|   | 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    [   ]                                                                                                  |

----

Index

| NAVISTAR      FINANCIAL CORPORATION |
|-------------------------------------|
| AND      SUBSIDIARIES               |
|                                |
|                                |
| INDEX                               |
|                                |
|                                |   |   |   |  PageReference |
|                                |   |   |   |   |
|                                | PART I. |   | FINANCIAL INFORMATION |   |
|                                |   |   |   |   |
|                                | Item 1. |   | Consolidated      Financial Statements: |   |
|                                |   |   |   |   |
|                                |   |   | Consolidated Statements of  Operations      (Unaudited) - Three Months and Six Months Ended April 30, 2010 and      2009 |              3 |
|                                |   |   |   |   |
|                                |   |   | Consolidated Statements of Shareowner’s Equity and      Comprehensive Income  (Unaudited)  – Six Months      Ended April 30, 2010 and 2009 |              4 |
|                                |   |   |   |   |
|                                |   |   | Consolidated Statements of Financial Condition -      April 30, 2010 (Unaudited) and October 31, 2009 |              5 |
|                                |   |   |   |   |
|                                |   |   | Consolidated Statements of Cash Flows (Unaudited) - Six      Months Ended April 30, 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 |         27 |
|                                |   |   |   |   |
|                                | Item 3. |   | Quantitative      and Qualitative Disclosures about Market Risk |         37 |
|                                |   |   |   |   |
|                                | Item 4. |   | Controls      and      Procedures                                                                                               |         37 |
|                                |   |   |   |   |
|                                |   |   |   |   |
|                                | PART II. |   | OTHER INFORMATION |   |
|                                |   |   |   |   |
|                                | Item 6. |   | Exhibits                                                                                              |         39 |
|                                |   |   |   |   |
|                                |   |   | Signature                                                                                              |         40 |
|                                |   |   |   |   |

----

Index

PART I

Item 1

ConsolidatedStatements of Operations (Unaudited)

| Millions      of dollars                                                                                                                                                                                                                                                                                                                                                       |   | For      the Three Months Ended April      30, |   |   | For      the Six Months EndedApril      30, |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------|--------|--------|---------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                           |   | 2010                                                |   |   | 2009                                        |   |   | 2010 |   |   | 2009 |   |
| Revenues                                                                                                                                                                                                                                                                                                                                                                       |   |                                                |   |   |                                        |   |   |   |   |   |   |   |
| Retail      notes and finance leases revenue                                                                                                                                                                                                                                                                                                                                   |   | $                                                   | 37.4   |   |                                        | $      | 46.1 |   |   | $ | 78.1 |   |   | $ | 93.2 |   |
| Operating      leases      revenue                                                               |   |                                                | 6.1    |   |                                        |   | 5.2 |   |   |   | 12.3 |   |   |   | 10.4 |   |
| Wholesale      notes      interest                                                               |   |                                                | 4.6    |   |                                        |   | 2.3 |   |   |   | 8.6 |   |   |   | 7.5 |   |
| Retail      and wholesale accounts interest                                                                                                                                                                                                                                                                                                                                    |   |                                                | 3.2    |   |                                        |   | 5.1 |   |   |   | 8.6 |   |   |   | 10.4 |   |
| Securitization      income                                                                       |   |                                                | 14.4   |   |                                        |   | 11.4 |   |   |   | 18.5 |   |   |   | 21.5 |   |
| Other      revenues                                                                              |   |                                                | 6.5    |   |                                        |   | 1.6 |   |   |   | 10.4 |   |   |   | 4.4 |   |
| Total      revenues                                                                                                                 |   |                                                | 72.2   |   |                                        |   | 71.7 |   |   |   | 136.5 |   |   |   | 147.4 |   |
|                                                                                                                                                                                                                                                                                                                                                                           |   |                                                |   |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| Expenses                                                                                                                                                                                                                                                                                                                                                                       |   |                                                |   |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| Cost      of borrowing:                                                                                                                                                                                                                                                                                                                                                        |   |                                                |   |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| Interest      expense                                                                                                     |   |                                                | 17.9   |   |                                        |   | 15.1 |   |   |   | 33.5 |   |   |   | 42.0 |   |
| Other                                                                                                                     |   |                                                | 3.1    |   |                                        |   | 3.6 |   |   |   | 9.2 |   |   |   | 6.9 |   |
| Credit,      collections and administrative                                                                                                                                                                                                                                                                                                                                    |   |                                                | 16.2   |   |                                        |   | 15.0 |   |   |   | 29.7 |   |   |   | 30.4 |   |
| Provision      for credit      losses                                                            |   |                                                | 3.0    |   |                                        |   | 8.4 |   |   |   | 11.0 |   |   |   | 12.4 |   |
| Depreciation      on operating      leases                                                       |   |                                                | 4.7    |   |                                        |   | 4.1 |   |   |   | 9.9 |   |   |   | 8.0 |   |
| Derivative      expense                                                                          |   |                                                | 0.8    |   |                                        |   | 9.2 |   |   |   | 4.4 |   |   |   | 31.6 |   |
| Other      (income)      expenses                                                                |   |                                                | (0.1   | )      |                                        |   | 0.4 |   |   |   | (0.2 | ) |   |   | 2.7 |   |
| Total      expenses                                                                                                                 |   |                                                | 45.6   |   |                                        |   | 55.8 |   |   |   | 97.5 |   |   |   | 134.0 |   |
|                                                                                                                                                                                                                                                                                                                                                                           |   |                                                |   |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| Income      before      taxes                                                                    |   |                                                | 26.6   |   |                                        |   | 15.9 |   |   |   | 39.0 |   |   |   | 13.4 |   |
| Income      tax expense                                                                     |   |                                                | 10.0   |   |                                        |   | 6.1 |   |   |   | 14.7 |   |   |   | 5.5 |   |
| Net      income                                                                                  |   | $                                                   | 16.6   |   |                                        | $      | 9.8 |   |   | $ | 24.3 |   |   | $ | 7.9 |   |

----

Index

Consolidated Statements of Shareowner’s Equity and ComprehensiveIncome 

(Unaudited)

| Millions      of dollars                                                                                                                                                                                                                                                                      |   | CapitalStock |   |   | Paid-InCapital |   |   | RetainedEarnings |   |   | Accumulated      OtherComprehensive      Income (Loss) |   |   | Total  |   |   | ComprehensiveIncome |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|--------|--------|----------------|--------|--------|------------------|--------|--------|--------------------------------------------------------|--------|--------|--------|--------|--------|---------------------|--------|
| Balance      at October 31, 2008                                                                                                                                                                                                                                                              |   | $            | 1.6    |   |           | $      | 199.6  |             |   | $      | 79.1                                                   |   |   | $      | (7.7   | )      |                | $      | 272.6 |   |   |   |   |
| 2009      Activity:                                                                                                                                                                                                                                                                           |   |         |   |   |           |   |   |             |   |   |                                                   |   |   |   |   |   |                |   |   |   |   |   |   |
| Net      income                                                                       |   |         | -      |   |           |   | -      |             |   |   | 7.9                                                    |   |   |   | -      |   |                |   | 7.9 |   |   | $ | 7.9 |   |
| Capital      contribution from parent company                                         |   |         | -      |   |           |   | 20.0   |             |   |   | -                                                      |   |   |   | -      |   |                |   | 20.0 |   |   |   | - |   |
| Pension      adjustment, (net of tax)                                                                                                                                                                                                                                                         |   |         | -      |   |           |   | -      |             |   |   | -                                                      |   |   |   | 0.3    |   |                |   | 0.3 |   |   |   | 0.3 |   |
| Balance      at April 30, 2009                                                                                                                                                                                                                                                                |   | $            | 1.6    |   |           | $      | 219.6  |             |   | $      | 87.0                                                   |   |   | $      | (7.4   | )      |                | $      | 300.8 |   |   | $ | 8.2 |   |
|                                                                                                                                                                                                                                                                                          |   |         |   |   |           |   |   |             |   |   |                                                   |   |   |   |   |   |                |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                          |   |         |   |   |           |   |   |             |   |   |                                                   |   |   |   |   |   |                |   |   |   |   |   |   |   |
| Balance      at October 31, 2009                                                                                                                                                                                                                                                              |   | $            | 1.6    |   |           | $      | 219.6  |             |   | $      | 107.8                                                  |   |   | $      | (16.8  | )      |                | $      | 312.2 |   |   |   |   |   |
| 2010      Activity:                                                                                                                                                                                                                                                                           |   |         |   |   |           |   |   |             |   |   |                                                   |   |   |   |   |   |                |   |   |   |   |   |   |   |
| Net      income                                                                       |   |         | -      |   |           |   | -      |             |   |   | 24.3                                                   |   |   |   | -      |   |                |   | 24.3 |   |   | $ | 24.3 |   |
| Pension      adjustment, (net of tax)                                                                                                                                                                                                                                                         |   |         | -      |   |           |   | -      |             |   |   | -                                                      |   |   |   | 4.0    |   |                |   | 4.0 |   |   |   | 4.0 |   |
| Balance      at April 30, 2010                                                                                                                                                                                                                                                                |   | $            | 1.6    |   |           | $      | 219.6  |             |   | $      | 132.1                                                  |   |   | $      | (12.8  | )      |                | $      | 340.5 |   |   | $ | 28.3 |   |

