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Front Lines - 10Dealers react to CitiFinancial

Autos recent cutbacks

Strategy - 4

Tough economy forcesbankers to rethink operations

M&A - 5Tata may face challengesntegrating its new brands

CANADA DRYTHE WEAK U.S. DOLLAR HAS CANADIANCONSUMERS HEADING SOUTH FOR BARGAINS.

THATS BAD NEWS FOR CANADAS

DEALERS AND FINANCIERS.Page 3

THE INSIDERS GUIDE TO AUTO LENDING & LEASING OPPORTUNITIES

APR IL 28, 2008 VOL. 1 1 , NO. 12

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3AutoFinance NewsApril 28, 2008

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STAFFNEWS INSIDENORTH OF THE BORDERDespite strong volume in January and February, Canadian vehicle sales are set to slidethis year on the heels of a weak U.S. dollar and slipping consumer confidence - page 3

STRATEGYFinanciers are going back to the drawing board to strike a balance between

automated underwriting and collateral lending - page 4

M&AEven with a lending partner, Tata Motors will have a tough time managingits newly acquired Jaguar and Land Rover brands, one analyst predicts - page 5

TECH TOOLSA roundup of the latest high-tech security gadgets and mobiledevices on the financial services horizon - page 6

PARTNERSHIPSA third-party leasing alliance with Kia Motors is safe from AmeriCredits cutbacks - page 9

FRONT LINESDealers are largely unfazed by CitiFinancial Autos origination slowdown - page 10

GUEST COLUMNMichael Benoit tackles the issue of liability for lessees parking tickets,a requirement that hearkens back to vicarious liability - page 11

DATAIndustry Calendar page 13 Rate Monitor page 14

Capital Monitor page 15 Securitization Monitor page 15

Equities Monitor page 15

Continued on page 4

CROSS-BORDER SHOPPING THREATENS CANADIAN AUTO SALES

Though vehicle sales in Canada climbed bydouble-digits in January and February, theyare poised to level off for the remainder of theyear, dragged down by a weakened dollar andfaltering consumer confidence.

As the Canadian dollar strengthens against itsU.S. counterpart, car buyers are increasingly

heading south to buy their cars. The lure:$5,000 or more in savings resulting from thecurrency conversion. In Ontario, residentshave bought about 20,000 cars in the U.S. inthe past month, up from 10,000 cars fromSeptember to November 2007, said KenPeterson, owner of Ken Peterson Sales andLeasing in Thunder Bay, Ontario, and regulatorfor the Ontario automotive industry. Ifcross-border sales continue at the current rate,they will eclipse last years pace of 75,000 carsby midyear.

The more cars Canadians buy in the U.S., thefewer they buy at home. That scenario hassome dealers grasping at straws just to sellcars, said Paul Parr, manager of CourtesyChrysler in Calgary, Alberta.

In Ontario, Glenleven Chrysler GeneralManager Paul Guimond would be happy

if year-over-year sales remain flat. Ontario,largely a manufacturing province, is teeteringon the brink of recession. Declining ordersfrom the U.S. and high oil prices have resultedin the shedding of about 200,000 jobs inrecent months.

The troubles in Ontario, though, have beenoffset by a booming economy in oil-richAlberta, saidJim Case, chief executive ofTravelers Financial Group.

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4 AutoFinance News April 28, 2008

Continued from page 3

STRATEGY

Still, Canadian light-vehicle sales will likely dip this year to1.645 million units from 1.653 million in 2007, predicts DennisDesRosiers, president of DesRosiers Automotive ConsultantsInc. Volume will drop further if the U.S.s credit woes continue.If the U.S. gets worse, this would flow into Canada and wouldtake a few thousand units off of our forecast, DesRosiers said.

Another factor pressuring Canadian vehicle sales is consumerconfidence, which has been sliding lately. Canadian consumerconfidence plunged to its lowest level in more than two years,according to a survey conducted in February by Harris DecimaInvestors Group. The index fell to 81, down five points fromthe prior survey in September 2007.

