Non-Prime Auto Financing

Subprime Auto Loan ABS
Trends, Performance, Outlook and

Standard & Poors Ratings Services Approach
to Rating Subprime Auto Loan ABS
June 7, 2013
17th Annual Non-Prime Auto Financing Conference
Omni Fort Worth Hotel
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

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
2.
Subprime Auto Loan ABS Issuance

22.5
20.0
$ Billions
17.5
15.0
12.5
10.0
7.5
5.0
2.5
0.0
2006
2007
2008
2009
2010
2011
Source: Standard & Poors Ratings Services.

3.
2012
Through May
2012
Through May
2013
U.S. Subprime Auto Loan ABS Volume - Year to Date Through May
2013 - 15 Transactions - $8.1 Billion
SNAAC, 2%
UACC, 2%
2012 - 13 Transactions - $7.2 Billion
ACA, 2%
ACA, 3%
Santander, 50%
AmeriCredit, 29%
AmeriCredit, 26%
Santander, 46%
Prestige, 4%
JD Byrider, 2%
CarFinance, 3%
CPS, 2%
CAC, 2%
Exeter, 5%
First Investors, 2%
Flagship, 3%
CPS, 2%
CAC, 3%
DriveTime, 3%
Prestige, 3%
First Investors, 2%
UACC United Acceptance Credit Corporation

CAC Credit Acceptance Corporation
CPS Consumer Portfolio Services
ACA - American Credit Acceptance
SNAAC Security National Automobile Acceptance Corporation

4.
Exeter, 3%
Collateral Trends FICO

800
750
700
650
600
550
500

5.
Prime
Subprime
Collateral Trends LTV

125.00%
Loan-to-Value %
120.00%
115.00%
110.00%
Prime
Subprime
105.00%
100.00%
95.00%
90.00%
2006
2007
2008
2009
2010
2011
Year
6.
2012
Collateral Trends LT Loans (Original Term > 60 Months)

90.00%
Long-term Loan %
80.00%
70.00%
60.00%
50.00%
40.00%
Prime
Subprime
30.00%
20.00%
10.00%
0.00%
Year
7.
Auto Loan Static Index Subprime Cumulative Net Losses

18.00%
16.00%
2008
2007
14.00%
2006
12.00%
10.00%
2005
8.00%
2010
2009
6.00%
Q1-2012
Q2-2012
4.00%
2011
2.00%
0.00%
1
11
13
15
17
19
21
23
25
27
29

8.
31
33
35
37
39
41
43
Trend in Weighted Average FICO Score

Santander and GM Financial ABS
650
630
610
590
570
550
530
510
490
470
450
2001
2002
2003
2004
2005
2006
SCUSA FICO
2007
2008
GM FICO
Source: Standard & Poors Ratings Services and

company ABS prospectuses.
9.
2009
2010
2011
2012
GM Financial Proprietary Score

GM Financial Proprietary
Score
275
270
265
260
255
250
245
240
235
230
225
2001
2002
2003
2004
2005
2006
2007
2008
GM Custom

company prospectuses.
10.
2009
2010
2011
2012
Trend in LTV Ratio

125%
120%
115%
110%
105%
100%
95%
2001
2002
2003
2004
2005
2006
SCUSA LTV
2007
2008
GM LTV

11.
2009
2010
2011
2012
Trend in Long-Term Loans (61-72 month original maturity)

90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2001
2002
2003
2004
2005
2006
SCUSA 60+
2007
2008
GM 60+

company prospectuses..
12.
2009
2010
2011
2012
Securitization Cumulative Net Losses Santander

25%
20%
15%
10%
5%
0%
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

13.
Securitization Cumulative Net Losses GM Financial
20%
15%
10%
5%
0%
1
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

the companys ABS investor website.
14.
2012-Q1
Subprime Portfolio Net Losses

14.00%
12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009

15.
2010
2011
2012
Mar.
31,
2012
Mar.
31,
2013
Subprime Portfolio Delinquencies

10.00%
9.00%
8.00%
7.00%
6.00%
5.00%
4.00%
3.00%
2.00%
1.00%
0.00%

16.
Historical Ratings Activity U.S. Subprime Auto Loan ABS

Subprime Auto Loan Rating Actions (Long-term Ratings)
Year
Upgrades
Downgrades
2004
6
0
2005
0
0
2006
4
0
2007
13
0
2008
5
0
2009
29
0
2010
4
0
2011
34
0
2012
50
0
2013 (Through May 31)
Total
36
181
0
0
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.

17.
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
18.
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
19.
Subprime Transactions Issued in 2013

AmeriCredit Automobile Receivables Trust 2013-2
Priced April 3, 2013
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
Class
Total Rated Debt
1,100.00
Wtd. Avg. Cost of

Debt
1.46%
Our ECNL**
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.
20.

Santander Drive Automobile Receivables Trust 2013-3
Priced May 06, 2013
Amount ($Mil.)
WA Life (yrs)
Interest Rate (%)
Spread (bps)
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
Class
Total Rated Debt
1,202.4
Wtd. Avg. Cost of

Debt
1.54%
Our ECNL**
13.5% - 14.5%
*Credit Enhancement. Percent of the initial receivables balance.

Transaction does include CNL triggers that build C/E.
21.

First Investors Auto Owner Trust 2013-1
Priced January 14, 2013
Amount ($Mil.)
WA Life (yrs)
Interest Rate (%)
Spread (bps)
Class A-1 (A-1+)
26.2
0.18
0.32
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
Class
Total Rated Debt
187.0
Wtd. Avg. Cost of

Debt
1.34%
Our ECNL**
8.00% - 8.50%

22.