----

Index

Consolidated Statements of Financial Condition

|  Millions      of dollars                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | As      of April 30,2010 |       |   | As      of October 31, 2009 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------|------------|--------|----------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | (Unaudited)              |       |   |                             |   |
| ASSETS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                     |       |   |                             |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                     |       |   |                             |   |
| Cash      and cash      equivalents                                                                                                     |   | $                        |  11.1 |   |                             | $      |  16.1 |   |
| Finance      receivables, net of unearned income:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                     |       |   |                             |   |   |   |
| Finance      receivables                                                                                                                                                   |   |                     | 2,273.5    |   |                             |   | 2,538.6 |   |
| Finance      receivables from      affiliates                                                                                                                              |   |                     | 127.3      |   |                             |   | 154.3 |   |
| Allowance      for      losses                                                                                                                                             |   |                     | (32.5      | )      |                             |   | (32.6 | ) |
| Finance      receivables,      net                                                                                                      |   |                     | 2,368.3    |   |                             |   | 2,660.3 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                     |       |   |                             |   |   |   |
| Amounts      due from sales of      receivables                                                                                         |   |                     | 223.5      |   |                             |   | 291.5 |   |
| Net      investment in operating      leases                                                                                            |   |                     | 89.5       |   |                             |   | 79.5 |   |
| Vehicle      inventory                                                                                                                  |   |                     | 17.9       |   |                             |   | 26.5 |   |
| Restricted      cash and cash      equivalents                                                                                          |   |                     | 235.1      |   |                             |   | 421.8 |   |
| Other      assets                                                                                                                       |   |                     | 86.8       |   |                             |   | 107.7 |   |
| Total      assets                                                                                                                                                               |   | $                        | 3,032.2    |   |                             | $      | 3,603.4 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                     |       |   |                             |   |   |   |
| LIABILITIES      AND SHAREOWNER’S EQUITY                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                     |       |   |                             |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                     |       |   |                             |   |   |   |
| Net      accounts due to      affiliates                                                                                                |   | $                        | 157.8      |   |                             | $      | 31.2 |   |
| Senior      and secured      borrowings                                                                                                 |   |                     | 2,400.1    |   |                             |   | 3,093.6 |   |
| Other      liabilities                                                                                                                  |   |                     | 133.8      |   |                             |   | 166.4 |   |
| Total      liabilities                                                                                                                                                          |   |                     | 2,691.7    |   |                             |   | 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                                                                                                                  |   |                     | 132.1      |   |                             |   | 107.8 |   |
| Accumulated      other comprehensive      loss                                                                                          |   |                     | (12.8      | )      |                             |   | (16.8 | ) |
| Total      shareowner’s      equity                                                                                               |   |                     | 340.5      |   |                             |   | 312.2 |   |
| Total      liabilities and shareowner’s      equity                                                                                                                       |   | $                        | 3,032.2    |   |                             | $      | 3,603.4 |   |

----

Index

ConsolidatedStatements of Cash Flows(Unaudited)

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | For      the Six Months EndedApril      30, |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------|--------|
|  Millions      of dollars                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | 2010                                        |   |   | 2009 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                        |   |   |   |   |
| Cash      flow from operating activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                        |   |   |   |   |
| Net      income                                                                                                                                                           |   | $                                           | 24.3   |   |   | $ | 7.9 |   |
| Adjustments      to reconcile net income to cash flow from operations:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                        |   |   |   |   |   |   |
| Net      loss on sales of finance      receivables                                                                                                                                                      |   |                                        | 26.8   |   |   |   | 24.7 |   |
| Net      (gain) loss on sale and impairment of equipment under operating leases and      vehicle inventory                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                        | 2.1    |   |   |   | 4.7 |   |
| Depreciation      and      amortization                                                                                                                                                                 |   |                                        | 17.1   |   |   |   | 13.6 |   |
| Provision      for credit      losses                                                                                                                                                                   |   |                                        | 11.0   |   |   |   | 12.4 |   |
| Net      change in amounts due from sales of receivables                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                        | 68.0   |   |   |   | (9.6 | ) |
| Net      change in finance receivables - wholesale notes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                        | (87.3  | ) |   |   | (43.2 | ) |
| Net      change in finance receivables from affiliates - wholesale                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                        | 19.4   |   |   |   | 21.7 |   |
| Net      change in net accounts due to      affiliates                                                                                                                                                  |   |                                        | 126.6  |   |   |   | 30.1 |   |
| Net      change in other assets and      liabilities                                                                                                                                                    |   |                                        | 5.4    |   |   |   | (0.5 | ) |
| Net      cash provided by operating      activities                                                                                                                                                                                        |   |                                        | 213.4  |   |   |   | 61.8 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                        |   |   |   |   |   |   |
| Cash      flow from investing activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                        |   |   |   |   |   |   |
| Net      originations of retail notes and finance leases, includes      affiliates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                        | (351.9 | ) |   |   | (315.7 | ) |
| Net      change in restricted cash and cash      equivalents                                                                                                              |   |                                        | 186.7  |   |   |   | (104.1 | ) |
| Collections      on retail notes and finance lease receivables, net      of change in unearned income, includes affiliates                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                        | 488.9  |   |   |   | 535.6 |   |
| Net      change in finance receivables from affiliates - accounts                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                        | 1.7    |   |   |   | 2.7 |   |
| Net      change in finance receivables -      accounts                                                                                                                    |   |                                        | 163.4  |   |   |   | 8.6 |   |
| Proceeds      from sale of vehicle      inventory                                                                                                                         |   |                                        | 27.5   |   |   |   | 35.2 |   |
| Purchase      of equipment leased to      others                                                                                                                          |   |                                        | (24.2  | ) |   |   | (12.2 | ) |
| Proceeds      from sale of equipment under operating leases                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                        | 3.3    |   |   |   | 2.0 |   |
| Net      cash provided by investing      activities                                                                                                                                                                                        |   |                                        | 495.4  |   |   |   | 152.1 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                        |   |   |   |   |   |   |
| Cash      flow from financing activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                        |   |   |   |   |   |   |
| Net      change in bank revolver facilities, net of issuance costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                        | (264.7 | ) |   |   | 65.0 |   |
| Proceeds      from issuance of senior bank term debt, net      of issuance      costs                                                                                                                   |   |                                        | 435.3  |   |   |   | - |   |
| Principal      payments on senior bank term      debt                                                                                                                     |   |                                        | (611.2 | ) |   |   | (3.1 | ) |
| Proceeds      from issuance of secured borrowings, net of issuance costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                        | 244.5  |   |   |   | 319.6 |   |
| Payments      on secured      borrowings                                                                                                                                  |   |                                        | (517.7 | ) |   |   | (630.2 | ) |
| Capital      contribution from parent      company                                                                                                                        |   |                                        | -      |   |   |   | 20.0 |   |
| Net      cash used by financing      activities                                                                                                                                                                                            |   |                                        | (713.8 | ) |   |   | (228.7 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                        |   |   |   |   |   |   |
| Change      in cash and cash      equivalents                                                                                                    |   |                                        | (5.0   | ) |   |   | (14.8 | ) |
| Cash      and cash equivalents, beginning of      period                                                                                         |   |                                        | 16.1   |   |   |   | 34.4 |   |
| Cash      and cash equivalents, end of      period                                                                                               |   | $                                           | 11.1   |   |   | $ | 19.6 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                        |   |   |   |   |   |   |
| Supplemental      cash flow information:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                        |   |   |   |   |   |   |
| Interest      paid                                                                                                                                                        |   | $                                           | 32.4   |   |   | $ | 47.7 |   |
| Income      taxes paid, net of      refunds                                                                                                                               |   |                                        | 0.7    |   |   |   | 0.3 |   |
| Transfers      of loans and leases to vehicle      inventory                                                                                                              |   |                                        | 22.9   |   |   |   | 29.5 |   |