Meanwhile, Canadian auto financiers appear to be weathering theslowing sales relatively well. Canada has a more conservativebanking structure than the U.S., [so we] will not see assignificant problems within our financing markets, said GeoffWilkinson, executive director of the Ontario Automobile

Dealers Association.LEANNE GRAVES

NORTHOFTHE BORDERNorthern OverexposureThough Canadian vehicle sales got off to a strong start in Januaryand February, they are expected to tail off for the remainderof the year. Total sales volume will likely reach 1.645 million

vehicles this year, down from 1.653 million vehicles in 2007,according to DesRosiers Automotive Consultants Inc. Thedecline would mark the countrys first in vehicle sales since 2004.

VEHICLE SALES (IN MILLIONS)

1.50

1.55

1.60

1.65

1.70

1.75

2001 2002 2003 2004 2005 2006 2007 2008

UnitsSold

Actual Projected Source: DesRosiers AutomotiveConsultants Inc.

SAN FRANCISCO With the stiff headwind of the creditcrisis slowing auto lenders at banks, nothing in automotivefinancing is sacred anymore even credit scoring.

If you think you can only use Fico to determine risk, you arekidding yourself, said Nick Stanutz, a senior executive vice

president of consumer credit administration at HuntingtonBancshares Inc.

The credit crisis colored every conversation at this yearsConsumer Bankers Association annual auto finance conferencehere. This event is traditionally attended by bankers, and theyare rethinking every aspect of their business from fundingto collections.

In hard economic times, we see the flaws, said Tom Wirth,president of the indirect dealer group at U.S. Bancorp. AddedWilliam Jensen, senior vice president and manager of theCustom Vehicle Group at Chase Auto Finance: This is atremendous opportunity for a reality check.

Flaws are showing up in automated underwriting. Bankerslamented how auto lending has grown too reliant on characterlending a euphemism for automated underwriting rather than on collateral lending. The idea now is to figure

out a balance between the two.

Privately lenders expressed concern about declining cars sales.This economic reality compounds a real and new dynamic within banks: the fight for assets.

We compete within our organization for balance sheet capacity,said Andy Fornarola, a senior vice president at M&T Bank.

M&T is now determining how does [auto finance] stack up

against mid-market lending and home equity lending, amongother credit problems, he added. This type of balance sheettug-of-war is new for some banks.

Expectedly, market observers do not offer a positive prognosisfor the next 12 months. Christopher Wolfe, a managingdirector at Fitch Ratings, highlighted several weaknesses inthe auto finance market, such as:

A decline of at least 3% in U.S. light vehicle sales;

Weaker national economic growth overall;

Deteriorating performance at the captive finance companies

Overall softness in credit quality as a result of lower used-car

prices, and climbing loss severity and fraud.

It is not just subprime auto paper that has weakening creditquality, he said.

But all is not lost in auto finance. There are signs of improvementon the horizon, such as the fiscal stimulus plan this spring.Bankers, in particular, see a brighter future. Because carmanufacturers are under such fiscal pressure, bankers foresee

less subvention from the captives going forward. This needfor profitability at the captives is expected to change the waythey operate. Stanutz said the manufacturers are buildingsmall cars, which hurts the captives, and the captives cant findmarketshare on the used market, the traditional alternative to stagnating new-car sector.

As I view it, I think the future is very positive for us, he said.

CREDIT CRISIS HAS BANKERS OVERHAULING OPERATIONS

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STRATEGY

M&ATATA MOTORS FACES LENDING, COMPETITIVE HURDLES, ANALYST WARNS

Even if Tata Motors scores a lending partner to providefinancing for newly acquired Jaguar and Land Rover, the roadto success will be bumpy, at best, predicts David Healy,

automotive analyst at Burnham Securities Inc.

Mumbai, India-based Tata agreed March 26 to shell out $2.3billion for the two brands, which Ford Motor Co. sold as partof a massive restructuring effort. As part of the agreement,Ford Motor Credit Co. will provide financing for Jaguar andLand Rover dealers and customers for as long as a year.

