Non-Prime Auto Financing

Permission to reprint or distribute any content from this presentation requires the prior written approval of Standard & Poors.Copyright 2013 by Standard & Poors Financial Services LLC. All rights reserved.

Subprime Auto Loan ABS

Trends, Performance, Outlook and Standard & Poors Ratings Services Approach to Rating Subprime Auto Loan ABS

June 7, 201317th Annual Non-Prime Auto Financing ConferenceOmni Fort Worth Hotel

2.Permission to reprint or distribute any content from this presentation requires the prior written approval of Standard & Poors.

Subprime Auto Loan ABS Trends

1) Investor interest remains robust. Many transactions are oversubscribed, others have been upsized, and the subordinate classes with ratings as low as BB and B are being bought

2) Origination and securitization volume continues to grow. Subprime deals represented 31% of the total dollar volume of auto loan ABS issued through May and 48% of the number of deals that have been closed through May

3) Lending standards are weakening and pool credit quality is generally declining

4) Securitization performance remains strong for most issuers, but losses are rising for the segment due to greater issuance from deep subprime lenders. Managed portfolio delinquencies and losses are increasing

5) Ratings upgrades continue to surpass downgrades


Subprime Auto Loan ABS Issuance

0.0

2.5

5.0

7.5

10.0

12.5

15.0

17.5

20.0

22.5

2006 2007 2008 2009 2010 2011 2012 Through May2012

Through May2013

$ B

illio

ns

Source: Standard & Poors Ratings Services.


U.S. Subprime Auto Loan ABS Volume - Year to Date Through May

2013 - 15 Transactions - $8.1 Billion 2012 - 13 Transactions - $7.2 Billion

ACA, 2%

AmeriCredit, 29%

JD Byrider, 2%

CPS, 2%CAC, 3%

DriveTime, 3%Exeter, 3%

First Investors, 2%

Prestige, 3%

Santander, 50%ACA, 3%

AmeriCredit, 26%

CarFinance, 3%CPS, 2%

CAC, 2%Exeter, 5%

First Investors, 2%Flagship, 3%Prestige, 4%

Santander, 46%

SNAAC, 2%UACC, 2%


UACC United Acceptance Credit CorporationCAC Credit Acceptance Corporation CPS Consumer Portfolio ServicesACA - American Credit AcceptanceSNAAC Security National Automobile Acceptance Corporation


Collateral Trends FICO

500

550

600

650

700

750

800

PrimeSubprime



Collateral Trends LTV

90.00%

95.00%

100.00%

105.00%

110.00%

115.00%

120.00%

125.00%

2006 2007 2008 2009 2010 2011 2012

Loan

-to-V

alue

%

Year

PrimeSubprime



Collateral Trends LT Loans (Original Term > 60 Months)

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%Lo

ng-te

rm L

oan

%

Year

PrimeSubprime



Auto Loan Static Index Subprime Cumulative Net Losses


2005

2006

2007

2008

20092010

2011Q1-2012Q2-2012

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

18.00%

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43


Trend in Weighted Average FICO Score

450

470

490

510

530

550

570

590

610

630

650

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Santander and GM Financial ABS

SCUSA FICO GM FICO

Source: Standard & Poors Ratings Services and company ABS prospectuses.


GM Financial Proprietary Score

225

230

235

240

245

250

255

260

265

270

275

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

GM Financial Proprietary Score

GM Custom

Source: Standard & Poors Ratings Services and company prospectuses.


Trend in LTV Ratio

95%

100%

105%

110%

115%

120%

125%

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012


SCUSA LTV GM LTV



Trend in Long-Term Loans (61-72 month original maturity)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012


SCUSA 60+ GM 60+

Source: Standard & Poors Ratings Services and company prospectuses..


Securitization Cumulative Net Losses Santander

0%

5%

10%

15%

20%

25%

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43

2007 2010 2011 2012-Q1



Securitization Cumulative Net Losses GM Financial

0%

5%

10%

15%

20%

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57

2007 2008 2009 2010 2011 2012-Q1

Source: Standard & Poors Ratings Services and the companys ABS investor website.