----

Index

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(UNAUDITED)

----

Index

----

Index

----

Index

|                                                                                                                                                                                                                                                                                                                                                                                                |   | Three      Months EndedApril      30, |   |   | Six      Months EndedApril      30, |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------|--------|--------|-------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                |   | 2010                                  |   |   | 2009                                |   |   | 2010 |   |   | 2009 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                |   |                                  |   |   |                                |   |   |   |   |   |   |   |
| Net      losses on finance      receivables                                                                           |   | $                                     | 3.7    |   |                                | $      | 3.9 |   |   | $ | 6.1 |   |   | $ | 4.7 |   |
| Impairment      losses on vehicle inventory                                                                                                                                                                                                                                                                                                                                                         |   |                                  | 0.9    |   |                                |   | 2.4 |   |   |   | 1.7 |   |   |   | 7.2 |   |
| Net      (gains) losses on sales of      vehicle      inventory                                                       |   |                                  | (0.5   | )      |                                |   | 0.5 |   |   |   | (0.3 | ) |   |   | 3.7 |   |

----

Index

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | April      30, 2010 |   |   | October      31, 2009 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|--------|--------|-----------------------|--------|
| Finance      receivables from affiliates, net of unearned income and dealer reserve      (Dealcor retail)                                                                                                                                                                                                                                                                                                                                                                                                                      |   | $                   | 98.8   |   |                  | $      | 104.8 |   |
| Finance      receivables from affiliates (Dealcor wholesale)                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                | 28.5   |   |                  |   | 49.5 |   |
| Net      accounts due to affiliates      (non-Dealcor)                                                                             |   |                | 157.8  |   |                  |   | 31.2 |   |

----

Index

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | April      30,2010 |    |   | October      31, 2009 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|---------|--------|----------------------------|--------|
| Retail      notes, net of unearned      income                                                                                                                      |   | $                  | 1,762.2 |   |                       | $      | 1,955.2 |   |
| Finance      leases, net of unearned      income                                                                                                                    |   |               | 125.5   |   |                       |   | 121.5 |   |
| Wholesale      notes      held-for-sale                                                                                                                             |   |               | 255.2   |   |                       |   | 167.9 |   |
| Accounts      (includes retail and      wholesale)                                                                                                                  |   |               | 130.6   |   |                       |   | 294.0 |   |
| Finance      receivables from affiliates, net of unearned      income                                                                                               |   |               | 127.3   |   |                       |   | 154.3 |   |
| Total      finance      receivables                                                                                                                                 |   |               | 2,400.8 |   |                       |   | 2,692.9 |   |
| Allowance      for      losses                                                                                                                                      |   |               | (32.5   | )      |                       |   | (32.6 | ) |
| Total      finance receivables,      net                                                                                                                            |   | $                  | 2,368.3 |   |                       | $      | 2,660.3 |   |

|                                                                                                                                                                                                                                                                                                                                                                            |   | Three      Months Ended April      30, |   |   | Six      Months Ended April      30, |   |   | Year      Ended October      31 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------|--------|--------|-------------------------------------------|--------|--------|--------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                            |   | 2010                                        |   |   | 2009                                      |   |   | 2010                                 |   |   | 2009 |   |   | 2009 |   |
| Allowance      for losses, beginning of period                                                                                                                                                                                                                                                                                                                                  |   | $                                           | 35.3   |   |                                      | $      | 29.6   |                                 |   | $ | 32.6 |   |   | $ | 28.4 |   |   | $ | 28.4 |   |
| Provision      for credit      losses                                                        |   |                                        | 3.0    |   |                                      |   | 8.4    |                                 |   |   | 11.0 |   |   |   | 12.4 |   |   |   | 29.7 |   |
| Net      charge-offs                                                                         |   |                                        | (5.8   | )      |                                      |   | (7.8   | )                                    |   |   | (11.1 | ) |   |   | (10.6 | ) |   |   | (25.5 | ) |
| Allowance      for losses, end of period                                                                                                                                                                                                                                                                                                                                        |   | $                                           | 32.5   |   |                                      | $      | 30.2   |                                 |   | $ | 32.5 |   |   | $ | 30.2 |   |   | $ | 32.6 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | April      30,2010 |   |   | October      31,2009 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|--------|--------|----------------------|--------|
| Impaired      receivables with specific loss      reserves                                                                                                   |   | $                  | 40.9   |   |                 | $      | 62.3 |   |
| Impaired      receivables without specific loss      reserves                                                                                                |   |               | 2.2    |   |                 |   | 2.5 |   |
| Total      impaired      receivables                                                                                                                                                                           |   | $                  | 43.1   |   |                 | $      | 64.8 |   |

| Specific      loss reserves on impaired receivables recorded by NFC                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | $      | 9.1  |   |   | $      | 10.3 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------|--------|--------|--------|------|--------|
| Specific      loss reserves recorded by Navistar,      Inc.                                                                                                |   |   | 11.8 |   |   |   | 14.2 |   |
| Finance      receivables over 60 days      delinquent                                                                                                      |   |   | 13.7 |   |   |   | 15.7 |   |

----

Index

|                                                       |   | Three      Months EndedApril      30, |   |   | Six      Months EndedApril      30, |   |
|------------------------------------------------------------|--------|---------------------------------------|--------|--------|-------------------------------------|--------|
|                                                       |   | 2010                                  |   |   | 2009                                |   |   | 2010 |   |   | 2009 |   |
| Impairment      losses on vehicle inventory                |   | $                                     | 1.8    |   |                                | $      | 3.8 |   |   | $ | 4.2 |   |   | $ | 9.3 |   |
| Net      (gains) losses on sale of vehicle inventory  |   |                                  | 1.0    |   |                                |   | 0.9 |   |   |   | (0.5 | ) |   |   | 5.4 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | Six      Months EndedApril      30,2010 |   |   | Six      Months EndedApril      30,2009 |   |   |   Year      Ended October      31, 2009 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------|--------|--------|----------------------------------------------|--------|--------|--------------------------------------------------------|--------|
| Vehicle      inventory, beginning of period                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | $                                       | 26.5   |   |                                         | $      | 42.0   |                                                   |   | $ | 42.0 |   |
| Net      additions                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                    | 22.9   |   |                                         |   | 29.5   |                                                   |   |   | 67.3 |   |
| Impairment      loss:                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                    |   |   |                                         |   |   |                                                   |   |   |   |   |
|     Recorded by      NFC                                                                                    |   |                                    | (2.5   | )      |                                         |   | (2.1   | )                                                      |   |   | (3.9 | ) |
|     Recorded by      Navistar,      Inc.                                                                    |   |                                    | (1.7   | )      |                                         |   | (7.2   | )                                                      |   |   | (9.2 | ) |
| Net      book value of assets sold                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                    | (27.3  | )      |                                         |   | (36.9  | )                                                      |   |   | (69.7 | ) |
| Vehicle      inventory, end of      period                                                                                                          |   | $                                       | 17.9   |   |                                         | $      | 25.3   |                                                   |   | $ | 26.5 |   |