Though Tata operates a captive in India for business there,

the automaker would have to seek out a U.S. partner for theJaguar-Land Rover acquisition to work, said Healy, also a firstvice president at the securities firm. (Burnham does not own ordo business with either Tata or Ford.)

For its part, Tata is already in discussions with new partnersfor financing, a company spokesman said.

Still, securing a lending partner is only one of several criticalsteps to creating a long-lasting auto manufacturer to handle

the two luxury brands. For one thing, Tata has long been knownfor creating cheap subcompact cars. It has no experience in theluxury sector, especially one that is faltering. Jaguar sales havebeen on the skids; volume dropped 19% last year, its steepestdecline ever. To compete, Tata would have to overhaul thebrand to compete with companies like BMW and Mercedes-Benz, Healy said.

Cultural differences will also likely throw a wrinkle into Tatas

plans, Healy said, adding that most large internationalautomotive mergers do not succeed. Though it is not a perfect

comparison, Healy pointed to Daimler-Benzs 1998 acquisitionof Chrysler Corp. With its $37 billion price tag, making itone of the most expensive purchases in automotive history,the deal essentially flopped; Daimler sold Chrysler last year toCerberus Capital Management LP for $7.4 billion.

About the only thing in Tatas favor is the amount of cash it

brought to the table, Healy said. But even that comes with acaveat: Tata had to borrow considerably to finance theacquisitions, so thats not a bottomless well of finance, he said

L.G.

Tata products have been sold under British labels before (by thenow-defunct MG-Rover Group), but Jaguar and Land Rovers luxury

markets are entirely uncharted territory for the Indian conglomerate

Conference Quotables

Make your voice heard.

Send a letter to the editor at: [email protected]

And thats even before the governments fiscal stimulus plankicks in. Emily Kolinski Morris, a senior economist at FordMotor Co., said the tax rebates Americans will get in Mayshould boost the nations gross domestic product by 0.5% to 1%.

The government is trying to smooth out the growth plan thisyear, Morris said. Lower rates take six to 12 months to take

effect. This stimulus plan gets us to that.

Morris pointed out that car sales may soon jump for anotherreason: replacement demand. Two-thirds of demand in theU.S. is replacement demand, she said. That will start to peakin 2010.

Despite the current challenges, the market will eventuallyrebound, stronger than before.

Let me say that I am optimistic about our business, Fornarolasaid. I get the sense that everyone is tightening a bit. There is

a return-on-capital focus. Long term, we will emerge from thisa better industry.

JJ HORNBLASS

SAN FRANSISCO Theres a lot of talk at any conference,

but some talk is better than most. Herein are our awards for the

best comments at this years Consumer Bankers Association auto

finance conference:

Truism Award: I dont think anyone is trying to get into cars toflip them.

Christopher Wolfe, a managing director at Fitch Ratings,

on why auto loan credit performance will remain stronger than

mortgage performance

Facetious Comment Award: Electronic shotgunning is much

more efficient than manual shotgunning.

William Jensen, senior vice president and manager of the

Custom Vehicle Group, Chase Auto Finance

Cold Water in the Face Award: You guys are going to have to

do something about negative equity.

Adam Goldfein, radio program host

Cold Water in the Face Award (Runner-Up): What I am trying

to tell you is that your prime customers are near-prime now.

Adam Goldfein, radio program host

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TECHTOOLSONLINE BANKING TOOLS TOUT ENHANCED SECURITY, MOBILE FEATURES

BALTIMORE High-tech security devices that can identifyfake fingerprints, determine whether a users location is likelylegitimate, and send encrypted check images via cell phonesaround the world sounds like the stuff of a James Bondmovie. But these tools were all showcased at the American

Bankers Associations technology conference earlier this month.Here is a roundup of some of the latest banking innovations:

GOING MOBILE

Mobile was one of those buzzwords that wound its way intonearly every panel and conversation at the conference.

The key to implementing a mobile-banking strategy, though,is to answer the following question: How does being mobilechange what we want to do? said Megan Minich, senior vicepresident in charge of mobile technologies at Wells Fargo &Co. For an auto financier, the answer may include providingconsumers with account updates or alerts about pending

payments. In the future, check imaging via camera phonesmay enable mobile ACH payments, she said.

