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

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

----

| NAVISTAR      FINANCIAL CORPORATION |
|-------------------------------------|
| AND      SUBSIDIARIES               |
|                                |
|                                |
| INDEX                               |
|                                |
|                                |   |   |   | PageReference |
|                                |   |   |   |   |
|                                | PART I. |   | FINANCIAL INFORMATION |   |
|                                |   |   |   |   |
|                                | Item 1. |   | Consolidated      Financial Statements: |   |
|                                |   |   |   |   |
|                                |   |   | Consolidated Statements of  Operations      (Unaudited)    - Three      Months Ended January 31, 2010 and 2009 |  3 |
|                                |   |   |   |   |
|                                |   |   | Consolidated Statements of Shareowner’s Equity      and Comprehensive Income (Loss) (Unaudited)      – Three      Months Ended January 31, 2010 and 2009 |  4 |
|                                |   |   |   |   |
|                                |   |   | Consolidated Statements of Financial      Condition    -      January 31, 2010 (Unaudited) and October 31, 2009 |  5 |
|                                |   |   |   |   |
|                                |   |   | Consolidated Statements of Cash Flows (Unaudited)    - Three      Months Ended January 31, 2010 and 2009 |  6 |
|                                |   |   |   |   |
|                                |   |   | Notes to Consolidated Financial Statements      (Unaudited)                                                                                               | 7 |
|                                |   |   |   |   |
|                                | Item 2. |   | Management's      Discussion and Analysis of Financial Condition and Results of      Operations | 25 |
|                                |   |   |   |   |
|                                | Item 3. |   | Quantitative      and Qualitative Disclosures about Market Risk | 33 |
|                                |   |   |   |   |
|                                | Item 4. |   | Controls      and      Procedures                                                                                               | 33 |
|                                |   |   |   |   |
|                                |   |   |   |   |
|                                | PART II. |   | OTHER INFORMATION |   |
|                                |   |   |   |   |
|                                | Item 6. |   | Exhibits                                                                                              | 34 |
|                                |   |   |   |   |
|                                |   |   | Signature                                                                                              | 35 |
|                                |   |   |   |   |

----

INDEX

PART I

Item 1.

ConsolidatedStatements of Operations

|  Millions      of dollars                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | For      the Three Months Ended January      31, |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |  2010                                            |   |   | 2009 |   |
| Revenues                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                  |   |   |   |   |
| Retail      notes and finance leases      revenue                                                                                                  |   | $                                                     | 40.7   |   |   | $ | 47.1 |   |
| Operating      leases      revenue                                                                                                                 |   |                                                  | 6.2    |   |   |   | 5.2 |   |
| Wholesale      notes      interest                                                                                                                 |   |                                                  | 4.0    |   |   |   | 5.2 |   |
| Retail      and wholesale accounts      interest                                                                                                   |   |                                                  | 5.4    |   |   |   | 5.3 |   |
| Securitization      income                                                                                                                         |   |                                                  | 4.1    |   |   |   | 10.1 |   |
| Other      revenues                                                                                                                                |   |                                                  | 3.9    |   |   |   | 2.8 |   |
| Total      revenues                                                                                                                                                                   |   |                                                  | 64.3   |   |   |   | 75.7 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                  |   |   |   |   |   |   |
| Expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                  |   |   |   |   |   |   |
| Cost      of borrowing:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                  |   |   |   |   |   |   |
| Interest      expense                                                                                                                                                       |   |                                                  | 15.6   |   |   |   | 26.9 |   |
| Other                                                                                                                                                                       |   |                                                  | 6.1    |   |   |   | 3.3 |   |
| Credit,      collections and      administrative                                                                                                   |   |                                                  | 13.5   |   |   |   | 15.4 |   |
| Provision      for credit      losses                                                                                                              |   |                                                  | 8.0    |   |   |   | 4.0 |   |
| Depreciation      on operating      leases                                                                                                         |   |                                                  | 5.2    |   |   |   | 3.9 |   |
| Derivative      expense                                                                                                                            |   |                                                  | 3.6    |   |   |   | 22.4 |   |
| Other      (income)      expenses                                                                                                                  |   |                                                  | (0.1   | ) |   |   | 2.3 |   |
| Total      expenses                                                                                                                                                                   |   |                                                  | 51.9   |   |   |   | 78.2 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                  |   |   |   |   |   |   |
| Income      (loss) before      taxes                                                                                                               |   |                                                  | 12.4   |   |   |   | (2.5 | ) |
| Income      tax expense      (benefit)                                                                                                             |   |                                                  | 4.7    |   |   |   | (0.6 | ) |
| Net      income      (loss)                                                                                                                        |   | $                                                     | 7.7    |   |   | $ | (1.9 | ) |

----

INDEX

Consolidated Statements of Shareowner’s Equity andComprehensive Income

| Millions      of dollars                                                                                                                                                                                                                                                                      |   | CapitalStock |   |   | Paid-InCapital |   |   | RetainedEarnings |   |   | Accumulated      OtherComprehensive      Income (Loss) |   |   | Total  |   |   | Comprehensive Income      (Loss) |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|--------|--------|----------------|--------|--------|------------------|--------|--------|--------------------------------------------------------|--------|--------|--------|--------|--------|---------------------------------------|--------|
| Balance      at October 31, 2008                                                                                                                                                                                                                                                              |   | $            | 1.6    |   |           | $      | 199.6  |             |   | $      | 79.1                                                   |   |   | $      | (7.7   | )      |                                  | $      | 272.6 |   |   |   |   |
| 2009      Activity:                                                                                                                                                                                                                                                                           |   |         |   |   |           |   |   |             |   |   |                                                   |   |   |   |   |   |                                  |   |   |   |   |   |   |
| Net      loss                                                                         |   |         | -      |   |           |   | -      |             |   |   | (1.9                                                   | )      |   |   | -      |   |                                  |   | (1.9 | ) |   | $ | (1.9 | ) |
| Capital      contribution from parent company                                         |   |         | -      |   |           |   | 20.0   |             |   |   | -                                                      |   |   |   | -      |   |                                  |   | 20.0 |   |   |   | - |   |
| Pension      adjustment, (net of tax)                                                                                                                                                                                                                                                         |   |         | -      |   |           |   | -      |             |   |   | -                                                      |   |   |   | 0.2    |   |                                  |   | 0.2 |   |   |   | 0.2 |   |
| Balance      at January 31, 2009                                                                                                                                                                                                                                                              |   | $            | 1.6    |   |           | $      | 219.6  |             |   | $      | 77.2                                                   |   |   | $      | (7.5   | )      |                                  | $      | 290.9 |   |   | $ | (1.7 | ) |
|                                                                                                                                                                                                                                                                                          |   |         |   |   |           |   |   |             |   |   |                                                   |   |   |   |   |   |                                  |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                          |   |         |   |   |           |   |   |             |   |   |                                                   |   |   |   |   |   |                                  |   |   |   |   |   |   |   |
| Balance      at October 31, 2009                                                                                                                                                                                                                                                              |   | $            | 1.6    |   |           | $      | 219.6  |             |   | $      | 107.8                                                  |   |   | $      | (16.8  | )      |                                  | $      | 312.2 |   |   |   |   |   |
| 2010      Activity:                                                                                                                                                                                                                                                                           |   |         |   |   |           |   |   |             |   |   |                                                   |   |   |   |   |   |                                  |   |   |   |   |   |   |   |
| Net      income                                                                       |   |         | -      |   |           |   | -      |             |   |   | 7.7                                                    |   |   |   | -      |   |                                  |   | 7.7 |   |   | $ | 7.7 |   |
| Pension      adjustment, (net of tax)                                                                                                                                                                                                                                                         |   |         | -      |   |           |   | -      |             |   |   | -                                                      |   |   |   | 0.2    |   |                                  |   | 0.2 |   |   |   | 0.2 |   |
| Balance      at January 31, 2010                                                                                                                                                                                                                                                              |   | $            | 1.6    |   |           | $      | 219.6  |             |   | $      | 115.5                                                  |   |   | $      | (16.6  | )      |                                  | $      | 320.1 |   |   | $ | 7.9 |   |

