SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
September 8, 1997
Date of Report ..........................................................
(Date of earliest event reported)
CHRYSLER FINANCIAL CORPORATION
.........................................................................
(Exact name of registrant as specified in its charter)
State of Michigan 33-55795 38-2997412
.........................................................................
(State or other jurisdiction (Commission) (IRS Employer
of incorporation) File No.) Identification No.)
27777 Franklin Rd., Southfield, Michigan 48034
..............................................
(Address of principal executive offices)
(248) 948-3067
Registrant's telephone number, including area code.......................
This filing relates to Registration Statement No. 33-55795.
<PAGE>
Item 5. Other Events.
In connection with the proposed offering of Premier Auto Trust
1997-3, Asset Backed Notes, Class A-2, Class A-3, Class A-4, Class A-5 and
Class B, attached as Exhibit 99 are certain materials prepared by Chrysler
Financial Corporation that are required to be filed pursuant to the no-action
letter dated May 20, 1994 issued by the staff of the Securities and Exchange
Commission (the "Commission") to Kidder, Peabody Acceptance Corporation-1,
Kidder, Peabody & Co. Incorporated and Kidder Structured Asset Corporation
and the no-action letter dated February 15, 1995 issued by the staff of the
Commission to the Public Securities Association.
Item 7. Financial Statements, Pro Forma Financial Information and
Exhibits.
Listed below are the financial statements, pro forma financial
information and exhibits, if any, filed as a part of this Report:
(a) Financial statements of businesses acquired;
None
(b) Pro forma financial information:
None
(c) Exhibits:
Exhibit 99
- 2 -
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
CHRYSLER FINANCIAL CORPORATION
Date: September 9, 1997 By: /s/ B.C. Babbish
-------------------
B.C. Babbish
Assistant Secretary
- 3 -
<PAGE>
EXHIBIT INDEX
Exhibit
No. Description of Exhibit
- ------- ----------------------
99 Material prepared by Chrysler Financial Corporation in
connection with Premier Auto Trust 1997-3 pursuant to the
no-action letter dated May 20, 1994 issued by the staff of
the Securities and Exchange Commission (the "Commission")
to Kidder, Peabody Acceptance Corporation-1, Kidder,
Peabody & Co. Incorporated and Kidder Structured Asset
Corporation and the no-action letter dated February 15,
1995 issued by the staff of the Commission to the Public
Securities Association.
- 4 -
EXHIBIT 99
Premier Auto Trust 1997-3 Structural and Collateral Materials
<PAGE>
The information contained in the attached materials is referred to
as the "Information".
The attached Term Sheet has been prepared by Chrysler Financial
Corporation ("CFC"). Neither ___________________ ("_____________") nor any of
its affiliates makes any representation as to the accuracy or completeness of
the Information herein. The Information contained herein is preliminary and
will be superseded by the applicable prospectus supplement and by any other
information subsequently filed with the Securities and Exchange Commission.
The Information contained herein will be superseded by the
description of the collateral pool contained in the prospectus supplement
relating to the securities.
The Information addresses only certain aspects of the applicable
security's characteristics and thus does not provide a complete assessment.
As such, the Information may not reflect the impact of all structural
characteristics of the security. The assumptions underlying the Information,
including structure and collateral, may be modified from time to time to
reflect changed circumstances.
Although a registration statement (including the prospectus)
relating to the securities discussed in this communication has been filed
with the Securities and Exchange Commission and is effective, the final
prospectus supplement relating to the securities discussed in this
communication has not been filed with the Securities and Exchange Commission.