More immediately, though, analytics are being developed tocross sell consumers on products the instant they are most

likely to buy into them, saidJoseph Salesky, chief executiveof mobile solution provider ClairMail Inc. For example, abank can extend a line of credit to a consumer just as he makesa particularly large payment and his savings are running low.Sign them up wherever you can, Salesky said. [Consumers]want to be reached, but they dont want you to call them.

Both Minich and Salesky agreed that going mobile makes themost sense for financiers that have existing web applications

for consumers, since its easy to convert a web experience toa cell phone, and twice as many people use text messagingcompared with the web. Just give the users bite-sized piecesof your web functionality, Minich said. Text messaging isalso more secure than the web, as everything is automaticallyencrypted by cellular providers.

A REGULATION PLAYING FIELD

Paper checks are fast becoming a relic of a bygone age ofbanking. And an increasing share of electronic transactions arebeing done by non-bank institutions such as online paymentsprovider Paypal.

It used to be you couldnt have non-banks making payments,but that is changing, said Stephen K. Kenneally, directorof payments and technology policy at the AmericanBankers Association.

Particularly with underbanked and unbanked individuals,non-banks fill niches we havent filled, said MarshallWoody Tyner Jr., senior vice president of payment systemsstrategy at BB&T Corp. These people dont have checkingaccounts, and often cant even get credit cards. But Paypal hasa unique policy that lets them serve these people: Normally,a company distrusts someone until they earn it, said PaypalSenior Director Rene Pelegero. We trust until they lose it.

Non-banks have an advantage over their financial institutioncounterparts because they lack direct government oversight.Regulation stifles innovation, Pelegero said.

But some, like Tim Sloane, director of debit advisory practicefor Mercator Advisory Group, feel the lack of regulation is asecurity threat that needs to be addressed before non-bankscan be considered an equal player in the payments industryby banks. Were just concerned if consumer funds are beingprotected, Sloane said. Until non-banks earn thisrecognition, they wont be able to collaborate with banks tocreate new and more innovative products that make the most

of each sides capabilities.

SECURITY IN YOUR FINGERTIPS

The never-ending war with fraudsters is an arms race, andsince ACH and debit card transactions are becoming so

prominent, most of the new security measures were made withthem in mind.

Biometrics has taken onseveral flavors, allowingconsumers to call finan-ciers to verify transactionswith their voice, byspeaking a password aloud.And small, cheap finger-print readers (about thesize of a dime and with a

cost of $4 each) withthe ability to verify if thescanned finger is alive ora fake are makingtheir way to cell phonesand PCs.

GPS locaters, already installed in most cell phones, are alsobeing used not only to help verify consumers (if they make the

transaction in Hong Kong rather than in Seattle), but also totrack people who skip on their debts.

KEITH C. SMITH

Normally, a companydistrusts someone untilthey earn it. We trustuntil they lose it.

Rene Pelegero, Senior Director, Paypal

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PARTNERSHIPSAMERICREDIT-KIA LEASE DEAL ESCAPES VOLUME CUTBACKS

Despite a move to slash volume 40%this year, AmeriCredit Corp. will leaveuntouched its third-party lease-origination

alliance with Kia Motors America Inc.

Nothing has changed in terms of

volume in relation to AmeriCredit, andthere is no status change in Kiasrelationship with AmeriCredit, wroteKia spokeswoman Amy Taylor in anemail toAuto Finance News. The strategicalliance is a national program, she added.

Though available nationwide, Kialeases were originated in only a handfulof states in February, according to datafrom AutoCount, a unit of Experian

Automotive. AmeriCredit originated89 leases in February, 8.5% more than ithad in February 2007, according toAutoCount. Of the total, 81 of the

February 2008 leases (91%) were

originated in Minnesota. A comparablepercentage were originated in the statein the same month last year.