----

Index

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | April      30,2010 |   |   | October      31,2009 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|--------|--------|----------------------|--------|
| Investment      in operating      leases                                                                                             |   | $                  | 134.5  |   |                 | $      | 119.8 |   |
| Less:      Accumulated      depreciation                                                                                             |   |               | (45.6  | )      |                 |   | (41.0 | ) |
| Net      investment in equipment under operating      leases                                                                                                  |   |               | 88.9   |   |                 |   | 78.8 |   |
| Rent      receivable net of reserve for past due operating leases                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |               | 0.6    |   |                 |   | 0.7 |   |
| Net      investment in operating      leases                                                                                         |   | $                  | 89.5   |   |                 | $      | 79.5 |   |

----

Index

|                                                                                                                                                                                                                                                                                                                                                                                                            |   |               |    |   |                 |   |    | Weighted      AverageInterest      Rate |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|---------|--------|----------------------|--------|---------|-----------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                            |   | April      30,2010 |    |   | October      31,2009 |   |    | April      30,2010                      |   |   | October      31,2009 |   |
| Bank      credit facility at variable rates due December 2012                                                                                                                                                                                                                                                                                                                                                   |   | $                  | 780.2   |   |                 | $      | -       |                                    |   |   | 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                                                                                                                                                                                                                                                                                                                                                                |   |               | 67.3    |   |                 |   | -       |                                    |   |   | 5.9 | % |   |   | - |   |
| Borrowings      secured by asset-backed securities at various rates, currently between      0.5% and 5.9%, due serially through October 2016                                                                                                                                                                                                                                                                    |   |               | 921.9   |   |                 |   | 1,191.5 |                                    |   |   | 2.4 | % |   |   | 1.6 | % |
| Borrowings      secured by operating and finance leases due serially through October 2016      at rates currently between 2.6% and 6.6%                                                                                                                                                                                                                                                                         |   |               | 130.7   |   |                 |   | 134.2   |                                    |   |   | 4.2 | % |   |   | 4.0 | % |
| Total      senior and secured      borrowings                                                            |   | $                  | 2,400.1 |   |                 | $      | 3,093.6 |                                    |   |   | 2.9 | % |   |   | 1.8 | % |

----

Index

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | Three Months Ended April30, |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | Pension Benefits            |   |   | Other Benefits |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | 2010                        |   |   | 2009 |   |   | 2010 |   |   | 2009 |   |
| Service      cost for benefits earned during the period                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | $                           | -      |   |   | $ | 0.1 |   |   | $ | - |   |   | $ | - |   |
| Interest      on      obligation                                                                                    |   |                        | 0.8    |   |   |   | 1.1 |   |   |   | 0.3 |   |   |   | 0.3 |   |
| Amortization      of cumulative      losses                                                                         |   |                        | 0.3    |   |   |   | 0.1 |   |   |   | - |   |   |   | (0.1 | ) |
| Settlements      and      curtailments                                                                              |   |                        | -      |   |   |   | - |   |   |   | 1.8 |   |   |   | - |   |
| Contractual      termination      benefits                                                                          |   |                        | 0.5    |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Less      expected return on      assets                                                                            |   |                        | (0.9   | ) |   |   | (0.9 | ) |   |   | (0.2 | ) |   |   | (0.1 | ) |
| Net      postretirement benefits      expense                                                                                                |   | $                           | 0.7    |   |   | $ | 0.4 |   |   | $ | 1.9 |   |   | $ | 0.1 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | Six Months Ended April 30, |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | Pension Benefits           |   |   | Other Benefits |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | 2010                       |   |   | 2009 |   |   | 2010 |   |   | 2009 |   |
| Service      cost for benefits earned during the period                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | $                          | 0.1    |   |   | $ | 0.2 |   |   | $ | - |   |   | $ | - |   |
| Interest      on      obligation                                                                                    |   |                       | 1.7    |   |   |   | 2.1 |   |   |   | 0.5 |   |   |   | 0.6 |   |
| Amortization      of cumulative      losses                                                                         |   |                       | 0.5    |   |   |   | 0.2 |   |   |   | - |   |   |   | (0.1 | ) |
| Settlements      and      curtailments                                                                              |   |                       | -      |   |   |   | - |   |   |   | 1.8 |   |   |   | - |   |
| Contractual      termination      benefits                                                                          |   |                       | 0.5    |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Less      expected return on      assets                                                                            |   |                       | (1.8   | ) |   |   | (1.8 | ) |   |   | (0.3 | ) |   |   | (0.2 | ) |
| Net      postretirement benefits      expense                                                                                                |   | $                          | 1.0    |   |   | $ | 0.7 |   |   | $ | 2.0 |   |   | $ | 0.3 |   |

----

Index

----

Index

|                                                                                                                                                                                                                                                                                                                             |   | Other      Assets |    |   | Other      Liabilities |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|---------|--------|------------------------|--------|
| April      30, 2010                                                                                                                                                                                                                                                                                                              |   | NotionalAmount    |    |   | Fair      Value        |   |   | NotionalAmount |   |   | Fair      Value |   |
| Interest      rate      swaps                                                         |   | $                 | 690.4   |   |                   | $      | 15.1 |   |   | $ | 1,443.7 |   |   | $ | 29.1 |   |
| Interest      rate caps      purchased                                                |   |              | 500.0   |   |                   |   | 1.6 |   |   |   | - |   |   |   | - |   |
| Interest      rate caps      sold                                                     |   |              | -       |   |                   |   | - |   |   |   | 500.0 |   |   |   | 1.5 |   |
| Total      derivatives                                                                                    |   | $                 | 1,190.4 |   |                   | $      | 16.7 |   |   | $ | 1,943.7 |   |   | $ | 30.6 |   |

|                                                                                                                                                                                                                                                                                                                             |   | 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 |   |

|                                                                                                                                                                                                                                                                                                      |   | Three      Months Ended April      30, |   |   | Six      Months EndedApril      30, |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------|--------|--------|-------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                      |   | 2010                                        |   |   | 2009                                |   |   | 2010 |   |   | 2009 |   |
| Interest      rate      swaps                                                 |   | $                                           | 0.6    |   |                                | $      | 9.2 |   |   | $ | 3.8 |   |   | $ | 31.6 |   |
| Interest      rate caps purchased                                                                                                                                                                                                                                                                         |   |                                        | 1.8    |   |                                |   | (0.8 | ) |   |   | 3.1 |   |   |   | 1.2 |   |
| Interest      rate caps      sold                                             |   |                                        | (1.6   | )      |                                |   | 0.8 |   |   |   | (2.5 | ) |   |   | (1.2 | ) |
| Total                                                                                                  |   | $                                           | 0.8    |   |                                | $      | 9.2 |   |   | $ | 4.4 |   |   | $ | 31.6 |   |

----

Index

|                                                                                                                                                                                                                                                                                                          | Termination or      Maturity |   | April      30,2010 |    |   | October      31,2009 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------|--------|--------------------|---------|--------|----------------------|--------|
| Investor      notes                                                | February      2010                |   | $                  | -       |   |                 | $      | 212.0 |   |
| Variable      funding certificate (“VFC”)                                                                                                                                                                                                                                                         | April      2010                   |   |               | -       |   |                 |   | 650.0 |   |
| Variable      funding notes (“VFN”)                                                                                                                                                                                                                                                               | August      2010                  |   |               | 500.0   |   |                 |   | - |   |
| Investor      notes                                                | October      2012                 |   |               | 350.0   |   |                 |   | - |   |
| Investor      notes                                                | January      2012                 |   |               | 250.0   |   |                 |   | - |   |
| Total      funding      capacity                                                  |                              |   |               | 1,100.0 |   |                 |   | 862.0 |   |
| Funding      utilized                                                             |                              |   |               | (600.0  | )      |                 |   | (562.0 | ) |
| Total      availability                                                                          |                              |   | $                  | 500.0   |   |                 | $      | 300.0 |   |

|                                                                                                                                                                                                                                                                                                                         |  Maturity    |   | April      30,2010 |   |   | October      31,2009 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------|--------|--------------------|--------|--------|----------------------|--------|
| Conduit      funding      facility                                                | October      2010 |   | $                  | 100.0  |   |                 | $      | 100.0 |   |
| Funding      utilized                                                             |              |   |               | (22.7  | )      |                 |   | (7.7 | ) |
| Total      availability                                                                          |              |   | $                  | 77.3   |   |                 | $      | 92.3 |   |

