DTAOT 2013-2 Net Road Show

Report
September 2013
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SECTION
SECTION
SECTION
SECTION
SECTION
1:
2:
3:
4:
5:
COMPANY OVERVIEW
CREDIT SCORING & LOAN SERVICING
FINANCIALS
SECURITIZATIONS
LEGAL & REGULATORY UPDATE
2
We Bring People and Cars Together.
3
We Bring People and Cars Together.
Company Overview
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DriveTime Automotive Group, Inc. (“DriveTime”) is the leading used vehicle retailer in the
United States solely focused on the sale and financing of quality vehicles to the
subprime market. Its sister company, DT Acceptance Corp. (“DTAC”), funds and services
all loans originated by DriveTime.
Over the past 20 years, DriveTime has developed and operated an integrated business
model that provides its customers with a comprehensive end-to-end solution for their
automotive needs, including the sale, financing and maintenance of vehicles.
DriveTime is privately held (Ernie C. Garcia II, Chairman, owns 98.3% and Raymond C.
Fidel, CEO, owns the remaining 1.7%), but is an SEC registrant due to its $250M Sr.
Secured Notes issuance
DriveTime has 104 branded dealerships and 18 reconditioning facilities in 47
geographic areas. For the last twelve months ended June 30, 2013 DriveTime has:
 Sold 63,011 vehicles
 Generated Revenue of $1.3 billion
 Generated Adjusted EBITDA of $149 million
*
 Generated Adjusted S-Corp Net Income of $46.5 million
 Managed a retail loan portfolio of $1.8 billion
* Adds back $11.1m of unrecognized Deferred Income on 6/30/13 Balance Sheet as a result of
unbundling service contracts at point of sale. Piloting in 4 states starting December 2012.
4
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4
2005:
Issued $80M senior
unsecured notes (later
upsized to $136M)
1996:
Took company public
Raised $160M in IPO and
secondary
7 dealerships in Arizona,
$54mm in sales
1998
2002
2005
2006
2008
1996
1992
1992:
Founded as
Ugly Duckling
Corporation
2012:
$1.7B Loan
Portfolio
Launched GO
Financial
2008/2009:
Closed 26 stores &
decreased
originations 29%
2001:
Implemented 1st
generation credit
grading system
2001
2009:
First unwrapped
securitization
Drive Care 36mo/36k
mile warranty
2006:
1998:
Revenues top $1B
Began monoline
wrapped
Loan portfolio in
securitization
excess of $1B
2002:
program
Taken private
Developed and
implemented new strategic
focus
Changed name to
DriveTime
2013
2009
2010
2011
2012
2013:
Issued $50M Sr.
2011:
Secured notes
Sr Notes registered
tack-on
with SEC
104 Dealerships
7th generation credit
grading system
Wells Fargo
warehouse/inventory
lending facilities
2010:
Payments removed
from stores
Centralized
collections
Issued $200M Sr.
Secured Notes
Four warehouse
lenders totaling
$575M
5
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Dealerships located in 47 metropolitan areas in 19 states
– All Company owned

In recent years, the
DriveTime brand has
evolved from a traditional
buy-here, pay-here
dealership model to a
comprehensive retail
experience
Cincinnati (2)
Indianapolis(2)
Columbus (1)
Richmond (3)
Norfolk (3)
St. Louis
St. Louis (1)

The Company’s dealerships
are retail focused and
facilitate the sale of vehicles
through dealerships with a
customer centric focus
Denver (2)
Las Vegas (3)
Las Vegas (2)
Phoenix
(7) (5)
Phoenix
Temple
Austin (2)
San Antonio (4)
Knoxville Greenville
Myrtle Beach
Columbia
Charleston
Savannah
Jackson
Atlanta (5)
Augusta
Montgomery
Columbus
Jacksonville (3)
Mobile
Pensacola Tallahassee
Dallas (8)
Entered seven new states
since March 31, 2010 (dark
green states)
Raleigh
Fayetteville
Charlotte (5)
Huntsville
Birmingham (2)
Little Rock (1)
Albuquerque (3)
Tucson

Memphis(2)
Tulsa
Oklahoma City(2)
Los Angeles (4)
Greensboro (2)
Chattanooga
Nashville
Nashville(2)
Orlando (6)
Houston (3)
Tampa (5)
Fort Meyers
Miami (2)
McAllen
Dealerships (104 Total)
Reconditioning Centers (18 Total)
Collection Centers (2 Total)
We Bring People and Cars Together.
