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

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, 2008      and 2007 |  3 |
|                                |   |   |   |   |
|                                |   |   | Consolidated      Statements of Shareowner’s Equity and Comprehensive Income (Loss) – Three      Months Ended January 31, 2008 and 2007 |  4 |
|                                |   |   |   |   |
|                                |   |   | Consolidated      Statements of Financial Condition - January 31, 2008 and October 31,      2007  |  5 |
|                                |   |   |   |   |
|                                |   |   | Consolidated      Statements of Cash Flows - Three Months Ended January 31, 2008 and      2007 |  6 |
|                                |   |   |   |   |
|                                |   |   | Notes      to Consolidated Financial      Statements                                                                                               | 7 |
|                                |   |   |   |   |
|                                | Item      2. |   | Management's      Discussion and Analysis of Financial Condition  and Results of      Operations |  18 |
|                                |   |   |   |   |
|                                | Item      3. |   | Quantitative      and Qualitative Disclosures about Market Risk | 22 |
|                                |   |   |   |   |
|                                | Item      4. |   | Controls      and      Procedures                                                                                               | 22 |
|                                |   |   |   |   |
|                                |   |   |   |   |
|                                | PART      II. |   | OTHER      INFORMATION |   |
|                                |   |   |   |   |
|                                | Item      6. |   | Exhibits                                                                                              | 24 |
|                                |   |   |   |   |
|                                |   |   | Signature                                                                                              | 25 |
|                                |   |   |   |   |
|                                |   |   | Exhibit      Index                                                                                              | 26 |

----

|  Millions      of dollars                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | For      the Three Months Ended January      31 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |  2008                                      |   |   | 2007 |   |
| Revenues                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                            |   |   |   |   |
| Retail      notes and finance leases      revenue                                                                                                  |   | $                                               | 61.3   |   |   | $ | 65.6 |   |
| Operating      leases      revenue                                                                                                                 |   |                                            | 5.6    |   |   |   | 6.1 |   |
| Wholesale      notes      interest                                                                                                                 |   |                                            | 4.5    |   |   |   | 9.8 |   |
| Retail      and wholesale accounts      interest                                                                                                   |   |                                            | 7.4    |   |   |   | 6.4 |   |
| Securitization      income                                                                                                                         |   |                                            | 9.9    |   |   |   | 28.4 |   |
| Other      revenues                                                                                                                                |   |                                            | 8.3    |   |   |   | 7.1 |   |
| Total      revenues                                                                                                                                                                   |   |                                            | 97.0   |   |   |   | 123.4 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                            |   |   |   |   |   |   |
| Expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                            |   |   |   |   |   |   |
| Cost      of borrowing:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                            |   |   |   |   |   |   |
| Interest      expense                                                                                                                                                       |   |                                            | 62.3   |   |   |   | 58.7 |   |
| Other                                                                                                                                                                       |   |                                            | 2.3    |   |   |   | 2.2 |   |
| Credit,      collections and      administrative                                                                                                   |   |                                            | 12.2   |   |   |   | 11.5 |   |
| Provision      for credit      losses                                                                                                              |   |                                            | 4.6    |   |   |   | 0.6 |   |
| Depreciation      on operating      leases                                                                                                         |   |                                            | 4.5    |   |   |   | 4.9 |   |
| Derivative      expense      (income)                                                                                                              |   |                                            | 40.2   |   |   |   | (6.0 | ) |
| Other      expenses      (income)                                                                                                                  |   |                                            | 0.7    |   |   |   | (0.3 | ) |
| Total      expenses                                                                                                                                                                   |   |                                            | 126.8  |   |   |   | 71.6 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                            |   |   |   |   |   |   |
| Income      (loss) before      taxes                                                                                                               |   |                                            | (29.8  | ) |   |   | 51.8 |   |
| Income      tax (benefit) expense                                                                                                        |   |                                            | (10.6  | ) |   |   | 18.7 |   |
| Net      income      (loss)                                                                                                                        |   | $                                               | (19.2  | ) |   | $ | 33.1 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                            |   |   |   |   |   |   |

----

| Millions      of dollars                                                                                                                                                                                                                                                                  |   | CapitalStock |   |   | Paid-InCapital |   |   | RetainedEarnings |   |   | Accumulated      OtherComprehensive      Income (Loss) |   |   | Total  |   |   | ComprehensiveIncome      (Loss) |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|--------|--------|----------------|--------|--------|------------------|--------|--------|--------------------------------------------------------|--------|--------|--------|--------|--------|---------------------------------|--------|
|                                                                                                                                                                                                                                                                                      |   |         |   |   |           |   |   |             |   |   |                                                   |   |   |   |   |   |                            |   |
| Balance      at October 31, 2006                                                                                                                                                                                                                                                          |   | $            | 1.6    |   |           | $      | 139.6  |             |   | $      | 459.8                                                  |   |   | $      | (1.7   | )      |                            | $      | 599.3 |   |   |   |   |
| 2007      Activity:                                                                                                                                                                                                                                                                       |   |         |   |   |           |   |   |             |   |   |                                                   |   |   |   |   |   |                            |   |   |   |   |   |   |
| Net      income                                                              |   |         | -      |   |           |   | -      |             |   |   | 33.1                                                   |   |   |   | -      |   |                            |   | 33.1 |   |   | $ | 33.1 |   |
| Balance      at January 31, 2007                                                                                                                                                                                                                                                          |   | $            | 1.6    |   |           | $      | 139.6  |             |   | $      | 492.9                                                  |   |   | $      | (1.7   | )      |                            | $      | 632.4 |   |   | $ | 33.1 |   |
|                                                                                                                                                                                                                                                                                      |   |         |   |   |           |   |   |             |   |   |                                                   |   |   |   |   |   |                            |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                      |   |         |   |   |           |   |   |             |   |   |                                                   |   |   |   |   |   |                            |   |   |   |   |   |   |   |
| 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 | ) |