Leasing, as a whole, remains a negligiblepercentage of AmeriCredits overallfinancing volume. For instance, theFort Worth, Texas-based lender

originated 1,868 loans and a singlelease in Texas in February, accordingto AutoCount.

MARCIE BELLES

Following is a list of states in whichAmeriCredit Corp. originated leases on

behalf of Kia Motors America Inc. in

February 2007 and 2008.

Cooperation

State Leases Leases

2/08 2/07

Minnesota 81 73

Alabama 3 1

Wisconsin 2 0

Texas 1 0

Ohio 1 0

Michigan 1 1

New York 0 2Arizona 0 1

Arkansas 0 1

Florida * 1

Georgia 0 1

Mississippi 0 1

Totals 89 82

* data unavailable

Source: AutoCount

Kias most popular model, the Spectra

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FRONT L INES

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AS CITIFINANCIAL AUTO HITS THE BRAKES, DEALERS DRIVE ON

Add CitiFinancial Auto to the list of auto lenders trimmingoriginations, tightening credit standards, and reevaluatingdealer relationships.

The moves, part of a larger effort to navigate challenges posedby the macroeconomic environment and declining vehiclesales, will result in about a 33% reduction in originationvolume. CitiFinancial Auto has a $21 billion portfolio.

Specifically, CitiFinancial Auto earlier this month fired 800

employees 20% of its workforce. Most of the cuts occurredamong field sales and operations folks, though some involvedstaffers at the companys Irving, Texas, corporate headquarters.Citi Auto closed half of its 140 loan-production offices, whichstaffed four or five people each, and some of its nine regionalbuying centers. The company also stopped accepting loansfrom about 3,000 of its 14,000 dealers.

Despite the changes, though, CitiFinancial Auto will con-

tinue to originate loans across all its existing lines of business:direct and indirect loans, as well as strategic partnerships. Forinstance, a deal inked in February to accept loan applicationsfrom independent dealers via the Finance Express platform willremain intact.

DEALERS UNFAZED

On the heels of similar moves by lenders includingAmeriCredit Corp. and GMAC LLC, Citi Autos cutbackshave had minimal effect on dealers, some of whom are turningto alternate lenders in their arsenals for funding.

Weve got about 20 different lenders we use, said SteveKelso, finance manger at Allen Samuels Alliance Dodge. Wehave other people to turn to.

Meanwhile, the branch closings will have little effect onvolume that Auto Max and Clay Cooley Isuzu send Citi AutoNothing has changed, said an Auto Max employee whodeclined to give her name, adding that other lenders are alsoout of state.

Metro Auto Center may reduce loan volume, though, if CitiAuto slows its funding speed or tightens lending guidelines toomuch, said Financial Director Tom Keyser. Citi Auto currentlyfunds about 10 of the Tucson, Ariz., dealerships 160 dealsper month.

I try to get the funding [for a loan] within two days, Keysersaid. If I have to FedEx it now, thats one day already.Potentially, they could lose half their deals with us.

Already, Citi Auto has bumped up credit requirements. Inorder to get into their system, the customer had to score above520, and in a month and a half it changed to 560, Keyser saidIt kicked out a lot of deals they were getting from us.

Kelso of Allen Samuels Dodge has felt the squeeze, too. Its allabout creditworthiness, he said. Its changed slightly; peoplewith not-so-good car credit arent getting financed like theyused to.

MATTHEW SCHECHTER

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ByMichael A. Benoit

Every now and then Ilike to stir up a littletrouble and make someprovocative assertions.This is one of those times.

I was recently involved ina conversation amongstseveral of our auto leasing

brethren about a pressingand expensive challengethey currently face, thatis, liability for parkingviolations committed bytheir lessees. Apparently,large lessors find

themselves responsible for significant sums of money eachyear as a result of these violations. So heres the provocative

part I assert that holding an innocent lessor liable for itslessees parking infractions violates federal law.

Whats the issue? Some states and municipalities hold theregistered owner of a vehicle (i.e., the lessor) responsible forparking infractions. Why? Ostensibly because their systemsdont identify the lessee sufficiently to collect the applicablefines. Or, it may be that theyre just lazy.