Subprime Portfolio Net Losses

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Mar.31,

2012

Mar.31,

2013



Subprime Portfolio Delinquencies

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

9.00%

10.00%



Historical Ratings Activity U.S. Subprime Auto Loan ABS

Notes :

The upgrades/downgrades do not include those based on rating changes of the bond insurer, if any. All rating actions in the table are credit-related.


Subprime Auto Loan Rating Actions (Long-term Ratings)Year Upgrades Downgrades2004 6 02005 0 02006 4 02007 13 02008 5 02009 29 02010 4 02011 34 02012 50 0

2013 (Through May 31) 36 0Total 181 0


Standard & Poors Ratings Services Auto Loan ABS Outlook

We expect to see some further loosening of credit and softer used vehicle values, which we believe will likely continue to put upward pressure on losses. However, we expect losses for most issuers to remain below what we saw in 2007 and 2008

We expect the trend of upgrades significantly outweighing downgrades to continue. This is due to fast deleveraging of the transactions due their sequential pay structure. In addition, many 2010 and 2011 vintage securitizations continue to perform better than expected

We expect continued growth in subprime auto loan ABS led by further issuance from existing issuers and possibly some new issuers


Standard & Poors Rating Process for New Subprime Auto Issuers

Special and Unique Considerations

Financial performance and funding

Company background, management, and infrastructure

Performance data

Collections (staffing, decentralized or centralized collections, back-up servicer arrangements)

Weakness in the above areas may preclude us from issuing a requested rating or may result in our limiting the top rating well assign to a transaction. For more information, please see Standard & Poors Explains Its Approach To Rating Subprime Auto Loan ABS Transactions, August 29, 2011


Subprime Transactions Issued in 2013AmeriCredit Automobile Receivables Trust 2013-2

Priced April 3, 2013

Class Amount ($Mil.) WA Life (yrs)

Interest Rate (%) Spread (bps) Initial Hard C/E (%)*

Class A-1 (A-1+) 214.70 0.21 0.25 N/A 34.70

Class A-2 (AAA) 382.80 0.99 0.53 20 34.70

Class A-3 (AAA) 183.80 2.22 0.65 24 34.70

Class B (AA+) 84.17 2.94 1.19 70 27.45

Class C (A+) 104.49 3.52 1.79 120 18.45

Class D (BBB+) 102.75 4.28 2.42 175 9.60

Class E (BBB) 27.29 4.83 3.41 275 7.25

Total Rated Debt 1,100.00

Wtd. Avg. Cost of Debt

Our ECNL**

1.46%

10.25% - 10.75%

*Percent of the initial receivables balance. **Expected cumulative net loss at closing.

Transaction does not include CNL triggers that build C/E.Sources: Prospectus Supplement, Standard & Poors Ratings Services presale report, Asset-Backed Alert.


Subprime Transactions Issued in 2013Santander Drive Automobile Receivables Trust 2013-3

Priced May 06, 2013

Class Amount ($Mil.) WA Life (yrs) Interest Rate (%) Spread (bps) Initial Hard C/E (%)*

Class A-1 (A-1+) 172.0 0.20 0.25 N/A 43.0

Class A-2 (AAA) 383.0 0.95 0.55 26 43.0

Class A-3 (AAA) 222.4 2.02 0.70 34 43.0

Class B (AA) 128.5 2.75 1.19 75 33.25

Class C (A) 158.1 3.46 1.81 125 21.25

Class D (BBB+) 72.5 4.06 2.42 175 15.75

Class E (BB+) 65.9 4.08 3.41 N/A 10.75

Total Rated Debt 1,202.4


1.54%

Our ECNL** 13.5% - 14.5%

*Credit Enhancement. Percent of the initial receivables balance. **Expected cumulative net loss at closing.

Transaction does include CNL triggers that build C/E.

Sources: Prospectus Supplement, Standard & Poors Ratings Services presale report, Asset-Backed Alert.


Subprime Transactions Issued in 2013First Investors Auto Owner Trust 2013-1

Priced January 14, 2013


Class A-1 (A-1+) 26.2 0.18 0.32 5 19.9

Class A-2 (AAA) 126.4 1.71 0.90 55 19.9

Class B (AA) 10.0 3.49 1.81 125 14.55

Class C (A) 15.0 3.90 2.02 140 6.53

Class D (BBB) 9.4 3.98 2.53 190 1.50

Total Rated Debt 187.0


1.34%

Our ECNL** 8.00% - 8.50%


Transaction does not include CNL triggers that build C/E.