----

INDEX

Consolidated Statements of Financial Condition

|  Millions      of dollars                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | As      of January 31,2010 |       |   | As      of October 31, 2009 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------|------------|--------|-----------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | (Unaudited)                |       |   |                        |   |
| ASSETS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                       |       |   |                        |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                       |       |   |                        |   |
| Cash      and cash      equivalents                                                                                                     |   | $                          |  12.2 |   |                        | $      |  16.1 |   |
| Finance      receivables, net of unearned income:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                       |       |   |                        |   |   |   |
| Finance      receivables                                                                                                                                                   |   |                       | 2,272.1    |   |                        |   | 2,538.6 |   |
| Finance      receivables from      affiliates                                                                                                                              |   |                       | 119.0      |   |                        |   | 154.3 |   |
| Allowance      for      losses                                                                                                                                             |   |                       | (35.3      | )      |                        |   | (32.6 | ) |
| Finance      receivables,      net                                                                                                      |   |                       | 2,355.8    |   |                        |   | 2,660.3 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                       |       |   |                        |   |   |   |
| Amounts      due from sales of      receivables                                                                                         |   |                       | 315.4      |   |                        |   | 291.5 |   |
| Net      investment in operating      leases                                                                                            |   |                       | 92.0       |   |                        |   | 79.5 |   |
| Vehicle      inventory                                                                                                                  |   |                       | 22.5       |   |                        |   | 26.5 |   |
| Restricted      cash and cash      equivalents                                                                                          |   |                       | 364.5      |   |                        |   | 421.8 |   |
| Other      assets                                                                                                                       |   |                       | 113.4      |   |                        |   | 107.7 |   |
| Total      assets                                                                                                                                                               |   | $                          | 3,275.8    |   |                        | $      | 3,603.4 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                       |       |   |                        |   |   |   |
| LIABILITIES      AND SHAREOWNER’S EQUITY                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                       |       |   |                        |   |   |   |
| Net      accounts due to      affiliates                                                                                                |   | $                          | 177.2      |   |                        | $      | 31.2 |   |
| Senior      and secured      borrowings                                                                                                 |   |                       | 2,631.0    |   |                        |   | 3,093.6 |   |
| Other      liabilities                                                                                                                  |   |                       | 147.5      |   |                        |   | 166.4 |   |
| Total      liabilities                                                                                                                                                          |   |                       | 2,955.7    |   |                        |   | 3,291.2 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                       |       |   |                        |   |   |   |
| Shareowner’s      equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                       |       |   |                        |   |   |   |
| Capital      stock ($1 par value, 2,000,000 shares authorized, 1,600,000 shares issued      and outstanding)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                       | 1.6        |   |                        |   | 1.6 |   |
| Paid-in      capital                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                       | 219.6      |   |                        |   | 219.6 |   |
| Retained      earnings                                                                                                                  |   |                       | 115.5      |   |                        |   | 107.8 |   |
| Accumulated      other comprehensive      loss                                                                                          |   |                       | (16.6      | )      |                        |   | (16.8 | ) |
| Total      shareowner’s      equity                                                                                               |   |                       | 320.1      |   |                        |   | 312.2 |   |
| Total      liabilities and shareowner’s      equity                                                                                                                       |   | $                          | 3,275.8    |   |                        | $      | 3,603.4 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                       |       |   |                        |   |   |   |