----

|  Millions      of dollars                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | As      of January 31,2008 |       |   | As      of October 31, 2007 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------|------------|--------|-----------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | (Unaudited)                |       |   |                        |   |
| ASSETS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                       |       |   |                        |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                       |       |   |                        |   |
| Cash      and cash      equivalents                                                                                                     |   | $                          |  23.9 |   |                        | $      |  10.6 |   |
| Finance      receivables, net of unearned income:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                       |       |   |                        |   |   |   |
| Finance      receivables                                                                                                                                                   |   |                       | 3,541.6    |   |                        |   | 3,544.5 |   |
| Finance      receivables from      affiliates                                                                                                                              |   |                       | 194.0      |   |                        |   | 212.1 |   |
| Allowance      for      losses                                                                                                                                             |   |                       | (24.7      | )      |                        |   | (23.9 | ) |
| Finance      receivables,      net                                                                                                      |   |                       | 3,710.9    |   |                        |   | 3,732.7 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                       |       |   |                        |   |   |   |
| Amounts      due from sales of      receivables                                                                                         |   |                       | 205.8      |   |                        |   | 319.1 |   |
| Net      accounts due from      affiliates                                                                                              |   |                       | 87.4       |   |                        |   | 60.1 |   |
| Net      investment in operating      leases                                                                                            |   |                       | 75.0       |   |                        |   | 78.3 |   |
| Vehicle      inventory                                                                                                                  |   |                       | 29.8       |   |                        |   | 23.2 |   |
| Restricted      cash and cash      equivalents                                                                                          |   |                       | 817.7      |   |                        |   | 370.5 |   |
| Unsecured      loans to      affiliates                                                                                                 |   |                       | 25.0       |   |                        |   | 60.0 |   |
| Other      assets                                                                                                                       |   |                       | 129.9      |   |                        |   | 81.7 |   |
| Total      assets                                                                                                                                                               |   | $                          | 5,105.4    |   |                        | $      | 4,736.2 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                       |       |   |                        |   |   |   |
| LIABILITIES      AND SHAREOWNER’S EQUITY                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                       |       |   |                        |   |   |   |
| Senior      and secured      borrowings                                                                                                 |   | $                          | 4,653.5    |   |                        | $      | 4,269.1 |   |
| Other      liabilities                                                                                                                  |   |                       | 219.9      |   |                        |   | 199.0 |   |
| Total      liabilities                                                                                                                                                          |   |                       | 4,873.4    |   |                        |   | 4,468.1 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                       |       |   |                        |   |   |   |
| Shareowner’s      equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                       |       |   |                        |   |   |   |
| Capital      stock (par value $1, 2,000,000 shares authorized, 1,600,000 shares issued      and outstanding)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                       | 1.6        |   |                        |   | 1.6 |   |
| Paid-in      capital                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                       | 139.6      |   |                        |   | 139.6 |   |
| Retained      earnings                                                                                                                  |   |                       | 90.6       |   |                        |   | 127.1 |   |
| Accumulated      other comprehensive income (loss), net of tax                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                       | 0.2        |   |                        |   | (0.2 | ) |
| Total      shareowner’s      equity                                                                                               |   |                       | 232.0      |   |                        |   | 268.1 |   |
| Total      liabilities and shareowner’s      equity                                                                                                                       |   | $                          | 5,105.4    |   |                        | $      | 4,736.2 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                       |       |   |                        |   |   |   |