6
New and Used Car Sales
Top Used Vehicle Retailers
Dealerships (in thousands)
2012
rank
40
20
52
20
51
19
50
20
45
44
19
19
43
19
39
36
38
38
38
19
17
16
16
16
2012 market
share(2)
1
CarMax (KMX)
408,080
1.0%
2
AutoNation (AN)
180,973
0.4%
3
Penske Automotive
(PAG)
145,580
0.4%
4
Sonic Automotive
(SAH)
105,615
0.3%
5
Group 1 Automotive
(GPI)
85,366
0.2%
6
Van Tuyl Group
(private)
81,385
0.2%
7
Hendrick Automotive
60,174
0.2%
8
DriveTime
Automotive
59,930
0.2%
80
60
Company
2012
No of used
vehicles
sold(1)
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Franchised
Independent
(1) Source: Automotive News.
(2) As a % of total 2012 used vehicles sold by franchised and independent
dealerships and private sales (40.5 million). (Source – CNW)
Source: CNW.
We Bring People and Cars Together.
7
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Percentage of U.S. population with a FICO score under
620 is approximately 24.5%
Originations for customers within the subprime used
vehicle market averaged $32.6 billion per annum over the
last 6 years
Subprime Population
Subprime Auto Loan Originations
Subprime population 24.5%
Prime & Nonprime
population 75.5%
Source: Equifax - FICO Distribution for borrowers with FICO scores below 620 as of
April 2013.
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Source: CNW. Subprime defined as borrowers with FICO scores below 620 for
originations data.
8
Subprime customers generally
have:
Tax refunds result in high seasonality
of our subprime business
- Poor or limited credit histories
- Higher downs = Higher Q1 sales
- Significant charge-offs
- Delinquencies and charge-offs drop as
customer has more disposable cash
- Prior bankruptcies
- Modest incomes
DriveTime Customers
Source: DriveTime originations last 12 months ended 3/31/2013
We Bring People and Cars Together.
- Majority of profits made in first half of year
- Inventory levels highest at year end in
preparation for Q1 sales volumes
- Tax returns were delayed in 2013, shifting
more vehicle sales into March and April
Subprime Seasonality
Source: DriveTime sales and charge-offs for 2010-2012
9
Vehicle
Acquisition
Acquired primarily from used vehicle auctions (including online auctions)
Centralized vehicle selection strategy takes into account retail value, age, and costs of buying, reconditioning, and
delivering the vehicle for resale, along with buyer affordability and desirability
Purchased 78,190 vehicles from over 250 auctions nationwide during 2012
Vehicle
Reconditioning
and Distribution
Subsequent to acquisition, vehicles are transported to one of DriveTime’s 18 regional reconditioning facilities
DriveTime reconditions the vehicles and perform a rigorous multi-point inspection for safety and operability
Reconditioned vehicles are distributed to dealerships based on real-time projected inventory turn times and levels
Vehicle Sales
DriveTime employs proprietary inventory management and pricing systems which are integrated with and into its credit
scoring system to facilitate the optimum vehicle for its customers' needs
No-haggle vehicle pricing is displayed on each vehicle's sticker - prices are determined centrally for all dealerships and all
regions
Utilize targeted television, radio and online advertising
Marketing
Underwriting and
Finance
Loan Servicing
After Sale Support
Over $28 million in marketing spend in 2012 with over 260,000 TV commercials and 11,000+ radio spots
Centralized proprietary credit scoring system determines a customer’s credit grade and the corresponding minimum down
payment and maximum installment payment
Monitor the performance of our portfolio and close rates on a real-time basis
DriveTime performs all of its own servicing functions, from collections through the resale of repossessed vehicles
All collections conducted through DriveTime’s centralized facilities in Arizona, Texas and Barbados
Customers can make cash payments through an electronic payment network at over 4,000 Wal-Mart stores and more than
17,000 other locations nationwide - payments can also be made online, by check, money order, bill-pay and ACH
DriveCare® 36 month/36,000 mile limited warranty/service contract covers major mechanical and other electronic
components of the engine block, the transmission, climate control and drive axles
We Bring People and Cars Together.