Im sure some lessors that find themselves on the receiving

end of an invoice for overdue parking fines may be able to

identify the offending lessees quickly and collect from themaccordingly. That assumes, of course, that the governmentprovides appropriate identifying information for the vehicle,like a VIN or a license plate number. But many lessor systemstie lessees to account numbers, not VINs or license plates.That means locating the lessee requires conducting a manualmatch an activity involving a significant amount of

horsepower and dollars.

But even if you can quickly figure out whom the lessee is,it still comes at a cost. Lets face it collecting isnt cheap.And what do you do when you get the bill after the lease hasterminated and the lessee is long gone?

Whats really happening here? Isnt this a case of the governmentforcing lessors to police their lessees? And isnt that a transferof risk? And doesnt this sound suspiciously like wait a

minute; its coming to me VICARIOUS LIABILITY?

I thought we got rid of vicarious liability on August 10, 2005,when the President signed the Graves Amendment. Thatsa little piece of federal legislation that basically says that alessor that has not been negligent or committed any criminalwrongdoing cannot be held liable by a state or its political

PUTTING THE BOOT ON PARKING TICKETS

GUEST COLUMN

Continued on page 12

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Continued from page 11

GUEST COLUMN

subdivision for harm to persons or property by the lessee,simply because the lessor is the owner.

Isnt a parking ticket simply an allegation of harm to thepeople of a state or political subdivision? If so, then shouldntthe innocent lessor be off the hook for that harm? One can

argue that a government is not a person, per se, that one canactually harm (so no protection for lessors from the GravesAmendment if thats true), but isnt government merely ametaphor for the people? Just watchLaw & Order its casesare always The People versus somebody.

In the recent case of Graham vs. Dunkley, the Supreme Courtof New York overturned a lower court decision upholdingthe operation of New Yorks vicarious liability law. The lowercourt found the Graves Amendment to be an unconstitutional

exercise of Congresss commerce clause power (i.e., the powergranted in the U.S. Constitution to Congress to regulateinterstate commerce). The case involved the more garden-variety form of vicarious liability where an individual wasphysically injured by a lessees bad driving, but it relied on astring of U.S. Supreme Court precedent recognizing Congresssbroad power under the commerce clause to override a purelyintrastate activity where there is a significant federal interest indoing so.

In the Graham case, the intrastate activity was the state-imposed liability on the lessor for the injuries caused by the

lessee, and the overridingfederal interest in supporting

the national vehicleleasing and rentalmarket. In the case ofparking violations, theintrastate activity is thestate-imposed lessorliability for parkingfines. Im not sure Isee a constitutional

difference between thesetwo forms of vicariousliability. If one is preempted bythe Graves Amendment, why not the other?

Like I said, I may be way off base. But it seems plausibleenough that Im researching it further. Stay tuned.

Michael Benoit is a partner in the Washington, D.C., office ofHudson Cook LLP. He is a frequent speaker and writer on a varietyof consumer credit topics. He can be reached at 202-327-9705 [email protected]. Nothing in this article is intended to be legal adviceand should not be taken as such. All legal questions should be addressed tocompetent counsel.

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INDUSTRY CALENDAR

2008Date Event Producer Location Web Site

May 14-16 Auto Finance Auto Finance News San Diego www.autofinanceRisk Summit risksummit.com

May 21-23 iRemarketing Auto Remarketing Phoenix www.autoremarketingconferences.com

June 4-6 Non-Prime Auto Financing National Automotive Fort Worth, www.nafassociation.comConference Finance Association Texas

June 4-6 CBA Collections Conference Consumer Bankers Scottsdale, Ariz. www.cbanet.orgAssociation

June 11-14 NVLA Annual Conference National Vehicle Scottsdale, Ariz. www.nvla.org& Expo Leasing Association

June 18-20 CUDL Auto Lending CUDL Las Vegas www.cudl.comSymposium

June 24-28 NIADA Annual Conference National Independent Grapevine, Texas www.niada.com& Expo Auto Dealers Association

July 23-26 ACA Annual Convention ACA International Hollywood, Fla. www.acainternational.org& Expo

September 10-12 AFLA Annual Conference Automotive Fleet & Scottsdale, Ariz. www.aflaonline.orgLeasing Association

September 16-18 F&I Conference & Expo F&I Management Las Vegas www.fi-conference.com & Technology

October 6-8 Auto Finance Summit Auto Finance News Las Vegas www.autofinancesummit.com

To have your event listed in the calendar, contact Marcie Belles at (713) 270-9956 or [email protected].

we are.