----

INDEX

ConsolidatedStatements of Cash Flows

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | For      the Three Months EndedJanuary      31, |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------|--------|
|  Millions      of dollars                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | 2010                                            |   |   | 2009 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                            |   |   |   |   |
| Cash      flow from operating activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                            |   |   |   |   |
| Net      income      (loss)                                                                                                                                             |   | $                                               | 7.7    |   |   | $ | (1.9 | ) |
| Adjustments      to reconcile net loss to cash flow from operations:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                            |   |   |   |   |   |   |
| Net      loss on sales of finance      receivables                                                                                                                                                    |   |                                            | 15.5   |   |   |   | 14.8 |   |
| Net      (gain) loss on sale and impairment of equipment under                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                            |   |   |   |   |   |   |
| operating      leases and vehicle      inventory                                                                                                                                                                               |   |                                            | (0.3   | ) |   |   | 2.1 |   |
| Depreciation      and      amortization                                                                                                                                                               |   |                                            | 10.0   |   |   |   | 6.5 |   |
| Provision      for credit      losses                                                                                                                                                                 |   |                                            | 8.0    |   |   |   | 4.0 |   |
| Net      change in amounts due from sales of receivables                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                            | (23.9  | ) |   |   | 30.8 |   |
| Net      change in finance receivables - wholesale notes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                            | 12.0   |   |   |   | 6.6 |   |
| Net      change in finance receivables from affiliates - wholesale                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                            | 30.1   |   |   |   | 34.6 |   |
| Net      change in net accounts due to      affiliates                                                                                                                                                |   |                                            | 146.0  |   |   |   | 45.4 |   |
| Net      change in other assets and      liabilities                                                                                                                                                  |   |                                            | (8.9   | ) |   |   | (1.2 | ) |
| Net      cash provided by operating      activities                                                                                                                                                                                      |   |                                            | 196.2  |   |   |   | 141.7 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                            |   |   |   |   |   |   |
| Cash      flow from investing activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                            |   |   |   |   |   |   |
| Net      originations of retail notes and finance leases, includes      affiliates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                            | (185.8 | ) |   |   | (206.7 | ) |
| Net      change in restricted cash and cash      equivalents                                                                                                            |   |                                            | 57.3   |   |   |   | 150.1 |   |
| Collections      on retail notes and finance lease receivables,net      of change in unearned finance income, includes affiliates                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                            | 245.8  |   |   |   | 282.1 |   |
| Net      change in finance receivables from affiliates - accounts                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                            | 1.4    |   |   |   | 3.7 |   |
| Net      change in finance receivables -      accounts                                                                                                                  |   |                                            | 166.8  |   |   |   | 85.7 |   |
| Proceeds      from sale of vehicle      inventory                                                                                                                       |   |                                            | 14.8   |   |   |   | 14.3 |   |
| Purchase      of equipment leased to      others                                                                                                                        |   |                                            | (20.2  | ) |   |   | (5.3 | ) |
| Proceeds      from sale of equipment under operating leases                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                            | 2.7    |   |   |   | 0.7 |   |
| Net      cash provided by investing      activities                                                                                                                                                                                      |   |                                            | 282.8  |   |   |   | 324.6 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                            |   |   |   |   |   |   |
| Cash      flow from financing activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                            |   |   |   |   |   |   |
| Net      change in bank revolver facilities, net of issuance costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                            | (290.7 | ) |   |   | (202.9 | ) |
| Proceeds      from issuance of senior bank term debt, net      of issuance      costs                                                                                                                 |   |                                            | 435.3  |   |   |   | - |   |
| Principal      payments on senior bank term      debt                                                                                                                   |   |                                            | (599.8 | ) |   |   | (1.6 | ) |
| Proceeds      from issuance of secured borrowings, net of issuance costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                            | 239.0  |   |   |   | 11.5 |   |
| Payments      on secured      borrowings                                                                                                                                |   |                                            | (266.7 | ) |   |   | (316.6 | ) |
| Capital      contribution from parent      company                                                                                                                      |   |                                            | -      |   |   |   | 20.0 |   |
| Net      cash used by financing      activities                                                                                                                                                                                          |   |                                            | (482.9 | ) |   |   | (489.6 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                            |   |   |   |   |   |   |
| Change      in cash and cash      equivalents                                                                                                  |   |                                            | (3.9   | ) |   |   | (23.3 | ) |
| Cash      and cash equivalents, beginning of      year                                                                                         |   |                                            | 16.1   |   |   |   | 34.4 |   |
| Cash      and cash equivalents, end of      period                                                                                             |   | $                                               | 12.2   |   |   | $ | 11.1 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                            |   |   |   |   |   |   |
| Supplemental      cash flow information:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                            |   |   |   |   |   |   |
| Interest      paid                                                                                                                                                      |   | $                                               | 15.3   |   |   | $ | 31.4 |   |
| Income      taxes paid, net of      refunds                                                                                                                             |   |                                            | 0.5    |   |   |   | 0.1 |   |
| Transfers      of loans and leases to vehicle      inventory                                                                                                            |   |                                            | 11.5   |   |   |   | 12.5 |   |

----

INDEX

1

----

INDEX

----

INDEX

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | 2010   |   |   | 2009   |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Net      losses on finance      receivables                                                                                 |   | $      | 2.4    |   |   | $      | 0.8 |   |
| Impairment      losses on vehicle      inventory                                                                            |   |   | 0.8    |   |   |   | 4.8 |   |
| Net      losses on sales of vehicle      inventory                                                                          |   |   | 0.2    |   |   |   | 3.2 |   |

----

INDEX

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | January      31, 2010 |   |   | October      31, 2009 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------|--------|--------|-----------------------|--------|
| Finance      receivables from affiliates net of unearned income and dealer reserve      (Dealcor retail)                                                                                                                                                                                                                                                                                                                                                                                                                       |   | $                     | 101.0  |   |                  | $      | 104.8 |   |
| Finance      receivables from affiliates (Dealcor wholesale)                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                  | 18.0   |   |                  |   | 49.5 |   |
| Net      accounts due to affiliates      (non-Dealcor)                                                                             |   |                  | 177.2  |   |                  |   | 31.2 |   |

----

INDEX

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | January      31,2010 |    |   | October      31, 2009 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------|---------|--------|-----------------------|--------|
| Retail      notes, net of unearned      income                                                                                                                      |   | $                    | 1,864.8 |   |                  | $      | 1,955.2 |   |
| Finance      leases, net of unearned      income                                                                                                                    |   |                 | 124.2   |   |                  |   | 121.5 |   |
| Wholesale      notes      held-for-sale                                                                                                                             |   |                 | 155.9   |   |                  |   | 167.9 |   |
| Accounts      (includes retail and      wholesale)                                                                                                                  |   |                 | 127.2   |   |                  |   | 294.0 |   |
| Finance      receivables from affiliates, net of unearned      income                                                                                               |   |                 | 119.0   |   |                  |   | 154.3 |   |
| Total      finance      receivables                                                                                                                                 |   |                 | 2,391.1 |   |                  |   | 2,692.9 |   |
| Allowance      for      losses                                                                                                                                      |   |                 | (35.3   | )      |                  |   | (32.6 | ) |
| Total      finance receivables,      net                                                                                                                            |   | $                    | 2,355.8 |   |                  | $      | 2,660.3 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | Three      Months Ended January      31,2010 |   |   | Three      Months Ended January      31,2009 |   |   |  Year      Ended October      31, 2009 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------|--------|--------|--------------------------------------------------------|--------|--------|--------------------------------------------------|--------|
| Allowance      for losses, beginning of      period                                                                          |   | $                                            | 32.6   |   |                                                   | $      | 28.4   |                                             |   | $ | 28.4 |   |
| Provision      for credit      losses                                                                                        |   |                                         | 8.0    |   |                                                   |   | 4.0    |                                             |   |   | 29.7 |   |
| Net      charge-offs                                                                                                         |   |                                         | (5.3   | )      |                                                   |   | (2.8   | )                                                |   |   | (25.5 | ) |
| Allowance      for losses, end of      period                                                                                                                                  |   | $                                            | 35.3   |   |                                                   | $      | 29.6   |                                             |   | $ | 32.6 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | January      31,2010 |   |   | October      31,2009 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------|--------|--------|----------------------|--------|
| Impaired      receivables with specific loss      reserves                                                                                                   |   | $                    | 55.3   |   |                 | $      | 62.3 |   |
| Impaired      receivables without specific loss      reserves                                                                                                |   |                 | 2.8    |   |                 |   | 2.5 |   |
| Total      impaired      receivables                                                                                                                                                                           |   | $                    | 58.1   |   |                 | $      | 64.8 |   |

| Specific      loss reserves on impaired receivables recorded by NFC                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | $      | 12.5 |   |   | $      | 10.3 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------|--------|--------|--------|------|--------|
| Specific      loss reserves recorded by Navistar,      Inc.                                                                                                |   |   | 13.4 |   |   |   | 14.2 |   |
| Finance      receivables over 60 days      delinquent                                                                                                      |   |   | 21.6 |   |   |   | 15.7 |   |