This communication shall not constitute an offer to sell or the solicitation
of an offer to buy nor shall there be any sale of the securities discussed in
this communication in any state in which such offer, solicitation or sale
would be unlawful prior to registration or qualification under the securities
laws of any such state. Prospective purchasers are referred to the final
prospectus and prospectus supplement relating to the securities discussed in
this communication for definitive Information on any matter discussed in this
communication. Any investment decision should be based only on the data in
the prospectus and the prospectus supplement ("Offering Documents") and the
then current version of the Information. Offering Documents contain data that
is current as of their publication dates and after publication may no longer
be complete or current. A final prospectus and prospectus supplement may be
obtained by contacting the ____________ Trading Desk at ____________ .
1
<PAGE>
Premier Auto Trust 1997-3
Chrysler Financial Corporation, Seller and Servicer
Subject to Revision
Term Sheet dated September 8, 1997
Issuer...................... Premier Auto Trust 1997-3 (the "Trust" or the
"Issuer").
The Notes................... (i) Class A-1 _____% Asset Backed Notes (the
"Class A-1 Notes") in the aggregate initial
principal amount of $225,000,000. The Class A-1
Notes are not being offered hereby;
(ii) Class A-2 ____% Asset Backed Notes (the
"Class A-2 Notes") in the aggregate initial
principal amount of $225,000,000;
(iii) Class A-3 _____% Asset Backed Notes (the
"Class A-3 Notes") in the aggregate initial
principal amount of $240,000,000;
(iv) Class A-4 _____% Asset Backed Notes (the
"Class A-4 Notes") in the aggregate initial
principal amount of $175,000,000; and
(v) Class A-5 _____% Asset Backed Notes (the
"Class A-5 Notes" and, together, with the Class
A-1 Notes, Class A-2 Notes, Class A-3 Notes and
Class A-4, the "Class A Notes") in the
aggregate initial principal amount of
$290,000,000; and
(vi) Class B __% Asset Backed Notes (the "Class
B Notes" and together with the Class A Notes,
the "Notes") in the aggregate initial principal
amount of $45,000,000. The Class B Notes are
subordinated to the Class A Notes to the extent
described herein.
Terms of the Notes:
A. Distribution Dates.... Payments of interest and principal on the Notes
will be made on the sixth day of each month
or, if any such day is not a Business Day, on
the next succeeding Business Day (each, a
"Distribution Date"), commencing October 6,
1997.
B. Interest Rates........ The Notes will have fixed interest rates.
C. Interest.............. Interest on the outstanding principal amount of
any Class of Notes, other than the Class A-1
Notes, will accrue at the applicable Interest
Rate from the Closing Date (in the case of the
first Distribution Date) or from the sixth day
of the month preceding the month of a
Distribution Date to and including the fifth
day of the month of such Distribution Date
(each, an "Interest Accrual Period"). Interest
on the outstanding principal amount of the
Class A-1 Notes will accrue at the applicable
Interest Rate from the Closing Date (in the
case of the first Distribution Date) or from
the most recent Distribution Date on
2
<PAGE>
which interest has been paid to but excluding
the following Distribution Date (each, a "Class
A-1 Interest Accrual Period"). Interest on each
class of Notes, other than the Class A-1 Notes,
will be calculated on the basis of a 360-day
year consisting of twelve 30-day months.
Interest on the Class A-1 Notes will be
calculated on the basis of the actual number of
days in the Class A-1 Interest Accrual Period
divided by 360. The failure to pay interest on
the Class B Notes will not be an Event of
Default unless the Class A-5 Notes have been
paid in full.
D. Principal............. Except during the Release Period described
below under "Overcollateralization and Release
of Initial Overcollateralization Amount",
principal of the Notes will be payable on each
Distribution Date in an amount equal to the
Noteholders' Principal Distributable Amount for
the calendar month (the "Collection Period")
preceding such Distribution Date to the extent
of funds available therefor. The "Noteholders'
Principal Distributable Amount" will equal (i)
the Regular Principal Distribution Amount plus
(ii) the Accelerated Principal Distribution
Amount. The "Regular Principal Distribution
Amount" with respect to any Distribution Date
will generally equal the amount of principal
paid plus the principal balance of liquidated
defaulted Receivables. The "Accelerated
Principal Distribution Amount" with respect to
a Distribution Date will equal the portion, if
any, of the Total Distribution Amount for the
related Collection Period that remains after
payment of (a) the Servicing Fee (together with
any portion of the Servicing Fee that remains
unpaid from prior Distribution Dates), (b) the
interest due on the Notes, (c) the Regular
Principal Distribution Amount, and (d) the
amount, if any, required to be deposited in the
Reserve Account on such Distribution Date.