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REGIONAL AND NATIONAL AUTO LOAN RATES

Rates are for 60-month loans on 2007-2008 new autos and one-year-old used autos. For purposes of this survey, borrowers are considered to have

A+ credit if their scores on auto-specific models of combined credit reporting bureaus exceeds 720; A if their scores fall between 680 and 719;

B, 650 and 679; and C, 625 and 649. For lender-specific rate and fee information, contact Brian Richards at Informa Research Services Inc. at

800-848-0218 x290.

Informa Research Services, Inc.

26565 Agoura Road, Suite 300

Calabasas, California 91302-1942

The Leading Provider of Competitive Research to the Financial Industry Since 1983.

800.848.0218

[email protected]

www.informars.com

We have the information you need tomake profitable decisions.

Informa Research Services, Inc., is your one-stopsource for financial research and analysis.

Pricing Intelligence on Prime/Sub-Prime Auto Loans and Leases Marine and Recreational Vehicle Loans Historical Database From 1995 Reports By State or Region - Include:

- Banks and Credit Unions- Captives

- Finance Companies and Thrifts- Rate Tiers A+ through E; plus Sub-Prime- Program Terms - LTVs and Soft/Hard Adds- Footnotes, FICO Scoring, and Promos- Custom Comparitive Analysis Available

Knowing Feels So Good.

Contact Brian Richards at 800.848.0218 Ext. [email protected]

NEW AUTOMOBILE RATES

A+ A+ A A B B C C Natl Avg. Natl Avg.

4/11/08 4/13/07 4/11/08 4/13/07 4/11/08 4/13/07 4/11/08 4/13/07 4/11/08 4/13/07

Northeast 5.22 6.40 5.70 6.66 6.54 7.09 8.14 7.85 6.40 7.00

Southeast 5.07 6.29 5.68 6.49 6.58 7.06 7.82 8.42 6.29 7.07

Central Midwest 4.92 6.15 5.37 6.39 6.04 6.98 7.27 8.05 5.90 6.90

TX & Southwest 5.78 6.48 6.12 6.93 6.77 7.50 7.96 8.79 6.66 7.43

Western 5.70 6.70 6.27 7.23 7.11 8.08 8.03 8.86 6.78 7.72

Northwest 6.28 6.79 7.03 7.28 7.71 8.19 9.04 9.06 7.52 7.83

Tier Avg. Rate 5.50 6.47 6.03 6.83 6.79 7.48 8.04 8.51 6.59 7.32

USED AUTOMOBILE RATESA+ A+ A A B B C C Natl Avg. Natl Avg.

4/11/08 4/13/07 4/11/08 4/13/07 4/11/08 4/13/07 4/11/08 4/13/07 4/11/08 4/13/07

Northeast 5.31 6.53 5.77 6.76 6.77 7.21 8.25 8.10 6.52 7.15

Southeast 5.09 6.39 5.69 6.57 6.60 7.19 7.87 8.55 6.31 7.18

Central Midwest 5.09 6.26 5.54 6.49 6.29 7.19 7.55 8.53 6.12 7.12

TX & Southwest 5.82 6.57 6.16 6.97 6.85 7.59 8.07 8.98 6.73 7.52Western 5.78 6.84 6.35 7.33 7.31 8.25 8.48 9.24 6.98 7.91

Northwest 6.34 6.91 7.09 7.40 7.81 8.34 9.21 9.34 7.61 8.00

Tier Avg. Rate 5.57 6.58 6.10 6.92 6.94 7.63 8.24 8.79 6.71 7.48

Source: Informa Research Services Inc

RATE MONITOR

8/14/2019 AFN 4/28/2008

15/16


to date 2007 total 2007 to date 2008*in $billions as of 4/18/08

Source: Citigroup Inc.