----

INDEX

|                                                 |   | 2010   |   |   | 2009   |   |
|------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Impairment      losses on vehicle inventory          |   | $      | 2.4    |   |   | $      | 5.5 |   |
| Net      (gains) losses on sale of vehicle inventory |   |   | (1.5   | )      |   |   | 4.5 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | Three      Months Ended January      31,2010 |   |   | Three      Months Ended January      31,2009 |   |   |   Year      Ended October      31, 2009 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------|--------|--------|--------------------------------------------------------|--------|--------|--------------------------------------------------------|--------|
| Vehicle      inventory, beginning of period                                                                                                                                                                                                                                                                                                                                                                                                                  |   | $                                            | 26.5   |   |                                                   | $      | 42.0   |                                                   |   | $ | 42.0 |   |
| Net      additions                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                         | 11.5   |   |                                                   |   | 12.5   |                                                   |   |   | 67.3 |   |
| Impairment      loss:                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                         |   |   |                                                   |   |   |                                                   |   |   |   |   |
| Recorded      by      NFC                                                                                     |   |                                         | (1.6   | )      |                                                   |   | (0.7   | )                                                      |   |   | (3.9 | ) |
| Recorded      by Navistar,      Inc.                                                                          |   |                                         | (0.8   | )      |                                                   |   | (4.8   | )                                                      |   |   | (9.2 | ) |
| Net      book value of repossessed assets sold                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                         | (13.1  | )      |                                                   |   | (15.6  | )                                                      |   |   | (69.7 | ) |
| Vehicle      inventory, end of      period                                                                    |   | $                                            | 22.5   |   |                                                   | $      | 33.4   |                                                   |   | $ | 26.5 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | January      31,2010 |   |   | October      31,2009 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------|--------|--------|----------------------|--------|
| Investment      in operating      leases                                                                                             |   | $                    | 134.7  |   |                 | $      | 119.8 |   |
| Less:      Accumulated      depreciation                                                                                             |   |                 | (43.5  | )      |                 |   | (41.0 | ) |
| Net      investment in equipment under operating      leases                                                                                                  |   |                 | 91.2   |   |                 |   | 78.8 |   |
| Rent      receivable net of reserve for past due operating leases                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                 | 0.8    |   |                 |   | 0.7 |   |
| Net      investment in operating      leases                                                                                         |   | $                    | 92.0   |   |                 | $      | 79.5 |   |

----

INDEX

|                                                                                                                                                                                                                                                                                                                                                                                                            |   |                 |    |   |                 |   |    | Weighted      AverageInterest      Rate |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------|---------|--------|----------------------|--------|---------|-----------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                            |   | January      31,2010 |    |   | October      31,2009 |   |    | January      31,2010                    |   |   | October      31,2009 |   |
| Bank      credit facility at variable rates due December 2012                                                                                                                                                                                                                                                                                                                                                   |   | $                    | 756.0   |   |                 | $      | -       |                                    |   |   | 4.6 | % |   |   | - |   |
| Bank      credit facility at variable rates refinanced in December    2009                                                                                                                                                                                                                                                                                                                                      |   |                 | -       |   |                 |   | 1,267.9 |                                    |   |   | - |   |   |   | 2.3 | % |
| Revolving      retail warehouse facility at variable rates, due June 2010                                                                                                                                                                                                                                                                                                                                       |   |                 | 500.0   |   |                 |   | 500.0   |                                    |   |   | 0.5 | % |   |   | 0.5 | % |
| Secured      fixed-rate term loan due March 2013                                                                                                                                                                                                                                                                                                                                                                |   |                 | 76.9    |   |                 |   | -       |                                    |   |   | 5.9 | % |   |   | - |   |
| Borrowings      secured by asset-backed securities at various rates, currently between      0.6% and 5.9%, due serially through October 2016                                                                                                                                                                                                                                                                    |   |                 | 1,160.2 |   |                 |   | 1,191.5 |                                    |   |   | 2.2 | % |   |   | 1.6 | % |
| Borrowings      secured by operating and finance leases due serially through October 2016      at rates currently between 2.6% and 6.6%                                                                                                                                                                                                                                                                         |   |                 | 137.9   |   |                 |   | 134.2   |                                    |   |   | 4.3 | % |   |   | 4.0 | % |
| Total      senior and secured      borrowings                                                            |   | $                    | 2,631.0 |   |                 | $      | 3,093.6 |                                    |   |   | 2.8 | % |   |   | 1.8 | % |

----

INDEX

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |             |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | Pension Benefits |   |   | Other Benefits |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | 2010             |   |   | 2009 |   |   | 2010 |   |   | 2009 |   |
| Service      cost for benefits earned during the period                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | $                | 0.1    |   |   | $ | 0.1 |   |   | $ | - |   |   | $ | - |   |
| Interest      on      obligation                                                                                    |   |             | 0.9    |   |   |   | 1.0 |   |   |   | 0.2 |   |   |   | 0.3 |   |
| Amortization      of cumulative      losses                                                                         |   |             | 0.2    |   |   |   | 0.1 |   |   |   | - |   |   |   | - |   |
| Less      expected return on      assets                                                                            |   |             | (0.9   | ) |   |   | (0.9 | ) |   |   | (0.1 | ) |   |   | (0.1 | ) |
| Net      postretirement benefits      expense                                                                                                |   | $                | 0.3    |   |   | $ | 0.3 |   |   | $ | 0.1 |   |   | $ | 0.2 |   |

----

INDEX

|                                                                                                                                                                                                                                                                                                                             |   | Other      Assets |    |   | Other      Liabilities |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|---------|--------|------------------------|--------|
| January      31, 2010                                                                                                                                                                                                                                                                                                            |   | NotionalAmount    |    |   | Fair      Value        |   |   | NotionalAmount |   |   | Fair      Value |   |
| Interest      rate      swaps                                                         |   | $                 | 946.8   |   |                   | $      | 25.2 |   |   | $ | 1,915.5 |   |   | $ | 46.8 |   |
| Interest      rate caps      purchased                                                |   |              | 500.0   |   |                   |   | 3.5 |   |   |   | - |   |   |   | - |   |
| Interest      rate caps      sold                                                     |   |              | -       |   |                   |   | - |   |   |   | 500.0 |   |   |   | 3.2 |   |
| Total      derivatives                                                                                    |   | $                 | 1,446.8 |   |                   | $      | 28.7 |   |   | $ | 2,415.5 |   |   | $ | 50.0 |   |