----

Index

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | April      30,2010 |   |   | October      31,2009 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|--------|--------|----------------------|--------|
| Excess      seller’s      interest                                                                                               |   | $                  | 183.6  |   |                 | $      | 275.3 |   |
| Interest      only      strip                                                                                                          |   |               | 10.5   |   |                 |   | 9.6 |   |
| Restricted      cash      reserves                                                                                                     |   |               | 29.4   |   |                 |   | 6.6 |   |
| Total      amounts due from sales of      receivables                                                                                                 |   | $                  | 223.5  |   |                 | $      | 291.5 |   |

|                                                                                                                                                                                                                                                                                                                                                                        | April      30,                                  | October      31,                                |   | Adverse      Fair ValueChange      atApril      30, 2010 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------|-------------------------------------------------|--------|----------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                        | 2010                                            | 2009                                            |   |                                                     | 10     | % |   |   | 20 | % |
| Discount      rate      (annual)                                                         |    7.7  to      18.8 % |    9.1  to      20.5 % |   | $                                                        | 1.9    |   |   | $ | 4.4 |   |
| Estimated      credit      losses                                                        |    0.0  to      0.24 % |    0.0  to      0.24 % |   |                                                     | 0.1    |   |   |   | 0.2 |   |
| Payment      speed (percent of portfolio per month)                                                                                                                                                                                                                                                                                                                         |    4.4  to      77.1 % |    4.9  to      70.8 % |   |                                                     | 0.6    |   |   |   | 1.1 |   |

|  April      30, 2010                                                                                                                                                                                                                     |   | Retail      Notes |    |   | Finance      Leases |   |   | Wholesale      Notes |   |   | Accounts |   |   | Affiliates |   |   | Total  |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|---------|--------|---------------------|--------|--------|----------------------|--------|--------|----------|--------|--------|------------|--------|--------|--------|--------|
| Serviced      portfolio                                             |   | $                 | 1,762.2 |   |                | $      | 125.5  |                 |   | $      | 860.4    |   |   | $          | 226.7  |   |   | $      | 213.5 |   |   | $ | 3,188.3 |   |
| Less      sold receivables – off-balance      sheet                               |   |              | -       |   |                |   | -      |                 |   |   | (605.2   | )      |   |       | (96.1  | )      |   |   | (86.2 | ) |   |   | (787.5 | ) |
| Total      on-balance sheet.                                                                                                                                                                                                                  |   | $                 | 1,762.2 |   |                | $      | 125.5  |                 |   | $      | 255.2    |   |   | $          | 130.6  |   |   | $      | 127.3 |   |   | $ | 2,400.8 |   |

|  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 |   |

----

Index

|                                                                                                                                                                                                                                                                                                     |   | Three      Months EndedApril      30, |   |   | Six      Months EndedApril      30, |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------|--------|--------|-------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                     |   | 2010                                  |   |   | 2009                                |   |   | 2010 |   |   | 2009 |   |
|                                                                                                                                                                                                                                                                                                     |   |                                  |   |   |                                |   |   |   |   |   |   |   |
| Fair      value      adjustments                                             |   | $                                     | 13.5   |   |                                | $      | 9.8 |   |   | $ | 20.3 |   |   | $ | 29.3 |   |
| Excess      spread      income                                               |   |                                  | 10.0   |   |                                |   | 9.3 |   |   |   | 20.6 |   |   |   | 11.4 |   |
| Servicing      fees      revenue                                             |   |                                  | 2.1    |   |                                |   | 2.0 |   |   |   | 4.3 |   |   |   | 4.2 |   |
| Losses      on sales of receivables                                                                                                                                                                                                                                                                      |   |                                  | (11.3  | )      |                                |   | (9.9 | ) |   |   | (26.8 | ) |   |   | (24.7 | ) |
| Investment      income                                                       |   |                                  | 0.1    |   |                                |   | 0.2 |   |   |   | 0.1 |   |   |   | 1.3 |   |
| Securitization      income                                                                                                                                                                                                                                                                               |   | $                                     | 14.4   |   |                                | $      | 11.4 |   |   | $ | 18.5 |   |   | $ | 21.5 |   |

|                                                                                                                                                                                                                                                                                           |   | Three      Months EndedApril      30, |   |   | Six      Months EndedApril      30, |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------|--------|--------|-------------------------------------|--------|
|                                                                                                                                                                                                                                                                                           |   | 2010                                  |   |   | 2009                                |   |   | 2010 |   |   | 2009 |   |
|                                                                                                                                                                                                                                                                                           |   |                                  |   |   |                                |   |   |   |   |   |   |   |
| Proceeds      from sales of finance receivables                                                                                                                                                                                                                                           |   | $                                     | 954.2  |   |                                | $      | 897.3 |   |   | $ | 2,027.2 |   |   | $ | 1,939.8 |   |
| Servicing      fees                                                |   |                                  | 4.3    |   |                                |   | 2.1 |   |   |   | 6.5 |   |   |   | 4.3 |   |
| Cash      from net excess spread                                                                                                                                                                                                                                                               |   |                                  | 20.2   |   |                                |   | 8.6 |   |   |   | 30.6 |   |   |   | 10.3 |   |
| Investment      income                                             |   |                                  | 0.1    |   |                                |   | 0.3 |   |   |   | 0.1 |   |   |   | 1.0 |   |
| Total      cash      provided                                                                                        |   | $                                     | 978.8  |   |                                | $      | 908.3 |   |   | $ | 2,064.4 |   |   | $ | 1,955.4 |   |

----

Index

|                                      |   | Consolidated |   |   | Other           |   |   |   |   |
|-------------------------------------------|--------|--------------|--------|--------|-----------------|--------|--------|--------|--------|
| April      30, 2010                       |   | VIEs         |   |   | Securitizations |   |   | Total  |   |
| Finance      receivables, net             |   | $            | 849.0  |   |            | $      | 751.7  |   |   | $ | 1,600.7 |   |
| Net      investment in operating leases   |   |         | -      |   |            |   | 89.5   |   |   |   | 89.5 |   |
| Restricted      cash and cash equivalents |   |         | 104.9  |   |            |   | 126.4  |   |   |   | 231.3 |   |
| Vehicle      inventory                    |   |         | 7.7    |   |            |   | 2.0    |   |   |   | 9.7 |   |
| Net      derivative fair value            |   |         | (15.0  | )      |            |   | 1.6    |   |   |   | (13.4 | ) |
| Secured      borrowings                   |   |         | (738.0 | )      |            |   | (814.6 | )      |   |   | (1,552.6 | ) |

|                                      |   | Consolidated |     |   | Other           |   |   |   |   |
|-------------------------------------------|--------|--------------|----------|--------|-----------------|--------|--------|--------|--------|
| October      31, 2009                     |   | VIEs         |     |   | Securitizations |   |   | Total  |   |
| Finance      receivables, net             |   | $            | 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