During the Release Period, the principal of the
Notes payable on each Distribution Date will
equal the Release Period Noteholders' Principal
Distributable Amount described below under
"Overcollateralization and Release of Initial
Overcollateralization Amount".
No principal payments will be made (i) on the
Class A-2 Notes until the Class A-1 Notes have
been paid in full; (ii) on the Class A-3 Notes
until the Class A-2 Notes have been paid in
full; (iii) on the Class A-4 Notes until the
Class A-3 Notes have been paid in full; (iv) on
the Class A-5 Notes until the Class A-4 Notes
have been paid in full or; (v) on the Class B
Notes until the Class A-5 Notes have been paid
in full.
The outstanding principal amount of the Class
A-1 Notes, to the extent not previously paid,
will be payable on the June 1998 Distribution
Date (the "Class A-1 Final Scheduled
Distribution Date"); the outstanding principal
amount of the Class A-2 Notes, to the extent
not previously paid, will be payable on the
August 1999 Distribution Date (the "Class A-2
Final Scheduled Distribution Date"); the
outstanding principal amount
3
<PAGE>
of the Class A-3 Notes, to the extent not
previously paid, will be payable on the June
2000 Distribution Date (the "Class A-3 Final
Scheduled Distribution Date"); the outstanding
principal amount of the Class A-4 Notes, to the
extent not previously paid, will be payable on
the January 2001 Distribution Date (the "Class
A-4 Final Scheduled Distribution Date"); the
outstanding principal amount of the Class A-5
Notes, to the extent not previously paid, will
be payable on the January 2002 Distribution
Date (the "Class A-5 Final Scheduled
Distribution Date"); and the outstanding
principal amount of the Class B Notes, to the
extent not previously paid, will be payable on
the January 2003 Distribution Date (the "Class
B Final Scheduled Distribution Date").
E. Optional Redemption... The outstanding Class A-5 Notes and Class B
Notes will be subject to redemption in whole,
but not in part, on any Distribution Date by
the Servicer when the Pool Balance shall have
declined to 10% or less of the Initial Pool
Balance (as defined below).
Overcollateralization
and Release of Initial
Overcollateralization
Amount..................... The initial aggregate principal balance of the
Receivables as of September 5, 1997
($1,260,014,969.63) (the "Initial Pool Balance")
will exceed the initial aggregate principal
amount of Notes ($1,200,000,000.00) (the
"Initial Note Principal Balance") by an amount
equal to $60,014,969.63 (the "Initial
Overcollateralization Amount"), which is
approximately 5.00% of the Initial Note
Principal Balance. Unless offset by losses on
the Receivables or the release of cash during
the Release Period as described below, the
distribution of the Accelerated Principal
Distribution Amount, if any, on a Distribution
Date is expected to cause the aggregate
principal amount of the Notes to decrease faster
than the Pool Balance decreases, thereby
increasing the Overcollateralization Amount.
The "Overcollateralization Amount" in respect of
a Distribution Date is equal to (a) the Pool
Balance as of the end of the related
Collection Period (the "Related Pool Balance")
minus (b) the aggregate outstanding amount of
Notes after giving effect to payments made on
the Notes on such Distribution Date (the
"Note
4
<PAGE>
Amount").
Subject to the conditions set forth below, on
each Distribution Date during the Release
Period (as defined below), the amount of
principal distributable on the Notes will be
the Release Period Noteholders' Principal
Distributable Amount rather than the
Noteholders' Principal Distributable Amount.