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

----

INDEX

|                                                                                                                                                                                                                                                                                                      |   | 2010   |   |   | 2009   |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Interest      rate      swaps                                                 |   | $      | 3.2    |   |   | $      | 22.4 |   |
| Interest      rate caps purchased                                                                                                                                                                                                                                                                         |   |   | 1.3    |   |   |   | 2.0 |   |
| Interest      rate caps      sold                                             |   |   | (0.9   | )      |   |   | (2.0 | ) |
| Total                                                                                                  |   | $      | 3.6    |   |   | $      | 22.4 |   |

|                                                                                                                                                                                                                                                                                                          |  Maturity     |   | January      31,2010 |    |   | October      31,2009 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------|--------|----------------------|---------|--------|----------------------|--------|
| Investor      notes                                                | February      2010 |   | $                    | 212.0   |   |                 | $      | 212.0 |   |
| Variable      funding certificate (“VFC”)                                                                                                                                                                                                                                                         | August      2010   |   |                 | 500.0   |   |                 |   | 650.0 |   |
| Investor      notes                                                | October      2012  |   |                 | 350.0   |   |                 |   | - |   |
| Total                                                                             |               |   | $                    | 1,062.0 |   |                 | $      | 862.0 |   |

----

INDEX

|                                                                                                                                                                                                                                                                                                                         |  Maturity    |   | January      31,2010 |   |   | October      31,2009 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------|--------|----------------------|--------|--------|----------------------|--------|
| Conduit      funding      facility                                                | October      2010 |   | $                    | 100.0  |   |                 | $      | 100.0 |   |
| Funding      utilized                                                             |              |   |                 | (27.1  | )      |                 |   | (7.7 | ) |
| Total      availability                                                                          |              |   | $                    | 72.9   |   |                 | $      | 92.3 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | January      31,2010 |   |   | October      31,2009 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------|--------|--------|----------------------|--------|
| Excess      seller’s      interest                                                                                               |   | $                    | 291.0  |   |                 | $      | 275.3 |   |
| Interest      only      strip                                                                                                          |   |                 | 12.3   |   |                 |   | 9.6 |   |
| Restricted      cash      reserves                                                                                                     |   |                 | 12.1   |   |                 |   | 6.6 |   |
| Total      amounts due from sales of      receivables                                                                                                 |   | $                    | 315.4  |   |                 | $      | 291.5 |   |

----

INDEX

|                                                                                                                                                                                                                                                                                                                                                                        | January      31,                                | October      31,                                |   | Adverse      Fair ValueChange      atJanuary      31, 2010 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------|-------------------------------------------------|--------|------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                        | 2010                                            | 2009                                            |   |                                                       | 10     | % |   |   | 20 | % |
| Discount      rate      (annual)                                                         |    8.1  to      19.1 % |    9.1  to      20.5 % |   | $                                                          | 3.0    |   |   | $ | 6.5 |   |
| Estimated      credit      losses                                                        |    0.0  to      0.24 % |    0.0  to      0.24 % |   |                                                       | 0.1    |   |   |   | 0.2 |   |
| Payment      speed (percent of portfolio per month)                                                                                                                                                                                                                                                                                                                         |    6.0  to      86.7 % |    4.9  to      70.8 % |   |                                                       | 0.8    |   |   |   | 1.7 |   |

|  January      31, 2010                                                                                                                                                                                                                   |   | Retail      Notes |    |   | Finance      Leases |   |   | Wholesale      Notes |   |   | Accounts |   |   | Affiliates |   |   | Total  |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|---------|--------|---------------------|--------|--------|----------------------|--------|--------|----------|--------|--------|------------|--------|--------|--------|--------|
| Serviced      portfolio                                             |   | $                 | 1,864.8 |   |                | $      | 124.2  |                 |   | $      | 886.8    |   |   | $          | 208.5  |   |   | $      | 195.8 |   |   | $ | 3,280.1 |   |
| Less      sold receivables – off-balance      sheet                               |   |              | -       |   |                |   | -      |                 |   |   | (730.9   | )      |   |       | (81.3  | )      |   |   | (76.8 | ) |   |   | (889.0 | ) |
| Total      on-balance sheet.                                                                                                                                                                                                                  |   | $                 | 1,864.8 |   |                | $      | 124.2  |                 |   | $      | 155.9    |   |   | $          | 127.2  |   |   | $      | 119.0 |   |   | $ | 2,391.1 |   |

|  October      31, 2009                                                                                                                                                                                                               |   | Retail      Notes |    |   | Finance      Leases |   |   | Wholesale      Notes |   |   | Accounts |   |   | Affiliates |   |   | Total  |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|---------|--------|---------------------|--------|--------|----------------------|--------|--------|----------|--------|--------|------------|--------|--------|--------|--------|
| Serviced      portfolio                                    |   | $                 | 1,955.2 |   |                | $      | 121.5  |                 |   | $      | 835.3    |   |   | $          | 383.2  |   |   | $      | 250.0 |   |   | $ | 3,545.2 |   |
| Less      sold receivables –off-balance      sheet                                                                                                                                                                                  |   |              | -       |   |                |   | -      |                 |   |   | (667.4   | )      |   |       | (89.2  | )      |   |   | (95.7 | ) |   |   | (852.3 | ) |
| Total      on-balance sheet                                                                                                                                                                                                               |   | $                 | 1,955.2 |   |                | $      | 121.5  |                 |   | $      | 167.9    |   |   | $          | 294.0  |   |   | $      | 154.3 |   |   | $ | 2,692.9 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | 2010   |   |   | 2009   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Fair      value      adjustments                                                                                  |   | $      | 6.8    |   |   | $      | 19.5 |   |
| Excess      spread      income                                                                                    |   |   | 10.6   |   |   |   | 2.1 |   |
| Servicing      fees      revenue                                                                                  |   |   | 2.2    |   |   |   | 2.2 |   |
| Losses      on sales of      receivables                                                                          |   |   | (15.5  | )      |   |   | (14.8 | ) |
| Investment      income                                                                                            |   |   | -      |   |   |   | 1.1 |   |
| Securitization      income                                                                                                                                          |   | $      | 4.1    |   |   | $      | 10.1 |   |

----

INDEX

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | 2010   |    |   | 2009   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Proceeds      from sales of finance      receivables                                                                          |   | $      | 1,073.0 |   |   | $      | 1,042.5 |   |
| Servicing      fees                                                                                                           |   |   | 2.2     |   |   |   | 2.2 |   |
| Cash      from net excess      spread                                                                                         |   |   | 10.4    |   |   |   | 1.7 |   |
| Investment      income                                                                                                        |   |   | -       |   |   |   | 0.7 |   |
| Net      cash from securitization transactions                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | $      | 1,085.6 |   |   | $      | 1,047.1 |   |

----

INDEX

|                                       |   | Consolidated |    |   | Other           |   |   |   |   |
|--------------------------------------------|--------|--------------|---------|--------|-----------------|--------|--------|--------|--------|
| January      31, 2010                      |   | VIEs         |    |   | Securitizations |   |   | Total  |   |
| Finance      receivables, net of allowance |   | $            | 1,074.9 |   |            | $      | 644.7  |   |   | $ | 1,719.6 |   |
| Net      investment in operating leases    |   |         | -       |   |            |   | 92.0   |   |   |   | 92.0 |   |
| Restricted      cash and cash equivalents  |   |         | 112.1   |   |            |   | 249.3  |   |   |   | 361.4 |   |
| Vehicle      inventory                     |   |         | 12.3    |   |            |   | 3.9    |   |   |   | 16.2 |   |
| Net      derivative fair value             |   |         | (25.0   | )      |            |   | 3.5    |   |   |   | (21.5 | ) |
| Secured      borrowings                    |   |         | (946.8  | )      |            |   | (851.3 | )      |   |   | (1,798.1 | ) |