----

|        Millions of dollars                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | For      the Three Months EndedJanuary      31 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | 2008                                           |   |   | 2007 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                           |   |   |   |   |
| Cash      flow from operating activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                           |   |   |   |   |
| Net      income      (loss)                                                                                                                                             |   | $                                              | (19.2  | ) |   | $ | 33.1 |   |
| Adjustments      to reconcile net income to cash flow from operations:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                           |   |   |   |   |   |   |
| Net      loss on sales of finance      receivables                                                                                                                                                    |   |                                           | 2.9    |   |   |   | 2.9 |   |
| Net      loss on sale of      equipment                                                                                                                                                               |   |                                           | 0.9    |   |   |   | 0.3 |   |
| Depreciation      and      amortization                                                                                                                                                               |   |                                           | 5.4    |   |   |   | 6.0 |   |
| Provision      for credit      losses                                                                                                                                                                 |   |                                           | 4.6    |   |   |   | 0.6 |   |
| Net      change in amounts due from sales of receivables                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                           | 113.3  |   |   |   | 353.9 |   |
| Net      change in finance receivables - wholesale notes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                           | (105.7 | ) |   |   | 43.1 |   |
| Net      change in finance receivables from affiliates - wholesale                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                           | (0.1   | ) |   |   | 9.8 |   |
| Net      change in net accounts due from      affiliates                                                                                                                                              |   |                                           | (27.3  | ) |   |   | (61.5 | ) |
| Net      change in other assets and      liabilities                                                                                                                                                  |   |                                           | (27.5  | ) |   |   | (5.8 | ) |
| Net      cash (used in) provided by operating activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                           | (52.7  | ) |   |   | 382.4 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                           |   |   |   |   |   |   |
| Cash      flow from investing activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                           |   |   |   |   |   |   |
| Originations      of retail notes and finance leases, includes affiliates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                           | (192.4 | ) |   |   | (342.6 | ) |
| Net      change in restricted cash and cash equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                           | (447.2 | ) |   |   | 290.6 |   |
| Collections      on retail notes and finance lease receivables,net      of change in unearned finance income, includes affiliates                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                           | 322.8  |   |   |   | 325.7 |   |
| Net      change in finance receivables from affiliates - accounts                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                           | 1.8    |   |   |   | (4.3 | ) |
| Net      change in finance receivables -      accounts                                                                                                                  |   |                                           | (31.6  | ) |   |   | (104.1 | ) |
| Proceeds      from sale of vehicle      inventory                                                                                                                       |   |                                           | 12.0   |   |   |   | 3.9 |   |
| Purchase      of equipment leased to      others                                                                                                                        |   |                                           | (5.3   | ) |   |   | (10.0 | ) |
| Proceeds      from sale of      equipment                                                                                                                               |   |                                           | 4.1    |   |   |   | 5.6 |   |
| Loan      repayment from      affiliates                                                                                                                                |   |                                           | 35.0   |   |   |   | - |   |
| Net      cash (used in) provided by investing activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                           | (300.8 | ) |   |   | 164.8 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                           |   |   |   |   |   |   |
| Cash      flow from financing activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                           |   |   |   |   |   |   |
| Net      change in bank credit facility, net of issuance costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                           | 207.2  |   |   |   | (260.5 | ) |
| Principal      payments on senior      debt                                                                                                                             |   |                                           | (1.6   | ) |   |   | (1.0 | ) |
| Proceeds      from issuance of secured borrowings, net of issuance costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                           | 508.1  |   |   |   | 39.2 |   |
| Payments      on secured      borrowings                                                                                                                                |   |                                           | (332.1 | ) |   |   | (337.6 | ) |
| Dividends      paid to parent      company                                                                                                                              |   |                                           | (14.8  | ) |   |   | - |   |
| Net      cash provided by (used in) financing activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                           | 366.8  |   |   |   | (559.9 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                           |   |   |   |   |   |   |
| Change      in cash and cash      equivalents                                                                                                  |   |                                           | 13.3   |   |   |   | (12.7 | ) |
| Cash      and cash equivalents, beginning of      year                                                                                         |   |                                           | 10.6   |   |   |   | 25.6 |   |
| Cash      and cash equivalents, end of      period                                                                                             |   | $                                              | 23.9   |   |   | $ | 12.9 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                           |   |   |   |   |   |   |
| Supplemental      cash flow information:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                           |   |   |   |   |   |   |
| Interest      paid                                                                                                                                                      |   | $                                              | 61.9   |   |   | $ | 59.7 |   |
| Income      taxes paid, net of      refunds                                                                                                                             |   |                                           | 54.0   |   |   |   | 7.4 |   |
| Transfers      of loans and leases to vehicle      inventory                                                                                                            |   |                                           | 19.5   |   |   |   | 8.1 |   |