----

Index

|                                                                                                                                                                                                                                                                                                                                                                                                |   | April      30, 2010 |    |   | October      31, 2009 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|---------|--------|-----------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                |   | Carrying      Value |    |   | FairValue             |   |   | Carrying      Value |   |   | FairValue |   |
| Financial      assets:                                                                                                                                                                                                                                                                                                                                                                              |   |                |    |   |                  |   |   |   |   |   |   |   |
| Cash      and cash      equivalents                                                                    |   | $                   | 11.1    |   |                  | $      | 11.1 |   |   | $ | 16.1 |   |   | $ | 16.1 |   |
| Retail      notes                                                                                      |   |                | 1,762.2 |   |                  |   | 1,628.4 |   |   |   | 1,955.2 |   |   |   | 1,814.5 |   |
| Finance      receivables from      affiliates                                                          |   |                | 127.3   |   |                  |   | 119.8 |   |   |   | 154.3 |   |   |   | 144.1 |   |
| Accounts      (wholesale and      retail)                                                              |   |                | 130.6   |   |                  |   | 130.6 |   |   |   | 294.0 |   |   |   | 294.0 |   |
| Wholesale      notes                                                                                   |   |                | 255.2   |   |                  |   | 255.2 |   |   |   | 167.9 |   |   |   | 167.9 |   |
| Amounts      due from sales of receivables                                                                                                                                                                                                                                                                                                                                                          |   |                | 223.5   |   |                  |   | 223.5 |   |   |   | 291.5 |   |   |   | 291.5 |   |
| Restricted      cash and cash equivalents                                                                                                                                                                                                                                                                                                                                                           |   |                | 235.1   |   |                  |   | 235.1 |   |   |   | 421.8 |   |   |   | 421.8 |   |
| Derivative      financial      instruments                                                             |   |                | 16.7    |   |                  |   | 16.7 |   |   |   | 37.2 |   |   |   | 37.2 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                |   |                |    |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Financial      liabilities:                                                                                                                                                                                                                                                                                                                                                                         |   |                |    |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Net      accounts due to      affiliates                                                               |   |                | 157.8   |   |                  |   | 157.8 |   |   |   | 31.2 |   |   |   | 31.2 |   |
| Senior      and secured      borrowings                                                                |   |                | 2,400.1 |   |                  |   | 2,420.2 |   |   |   | 3,093.6 |   |   |   | 3,008.2 |   |
| Derivative      financial      instruments                                                             |   |                | 30.6    |   |                  |   | 30.6 |   |   |   | 65.2 |   |   |   | 65.2 |   |

| April      30, 2010                                                                                                                                                                                                                                                                                                                                      |   |         |   |   |         |   |   |         |   |   |   |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|--------|--------|--------------|--------|--------|--------------|--------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                     |   | Level      1 |   |   | Level      2 |   |   | Level      3 |   |   | Total  |   |
| Assets:                                                                                                                                                                                                                                                                                                                                                  |   |         |   |   |         |   |   |         |   |   |   |   |
| Derivative      financial instruments:                                                                                                                                                                                                                                                                                                                   |   |         |   |   |         |   |   |         |   |   |   |   |
| Interest      rate      swaps                                                             |   | $            | -      |   |         | $      | -      |         |   | $      | 15.1   |   |   | $ | 15.1 |   |
| Interest      rate caps      purchased                                                    |   |         | -      |   |         |   | 1.6    |         |   |   | -      |   |   |   | 1.6 |   |
| Amounts      due from sales of receivables                                                                                                                                                                                                                                                                                                               |   |         | -      |   |         |   | -      |         |   |   | 223.5  |   |   |   | 223.5 |   |
| Assets      total                                                                                                  |   | $            | -      |   |         | $      | 1.6    |         |   | $      | 238.6  |   |   | $ | 240.2 |   |
| Liabilities:                                                                                                                                                                                                                                                                                                                                             |   |         |   |   |         |   |   |         |   |   |   |   |   |   |   |   |
| Derivative      financial instruments:                                                                                                                                                                                                                                                                                                                   |   |         |   |   |         |   |   |         |   |   |   |   |   |   |   |   |
| Interest      rate      swaps                                                             |   | $            | -      |   |         | $      | 14.1   |         |   | $      | 15.0   |   |   | $ | 29.1 |   |
| Interest      rate caps      sold                                                         |   |         | -      |   |         |   | 1.5    |         |   |   | -      |   |   |   | 1.5 |   |
| Liabilities      total                                                                                             |   | $            | -      |   |         | $      | 15.6   |         |   | $      | 15.0   |   |   | $ | 30.6 |   |

| October      31, 2009                                                                                                                                                                                                                                                                                                                                    |   |         |   |   |         |   |   |         |   |   |   |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|--------|--------|--------------|--------|--------|--------------|--------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                     |   | Level      1 |   |   | Level      2 |   |   | Level      3 |   |   | Total  |   |
| Assets:                                                                                                                                                                                                                                                                                                                                                  |   |         |   |   |         |   |   |         |   |   |   |   |
| Derivative      financial instruments:                                                                                                                                                                                                                                                                                                                   |   |         |   |   |         |   |   |         |   |   |   |   |
| Interest      rate      swaps                                                             |   | $            | -      |   |         | $      | -      |         |   | $      | 32.4   |   |   | $ | 32.4 |   |
| Interest      rate caps      purchased                                                    |   |         | -      |   |         |   | 4.8    |         |   |   | -      |   |   |   | 4.8 |   |
| Amounts      due from sales of receivables                                                                                                                                                                                                                                                                                                               |   |         | -      |   |         |   | -      |         |   |   | 291.5  |   |   |   | 291.5 |   |
| Assets      total                                                                                                  |   | $            | -      |   |         | $      | 4.8    |         |   | $      | 323.9  |   |   | $ | 328.7 |   |
| Liabilities:                                                                                                                                                                                                                                                                                                                                             |   |         |   |   |         |   |   |         |   |   |   |   |   |   |   |   |
| Derivative      financial instruments:                                                                                                                                                                                                                                                                                                                   |   |         |   |   |         |   |   |         |   |   |   |   |   |   |   |   |
| Interest      rate      swaps                                                             |   | $            | -      |   |         | $      | 29.5   |         |   | $      | 31.6   |   |   | $ | 61.1 |   |
| Interest      rate caps      sold                                                         |   |         | -      |   |         |   | 4.1    |         |   |   | -      |   |   |   | 4.1 |   |
| Liabilities      total                                                                                             |   | $            | -      |   |         | $      | 33.6   |         |   | $      | 31.6   |   |   | $ | 65.2 |   |

----

Index

| 2010                                                                                                                                                                                                                                                                                                                                                  |   | NetInterest      Rate Swaps |   |   | Retained      Interests |   |   | Total  |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|--------|--------|-------------------------|--------|--------|--------|--------|
| Beginning      of      period                                                     |   | $                           | 0.8    |   |                    | $      | 291.5  |   |   | $ | 292.3 |   |
| Realized      and unrealized losses included in earnings                                                                                                                                                                                                                                                                                              |   |                        | (0.7   | )      |                    |   | (0.1   | )      |   |   | (0.8 | ) |
| Purchases,      issuances and settlements                                                                                                                                                                                                                                                                                                             |   |                        | -      |   |                    |   | (67.9  | )      |   |   | (67.9 | ) |
| End      of      period                                                                          |   | $                           | 0.1    |   |                    | $      | 223.5  |   |   | $ | 223.6 |   |
|                                                                                                                                                                                                                                                                                                                                                  |   |                        |   |   |                    |   |   |   |   |   |   |   |

| 2009                                                                                                                                                                                                                                                                                                                                                  |   | NetInterest      Rate Swaps |   |   | Retained      Interests |   |   | Total  |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|--------|--------|-------------------------|--------|--------|--------|--------|
| Beginning      of      period                                                     |   | $                           | -      |   |                    | $      | 229.6  |   |   | $ | 229.6 |   |
| Realized      and unrealized gains included in earnings                                                                                                                                                                                                                                                                                               |   |                        | 1.3    |   |                    |   | 5.0    |   |   |   | 6.3 |   |
| Purchases,      issuances and settlements                                                                                                                                                                                                                                                                                                             |   |                        | -      |   |                    |   | 4.6    |   |   |   | 4.6 |   |
| Ending      of      period                                                                       |   | $                           | 1.3    |   |                    | $      | 239.2  |   |   | $ | 240.5 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | April      30,2010 |   |   | October      31,2009 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|--------|--------|----------------------|--------|
| Impaired      finance receivables measured at fair      value                                                                                               |   | $                  | 40.9   |   |                 | $      | 62.3 |   |
| Specific      loss reserve recorded by      NFC                                                                                                                       |   |               | (9.1   | )      |                 |   | (10.3 | ) |
| Specific      loss reserve recorded by Navistar,      Inc.                                                                                                            |   |               | (11.8  | )      |                 |   | (14.2 | ) |
| Fair      value of impaired finance      receivables                                                                                                                                      |   | $                  | 20.0   |   |                 | $      | 37.8 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |               |   |   |                 |   |   |   |
| Vehicle      inventory                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | $                  | 17.9   |   |                 | $      | 26.5 |   |