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

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

----

INDEX

|                                                                                                                                                                                                                                                                                                                                                                                                |   | January      31, 2010 |    |   | October      31, 2009 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------|---------|--------|-----------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                |   | Carrying Value   |    |   | FairValue             |   |   | Carrying Value |   |   | FairValue |   |
| Financial      assets:                                                                                                                                                                                                                                                                                                                                                                              |   |                  |    |   |                  |   |   |   |   |   |   |   |
| Cash      and cash      equivalents                                                                    |   | $                     | 12.2    |   |                  | $      | 12.2 |   |   | $ | 16.1 |   |   | $ | 16.1 |   |
| Retail      notes                                                                                      |   |                  | 1,864.8 |   |                  |   | 1,728.2 |   |   |   | 1,955.2 |   |   |   | 1,814.5 |   |
| Finance      receivables from      affiliates                                                          |   |                  | 119.0   |   |                  |   | 111.7 |   |   |   | 154.3 |   |   |   | 144.1 |   |
| Accounts      (wholesale and      retail)                                                              |   |                  | 127.2   |   |                  |   | 127.2 |   |   |   | 294.0 |   |   |   | 294.0 |   |
| Wholesale      notes                                                                                   |   |                  | 155.9   |   |                  |   | 155.9 |   |   |   | 167.9 |   |   |   | 167.9 |   |
| Amounts      due from sales of receivables                                                                                                                                                                                                                                                                                                                                                          |   |                  | 315.4   |   |                  |   | 315.4 |   |   |   | 291.5 |   |   |   | 291.5 |   |
| Restricted      cash and cash equivalents                                                                                                                                                                                                                                                                                                                                                           |   |                  | 364.5   |   |                  |   | 364.5 |   |   |   | 421.8 |   |   |   | 421.8 |   |
| Derivative      financial      instruments                                                             |   |                  | 28.7    |   |                  |   | 28.7 |   |   |   | 37.2 |   |   |   | 37.2 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                |   |                  |    |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Financial      liabilities:                                                                                                                                                                                                                                                                                                                                                                         |   |                  |    |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Net      accounts due to      affiliates                                                               |   |                  | 177.2   |   |                  |   | 177.2 |   |   |   | 31.2 |   |   |   | 31.2 |   |
| Senior      and secured      borrowings                                                                |   |                  | 2,631.0 |   |                  |   | 2,659.5 |   |   |   | 3,093.6 |   |   |   | 3,008.2 |   |
| Derivative      financial      instruments                                                             |   |                  | 50.0    |   |                  |   | 50.0 |   |   |   | 65.2 |   |   |   | 65.2 |   |

----

INDEX

| January      31, 2010                                                                                                                                                                                                                                                                                                                                                          |   |         |   |   |         |   |   |         |   |   |   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|--------|--------|--------------|--------|--------|--------------|--------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                           |   | Level      1 |   |   | Level      2 |   |   | Level      3 |   |   | Total  |   |
| Assets:                                                                                                                                                                                                                                                                                                                                                                        |   |         |   |   |         |   |   |         |   |   |   |   |
| Derivative      financial instruments                                                                                                                                                                                                                                                                                                                                          |   | $            | -      |   |         | $      | 3.5    |         |   | $      | 25.2   |   |   | $ | 28.7 |   |
| Amounts      due from sales of receivables                                                                                                                                                                                                                                                                                                                                     |   |         | -      |   |         |   | -      |         |   |   | 315.4  |   |   |   | 315.4 |   |
| Assets      total                                                                                               |   | $            | -      |   |         | $      | 3.5    |         |   | $      | 340.6  |   |   | $ | 344.1 |   |
| Liabilities:                                                                                                                                                                                                                                                                                                                                                                   |   |         |   |   |         |   |   |         |   |   |   |   |   |   |   |   |
| Derivative      financial      instruments                                                       |   |         | -      |   |         |   | 25.0   |         |   |   | 25.0   |   |   |   | 50.0 |   |
| Liabilities      total                                                                                          |   | $            | -      |   |         | $      | 25.0   |         |   | $      | 25.0   |   |   | $ | 50.0 |   |

| October      31, 2009                                                                                                                                                                                                                                                                                                                                                          |   |         |   |   |         |   |   |         |   |   |   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|--------|--------|--------------|--------|--------|--------------|--------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                           |   | Level      1 |   |   | Level      2 |   |   | Level      3 |   |   | Total  |   |
| Assets:                                                                                                                                                                                                                                                                                                                                                                        |   |         |   |   |         |   |   |         |   |   |   |   |
| Derivative      financial instruments                                                                                                                                                                                                                                                                                                                                          |   | $            | -      |   |         | $      | 4.8    |         |   | $      | 32.4   |   |   | $ | 37.2 |   |
| Amounts      due from sales of receivables                                                                                                                                                                                                                                                                                                                                     |   |         | -      |   |         |   | -      |         |   |   | 291.5  |   |   |   | 291.5 |   |
| Assets      total                                                                                               |   | $            | -      |   |         | $      | 4.8    |         |   | $      | 323.9  |   |   | $ | 328.7 |   |
| Liabilities:                                                                                                                                                                                                                                                                                                                                                                   |   |         |   |   |         |   |   |         |   |   |   |   |   |   |   |   |
| Derivative      financial      instruments                                                       |   |         | -      |   |         |   | 33.6   |         |   |   | 31.6   |   |   |   | 65.2 |   |
| Liabilities      total                                                                                          |   | $            | -      |   |         | $      | 33.6   |         |   | $      | 31.6   |   |   | $ | 65.2 |   |

| 2010                                                                                                                                                                                                                                                                                                                                           |   | NetDerivatives |   |   | Retained      Interests |   |   | Total  |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|--------|--------|-------------------------|--------|--------|--------|--------|
| Beginning      balance                                                     |   | $              | 0.8    |   |                    | $      | 291.5  |   |   | $ | 292.3 |   |
| Realized      and unrealized losses included in earnings                                                                                                                                                                                                                                                                                       |   |           | (0.6   | )      |                    |   | (5.1   | )      |   |   | (5.7 | ) |
| Purchases,      issuances and settlements                                                                                                                                                                                                                                                                                                      |   |           | -      |   |                    |   | 29.0   |   |   |   | 29.0 |   |
| Ending      balance                                                                       |   | $              | 0.2    |   |                    | $      | 315.4  |   |   | $ | 315.6 |   |
|                                                                                                                                                                                                                                                                                                                                           |   |           |   |   |                    |   |   |   |   |   |   |   |