The "Release Period Noteholders' Principal
Distributable Amount" shall equal, on any
Distribution Date during the Release Period,
the excess of (a) the Note Amount on such
Distribution Date (prior to giving effect to
any distributions on such Distribution Date)
over (b) the product of (1) 94.5% and (2) the
Related Pool Balance. On each Distribution Date
during the Release Period, any portion of the
Total Distributable Amount which remains after
payment of (a) the Servicing Fee, (b) the
Noteholders' Interest Distributable Amount, (c)
the Release Period Noteholders' Principal
Distributable Amount and (d) any amount
required to increase the amount in the Reserve
Account to the Specified Reserve Account
Balance will be released to the Trust and then
to the Company (such released amount being the
"Cash Release Amount" or "Cash Release"). The
cumulative amount of all Cash Releases during
the Release Period shall not exceed the Initial
Overcollateralization Amount.
The release of cash to the Trust, and then to
the Company, as described above is subject to
the satisfaction of all of the following
conditions:
(1) No Cash Release will be permitted
until the date (the "First Release
Distribution Date") that is the later of
(a) the Distribution Date following the
Distribution Date on which the
Overcollateralization Amount is at least
equal to:
[Initial Overcollateralization Amount]
plus
[2% x (Related Pool Balance for such
preceding Distribution Date
minus
Initial Overcollateralization Amount)]
and (b) the Distribution Date following
the Distribution Date on which the Class
A-1 Notes have been repaid in full.
(2) (a) The amount in the Reserve Account
shall be equal to the applicable Specified
Reserve Account Balance and (b) the
cumulative amount of the Cash Releases
will not exceed the Initial
Overcollateralization Amount.
On the Distribution Date (the "Last Release
Distribution Date") on which the cumulative
amount of the Cash Releases equals the Initial
Overcollateralization Amount, the amount of
principal distributable to the Noteholders will
be the Noteholders' Principal
5
<PAGE>
Distributable Amount less the Cash Release
Amount released on such Distribution Date. On
each Distribution Date thereafter, the full
Noteholders' Monthly Principal Distributable
Amount will be distributable as principal to
the Noteholders. The "Release Period" is the
period from the First Release Distribution Date
to the Last Release Distribution Date. Any Cash
Release released to the Company will not be
available to make payments on the Notes.
Reserve Account............. The "Reserve Account" will be created with an
initial deposit by CFC on the Closing Date of
cash or Eligible Investments having a value at
least equal to $12,000,000 (the "Specified
Reserve Account Amount"), which is 1% of the
Initial Note Principal Balance. If the
Overcollateralization Percentage at any time on
or after the Last Release Distribution Date
equals at least 7.75%, the Specified Reserve
Account Balance will be $9,000,000, which is
0.75% of the Initial Note Principal Balance.
The "Overcollateralization Percentage" in
respect of a Distribution Date is the
percentage derived from a fraction, the
numerator of which is the Overcollateralization
Amount for such Distribution date and the
denominator of which is the Related Pool
Balance.
Funds will be withdrawn from the Reserve
Account to cover any shortfalls in the amounts
due to the Noteholders. On each Distribution
Date, the Reserve Account will be reinstated up
to the Specified Reserve Account Balance to the
extent of the portion, if any, of the Total
Distribution Amount remaining after payment of
the Servicing Fee and the amounts due to the
Noteholders.
The "Pool Balance" at any time will represent
the aggregate principal balance of the
Receivables at the end of the preceding
Collection Period, after giving effect to all
payments received from Obligors and Purchase
Amounts to be remitted by the Servicer or the
Seller, as the case may be, all for such
Collection Period, and all losses realized on
Receivables liquidated during such Collection
Period.