----

Index

----

Index

Item 2

----

Index

|                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | Three      Months EndedApril      30, |   |   |   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------|--------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | 2010                                  |   |   | 2009   |   |   | Change |   |   | %      Change |   |
| Revenues                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                  |   |   |   |   |   |   |   |   |   |   |
| Financing      revenue                                                                                           |   | $                                     | 45.2   |   |   | $      | 53.5 |   |   | $ | (8.3 | ) |   |   | (15.5 | ) |
| Securitization      income                                                                                       |   |                                  | 14.4   |   |   |   | 11.4 |   |   |   | 3.0 |   |   |   | 26.3 |   |
| Operating      leases and other      revenue                                                                     |   |                                  | 12.6   |   |   |   | 6.8 |   |   |   | 5.8 |   |   |   | 85.3 |   |
| Total      revenues                                                                                              |   |                                  | 72.2   |   |   |   | 71.7 |   |   |   | 0.5 |   |   |   | 0.7 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Expenses                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost      of      borrowing                                                                                      |   |                                  | 21.0   |   |   |   | 18.7 |   |   |   | 2.3 |   |   |   | 12.3 |   |
| Credit,      collections and      administrative                                                                 |   |                                  | 16.2   |   |   |   | 15.0 |   |   |   | 1.2 |   |   |   | 8.0 |   |
| Provision      for credit      losses                                                                            |   |                                  | 3.0    |   |   |   | 8.4 |   |   |   | (5.4 | ) |   |   | (64.3 | ) |
| Depreciation      on operating      leases                                                                       |   |                                  | 4.7    |   |   |   | 4.1 |   |   |   | 0.6 |   |   |   | 14.6 |   |
| Derivative      expense                                                                                          |   |                                  | 0.8    |   |   |   | 9.2 |   |   |   | (8.4 | ) |   |   | (91.3 | ) |
| Other      (income)      expenses                                                                                |   |                                  | (0.1   | )      |   |   | 0.4 |   |   |   | (0.5 | ) |   |                                N.M. |   |
| Total      expenses                                                                                              |   |                                  | 45.6   |   |   |   | 55.8 |   |   |   | (10.2 | ) |   |   | (18.3 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income      before      taxes                                                                                    |   |                                  | 26.6   |   |   |   | 15.9 |   |   |   | 10.7 |   |   |   | 67.3 |   |
| Income      tax      expense                                                                                     |   |                                  | 10.0   |   |   |   | 6.1 |   |   |   | 3.9 |   |   |   | 63.9 |   |
| Net      income                                                                                                  |   | $                                     | 16.6   |   |   | $      | 9.8 |   |   | $ | 6.8 |   |   |   | 69.4 |   |

----

Index

|                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | Six      Months Ended April      30, |   |   |   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------|--------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | 2010                                      |   |   | 2009   |   |   | Change |   |   | %      Change |   |
| Revenues                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                      |   |   |   |   |   |   |   |   |   |   |
| Financing      revenue                                                                                           |   | $                                         | 95.3   |   |   | $      | 111.1 |   |   | $ | (15.8 | ) |   |   | (14.2 | ) |
| Securitization      income                                                                                       |   |                                      | 18.5   |   |   |   | 21.5 |   |   |   | (3.0 | ) |   |   | (14.0 | ) |
| Operating      leases and other      revenue                                                                     |   |                                      | 22.7   |   |   |   | 14.8 |   |   |   | 7.9 |   |   |   | 53.4 |   |
| Total      revenues                                                                                              |   |                                      | 136.5  |   |   |   | 147.4 |   |   |   | (10.9 | ) |   |   | (7.4 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Expenses                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost      of      borrowing                                                                                      |   |                                      | 42.7   |   |   |   | 48.9 |   |   |   | (6.2 | ) |   |   | (12.7 | ) |
| Credit,      collections and      administrative                                                                 |   |                                      | 29.7   |   |   |   | 30.4 |   |   |   | (0.7 | ) |   |   | (2.3 | ) |
| Provision      for credit      losses                                                                            |   |                                      | 11.0   |   |   |   | 12.4 |   |   |   | (1.4 | ) |   |   | (11.3 | ) |
| Depreciation      on operating      leases                                                                       |   |                                      | 9.9    |   |   |   | 8.0 |   |   |   | 1.9 |   |   |   | 23.8 |   |
| Derivative      expense                                                                                          |   |                                      | 4.4    |   |   |   | 31.6 |   |   |   | (27.2 | ) |   |   | (86.1 | ) |
| Other      (income)      expenses                                                                                |   |                                      | (0.2   | )      |   |   | 2.7 |   |   |   | (2.9 | ) |   |                                N.M. |   |
| Total      expenses                                                                                              |   |                                      | 97.5   |   |   |   | 134.0 |   |   |   | (36.5 | ) |   |   | (27.2 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income      before      taxes                                                                                    |   |                                      | 39.0   |   |   |   | 13.4 |   |   |   | 25.6 |   |   |   | 191.0 |   |
| Income      tax      expense                                                                                     |   |                                      | 14.7   |   |   |   | 5.5 |   |   |   | 9.2 |   |   |   | 167.3 |   |
| Net      income                                                                                                  |   | $                                         | 24.3   |   |   | $      | 7.9 |   |   | $ | 16.4 |   |   |   | 207.6 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | Three      Months Ended April      30 |   |   |   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------|--------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | 2010                                       |   |   | 2009   |   |   | Change |   |   | %      Change |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                       |   |   |   |   |   |   |   |   |   |   |
| Retail      notes and finance      leases                                                                 |   | $                                          | 37.4   |   |   | $      | 46.1 |   |   | $ | (8.7 | ) |   |   | (18.9 | ) |
| Wholesale      notes                                                                                      |   |                                       | 4.6    |   |   |   | 2.3 |   |   |   | 2.3 |   |   |   | 100.0 |   |
| Retail      and wholesale      accounts                                                                   |   |                                       | 3.2    |   |   |   | 5.1 |   |   |   | (1.9 | ) |   |   | (37.3 | ) |
| Total      financing      revenue                                                                         |   | $                                          | 45.2   |   |   | $      | 53.5 |   |   | $ | (8.3 | ) |   |   | (15.5 | ) |

|                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | Six      Months Ended April      30, |   |   |   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------|--------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | 2010                                      |   |   | 2009   |   |   | Change |   |   | %      Change |   |
| Retail      notes and finance      leases                                                                 |   | $                                         | 78.1   |   |   | $      | 93.2 |   |   | $ | (15.1 | ) |   |   | (16.2 | ) |
| Wholesale      notes                                                                                      |   |                                      | 8.6    |   |   |   | 7.5 |   |   |   | 1.1 |   |   |   | 14.7 |   |
| Retail      and wholesale      accounts                                                                   |   |                                      | 8.6    |   |   |   | 10.4 |   |   |   | (1.8 | ) |   |   | (17.3 | ) |
| Total      financing      revenue                                                                         |   | $                                         | 95.3   |   |   | $      | 111.1 |   |   | $ | (15.8 | ) |   |   | (14.2 | ) |