| 2009                                                                                                                                                                                                                                                                                                                                           |   | NetDerivatives |   |   | Retained      Interests |   |   | Total  |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|--------|--------|-------------------------|--------|--------|--------|--------|
| Beginning      balance                                                     |   | $              | -      |   |                    | $      | 229.6  |   |   | $ | 229.6 |   |
| Realized      and unrealized gains included in earnings                                                                                                                                                                                                                                                                                        |   |           | 2.0    |   |                    |   | 5.1    |   |   |   | 7.1 |   |
| Purchases,      issuances and settlements                                                                                                                                                                                                                                                                                                      |   |           | -      |   |                    |   | (35.9  | )      |   |   | (35.9 | ) |
| Ending      balance                                                                       |   | $              | 2.0    |   |                    | $      | 198.8  |   |   | $ | 200.8 |   |
|                                                                                                                                                                                                                                                                                                                                           |   |           |   |   |                    |   |   |   |   |   |   |   |

----

INDEX

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | January      31,2010 |   |   | October      31,2009 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------|--------|--------|----------------------|--------|
| Impaired      finance receivables measured at fair      value                                                                                               |   | $                    | 55.3   |   |                 | $      | 62.3 |   |
| Specific      loss reserve recorded by      NFC                                                                                                                       |   |                 | (12.5  | )      |                 |   | (10.3 | ) |
| Specific      loss reserve recorded by Navistar,      Inc.                                                                                                            |   |                 | (13.4  | )      |                 |   | (14.2 | ) |
| Fair      value of impaired finance      receivables                                                                                                                                      |   | $                    | 29.4   |   |                 | $      | 37.8 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                 |   |   |                 |   |   |   |
| Vehicle      inventory                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | $                    | 22.5   |   |                 | $      | 26.5 |   |

----

INDEX

----

INDEX

Item 2

----

INDEX

|                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | Three      Months Ended January      31 |   |   |   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------|--------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | 2010                                         |   |   | 2009   |   |   | Change |   |   | %      Change |   |
| Revenues                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                         |   |   |   |   |   |   |   |   |   |   |
| Financing      revenue                                                                                           |   | $                                            | 50.1   |   |   | $      | 57.6 |   |   | $ | (7.5 | ) |   |   | (13.0 | ) |
| Securitization      income                                                                                       |   |                                         | 4.1    |   |   |   | 10.1 |   |   |   | (6.0 | ) |   |   | (59.4 | ) |
| Operating      leases and other      revenue                                                                     |   |                                         | 10.1   |   |   |   | 8.0 |   |   |   | 2.1 |   |   |   | 26.3 |   |
| Total      revenues                                                                                              |   |                                         | 64.3   |   |   |   | 75.7 |   |   |   | (11.4 | ) |   |   | (15.1 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Expenses                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost      of      borrowing                                                                                      |   |                                         | 21.7   |   |   |   | 30.2 |   |   |   | (8.5 | ) |   |   | (28.1 | ) |
| Credit,      collections and      administrative                                                                 |   |                                         | 13.5   |   |   |   | 15.4 |   |   |   | (1.9 | ) |   |   | (12.3 | ) |
| Provision      for credit      losses                                                                            |   |                                         | 8.0    |   |   |   | 4.0 |   |   |   | 4.0 |   |   |   | 100.0 |   |
| Depreciation      on operating      leases                                                                       |   |                                         | 5.2    |   |   |   | 3.9 |   |   |   | 1.3 |   |   |   | 33.3 |   |
| Derivative      expense                                                                                          |   |                                         | 3.6    |   |   |   | 22.4 |   |   |   | (18.8 | ) |   |   | (83.9 | ) |
| Other      (income)      expenses                                                                                |   |                                         | (0.1   | )      |   |   | 2.3 |   |   |   | (2.4 | ) |   | N.M. |   |
| Total      expenses                                                                                              |   |                                         | 51.9   |   |   |   | 78.2 |   |   |   | (26.3 | ) |   |   | (33.6 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income      (loss) before      taxes                                                                             |   |                                         | 12.4   |   |   |   | (2.5 | ) |   |   | 14.9 |   |   |        N.M. |   |
| Income      tax expense      (benefit)                                                                           |   |                                         | 4.7    |   |   |   | (0.6 | ) |   |   | 5.3 |   |   | N.M | .  |
| Net      income      (loss)                                                                                      |   | $                                            | 7.7    |   |   | $      | (1.9 | ) |   | $ | 9.6 |   |   | N.M. |   |

----

INDEX

|                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | Three      Months Ended January      31 |   |   |   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------|--------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | 2010                                         |   |   | 2009   |   |   | Change |   |   | %      Change |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                         |   |   |   |   |   |   |   |   |   |   |
| Retail      notes and finance      leases                                                                 |   | $                                            | 40.7   |   |   | $      | 47.1 |   |   | $ | (6.4 | ) |   |   | (13.6 | ) |
| Wholesale      notes                                                                                      |   |                                         | 4.0    |   |   |   | 5.2 |   |   |   | (1.2 | ) |   |   | (23.1 | ) |
| Retail      and wholesale      accounts                                                                   |   |                                         | 5.4    |   |   |   | 5.3 |   |   |   | 0.1 |   |   |   | 1.9 |   |
| Total      financing      revenue                                                                         |   | $                                            | 50.1   |   |   | $      | 57.6 |   |   | $ | (7.5 | ) |   |   | (13.0 | ) |