----

----

----

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | January      31,2008 |   |   | October      31,2007 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------|--------|--------|----------------------|--------|
| Finance      receivables from affiliates (Dealcor      retail)                                                                                                |   | $                    | 161.2  |   |                 | $      | 177.7 |   |
| Finance      receivables from affiliates (Dealcor      wholesale)                                                                                             |   |                 | 32.8   |   |                 |   | 34.4 |   |
| Net      accounts due from      affiliates                                                                                                                    |   |                 | 87.4   |   |                 |   | 60.1 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | January      31,2008 |    |   | October      31, 2007 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------|---------|--------|-----------------------|--------|
| Retail      notes, net of unearned      income                                                                                                                  |   | $                    | 2,883.1 |   |                  | $      | 3,012.3 |   |
| Finance      leases, net of unearned      income                                                                                                                |   |                 | 146.2   |   |                  |   | 157.2 |   |
| Wholesale      notes held for      sale                                                                                                                         |   |                 | 211.3   |   |                  |   | 105.6 |   |
| Accounts      (includes retail and      wholesale)                                                                                                              |   |                 | 301.0   |   |                  |   | 269.4 |   |
| Finance      receivables from affiliates, net of unearned income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                 | 194.0   |   |                  |   | 212.1 |   |
| Total      finance      receivables                                                                                                                             |   |                 | 3,735.6 |   |                  |   | 3,756.6 |   |
| Allowance      for      losses                                                                                                                                  |   |                 | (24.7   | )      |                  |   | (23.9 | ) |
|           Total finance receivables,      net                                                                                               |   | $                    | 3,710.9 |   |                  | $      | 3,732.7 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | Quarter Ended January 31,      2008 |   |   | Quarter      Ended January 31, 2007 |   |   | Year Ended      October 31,      2007 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------|--------|--------|-------------------------------------|--------|--------|---------------------------------------|--------|
| Allowance      for losses, beginning of      period                                                                          |   | $                                   | 23.9   |   |                                | $      | 15.3   |                                  |   | $ | 15.3 |   |
| Provision      for credit      losses                                                                                        |   |                                | 4.6    |   |                                |   | 0.6    |                                  |   |   | 19.6 |   |
| Charge-offs      charged to      allowance                                                                                   |   |                                | (3.8   | )      |                                |   | (0.2   | )                                     |   |   | (11.0 | ) |
| Allowance      for losses, end of      period                                                                                                                                  |   | $                                   | 24.7   |   |                                | $      | 15.7   |                                  |   | $ | 23.9 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | January      31,2008 |   |   | October      31, 2007 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------|--------|--------|-----------------------|--------|
| Impaired      receivables with specific loss      reserves                                                                                                  |   | $                    | 41.1   |   |                  | $      | 28.3 |   |
| Impaired      receivables without specific loss      reserves                                                                                               |   |                 | 6.2    |   |                  |   | 0.9 |   |
| Impaired      receivables guaranteed by Navistar,      Inc.                                                                                                 |   |                 | 22.3   |   |                  |   | 8.9 |   |
| Total      impaired      receivables                                                                                                                        |   | $                    | 69.6   |   |                  | $      | 38.1 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                 |   |   |                  |   |   |   |
| Specific      loss reserves on impaired      receivables                                                                                                    |   | $                    | 3.6    |   |                  | $      | 3.1 |   |
| Average      balance of impaired finance      receivables                                                                                                   |   |                 | 47.3   |   |                  |   | 27.5 |   |
| Balances      with payment past due over 90      days                                                                                                       |   |                 | 4.9    |   |                  |   | 3.0 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | Quarter      Ended January      31,2008 |   |   | Quarter      Ended January      31,2007 |   |   | Year      Ended October      31, 2007 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------|--------|--------|-----------------------------------------|--------|--------|---------------------------------------|--------|
| Vehicle      inventory, beginning of period                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | $                                       | 23.2   |   |                                    | $      | 5.2    |                                  |   | $ | 5.2 |   |
| Net      additions                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                    | 19.5   |   |                                    |   | 8.1    |                                  |   |   | 49.6 |   |
| Net      book value of repossessed assets sold                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                    | (12.9  | )      |                                    |   | (4.2   | )                                     |   |   | (31.6 | ) |
| Vehicle      inventory, end of      period                                                                        |   | $                                       | 29.8   |   |                                    | $      | 9.1    |                                  |   | $ | 23.2 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | January      31,2008 |   |   | October      31,2007 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------|--------|--------|----------------------|--------|
| Investment      in operating      leases                                                                                                     |   | $                    | 122.0  |   |                 | $      | 124.2 |   |
| Less:      Accumulated      depreciation                                                                                                     |   |                 | (47.7  | )      |                 |   | (46.3 | ) |
|          Net      investment in equipment under operating leases                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                 | 74.3   |   |                 |   | 77.9 |   |
| Rent      receivable net of reserve for past due operating leases                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                 | 0.7    |   |                 |   | 0.4 |   |
| Net      investment in operating      leases                                                                                                 |   | $                    | 75.0   |   |                 | $      | 78.3 |   |

----

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|                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                 |    |   |                 |   |    | Weighted Average Interest      Rate |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------|---------|--------|----------------------|--------|---------|-----------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | January      31,2008 |    |   | October      31,2007 |   |    | January      31,2008                          |   |   | October      31,2007 |   |
| Bank      credit facility at variable rates due July      2010                                                                |   | $                    | 1,235.8 |   |                 | $      | 1,028.9 |                                          |   |   | 5.9 | % |   |   | 6.8 | % |
| Revolving      retail warehouse facility at variable rates, due June 2010                                                                                                                                                                                                                                                                                                                                                                                |   |                 | 500.0   |   |                 |   | 500.0   |                                          |   |   | 4.5 | % |   |   | 5.4 | % |
| Borrowings      secured by asset-backed securities at various rates,  currently      between 2.5% to 5.7%, due     serially      through 2015                                                                                                                                                                                                                                                                              |   |                 | 2,779.5 |   |                 |   | 2,607.7 |                                          |   |   | 4.9 | % |   |   | 4.8 | % |
| Borrowings      secured by operating and finance leases due serially through November 2012      at rates, currently  between 3.4% to 6.6%                                                                                                                                                                                                                                                                                                           |   |                 | 138.2   |   |                 |   | 132.5   |                                          |   |   | 5.1 | % |   |   | 5.2 | % |
| Total      senior and secured borrowings                                                                                                                                                                                                                                                                                                                                                                                                                 |   | $                    | 4,653.5 |   |                 | $      | 4,269.1 |                                          |   |   | 5.1 | % |   |   | 5.4 | % |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | Pension Benefits |   |   | Other Benefits |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------|--------|--------|----------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |  2008       |   |   | 2007           |   |   | 2008 |   |   | 2007 |   |
| 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                                                                         |   |             | 0.6    |   |           |   | 0.1 |   |   |   | - |   |   |   | - |   |
| Less      expected return on      assets                                                                            |   |             | (1.5   | )      |           |   | (1.3 | ) |   |   | (0.2 | ) |   |   | (0.2 | ) |
|       Net      postretirement benefits expense (income)                                                                                                                                                                                                                                                                                                                                                                                                       |   | $                | 0.2    |   |           | $      | (0.1 | ) |   | $ | 0.1 |   |   | $ | 0.1 |   |

