Affiliates |   |   | Total  |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|---------|--------|---------------------|--------|--------|----------------------|--------|--------|----------|--------|--------|------------|--------|--------|--------|--------|
| Serviced      portfolio                                   |   | $                 | 2,363.3 |   |                | $      | 145.1  |                 |   | $      | 819.4    |   |   | $          | 178.1  |   |   | $      | 265.1 |   |   | $ | 3,771.0 |   |
| Less      sold receivables –off-balance sheet                                                         |   |              | -       |   |                |   | -      |                 |   |   | (708.0   | )      |   |       | (66.2  | )      |   |   | (106.5 | ) |   |   | (880.7 | ) |
| Total      on-balance sheet                                                                                                                                                                                                         |   | $                 | 2,363.3 |   |                | $      | 145.1  |                 |   | $      | 111.4    |   |   | $          | 111.9  |   |   | $      | 158.6 |   |   | $ | 2,890.3 |   |

|  October  31,      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 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------|--------|--------|------------|--------|
| Fair      value      adjustments                                             |   | $          | 19.5   |   |       | $      | 3.1 |   |
| Excess      spread      income                                               |   |       | 2.1    |   |       |   | 4.7 |   |
| Servicing      fees      revenue                                             |   |       | 2.2    |   |       |   | 3.1 |   |
| Losses      on sales of receivables                                                                                                                                                                                                                                                                      |   |       | (14.8  | )      |       |   | (2.9 | ) |
| Investment      income                                                       |   |       | 1.1    |   |       |   | 1.9 |   |
| Securitization      income                                                                                                                                                                                                                                                                               |   | $          | 10.1   |   |       | $      | 9.9 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | 2009   |    |   | 2008   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Proceeds      from sales of finance      receivables                                                                          |   | $      | 1,042.5 |   |   | $      | 810.6 |   |
| Servicing      fees                                                                                                           |   |   | 2.2     |   |   |   | 2.8 |   |
| Cash      from net excess      spread                                                                                         |   |   | 1.7     |   |   |   | 5.3 |   |
| Investment      income                                                                                                        |   |   | 0.7     |   |   |   | 1.8 |   |
| Net      cash from securitization transactions                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | $      | 1,047.1 |   |   | $      | 820.5 |   |

----

INDEX

|                                                                                                                                                                                                                                                                                                                                                              |   | Consolidated |    |   | Other           |   |   |   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|---------|--------|-----------------|--------|--------|--------|--------|
| January      31, 2009                                                                                                                                                                                                                                                                                                                                             |   | VIEs         |    |   | Securitizations |   |   | Total  |   |
| Finance      receivables, net of allowance                                                                                                                                                                                                                                                                                                                        |   | $            | 1,723.7 |   |            | $      | 462.0  |   |   | $ | 2,185.7 |   |
| Net      investment in operating leases                                                                                                                                                                                                                                                                                                                           |   |         | -       |   |            |   | 70.5   |   |   |   | 70.5 |   |
| Restricted      cash and cash equivalents                                                                                                                                                                                                                                                                                                                         |   |         | 154.3   |   |            |   | 210.8  |   |   |   | 365.1 |   |
| Vehicle      inventory                                                         |   |         | 18.0    |   |            |   | 6.1    |   |   |   | 24.1 |   |
| Net      derivative liabilities at fair value                                                                                                                                                                                                                                                                                                                     |   |         | 50.6    |   |            |   | -      |   |   |   | 50.6 |   |
| Secured      borrowings                                                        |   |         | 1,682.0 |   |            |   | 634.7  |   |   |   | 2,316.7 |   |

|                                                                                                                                                                                                                                                                                                                                                              |   | 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 liabilities at fair value                                                                                                                                                                                                                                                                                                                     |   |         | 38.7    |   |            |   | -      |   |   |   | 38.7 |   |
| 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  nonperformance 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                                                                                                                                                                                         |

|                                                                                                                                                                                                                                                                                                                                     |   |         |   |   |         |   |   |         |   |   |   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|--------|--------|--------------|--------|--------|--------------|--------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                     |   | Level      1 |   |   | Level      2 |   |   | Level      3 |   |   | Total  |   |
| Assets:                                                                                                                                                                                                                                                                                                                                  |   |         |   |   |         |   |   |         |   |   |   |   |
| Derivative      financial instruments                                                                                                                                                                                                                                                                                                    |   | $            | -      |   |         | $      | 1.3    |         |   | $      | 52.6   |   |   | $ | 53.9 |   |
| Amounts      due from sales of receivables                                                                                                                                                                                                                                                                                               |   |         | -      |   |         |   | -      |         |   |   | 198.8  |   |   |   | 198.8 |   |
| Assets      total                                                         |   | $            | -      |   |         | $      | 1.3    |         |   | $      | 251.4  |   |   | $ | 252.7 |   |
| Liabilities:                                                                                                                                                                                                                                                                                                                             |   |         |   |   |         |   |   |         |   |   |   |   |   |   |   |   |
| Derivative      financial instruments                                                                                                                                                                                                                                                                                                    |   |         | -      |   |         |   | 55.7   |         |   |   | 50.6   |   |   |   | 106.3 |   |
| Liabilities      total                                                    |   | $            | -      |   |         | $      | 55.7   |         |   | $      | 50.6   |   |   | $ | 106.3 |   |