0.0

15.0

30.0

45.0

60.0

75.0

90.0

18.8

83.0

11.4

AUTO ABS VOLUMEFIXED-RATE OUTSTANDINGS AT BANKS

Sept. 06 Jan. 07 May 07 Sep. 07 Jan. 08

1300

1350

1400

1450

1500

1550

1600

-4

-2

0

2

4

6

8

10Week-over-We

ekGrowthRate

Outstandings

LENDING VOLUME AT AUTO FINANCE COMPANIES

Sept. 06 Jan. 07 May 07 Sep. 07 Jan.08

23.0

24.0

25.0

26.0

27.0

28.0

29.0

30.0

31.0

Company Ticker Price Price 2-Wk P/E 52-Wk 52-Wk Shares Market AverageApr. 16 Apr. 4 Ch.(%) High Low Out.* Cap.* Volume

Independent Finance Companies

AmeriCredit Corp. ACF 9.86 10.53 -6.36 5.5 29.46 8.96 114,250 1,126,505 3,570,130

Consumer Portfolio Services CPSS 2.92 2.75 6.18 5.1 7.21 2.11 21,490 62,751 56,827

Nicholas Financial Inc. NICK 6.12 6.16 -0.65 5.9 12.61 5.86 9,960 60,955 21,394

United PanAm Financial UPFC 3.28 3.73 -12.06 4.8 16.44 2.40 15,810 51,857 47,462

Dealerships

Americas Car-Mart Inc. CRMT 12.41 13.14 -5.56 13.9 14.20 9.02 11,850 147,059 81,357

Asbury Automotive ABG 13.90 14.53 -4.34 9.4 30.06 11.71 32,340 449,526 453,471

AutoNation Inc. AN 14.79 15.95 -7.27 10.9 22.86 11.72 209,840 3,103,534 2,968,800

CarMax Auto Superstores KMX 18.89 20.36 -7.22 24.6 27.42 15.81 216,210 4,084,207 2,826,720

Group 1 Automotive Inc. GPI 22.57 24.42 -7.58 8.0 43.41 19.81 24,280 548,000 496,705

Lithia Motors Inc. LAD 8.98 9.91 -9.38 8.7 29.02 8.48 19,640 176,367 338,481

Penske Automotive Group Inc. PAG 19.14 20.70 -7.54 15.2 22.92 13.57 94,880 1,816,003 788,841

Rush Enterprises Inc. RUSHB 14.35 15.25 -5.90 11.0 18.86 12.33 38,180 547,883 23,240

Sonic Automotive Inc. SAH 19.91 21.16 -5.91 9.6 31.88 15.82 31,020 617,608 501,629

*in thousands; greatest gainer by percentage change in box

Date Seller/Servicer Lead Manager Amount ($M) Enhancement

4/16 Nissan Motor Acceptance Corp. Merrill Lynch/Citigroup 352.82* n/a

4/15 Ford Motor Credit Co. Credit Suisse/Barclays Capital/Deutsche Bank 1,608.10 n/a

4/08 Consumer Portfolio Services Inc. JPMorgan/Bear Stearns 310.36 FSA Gty

Source: JPMorgan Chase & Co

CAPITAL MONITOR

SECURITIZATION MONITOR

EQUITIES MONITOR

*in $billions as of 4/7/08

*in $billions as of 4/7/08

NEW AUTO LENDING AT FINANCE COMPANIES

Source: Federal Reserve Board

Average Maturity in MonthsQ2 07 Q3 07 Q4 07 Dec. Jan. Feb.

61.7 62.1 62.9 62.5 62.3 63.2

Average Loan-to-Value Ratio

Q2 07 Q3 07 Q4 07 Dec. Jan. Feb.

96 95 95 95 94 95

* leases

8/14/2019 AFN 4/28/2008

16/16

Documents

AFN 4/28/2008