----

----

|                                                  |  Maturity     |   | January      31,2008 |    |   | October      31,2007 |   |
|-------------------------------------------------------|--------------------|--------|----------------------|---------|--------|----------------------|--------|
| Investor      certificate                             | July      2008     |   | $                    | 200.0   |   |                 | $      | 200.0 |   |
| Investor      certificate                             | February      2010 |   |                 | 212.0   |   |                 |   | 212.0 |   |
| Variable      funding certificate (“VFC”) | November      2008 |   |                 | 800.0   |   |                 |   | 800.0 |   |
|           Total                   |               |   | $                    | 1,212.0 |   |                 | $      | 1,212.0 |   |

|                                             |  Maturity   |   | January      31,2008 |   |   | October      31,2007 |   |
|--------------------------------------------------|------------------|--------|----------------------|--------|--------|----------------------|--------|
| Conduit      funding facility                    | August      2008 |   | $                    | 100.0  |   |                 | $      | 100.0 |   |
| Funding      utilized                            |             |   |                 | (40.0  | )      |                 |   | (60.3 | ) |
|           Total availability |             |   | $                    | 60.0   |   |                 | $      | 39.7 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | January      31,2008 |   |   | October      31,2007 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------|--------|--------|----------------------|--------|
| Excess      seller’s      interest                                                                                                                                       |   | $                    | 188.0  |   |                 | $      | 296.1 |   |
| Interest      only      strip                                                                                                                                                  |   |                 | 7.9    |   |                 |   | 11.3 |   |
| Restricted      cash      reserves                                                                                                                                             |   |                 | 9.9    |   |                 |   | 11.7 |   |
|           Total amounts due from sales of      receivables                                                                                                 |   | $                    | 205.8  |   |                 | $      | 319.1 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                    | January      31,2008                           | October      31,2007                           |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------|------------------------------------------------|
| Discount      rate      (annual)                                                                   | 10.3  to      18.0  %      | 10.3  to      18.8  %      |
| Estimated      credit      losses                                                                  | 0      to 0.18  %                    | 0      to 0.18  %                    |
| Payment      speed (percent of portfolio per month)                                                                                                                                                                                                                                                                                                                                                                                     | 8.8  to  57.0  % | 9.9  to  69.2  % |

| January      31, 2008                                     |   | Retail      Notes |    |   | Finance      Leases |   |   | Wholesale      Notes |   |   | Accounts |   |   | Affiliates |   |   | Total  |   |
|-----------------------------------------------------------|--------|-------------------|---------|--------|---------------------|--------|--------|----------------------|--------|--------|----------|--------|--------|------------|--------|--------|--------|--------|
| Serviced      portfolio                                   |   | $                 | 2,883.1 |   |                | $      | 146.2  |                 |   | $      | 956.1    |   |   | $          | 366.0  |   |   | $      | 349.3 |   |   | $ | 4,700.7 |   |
| Less      sold receivables – off-balance      sheet |   |              | -       |   |                |   | -      |                 |   |   | (744.8   | )      |   |       | (65.0  | )      |   |   | (155.3 | ) |   |   | (965.1 | ) |
|           Total on-balance sheet      |   | $                 | 2,883.1 |   |                | $      | 146.2  |                 |   | $      | 211.3    |   |   | $          | 301.0  |   |   | $      | 194.0 |   |   | $ | 3,735.6 |   |