----

INDEX

|                                                                                                                                                                                                                                                                                                                                           |   |                 |   |   |                    |   |   |   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------|--------|--------|-------------------------|--------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                           |   | Net      Derivatives |   |   | Retained      Interests |   |   | Total  |   |
| Beginning      balance                                                     |   | $                    | -      |   |                    | $      | 229.6  |   |   | $ | 229.6 |   |
| Unrealized      gains (losses) included in earnings                                                                                                                                                                                                                                                                                            |   |                 | 2.0    |   |                    |   | 5.1    |   |   |   | 7.1 |   |
| Purchases,      issuances and settlements                                                                                                                                                                                                                                                                                                      |   |                 | -      |   |                    |   | (35.9  | )      |   |   | (35.9 | ) |
| Ending      balance                                                                       |   | $                    | 2.0    |   |                    | $      | 198.8  |   |   | $ | 200.8 |   |
|                                                                                                                                                                                                                                                                                                                                           |   |                 |   |   |                    |   |   |   |   |   |   |   |
| Change      in unrealized gains (losses)                                                                                                                                                                                                                                                                                                       |   | $                    | 2.0    |   |                    | $      | 19.5   |   |   | $ | 21.5 |   |
|                                                                                                                                                                                                                                                                                                                                           |   |                 |   |   |                    |   |   |   |   |   |   |   |

----

INDEX

Item 2.

----

INDEX

|                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | Three      Months Ended January      31 |   |   |   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------|--------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | 2009                                         |   |   | 2008   |   |   | Change |   |   | %      Change |   |
| Revenues                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                         |   |   |   |   |   |   |   |   |   |   |
| Financing      revenue                                                                                           |   | $                                            | 57.6   |   |   | $      | 73.2 |   |   |   | (15.6 | ) |   |   | (21.3 | ) |
| Securitization      income                                                                                       |   |                                         | 10.1   |   |   |   | 9.9 |   |   |   | 0.2 |   |   |   | 2.0 |   |
| Operating      leases and other      revenue                                                                     |   |                                         | 8.0    |   |   |   | 13.9 |   |   |   | (5.9 | ) |   |   | (42.4 | ) |
| Total      revenues                                                                                              |   |                                         | 75.7   |   |   |   | 97.0 |   |   |   | (21.3 | ) |   |   | (22.0 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Expenses                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost      of      borrowing                                                                                      |   |                                         | 30.2   |   |   |   | 64.6 |   |   |   | (34.4 | ) |   |   | (53.3 | ) |
| Credit,      collections and      administrative                                                                 |   |                                         | 15.4   |   |   |   | 12.2 |   |   |   | 3.2 |   |   |   | 26.2 |   |
| Provision      for credit      losses                                                                            |   |                                         | 4.0    |   |   |   | 4.6 |   |   |   | (0.6 | ) |   |   | (13.0 | ) |
| Depreciation      on operating      leases                                                                       |   |                                         | 3.9    |   |   |   | 4.5 |   |   |   | (0.6 | ) |   |   | (13.3 | ) |
| Derivative      expense                                                                                          |   |                                         | 22.4   |   |   |   | 40.2 |   |   |   | (17.8 | ) |   |   | (44.3 | ) |
| Other      expenses                                                                                              |   |                                         | 2.3    |   |   |   | 0.7 |   |   |   | 1.6 |   |   |   | 228.6 |   |
| Total      expenses                                                                                              |   |                                         | 78.2   |   |   |   | 126.8 |   |   |   | (48.6 | ) |   |   | (38.3 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss      before      taxes                                                                                      |   |                                         | (2.5   | )      |   |   | (29.8 | ) |   |   | 27.3 |   |   |   | 91.6 |   |
| Income      tax      benefit                                                                                     |   |                                         | (0.6   | )      |   |   | (10.6 | ) |   |   | 10.0 |   |   |   | 94.3 |   |
| Net      loss                                                                                                    |   | $                                            | (1.9   | )      |   | $      | (19.2 | ) |   |   | 17.3 |   |   |   | 90.1 |   |