Priority of Payments;
Subordination of
Class B Notes............... Collections in respect of the Receivables for
each Collection Period will be applied in the
following order of priority: (i) the Servicing
Fee, together with any previously unpaid
Servicing Fees, (ii) amounts payable to the
Noteholders, which amounts will be applied,
first, to pay interest and principal on the
Class A Notes and, second, to pay interest
and principal on the Class B Notes, (iii)
amounts, if any, to the Reserve Account up to
the Specified Reserve Account Balance, and
(iv) the remaining balance, if any, to the
Company. In addition, Cash Releases will be
made as described above under
"Overcollateralization and
6
<PAGE>
Release of Initial Overcollateralization
Amount".
Rating of the Notes......... The Class A Notes will be rated in the highest
investment rating category by at least two
nationally recognized rating agencies. The
Class B Notes will be rated at least in the "A"
category or its equivalent by such rating
agencies.
7
<PAGE>
The Receivables Pool
As of the Cutoff Date, each Receivable (i) had a principal balance
of at least $300 and (ii) was not more than 30 days past due (an account is
not considered past due if the amount past due is less than 10% of the
scheduled monthly payment). As of the Cutoff Date, no Obligor on any
Receivable was noted in the related records of the Seller as being the
subject of a bankruptcy proceeding, and no Obligor on any Receivable financed
a Financed Vehicle under the Seller's "New-Finance Buyer Plan" program. No
selection procedures believed by the Seller to be adverse to Noteholders were
used in selecting the Receivables.
Set forth in the following tables is information concerning the
composition, distribution by annual percentage rate ("APR") and the
geographic distribution of the Receivables Pool as of the Cutoff Date.
<TABLE>
<CAPTION>
Premier Auto Trust 1997-3
Composition of the Receivables Pool
Weighted
Average Weighted Average
Weighted Average Aggregate Principal Number of Remaining Average Principal
APR of Receivables Balance Receivables Term Original Term Balance
------------------ ------------------- ----------- --------- ------------- ----------
<S> <C> <C> <C> <C> <C>
9.31% $1,260,014,969.63 82,899 53.70 months 56.92 months $15,199.40
</TABLE>
Approximately 73.15% of the aggregate principal balance of the
Receivables, constituting 66.16% of the number of the Receivables, represent
new vehicles, and approximately 26.85% of the aggregate principal balance of
the Receivables, constituting 33.84% of the number of the Receivables,
represent used vehicles. Approximately 76.24% of the aggregate principal
balance of the Receivables represent vehicles manufactured or distributed by
Chrysler and approximately 23.76% of the Initial Pool Balance represents
financing of vehicles manufactured or distributed by vehicle manufacturers
other than Chrysler. All of the Receivables are Simple Interest Receivables.
8
<PAGE>
Premier Auto Trust 1997-3
Distribution by APR of the Receivables Pool
<TABLE>
<CAPTION>
Number of Aggregate Percent of Aggregate
APR Range Receivables Principal Balance Principal Balance(1)
--------- ----------- ----------------- --------------------
<S> <C> <C> <C>
0.00% to 5.00%.............................. 18,566 $ 317,049,810.44 25.2%
5.01% to 6.00%.............................. 52 703,659.51 0.1
6.01% to 7.00%.............................. 290 4,774,547.91 0.4
7.01% to 8.00%.............................. 5,597 87,372,545.18 6.9
8.01% to 9.00%.............................. 12,999 203,662,387.52 16.2
9.01% to 10.00%............................. 12,070 182,420,236.65 14.5
10.01% to 11.00%............................ 7,276 109,239,474.23 8.7
11.01% to 12.00%............................ 6,242 91,676,201.72 7.3
12.01% to 13.00%............................ 5,520 79,495,242.11 6.3
13.01% to 14.00%............................ 3,705 49,820,144.15 4.0
14.01% to 15.00%............................ 2,599 33,752,648.18 2.7
15.01% to 16.00%............................ 1,460 18,575,778.69 1.5
16.01% to 17.00%............................ 1,289 17,196,879.01 1.4
17.01% to 18.00%............................ 2,563 36,010,067.24 2.9
Greater than 18.00%......................... 2,671 28,265,347.09 2.2
------ ----------------- -----
Totals................................. 82,899 $1,260,014,969.63 100.0%
====== ================= =====
<FN>
- ---------
(1) Percentages may not add to 100.0% because of rounding.