----

INDEX

|                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | As      of           |    |   |                 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------|---------|--------|----------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | January      31,2010 |    |   | October      31,2009 |   |   | Change |   |   | %      Change |   |
| Cash      and cash      equivalents                                                                             |   | $                    | 12.2    |   |                 | $      | 16.1 |   |   | $ | (3.9 | ) |   |   | (24.2 | ) |
| Finance      receivables,      net                                                                              |   |                 | 2,355.8 |   |                 |   | 2,660.3 |   |   |   | (304.5 | ) |   |   | (11.4 | ) |
| Amounts      due from sales of      receivables                                                                 |   |                 | 315.4   |   |                 |   | 291.5 |   |   |   | 23.9 |   |   |   | 8.2 |   |
| Net      investment in operating      leases                                                                    |   |                 | 92.0    |   |                 |   | 79.5 |   |   |   | 12.5 |   |   |   | 15.7 |   |
| Vehicle      inventory                                                                                          |   |                 | 22.5    |   |                 |   | 26.5 |   |   |   | (4.0 | ) |   |   | (15.1 | ) |
| Restricted      cash and cash      equivalents                                                                  |   |                 | 364.5   |   |                 |   | 421.8 |   |   |   | (57.3 | ) |   |   | (13.6 | ) |
| Other      assets                                                                                               |   |                 | 113.4   |   |                 |   | 107.7 |   |   |   | 5.7 |   |   |   | 5.3 |   |
| Total      assets                                                                                               |   | $                    | 3,275.8 |   |                 | $      | 3,603.4 |   |   | $ | (327.6 | ) |   |   | (9.1 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                 |    |   |                 |   |   |   |   |   |   |   |   |   |   |   |
| Net      accounts due to      affiliates                                                                        |   | $                    | 177.2   |   |                 | $      | 31.2 |   |   | $ | 146.0 |   |   |   | 467.9 |   |
| Senior      and secured      borrowings                                                                         |   |                 | 2,631.0 |   |                 |   | 3,093.6 |   |   |   | (462.6 | ) |   |   | (15.0 | ) |
| Other      liabilities                                                                                          |   |                 | 147.5   |   |                 |   | 166.4 |   |   |   | (18.9 | ) |   |   | (11.4 | ) |
| Total      liabilities                                                                                          |   |                 | 2,955.7 |   |                 |   | 3,291.2 |   |   |   | (335.5 | ) |   |   | (10.2 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                 |    |   |                 |   |   |   |   |   |   |   |   |   |   |   |
| Total shareowner’sequity                                                                                  |   |                 | 320.1   |   |                 |   | 312.2 |   |   |   | 7.9 |   |   |   | 2.5 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                 |    |   |                 |   |   |   |   |   |   |   |   |   |   |   |
| Total      liabilities and shareowner’s equity                                                                                                                                                                                                                                                                                                                                                                                            |   | $                    | 3,275.8 |   |                 | $      | 3,603.4 |   |   | $ | (327.6 | ) |   |   | (9.1 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                 |    |   |                 |   |   |   |   |   |   |   |   |   |   |   |

----

INDEX

|                                                       |   |                  |   |
|------------------------------------------------------------|--------|-----------------------|--------|
|                                                       |   | January      31, 2010 |   |   | October      31, 2009 |   |   | Change |   |
|                                                       |   |                  |   |   |   |   |   |   |   |
| Delinquencies                                              |   |                  |   |   |   |   |   |   |   |
| Retail      notes and finance leases greater than 60 days. |   |                  | 0.9    | % |   |   | 0.7 | % |   |   | 0.2 | % |
| Wholesale      notes greater than 60 days                  |   |                  | 0.1    | % |   |   | 0.1 | % |   |   | - |   |
| Wholesale      accounts greater than 60 days               |   |                  | 0.9    | % |   |   | 0.9 | % |   |   | - |   |
|                                                       |   |                  |   |   |   |   |   |   |   |   |   |   |
| Allowance      to finance receivables coverage ratio       |   |                  | 1.7    | % |   |   | 1.4 | % |   |   | 0.3 | % |

| Millions of dollars                                              |   |     Three Months      Ended January 31, |    |
|------------------------------------------------------------------|--------|-------------------------------------------------------------|--------------|
|                                                             |   | 2010                                                        |         |   | 2009 |   |   | Change |   |
|  Charge-offs                                                |   |                                                        |         |   |   |   |   |   |   |
| Retail      notes and finance leases charge-offs                 |   | $                                                           | 5.3          |   |   | $ | 2.8 |   |   | $ | 2.5 |   |
|                                                             |   |                                                        |         |   |   |   |   |   |   |   |   |   |
| Retail      notes and finance leases charge-offs to liquidations |   |                                                        | 1.9          | % |   |   | 1.7 | % |   |   | 0.2 | % |

----

INDEX

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | January      31, 2010 |   |   | October      31, 2009 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------|--------|--------|-----------------------|--------|
| Retail      Notes and Finance      Leases                                                                          |   | $                     | 34.5   |   |                  | $      | 31.8 |   |
| Accounts                                                                                                           |   |                  | 0.8    |   |                  |   | 0.8 |   |
| Total                                                                                                                                                                |   | $                     | 35.3   |   |                  | $      | 32.6 |   |

----

INDEX

|                                                                                                                                                                                                         |  Fitch |   | Standardand      Poor’s |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------|--------|-------------------------------|
| Senior      unsecured debt                                                                                                                                                                                   | BB-         |   | BB-                           |
|                                                                                                                                                                                                         |        |   |                          |
| Outlook      as of January 26, 2010                                                                                                                                                                          | Negative    |   | Stable                        |
|                                                                                                                                                                                                         |        |   |                          |
| During      August 2009 and May 2008, Standard and Poor’s and Fitch, respectively,      removed both NIC and NFC from the credit watch with negative implications      while outlook remains Negative. |

----

INDEX

|                                                                                                                                                                                                                                                                                                                      |  Maturity     |   | January      31,2010 |    |   | October      31,2009 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------|--------|----------------------|---------|--------|----------------------|--------|
| Investor      notes                                                            | February      2010 |   | $                    | 212.0   |   |                 | $      | 212.0 |   |
| Variable      funding certificate (“VFC”)                                                                                                                                                                                                                                                                     | August      2010   |   |                 | 500.0   |   |                 |   | 650.0 |   |
| Investor      notes      (TALF)                                                | October      2012  |   |                 | 350.0   |   |                 |   | - |   |
| Total                                                                                         |               |   | $                    | 1,062.0 |   |                 | $      | 862.0 |   |

----

INDEX

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | January      31, 2010 |   |   | October      31, 2009 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------|--------|--------|-----------------------|--------|
| Revolver      bank      loan                                                                                                  |   | $                     | 450.0  |   |                  | $      | 800.0 |   |
| NFC      revolving loan      utilized                                                                                         |   |                  | (391.0 | )      |                  |   | (670.5 | ) |
| Mexican      sub-revolver loan      utilized                                                                                  |   |                  | (20.0  | )      |                  |   | (14.0 | ) |
| Total      availability                                                                                                                                |   | $                     | 39.0   |   |                  | $      | 115.5 |   |

Item 3

Item 4

----

INDEX

PART II

Item6

|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------|
| Number |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |     Page                        |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                |
| 10     | Material      Contracts                                                                                                                                                         |         E-1 |
| 31.1   | CEO Certification pursuant to Section 302 of      the Sarbanes-Oxley Act of 2002                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |         E-3 |
| 31.2   | CFO Certification pursuant to Section 302 of      the Sarbanes-Oxley Act of 2002                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |         E-5 |
| 32     | CEO and CFO Certification pursuant to      Section 906 of the Sarbanes-Oxley Act of      2002                                                                                                  |         E-7 |

----

INDEX

SIGNATURE

|                     | Navistar Financial    Corporation |
|--------------------------|-----------------------------------|
|                     |                              | (Registrant) |
|                     |                              |   |
| Date:      March 9, 2010 | By:  /s/                | DAVID L. DERFELT |
|                     |                              | David      L. Derfelt |
|                     |                              | V.P.,      and Controller |
|                     |                              | (Principal      Accounting  Officer) |

----

INDEX