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INDEX

|                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | Three      Months Ended January      31 |   |   |   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------|--------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | 2009                                         |   |   | 2008   |   |   | Change |   |   | %      Change |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                         |   |   |   |   |   |   |   |   |   |   |
| Retail      notes and finance      leases                                                                 |   | $                                            | 47.1   |   |   | $      | 61.3 |   |   | $ | (14.2 | ) |   |   | (23.2 | ) |
| Wholesale      notes                                                                                      |   |                                         | 5.2    |   |   |   | 4.5 |   |   |   | 0.7 |   |   |   | 15.6 |   |
| Retail      and wholesale      accounts                                                                   |   |                                         | 5.3    |   |   |   | 7.4 |   |   |   | (2.1 | ) |   |   | (28.7 | ) |
| Total      financing      revenue                                                                         |   | $                                            | 57.6   |   |   | $      | 73.2 |   |   | $ | (15.6 | ) |   |   | (21.3 | ) |

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INDEX

|                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | As      of           |    |   |                 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------|---------|--------|----------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | January      31,2009 |    |   | October      31,2008 |   |   | Change |   |   | % Change |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                 |    |   |                 |   |   |   |   |   |   |   |
| Cash      and cash      equivalents                                                                            |   | $                    | 11.1    |   |                 | $      | 34.4 |   |   | $ | (23.3 | ) |   |   | (67.7 | ) |
| Finance      receivables,      net                                                                             |   |                 | 2,860.7 |   |                 |   | 3,090.2 |   |   |   | (229.5 | ) |   |   | (7.4 | ) |
| Amounts      due from sales of receivables                                                                                                                                                                                                                                                                                                                                                                                                     |   |                 | 198.8   |   |                 |   | 229.6 |   |   |   | (30.8 | ) |   |   | (13.4 | ) |
| Net      accounts due from      affiliates                                                                     |   |                 | -       |   |                 |   | 17.5 |   |   |   | (17.5 | ) |   | N.M. |   |
| Net      investment in operating      leases                                                                   |   |                 | 70.5    |   |                 |   | 72.9 |   |   |   | (2.4 | ) |   |   | (3.3 | ) |
| Vehicle      inventory                                                                                         |   |                 | 33.4    |   |                 |   | 42.0 |   |   |   | (8.6 | ) |   |   | (20.5 | ) |
| Restricted      cash and cash      equivalents                                                                 |   |                 | 365.3   |   |                 |   | 515.4 |   |   |   | (150.1 | ) |   |   | (29.1 | ) |
| Other      assets                                                                                              |   |                 | 132.7   |   |                 |   | 123.0 |   |   |   | 9.7 |   |   |   | 7.9 |   |
| Total      assets                                                                                              |   | $                    | 3,672.5 |   |                 | $      | 4,125.0 |   |   | $ | (452.5 | ) |   |   | (11.0 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                 |    |   |                 |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                 |    |   |                 |   |   |   |   |   |   |   |   |   |   |   |
| Senior      and secured      borrowings                                                                        |   | $                    | 3,169.8 |   |                 | $      | 3,679.1 |   |   | $ | (509.3 | ) |   |   | (13.8 | ) |
| Net      accounts due to      affiliates                                                                       |   |                 | 27.9    |   |                 |   | - |   |   |   | 27.9 |   |   | N.M. |   |
| Other      liabilities                                                                                         |   |                 | 183.9   |   |                 |   | 173.3 |   |   |   | 10.6 |   |   |   | 6.1 |   |
| Total      liabilities                                                                                         |   |                 | 3,381.6 |   |                 |   | 3,852.4 |   |   |   | (470.8 | ) |   |   | (12.2 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                 |    |   |                 |   |   |   |   |   |   |   |   |   |   |   |
| Total      shareowner’s      equity                                                                      |   |                 | 290.9   |   |                 |   | 272.6 |   |   |   | 18.3 |   |   |   | 6.7 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                 |    |   |                 |   |   |   |   |   |   |   |   |   |   |   |
| Total      liabilities and shareowner’s equity                                                                                                                                                                                                                                                                                                                                                                                           |   | $                    | 3,672.5 |   |                 | $      | 4,125.0 |   |   | $ | (452.5 | ) |   |   | (11.0 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                 |    |   |                 |   |   |   |   |   |   |   |   |   |   |   |

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INDEX

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | As      of           |   |   |                 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------|--------|--------|----------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | January      31,2009 |   |   | October      31,2008 |   |   | Change |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                 |   |   |                 |   |   |   |   |
| Delinquencies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                 |   |   |                 |   |   |   |   |
| Retail      notes & finance leases greater than 60 days - rolling three      month average                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                 | 0.8    | %      |                 |   | 1.1 | % |   |   | (0.3 | ) |
| Wholesale      notes greater than 60      days                                                                                                           |   |                 | 0.5    | %      |                 |   | 0.4 | % |   |   | 0.1 |   |
| Wholesale      accounts greater than 60      days                                                                                                        |   |                 | 3.1    | %      |                 |   | 2.0 | % |   |   | 1.1 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                 |   |   |                 |   |   |   |   |   |   |   |
| Allowance      to finance receivable coverage      ratio                                                                                  |   |                 | 1.1    | %      |                 |   | 1.0 | % |   |   | 0.1 |   |