Subprime Transactions Issued in 2013Prestige Auto Receivables Trust 2013-1



Class A-1 (A-1+) 36.00 0.20 0.28 19.82

Class A-2 (AAA) 191.00 1.37 1.09 75 19.82

Class A-3 (AAA) 60.00 2.92 1.33 85 19.82

Class B (AA+) 22.00 3.57 1.74 115 13.60

Class C (A+) 21.00 3.90 2.05 140 7.66

Class D (BBB) 20.00 3.93 3.04 240 2.00



Our ECNL**

1.57%

7.10% - 7.40%


Transaction does not includes CNL triggers that build C/E.



Subprime Transactions Issued in 2013United Auto Credit Securitization Trust 2013-1

Priced May 13, 2013


Class A-1 (A-1+) 38.6 0.26 0.40 N/A 43.5

Class A-2 (AAA) 52.6 0.98 0.95 N/A 43.5

Class B (AA) 15.8 1.64 1.74 N/A 33.35

Class C (A+) 12.2 1.96 2.22 N/A 25.55

Class D (BBB+) 13.0 2.30 2.90 N/A 17.20

Class E (BB) 18.6 3.13 4.40 N/A 5.25



2.48%

Our ECNL** 14.5% - 15.0%





Subprime Transactions Issued in 2013American Credit Acceptance Receivables Trust 2013-1

Priced March 20, 2013



Class A (A+) 156.00 1.23 1.45 110 32.37

Class B (A) 12.00 2.88 2.15 165 27.01

Class C (BBB) 19.00 3.32 3.52 295 18.53

Class D (BB) 18.00 3.55 4.94 425 10.50



Our ECNL**

2.52%

21.15% - 21.65%


Transaction includes CNL triggers that build C/E.



Subprime Transactions Issued in 2013CarNow Auto Receivables Trust 2013-1

Priced May 29, 2013


Class A (AA) 81.9 0.71 1.16 85 40.30

Class B (A) 15.1 1.86 1.97 155 29.05

Class C (BBB) 13.2 2.31 2.98 250 19.15

Class D (BB) 5.2 2.66 4.33 385 15.25

Class E (B) 6.0 2.93 6.41 NA 10.75



2.34%

Our ECNL** 21.75% -22.25%



Sources: Prospectus Supplement, Standard & Poors Ratings Services presale report.


Subprime Transactions Issued in 2013CPS Auto Receivables Trust 2013-A

Priced March 11, 2013


Class A-1 (AA-) 142.0 1.78 1.31 95 24.25

Class B (A) 16.7 2.06 1.89 150 16.00

Class C (BBB) 11.1 2.80 2.79 230 10.00

Class D (BB) 9.3 2.45 4.41 400 5.00

Class E (BB-) 6.0 2.04 6.41 N/A 1.00



1.87%

Our ECNL** 13.0% - 13.5%





Subprime Transactions Issued in 2013Exeter Automobile Receivables Trust 2013-1

Priced May 1, 2013


Class A (AA) 272.16 1.18 1.29 100 36.00

Class B (A) 44.33 2.90 2.41 200 25.25

Class C (BBB) 50.52 3.63 3.52 300 13.00

Class D (BB) 32.99 4.02 5.05 450 5.00



Our ECNL**

2.66%

17.0% - 18.0%


Transaction does not includes CNL triggers that build C/E.



Subprime Transactions Issued in 2013Flagship Credit Auto Trust 2013-1



Class A (A+) 174.0 1.31 1.32 100 25.25

Class B (A) 14.5 3.22 2.76 225 18.85

Class C (BBB) 21.0 3.71 3.59 300 9.58

Class D (BB) 12.7 3.83 5.39 480 4.00



2.47%

Our ECNL** 12.8% - 13.3%





Subprime Transactions Issued in 2013SNAAC Auto Receivables Trust 2013-1




Class A (AA) 141.70 1.12 1.14 80 26.94

Class B (A) 18.00 2.82 2.09 160 17.40

Class C (BBB) 16.90 3.36 3.07 250 8.45

Class D (BB) 8.40 3.43 4.56 400 4.00



Our ECNL**

2.01%

10.5% - 11.5%





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