10
Typical Dealership
Units sold per month
55
Vehicle inventory
74
Sales financing
Staffing
100% of sales
10 – 15 retail and
ops employees
Dealership building size
5,000 sf
Leasehold improvements &
equipment
Typical lease term
Knoxville
$595K
5 years, with
option for 5 to 15
years
Note: Information is based on the twelve
months ended June 30, 2013.
Nashville
11
18 Reconditioning Facilities
Centralized Decision Making
-Auction buy direction (year, make, mileage)
-Distribution to recon centers and stores
-Vehicle retail pricing
35 Full-Time buyers attending 250 auctions annually and
purchasing over 84K vehicles
-Avg. vehicle base cost is $8,000
-Avg. reconditioning $1,500
-Avg. odometer 84K miles
-Avg. model year 2007
Blue Mound, Dallas, TX
Total of +665,000 sq. feet of building space with
maximum capability of reconditioning 2,290 vehicles per
week
-Multi-point inspection on all vehicles
-Ability to recondition all makes and models
NOTE: Information presented is for LTM ended 6/30/13.
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12
Retail Experience
Evolution to a more client-centric focused brand, promoting
DriveTime as a courteous, transparent, respectful and trustworthy
business
Opened 21 new retailfocused dealerships
over the past two
years
Existing dealerships
have been remodeled
with a spacious
contemporary design,
unique signage and
flooring, and modern
furniture and color
patterns
Collections
Fully centralized collection system with call centers in Arizona,
Texas and Barbados
–
Customers can make cash payments through electronic payment
network at over 4,000 Wal-Mart stores and more than 17,000
other locations nationwide
Beginning in 2012, all vehicles are equipped with anti-theft GPS
devices
Product / Channel Expansion
Launched in December 2011, GO provides subprime auto
financing to third-party auto dealerships to provide
incremental profitability
In Q4 2012, DriveTime began offering the DriveCare® limited
warranty as a separately priced service contract in dealerships
in Tennessee, Virginia and Ohio (expanded to Los Angeles in
2013)
Launched in January 2013, Carvana is a new sales channel that
enables customers to buy cars, from click to delivery, 100%
over the internet
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Flexibility to close underperforming dealerships without
disrupting collections
Internet
Extensive investment in DriveTime.com and mobile
applications, which provide customers comprehensive
information about inventory, the credit application process, and
scheduling dealership visits
–
–
Over 57% of sales generated by customers who complete
application prior to vising a dealership
6.6 million visits per year
After purchasing a vehicle,
MyDriveTime.com allows
customers to set up ACH
payments, make one time
payments and view account
balances
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We Bring People and Cars Together.
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Our scoring system is the key component in determining origination strategies
Information used by the credit scoring system is gathered from multiple sources
◦ Credit bureau
◦ Debit bureau
◦ Alternative data sources
Credit scoring system is automated
◦ Dealership personnel input credit application data and initiate the credit scoring
process
◦ Internal models are housed on SQL Servers at corporate office
◦ After the application data is entered, the scoring process takes a few seconds
Evaluated predictiveness of many techniques, including:
◦ Segmentation
◦ Iterative variable selection
◦ Ensemble modeling
◦ Predictiveness based on out of sample testing
◦ Cross validated GINIs
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We segment the sub-prime market into eight credit grades using our
proprietary credit scoring models
Avg
Grade Age
A+
47
A
43
B
39
C
35
C33
D+
33
D
32
D34
Wtd Avg 39
Avg Combined
Income
$
3,829
$
3,382
$
3,086
$
2,921
$
2,918
$
2,899
$
3,024
$
2,933
$
3,133
Avg
FICO
558
542
531
518
506
499
488
488
530
No
FICO
6.0%
10.2%
16.4%
22.7%
23.4%
19.5%
15.8%
24.0%
16.9%
Home Avg Time Avg Time Avg Time Percent of
Owner At Job At Address In CB
Originations
42.6%
7.17
8.81
7.11
8.6%
27.8%
6.03
6.96
6.39
16.2%
16.5%
4.61
5.30
5.55
36.1%
9.4%
3.39
3.95
4.61
32.3%
5.6%
2.97
3.12
4.13
4.8%
4.6%
2.78
2.85
3.99
1.5%
5.3%
2.69
2.54
3.90
0.3%
7.3%
3.94
3.09
3.54
0.2%
17.5%
4.55
5.28
5.41
100.0%
Note: Based on loans originated 7.1.2012 – 6.30.2013
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‣ Loan servicing disruptions tied to proposed sale in 2012 resulted in increased delinquencies
‣ Closed two front end collection centers, hiring freeze in other centers
o At peak, the front end understaffed by 100 collectors (37%)
‣ Back end collections experienced all-time best roll rates
o As a result, a lower percentage of delinquent loans have charged off
‣ Post termination of sale transaction we have taken steps to increase staffing to targeted levels
‣ Delinquency levels have been steadily normalizing through first 6 months of 2013
Portfolio Delinquencies 31-90 Days (1)
Charge-Offs by Year (% Avg. Portfolio)
16%
14%
12%
10%
430
bps
270
bps
8%
6%
4%
2%
0%
(1) Delinquencies are presented on a Sunday-to-Sunday basis, which reflects delinquencies as of the nearest Sunday
to period end. Sunday is used to eliminate any impact of the day of the week on delinquencies since delinquencies
tend to be higher mid-week.