| October      31, 2007                                     |   | Retail      Notes |    |   | Finance      Leases |   |   | Wholesale      Notes |   |   | Accounts |   |   | Affiliates |   |   | Total  |   |
|-----------------------------------------------------------|--------|-------------------|---------|--------|---------------------|--------|--------|----------------------|--------|--------|----------|--------|--------|------------|--------|--------|--------|--------|
| Serviced      portfolio                                   |   | $                 | 3,012.3 |   |                | $      | 157.2  |                 |   | $      | 1,024.6  |   |   | $          | 424.2  |   |   | $      | 383.5 |   |   | $ | 5,001.8 |   |
| Less      sold receivables – off-balance      sheet |   |              | -       |   |                |   | -      |                 |   |   | (919.0   | )      |   |       | (154.8 | )      |   |   | (171.4 | ) |   |   | (1,245.2 | ) |
|           Total on-balance sheet      |   | $                 | 3,012.3 |   |                | $      | 157.2  |                 |   | $      | 105.6    |   |   | $          | 269.4  |   |   | $      | 212.1 |   |   | $ | 3,756.6 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | Quarter      endedJanuary      31, 2008 |   |   | Quarter      endedJanuary      31, 2007 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------|--------|--------|-----------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                    |   |   |                                    |   |
| Fair      value      adjustments                                                                                   |   | $                                       | 3.1    |   |                                    | $      | 6.5 |   |
| Excess      spread      income                                                                                     |   |                                    | 4.7    |   |                                    |   | 18.9 |   |
| Servicing      fees      revenue                                                                                   |   |                                    | 3.1    |   |                                    |   | 4.0 |   |
| Losses      on sales of      receivables                                                                           |   |                                    | (2.9   | )      |                                    |   | (2.9 | ) |
| Investment      income                                                                                             |   |                                    | 1.9    |   |                                    |   | 1.9 |   |
| Securitization      income                                                                                                                                           |   | $                                       | 9.9    |   |                                    | $      | 28.4 |   |

----

----

----

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | January      31,2008 |   |   | October      31,2007 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------|--------|--------|----------------------|--------|
| Revolver      bank      loan                                                                                                  |   | $                    | 800.0  |   |                 | $      | 800.0 |   |
| NFC      revolving loan      utilized                                                                                         |   |                 | (627.5 | )      |                 |   | (419.0 | ) |
| Mexican      sub-revolver loan      utilized                                                                                  |   |                 | (80.0  | )      |                 |   | (100.0 | ) |
| Total      availability                                                                                                                                |   | $                    | 92.5   |   |                 | $      | 281.0 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                 |  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. |

----

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

| ·   | We      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 newly designed accounting training      program. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We      continue to invest in modifications of our information systems to improve      the reliability of our financial reporting and increase the completeness      and consistency of the controls around logical access and program      change. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We      continue to enhance the development, communication, and monitoring of      processes and controls to ensure that appropriate journal entry controls      are performed, documented, and reviewed as part of our standardized      procedures. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We      continue to support our internal Management Representation Letter process      to ensure the timely assessment of accounting and disclosure matters      requiring our attention and to support our notification of matters to      NIC. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                     | Navistar      Financial Corporation                                                                                |
|--------------------------|--------------------------------------------------------------------------------------------------------------------|
|                     |                                                                                                               | (Registrant) |
|                     |                                                                                                               |   |
| Date:      June 27, 2008 |                      By:  /s/ | DAVID L.      DERFELT |
|                     |                                                                                                               | David      L. Derfelt |
|                     |                                                                                                               | V.P.,      and Controller |
|                     |                                                                                                               | (Principal      Accounting  Officer) |

----

| 3 3.1  3.2 3.3 | Articles      of Incorporation and By-Laws (incorporated by reference): 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. 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. 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 The      following documents of Navistar Financial Corporation (“the Corporation”)      are incorporated herein by reference:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 10.1                               | Waiver      dated November 20, 2007 to the Master Purchase Agreement dated as of June      30, 2004 between Banc of America  Leasing & Capital, LLC and      International Truck Leasing Corporation.   Filed as Exhibit      10.10 to the Corporation’s Form 8-K on December 14,      2007.   Commission File No. 001-04146.                                                                                                                                                                                                                                                                                                                                                                                         |
|                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 10.2                               | Note      Purchasing Agreement, dated as of November 28, 2007, among Navistar      Financial Retail Receivables Corporation, as Seller, Navistar Financial      Corporation, individually and as Servicer, Citicorp North America, Inc.,      as Agent for the Investors, CAFCO, LLC and CRC Funding, LLC as the Conduit      Investors, and Citibank, N.A., as Committed      Investor.   Filed as Exhibit 10.1 to the Corporation’s Form      8-K on November 28, 2007. Commission File No. 001-04146                                                                                                                                                                                                                                            |
|                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 10.3                               | Pooling      Agreement dated as of November 28, 2007 between Navistar Financial Retail      Receivables Corporation, as Seller, and Navistar Financial 2007-C Owner      Trust, as Issuer.  Filed as Exhibit 10.2 to the Corporation’s      Form 8-K on November 28, 2007. Commission File No.    001-04146.                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 10.4                               | Indenture      dated as of November 28, 2007, between Navistar Financial 2007-C Owner      Trust, as Issuer, and The Bank of New York, as the Indenture      Trustee.   Filed as Exhibit 10.3 to the Corporation’s Form      8-K on November 28, 2007. Commission File No.001-04146.                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 10.5                               | Trust      Agreement, dated as of November 28, 2007, between Navistar Financial      Retail Receivables Corporation, as Seller, and Deutsche Bank Trust Company      Delaware, as Owner Trustee.   Filed as Exhibit 10.4 to the      Corporation’s Form 8-K on November 28, 2007. Commission File No.      001-04146.                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 10.6                               | Purchase      Agreement, dated November 28, 2007, among Navistar Financial Retail      Receivables Corporation, The Bank of New York, as Indenture Trustee,      Navistar Financial 2007-C Owner Trust, as Issuer, and Navistar Financial      Corporation, as Servicer.  Filed as Exhibit 10.5 to the      Corporation’s Form 8-K on November 28, 2007. Commission File No.      001-04146.                                                                                                                                                                                                                                                                                                                                                            |
|                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 10.7                               | Servicing      Agreement, dated November 28, 2007, among Navistar Financial Retail      Receivables Corporation, The Bank of New York, as Indenture Trustee,      Navistar Financial 2007-C Owner Trust, as Issuer and Navistar Financial      Corporation, as Servicer.  Filed as Exhibit 10.6 to the      Corporation’s Form 8-K on November 28, 2007. Commission File No.      001-04146.                                                                                                                                                                                                                                                                                                                                                            |
|                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |

----

| 10.8   | Fourth      Waiver dated November 28, 2007 to the Receivable Sale Agreement dated      April 8, 2004, among Navistar Financial Corporation, as Transferor, and      Truck Retail Accounts Corporation, as Transferee.  Filed as      Exhibit 10.11 to the Corporation’s Form 8-K on December 14,      2007.   Commission File No. 001-04146.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.9   | FIFTH      WAIVER, dated as of November 28, 2007 (this “Waiver”), to the Amended and      Restated Credit Agreement, dated as of July 1, 2005 (as heretofore      amended, supplemented or otherwise modified, the “Credit Agreement”),      among Navistar Financial Corporation, a Delaware corporation, Arrendadora      Financiera Navistar, S.A. de C.V., Organizacion Auxiliar del Credito, a      Mexican corporation, Servicios Financieros Navistar, S.A. de C.V.,      Sociedad Financiera de Objeto Limitado, a Mexican corporation, and      Navistar Comercial, S.A. de C.V., a Mexican corporation (each, a      “Borrower” and collectively, the “Borrowers”), the several lenders from      time to time parties thereto (the “Lenders”), JPMorgan Chase Bank, N.A.,      as administrative agent for the Lenders (in such capacity, the      “Administrative Agent”), Bank of America, N.A., as syndication agent (in      such capacity, the “Syndication Agent”), and The Bank of Nova Scotia, as      documentation agent (in such capacity, the “Documentation      Agent”).   Filed as Exhibit 10.01 to the Corporation’s Form      8-K on December, 14, 2007.   Commission File No.      001-04146. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.10  | Ninth      Waiver (this “Waiver”), dated November 28, 2007 to the      Receivable Purchase Agreement dated April 8, 2004, among Truck Retail      Accounts Corporation, a Delaware corporation (“Seller”), Navistar      Financial Corporation, a Delaware corporation (“Navistar”), as initial      Servicer (Navistar, together with Seller, the “Seller Parties” and each a      “Seller Party”), the entities set forth on the signature pages to this      Agreement (together with any of their respective successors and assigns      hereunder, the “Financial Institutions”), JS Siloed Trust as assignee of      Jupiter Securitization Company LLC (“Trust”), and JPMorgan Chase Bank,      N.A. (successor by merger to Bank One, NA (Main Office Chicago)), as agent      for the Purchasers.    Filed as Exhibit 10.11 to the      Corporation’s Form 8-K on December 14, 2007.   Commission      File No. 001-04146.                                                                                                                                                                                                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.11  | Waiver      dated December 6, 2007 to the Receivables Purchase Agreement dated as of      July 30, 2004 among Navistar Retail Receivables Corporation, as Seller,      Navistar Financial Corporation, as Servicer, Thunder Bay Funding LLC, as      Company, and Royal Bank of Canada, as Agent.   Filed as      Exhibit 10.7 to the Corporation’s Form 8-K on December 14,      2007.   Commission File No. 001-04146.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.12  | Waiver      dated December 6, 2007 to the Receivables Purchase Agreement dated as of      April 29, 2005 among Navistar Financial Retail Receivables Corporation, as      Seller, Navistar Financial Corporation, as Servicer, Thunder Bay Funding      LLC, as Company, and Royal Bank of Canada, as Agent.  Filed as      Exhibit 10.8 to the Corporation’s Form 8-K on December 14,      2007.   Commission File No. 001-04146.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |

| 10.13 | Waiver      dated December 6, 2007 to the Indenture dated as of  September 1,      2006 (as amended, the "Indenture") between Navistar Financial 2006-ARC      Owner Trust, a Delaware statutory trust, and LaSalle Bank National      Association, a national banking association, as indenture trustee (in such      capacity, the "Indenture Trustee"), (b) the Note Purchase Agreement dated      as of September 1, 2006 (the "Note Purchase Agreement"), among Navistar      Financial Retail Receivables Corporation (the "Seller"), Navistar      Financial Corporation ("NFC"), Amsterdam Funding Corporation, as a Conduit      Investor, and ABN AMRO Bank, N.V., as Funding Agent and an Alternate      Investor , (c) the Servicing Agreement dated as of September 1, 2006 (the      "Servicing Agreement"), among Navistar Leasing Company, Harco Leasing      Company, Inc., Navistar Financial Retail Receivables Corporation, The Bank      of New York Trust Company, N.A., as Collateral Agent, JP Morgan Trust      Company, National Association (as successor-in-interest to Bank One,      National Association), as Portfolio Trustee, Navistar Financial 2006-ARC      Owner Trust, as Issuer, NFC, as Servicer, and  LaSalle Bank,      National Association, as Indenture Trustee, and (d) the ISDA Master      Agreement dated as of September 1, 2006 between LaSalle Bank National      Association (in such capacity, the "Swap Counterparty") and Navistar      Financial Corporation. Filed as Exhibit 10.9 to the Corporation’s Form 8-K      on December 14, 2007.   Commission File No.      001-04146. |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.14  | Waiver      dated December  6, 2007 to the Note Purchase Agreement, dated as of      October 20, 2006 (as in effect on the date hereof, the “Note Purchase      Agreement”) among Navistar Financial Retail Receivables Corporation      (“NFRRC”), as Seller, Navistar Financial Corporation, individually (“NFC”)      and as Servicer, Thunder Bay Funding, LLC, as Conduit Investor, and Royal      Bank of Canada, as Agent and (ii) the Servicing Agreement, dated as of      October 20, 2006, among NFRRC, Navistar Financial 2006-RBC Owner Trust, as      Issuer, NFC, as Servicer, and The Bank of New York, as Indenture      Trustee.  Filed as Exhibit 10.4 to the Corporation’s Form 8-K on      December 14, 2007.   Commission File No.      001-04146.                                                                                                                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 10.15  | Waiver      dated December  6, 2007 to the Note Purchase Agreement, dated as of      February 16, 2007 between Navistar Financial Retail Receivables      Corporation ("NFRRC"), as Seller, Navistar Financial Corporation, as      Servicer, Falcon Asset Securitization Company, LLC, and Park Avenue      Receivables Company, LLC (as assignee of Jupiter Securitization Company,      LLC), collectively, as the Conduit Investor, and JP Morgan Chase Bank,      National Association, as Agent for the Investors and (ii) the Servicing      Agreement, dated as of February 16, 2007, between NFRRC, Navistar      Financial 2007-JPM Owner Trust, as Issuer, NFC, as Servicer, and The Bank      of New York, as Indenture Trustee.  Filed as Exhibit 10.02 to      the Corporation’s Form 8-K on December 14,      2007.   Commission File No. 001-04146.                                                                                             |
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| 10.16  | Waiver      dated December 6, 2007 to the Note Purchase Agreement, dated as of      June 22, 2007 (as in effect on the date hereof, the “Note Purchase      Agreement”) among Navistar Financial Retail Receivables Corporation      (“NFRRC”), as Seller, Navistar Financial Corporation, individually (“NFC”)      and as Servicer, Liberty Street Funding, LLC, as the Conduit Investor, and      The Bank of Nova Scotia, as Agent for the Investors and (ii) the Servicing      Agreement, dated as of June 22, 2007, among NFRRC, Navistar Financial      2007-BNS Owner Trust, as Issuer, NFC, as Servicer, and The Bank of New      York, as Indenture Trustee.  Filed as Exhibit 10.03 to the      Corporation’s Form 8-K on December 14, 2007.   Commission      File No. 001-04146.                                                                                                                              |
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| 10.17  | Waiver and      Extension dated December 7, 2007 to the Amended      and Restated Certificate Purchase Agreement, dated December 27, 2004      (this “Amendment”)  among Navistar Financial Securities Corporation      (the “Seller”),  Navistar Financial Corporation (“Servicer”), Kitty      Hawk Funding Corporation, (“KHFC”), as a Conduit Purchaser, Liberty Street      Funding LLC (f/k/a Liberty Street Funding Corp. “Liberty Street”), as a      Conduit Purchaser, The Bank of Nova Scotia (“BNS”), as a Managing Agent      and a Committed Purchaser, and Bank of America, National Association      (“Bank of America”), as a Managing Agent, the Administrative Agent and a      Committed Purchaser.  Filed as Exhibit 10.6 to the Corporation’s      Form 8-K on December 14, 2007.   Commission File No.      001-04146. |

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| 10.18                  | Amendment      dated December 7, 2007 to the Note Purchase Agreement, (this      “Amendment”), among Navistar Financial Retail Receivables Corporation (the      “Seller”), Navistar Financial Corporation (“Servicer”), Kitty Hawk Funding      Corporation, (“KHFC”), as a Conduit Investor, and Bank of America,      National Association (“Bank of America”), as Agent, the Administrator and      an Alternate Investor.  Filed as Exhibit 10.5 to the      Corporation’s Form 8-K on December 14, 2007.   Commission      File No. 001-04146. |
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| 31 31.1 31.2 | Rule      13a-14(a) and 15d-14(a) Certifications: Certification      of Principal Executive Officer Certification      of Principal Financial  Officer                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
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| 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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