</TABLE>
9
<PAGE>
Premier Auto Trust 1997-3
Geographic Distribution of the Receivables Pool(1)
<TABLE>
<CAPTION>
Percent of Percent of
Aggregate Aggregate
Principal Principal
State Balance(2) State Balance(2)
- ----- ---------- ----- ----------
<S> <C> <C> <C>
Alabama............................... 1.2% Montana............................ 0.1%
Alaska................................ 0.1 Nebraska........................... 0.4
Arizona............................... 1.4 Nevada............................. 0.4
Arkansas.............................. 2.3 New Hampshire...................... 1.3
California............................ 4.5 New Jersey......................... 4.6
Colorado.............................. 0.6 New Mexico......................... 0.4
Connecticut........................... 1.0 New York........................... 5.9
Delaware.............................. 0.3 North Carolina..................... 2.2
District of Columbia.................. 0.0 North Dakota....................... 0.5
Florida............................... 4.8 Ohio............................... 3.5
Georgia............................... 2.9 Oklahoma........................... 1.1
Hawaii................................ 0.3 Oregon............................. 0.6
Idaho................................. 0.1 Pennsylvania....................... 4.6
Illinois.............................. 4.7 Rhode Island....................... 0.3
Indiana............................... 7.0 South Carolina..................... 0.8
Iowa.................................. 1.2 South Dakota....................... 0.3
Kansas................................ 1.1 Tennessee.......................... 2.1
Kentucky.............................. 3.9 Texas.............................. 5.9
Louisiana............................. 1.8 Utah............................... 0.2
Maine................................. 0.4 Vermont............................ 0.2
Maryland.............................. 4.7 Virginia........................... 2.7
Massachusetts......................... 2.6 Washington......................... 0.6
Michigan.............................. 3.0 West Virginia...................... 0.4
Minnesota............................. 3.1 Wisconsin.......................... 3.6
Mississippi........................... 0.8 Wyoming............................ 0.1
Missouri.............................. 3.3 -----
Totals.......................... 100.0%
======
<FN>
- ---------
(1) Based on physical addresses of the dealers originating the receivables.
(2) Percentages may not add to 100.0% because of rounding.
</TABLE>
Delinquencies, Repossessions and Net Losses
Set forth below is certain information concerning the experience
of CFC and its United States subsidiaries pertaining to retail new and used
automobile and light duty truck receivables, including those previously sold
which CFC continues to service. There can be no assurance that the
delinquency, repossession and net loss experience on the Receivables will be
comparable to that set forth below.