Prestige Auto Receivables Trust 2013-1
Class
WA Life (yrs)
Interest Rate (%)
Class A-1 (A-1+)
36.00
0.20
0.28
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
Total Rated Debt
350.00
Wtd. Avg. Cost of

Debt
1.57%
Our ECNL**
Spread (bps)
19.82
7.10% - 7.40%

Transaction does not includes CNL triggers that build C/E.
23.
Amount ($Mil.)

United Auto Credit Securitization Trust 2013-1
Priced May 13, 2013
Amount ($Mil.)
WA Life (yrs)
Interest Rate (%)
Spread (bps)
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
Total Rated Debt
150.8
Wtd. Avg. Cost of

Debt
2.48%
Class
Our ECNL**
14.5% - 15.0%

24.

American Credit Acceptance Receivables Trust 2013-1
Priced March 20, 2013
Amount ($Mil.)
WA Life
(yrs)
Interest Rate (%)
Spread (bps)
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
Total Rated Debt
205.00
Wtd. Avg. Cost of

Debt
2.52%
Class
Our ECNL**
21.15% - 21.65%

Transaction includes CNL triggers that build C/E.
25.

CarNow Auto Receivables Trust 2013-1
Priced May 29, 2013
Amount ($Mil.)
WA Life (yrs)
Interest Rate (%)
Spread (bps)
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
Class
Total Rated Debt
121.4
Wtd. Avg. Cost of

Debt
2.34%
Our ECNL**
21.75% 22.25%

Sources: Prospectus Supplement, Standard & Poors Ratings Services presale report.
26.

CPS Auto Receivables Trust 2013-A
Priced March 11, 2013
Amount ($Mil.)
WA Life (yrs)
Interest Rate (%)
Spread (bps)
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
Class
Total Rated Debt
185.0
Wtd. Avg. Cost of

Debt
1.87%
Our ECNL**
13.0% - 13.5%

27.

Exeter Automobile Receivables Trust 2013-1
Priced May 1, 2013
Amount ($Mil.)
WA Life (yrs)
Interest Rate (%)
Spread (bps)
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
Total Rated Debt
400.00
Wtd. Avg. Cost of

Debt
2.66%
Class
Our ECNL**
17.0% - 18.0%

Transaction does not includes CNL triggers that build C/E.
28.

Flagship Credit Auto Trust 2013-1
Amount ($Mil.)
WA Life (yrs)
Interest Rate (%)
Spread (bps)
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
Total Rated Debt
222.2
Wtd. Avg. Cost of

Debt
2.47%
Class
Our ECNL**
12.8% - 13.3%

29.

SNAAC Auto Receivables Trust 2013-1
Amount ($Mil.)
WA Life
(yrs)
Interest Rate (%)
Spread (bps)
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
Class
Total Rated Debt
185.00
Wtd. Avg. Cost of

Debt
2.01%
Our ECNL**
10.5% - 11.5%

30.
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Subprime Auto Loan ABS

Trends, Performance, Outlook and

Subprime Auto Loan ABS Trends

Subprime Auto Loan ABS Issuance

Source: Standard & Poors Ratings Services.

2013 - 15 Transactions - $8.1 Billion

2012 - 13 Transactions - $7.2 Billion

UACC United Acceptance Credit Corporation

Source: Standard & Poors Ratings Services.

Collateral Trends FICO

Source: Standard & Poors Ratings Services.

Collateral Trends LTV

Collateral Trends LT Loans (Original Term > 60 Months)

Auto Loan Static Index Subprime Cumulative Net Losses

Source: Standard & Poors Ratings Services.

Trend in Weighted Average FICO Score

Source: Standard & Poors Ratings Services and

GM Financial Proprietary Score

Source: Standard & Poors Ratings Services and

Trend in LTV Ratio

Source: Standard & Poors Ratings Services and

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

Source: Standard & Poors Ratings Services and

Securitization Cumulative Net Losses Santander

Source: Standard & Poors Ratings Services and

Securitization Cumulative Net Losses GM Financial

Source: Standard & Poors Ratings Services and

Subprime Portfolio Net Losses

Source: Standard & Poors Ratings Services.

Subprime Portfolio Delinquencies

Source: Standard & Poors Ratings Services.

Historical Ratings Activity U.S. Subprime Auto Loan ABS

Source: Standard & Poors Ratings Services.

Standard & Poors Ratings Services Auto Loan ABS Outlook

Subprime Transactions Issued in 2013

Interest Rate (%)

Initial Hard C/E (%)*

Class A-1 (A-1+)

Class A-2 (AAA)

Class A-3 (AAA)

Total Rated Debt

Wtd. Avg. Cost of

*Percent of the initial receivables balance.

Subprime Transactions Issued in 2013

Interest Rate (%)

Initial Hard C/E (%)*

Class A-1 (A-1+)

Class A-2 (AAA)

Class A-3 (AAA)

Total Rated Debt

Wtd. Avg. Cost of

*Credit Enhancement. Percent of the initial receivables balance.

Subprime Transactions Issued in 2013

Interest Rate (%)

Initial Hard C/E (%)*

Class A-1 (A-1+)

Class A-2 (AAA)

Total Rated Debt

Wtd. Avg. Cost of

*Percent of the initial receivables balance.

Subprime Transactions Issued in 2013

Interest Rate (%)

Class A-1 (A-1+)

Class A-2 (AAA)