|                                                               |   | 2009   |   |   | 2008   |   |   | Change |   |
|--------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Charge-offs                                                        |   |   |   |   |   |   |   |   |   |
| Retail      notes & finance leases charge-offs                 |   | $      | 2.8    |   |   | $      | 3.9    |   |   | $ | (1.1 | ) |
|                                                               |   |   |   |   |   |   |   |   |   |   |   |   |
| Retail      notes & finance leases charge-offs to liquidations |   |   | 1.7    | %      |   |   | 1.1    | %      |   |   | 0.6 | % |

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INDEX

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INDEX

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | January      31,2009 |   |   | October      31,2008 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------|--------|--------|----------------------|--------|
| Revolver      bank      loan                                                                                                  |   | $                    | 800.0  |   |                 | $      | 800.0 |   |
| NFC      revolving loan      utilized                                                                                         |   |                 | (251.0 | )      |                 |   | (454.0 | ) |
| Mexican      sub-revolver loan      utilized                                                                                  |   |                 | (70.0  | )      |                 |   | (100.0 | ) |
| Total      availability                                                                                                                                |   | $                    | 479.0  |   |                 | $      | 246.0 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                 | Fitch    | Standardand      Poor’s |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------|-------------------------------|
| Senior      unsecured debt                                                                                                                                                                                                                                                                                                                                                                           | BB-      | BB-                           |
|                                                                                                                                                                                                                                                                                                                                                                                                 |     |                          |
| Outlook      as of February 2008                                                                                                                                                                                                                                                                                                                                                                     | Negative | Negative                      |
|                                                                                                                                                                                                                                                                                                                                                                                                 |     |                          |
| In      July 2006, Moody’s withdrew its credit rating for both NIC and      NFC.  In January 2006, Standard and Poor’s changed its outlook      to Negative from Stable. During February 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. |

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INDEX

Item 3.

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INDEX

Item 4.

| ·   | Our      leadership team is committed to achieving and maintaining a strong control      environment, high ethical standards and financial reporting integrity.      This commitment will continue to be communicated to and reinforced with      our employees. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We      will continue to foster awareness and understanding of standards and      principles for accounting and financial reporting. This includes the      implementation and clarification of specific accounting policies and      procedures and effective execution of our accounting training      program. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We      will continue to monitor adherence to company accounting policies and      procedures through the testing of key controls directly linked to these      accounting policies to test for operating effectiveness and help ensure      critical accounting procedures are being performed    correctly. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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INDEX

PART II

Item6. 

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INDEX

|                      | Navistar Financial    Corporation |
|---------------------------|-----------------------------------|
|                      |                              | (Registrant) |
|                      |                              |   |
| Date:      March 11, 2009 | By:  /s/                | DAVID L. DERFELT |
|                      |                              | David      L. Derfelt |
|                      |                              | V.P.,      and Controller |
|                      |                              | (Principal      Accounting  Officer) |

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INDEX

| 3   | Articles      of Incorporation and By-Laws (incorporated by reference): 3.1           Restated      Certificate of Incorporation of Navistar Financial Corporation (as amended      and in effect on December 15, 1987).  Filed on Form 8-K dated      December 17, 1987.  Commission File      No.  001-04146. 3.2           The      By-Laws of Navistar Financial Corporation (as amended February 29,      1988).  Filed on Form 10-K dated January 19,      1989.  Commission File No.  001-04146. 3.3           Amendment      to the By-Laws of Navistar Financial Corporation.  Filed as      Exhibit 3.1 on Form 10-K dated December 18, 2003.  Commission      File No.  001-04146.  |
|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10  | Material      Contracts (filed herewith): 10.1           Waiver      and Amendment No. 9, dated as of January 21, 2009, to the Receivables      Purchase Agreement dated as of April 8, 2004, as heretofore amended (the      "Agreement"), among Truck Retail Accounts Corporation, a Delaware      corporation, Navistar Financial Corporation, a Delaware corporation, as      initial Servicer, the entities listed on Schedule A to the Agreement, JS      Siloed Trust, and JPMorgan Chase Bank, N.A., successor by merger to Bank      One, NA, as agent for the Purchasers.                                                                                                                                                                                                                                                                                                                                   |
|  31 |  Rule      13a-14(a) and 15d-14(a) Certifications: 31.1 Certification      of Principal Executive Officer 31.2 Certification      of Principal Financial  Officer                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 32       | Section      1350 Certification: CEO and CFO Certification Pursuant to of Chapter      1350 of Chapter 63 of Title 18 of the United States Code                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |

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INDEX