----

Index

----

Index

----

Index

|                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | As      of         |    |   |                 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|---------|--------|----------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | April      30,2010 |    |   | October      31,2009 |   |   | Change |   |   | %      Change |   |
| Cash      and cash      equivalents                                                                             |   | $                  | 11.1    |   |                 | $      | 16.1 |   |   | $ | (5.0 | ) |   |   | (31.1 | ) |
| Finance      receivables,      net                                                                              |   |               | 2,368.3 |   |                 |   | 2,660.3 |   |   |   | (292.0 | ) |   |   | (11.0 | ) |
| Amounts      due from sales of      receivables                                                                 |   |               | 223.5   |   |                 |   | 291.5 |   |   |   | (68.0 | ) |   |   | (23.3 | ) |
| Net      investment in operating      leases                                                                    |   |               | 89.5    |   |                 |   | 79.5 |   |   |   | 10.0 |   |   |   | 12.6 |   |
| Vehicle      inventory                                                                                          |   |               | 17.9    |   |                 |   | 26.5 |   |   |   | (8.6 | ) |   |   | (32.5 | ) |
| Restricted      cash and cash      equivalents                                                                  |   |               | 235.1   |   |                 |   | 421.8 |   |   |   | (186.7 | ) |   |   | (44.3 | ) |
| Other      assets                                                                                               |   |               | 86.8    |   |                 |   | 107.7 |   |   |   | (20.9 | ) |   |   | (19.4 | ) |
| Total      assets                                                                                               |   | $                  | 3,032.2 |   |                 | $      | 3,603.4 |   |   | $ | (571.2 | ) |   |   | (15.9 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |               |    |   |                 |   |   |   |   |   |   |   |   |   |   |   |
| Net      accounts due to      affiliates                                                                        |   | $                  | 157.8   |   |                 | $      | 31.2 |   |   | $ | 126.6 |   |   |   | 405.8 |   |
| Senior      and secured      borrowings                                                                         |   |               | 2,400.1 |   |                 |   | 3,093.6 |   |   |   | (693.5 | ) |   |   | (22.4 | ) |
| Other      liabilities                                                                                          |   |               | 133.8   |   |                 |   | 166.4 |   |   |   | (32.6 | ) |   |   | (19.6 | ) |
| Total      liabilities                                                                                          |   |               | 2,691.7 |   |                 |   | 3,291.2 |   |   |   | (599.5 | ) |   |   | (18.2 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |               |    |   |                 |   |   |   |   |   |   |   |   |   |   |   |
| Total shareowner’sequity                                                                                  |   |               | 340.5   |   |                 |   | 312.2 |   |   |   | 28.3 |   |   |   | 9.1 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |               |    |   |                 |   |   |   |   |   |   |   |   |   |   |   |
| Total      liabilities and shareowner’s equity                                                                                                                                                                                                                                                                                                                                                                                            |   | $                  | 3,032.2 |   |                 | $      | 3,603.4 |   |   | $ | (571.2 | ) |   |   | (15.9 | ) |

----

Index

|                                                       |   | April      30, 2010 |   |   | October      31, 2009 |   |   | Change |   |
|------------------------------------------------------------|--------|--------------------------|--------|--------|----------------------------|--------|--------|--------|--------|
| Delinquencies                                              |   |                     |   |   |                       |   |   |   |   |
| Retail      notes and finance leases greater than 60 days. |   |                     | 0.5    | %      |                       |   | 0.7    | %      |   |   | (0.2 | )% |
| Wholesale      notes greater than 60 days                  |   |                     | 0.2    | %      |                       |   | 0.1    | %      |   |   | 0.1 | % |
| Wholesale      accounts greater than 60 days               |   |                     | 0.1    | %      |                       |   | 0.9    | %      |   |   | (0.8 | )% |
|                                                       |   |                     |   |   |                       |   |   |   |   |   |   |   |
| Allowance      to finance receivables coverage ratio       |   |                     | 1.6    | %      |                       |   | 1.4    | %      |   |   | 0.2 | % |

|                                                                                       |   | 2010   |   |   | 2009   |   |   | Change |   |
|--------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Charge-offs                                                                                |   |   |   |   |   |   |   |   |   |
| Retail      notes and finance leases charge-offs – three months                      |   | $      | 5.8    |   |   | $      | 7.8    |   |   | $ | (2.0 | ) |
| Retail      notes and finance leases charge-offs – six months                        |   |   | 11.1   |   |   |   | 10.5   |   |   |   | 0.6 |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Retail      notes and finance leases charge-offs to liquidations – three      months |   |   | 1.8    | %      |   |   | 2.8    | %      |   |   | (1.0 | )% |
| Retail      notes and finance leases charge-offs to liquidations – six      months   |   |   | 1.9    | %      |   |   | 2.2    | %      |   |   | (0.3 | )% |

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Index

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | April      30, 2010 |   |   | October      31, 2009 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------|--------|--------|----------------------------|--------|
| Retail      Notes and Finance      Leases                                                                          |   | $                        | 31.7   |   |                       | $      | 31.8 |   |
| Accounts                                                                                                           |   |                     | 0.8    |   |                       |   | 0.8 |   |
| Total                                                                                                                                                                |   | $                        | 32.5   |   |                       | $      | 32.6 |   |

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Index

|                       |  Fitch |   | Standard&      Poor’s |
|----------------------------|-------------|--------|---------------------------------|
| Senior      unsecured debt | BB-         |   | BB-                             |
|                       |        |   |                            |
| Outlook                    | Positive    |   | Stable                          |

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Index

|                                                                                                                                                                                                                                                                                                          | Terminationor      Maturity |   | April      30,2010 |    |   | October      31,2009 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------|--------|--------------------|---------|--------|----------------------|--------|
| Investor      notes                                                | February      2010          |   | $                  | -       |   |                 | $      | 212.0 |   |
| Variable      funding certificate (“VFC”)                                                                                                                                                                                                                                                         | April      2010             |   |               | -       |   |                 |   | 650.0 |   |
| Variable      funding notes (“VFN”)                                                                                                                                                                                                                                                               | August      2010            |   |               | 500.0   |   |                 |   | - |   |
| Investor      notes                                                | October      2012           |   |               | 350.0   |   |                 |   | - |   |
| Investor      notes                                                | January      2012           |   |               | 250.0   |   |                 |   | - |   |
| Total      funding      capacity                                                  |                        |   |               | 1,100.0 |   |                 |   | 862.0 |   |
| Funding      utilized                                                             |                        |   |               | (600.0  | )      |                 |   | (562.0 | ) |
| Total      availability                                                                               |                        |   | $                  | 500.0   |   |                 | $      | 300.0 |   |

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Index

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | April      30, 2010 |   |   | October      31, 2009 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|--------|--------|-----------------------|--------|
| Revolver      bank      loan                                                                                                  |   | $                   | 450.0  |   |                  | $      | 800.0 |   |
| NFC      revolving loan      utilized                                                                                         |   |                | (417.0 | )      |                  |   | (670.5 | ) |
| Mexican      sub-revolver loan      utilized                                                                                  |   |                | -      |   |                  |   | (14.0 | ) |
| Total      availability                                                                                                                                |   | $                   | 33.0   |   |                  | $      | 115.5 |   |

Item 3

Item 4

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Index

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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-2 |
| 31.2   | CFO Certification pursuant to Section 302 of      the Sarbanes-Oxley Act of 2002                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |         E-4 |
| 32     | CEO and CFO Certification pursuant to      Section 906 of the Sarbanes-Oxley Act of      2002                                                                                                  |         E-6 |

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Index

SIGNATURE

|                    | Navistar Financial    Corporation |
|-------------------------|-----------------------------------|
|                    |                              | (Registrant) |
|                    |                              |   |
| Date:      June 8, 2010 | By:  /s/                | DAVID L. DERFELT |
|                    |                              | David      L. Derfelt |
|                    |                              | V.P.,      and Controller |
|                    |                              | (Principal      Accounting  Officer) |

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Index