10
<PAGE>
Delinquency Experience(1)
(Dollars in Millions)
<TABLE>
<CAPTION>
At June 30, At December 31,
----------------------------------------------------------------------------------------------------
1997 1996 1996 1995
------------------- ------------------- ------------------ --------------------
Number Number Number Number
of of of of
Contracts Amount Contracts Amount Contracts Amount Contracts Amount
--------- ------ --------- ------ --------- ------ --------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Portfolio............. 1,689,018 $21,257 1,673,622 $21,138 1,679,880 $21,197 1,653,533 $20,913
Period of Delinquency
31-60 Days........... 48,913 $ 619 48,199 $ 624 65,297 $ 843 55,507 $ 720
61 Days or More...... 9,050 132 4,899 72 8,175 118 6,792 100
--------- ------ --------- ------ --------- ------ --------- ------
Total Delinquencies... 57,963 $ 751 53,098 $ 696 73,472 $ 961 62,299 $ 820
Total Delinquencies as
a Percent of the
Portfolio......... 3.43% 3.53% 3.17% 3.29% 4.37% 4.53% 3.77% 3.92%
<CAPTION>
At December 31,
----------------------------------------------------------------------------------------
1994 1993 1992
--------------------------- --------------------------- -------------------------
Number of Number of Number of
Contracts Amount Contracts Amount Contracts Amount
--------- ------ --------- ------ --------- ------
<S> <C> <C> <C> <C> <C> <C>
Portfolio............. 1,444,736 $16,977 1,352,218 $14,116 1,344,799 $12,082
Period of Delinquency
31-60 Days.......... 25,888 $ 293 16,350 $ 153 15,964 $ 134
61 Days or More..... 2,085 27 1,383 15 1,376 13
--------- ------- --------- ------- --------- -------
Total Delinquencies... 27,973 $ 320 17,733 $ 168 17,340 $ 147
Total Delinquencies as
a Percent of the
Portfolio........... 1.94% 1.88% 1.31% 1.19% 1.29% 1.22%
<FN>
- ---------
(1) All amounts and percentages are based on the gross amount scheduled to be
paid on each contract, including unearned finance and other charges. The
information in the table includes an immaterial amount of retail
installment sale contracts on vehicles other than automobiles and light
duty trucks and includes previously sold contracts which CFC continues to
service.
</TABLE>
11
<PAGE>
<TABLE>
<CAPTION>
Credit Loss/Repossession Experience(1)
(Dollars in Millions)
Six-Months Ended
June 30, Year Ended December 31,
---------------------- ----------------------------------------------------------------
1997 1996 1996 1995 1994 1993 1992
---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C>
Average Amount Outstanding
During the Period............. $21,135 $20,888 $21,062 $19,486 $15,517 $12,882 $11,818
Average Number of Contracts
Outstanding During the Period. 1,680,186 1,659,755 1,671,405 1,572,963 1,396,497 1,341,084 1,382,898
Percent of Contracts Acquired
During the Period with Recourse
to the Dealer................. 9.72% 9.14% 9.05% 14.8% 17.0% 16.2% 15.8%
Repossessions as a Percent of
Average Number of Contracts
Outstanding(2)................ 3.06% 3.80% 3.82% 3.05% 2.36% 2.15% 2.31%
Net Losses as a Percent of
Liquidations(3)(4)............ 2.62% 3.12% 3.17% 2.25% 1.38% 1.34% 1.71%
Net Losses as a Percent of
Average Amount Outstanding(2)(3) 1.48% 1.67% 1.68% 1.16% 0.73% 0.75% 0.97%
<FN>
- ---------
(1) Except as indicated, all amounts and percentages are based on the gross
amount scheduled to be paid on each contract, including unearned finance
and other charges. The information in the table includes an immaterial
amount of retail installment sales contracts on vehicles other than
automobiles and light duty trucks and includes previously sold contracts
that CFC continues to service.
(2) Percentages have been annualized for the six months ended June 30, 1997
and 1996 and are not necessarily indicative of the experience for the
year.
(3) Net losses are equal to the aggregate of the balances of all contracts
which are determined to be uncollectible in the period, less any
recoveries on contracts charged off in the period or any prior periods,
including any losses resulting from disposition expenses and any losses
resulting from the failure to recover commissions to dealers with respect
to contracts that are prepaid or charged off.
(4) Liquidations represent a reduction in the outstanding balances of the
contracts as a result of monthly cash payments and charge-offs.
</TABLE>
Notwithstanding the improvement in credit loans for the first six months
of 1997, increased credit loss experience may continue while actions are
taken to improve the credit mix, collections and servicing of the Seller's
automotive retail receivables. No assurance can be given as to future
results.
The net loss figures above reflect the fact that the Seller had recourse
to Dealers on a portion of its retail installment sale contracts. By
aggregate principal balance, approximately 2.50% of the Receivables represent
contracts with recourse to Dealers.
12