18
We Bring People and Cars Together.
Late Stage Roll and Charge-Off Rates at
All-Time Lows
19
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2008
2009
2010
2011
2012
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Ever01
93.6%
88.6%
88.9%
91.7%
90.2%
Ever15
55.2%
47.9%
55.5%
58.4%
65.5%
Ever30
32.3%
24.9%
31.0%
37.3%
45.3%
Ever60
18.7%
12.2%
15.0%
20.3%
25.0%
EverCO
20.5%
14.8%
14.8%
17.4%
18.6%
20
Fully removed in store
payments in Q4 2010.
DriveTime accepts an average
volume of 220k payments
across all payment channels
per month.
DriveTime ranks as the
number one payee at WalMart through the CheckFree
Pay network.
Currently using text to send
payment reminders to
customers. Adding the
option to make payments
using text in September
2013.
*Other payment methods include Western Union Quick Collect, Trustee Checks, etc.
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•
DriveTime recovery values tend to be less volatile than the market averages
• More of a built in floor on the lower priced used DriveTime vehicle (6 – 8
yrs. old) vs. more volatility in the newer makes/models (1-5 yrs. old)
• DriveTime portfolio turns over every 24 months on average vs. other
prime/near prime lenders whose portfolio’s do not turn over as quickly
22
We Bring People and Cars Together.
23
Proven ability to manage through all credit cycles
Adjusted EBITDA
Revenue
($ Millions)
($ Millions)
$1,292
$1,224
$1,121
$1,026
$946
$8
160
120
$6
80
$4
40
$2
$0
2012
Per Store
0
LTM
6/30/13
2008
2009
100
0
0
2008
2009
2010
Vehicles
2011
Per Store
2012
LTM
6/30/13
$40
$20
$0
2008
$254
$432
$48
$499
200
$60
($ Millions)
$516
$665
$198
300
$617
$80
$656
$62
$468
63,011
59,930
56,109
52,498
49,500
400
55,415
20,000
500
$753
$139
600
60,000
775
675
575
475
375
275
175
75
-25
$293
$53
700
($ Millions)
$100
$250
650
$266
629
659
$1
593
648
LTM 6/30/13
Long Term Capital
Vehicles Sold
648
2012
$198
2011
$458$89
2010
$198
2009
Revenue
40,000
2011
$0
2008
80,000
2010
$149
$10
$1,059
$300
200
$14
$12
$900
$600
$16
$160
$13.1
$180
$12.0
$13.5
$198
$11.3
$12.7
$160
$1,200
$12.7
$105
$1,500
$419
$71
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2008
2009
2009
2010
2011
2012
2010
2011
2012
Equity
Long Term Debt
6/30/2012
LTM 6/30/13
*$50M add-on to Sr. Notes in May, 2013
24
Closed dealerships in 2008 & 2009 in response to reduced access to funding
Originations
Dealerships (1)
($ Millions)
18.6%
18.7%
0
2008
2009
2010
2011
Avg Dealerships
2012
$1,200
$800
10.0%
$600
5.0%
$400
0.0%
$200
LTM
6/30/13
$10.1
$1,000
15.0%
97
91
88
81
79
$8.4
$8.7
$9.2
$9.4
8
$0
2008
2009
2010
2011
2012
LTM 6/30/13
Per Store
Cost of Funds
($ Millions)
$2,500
$1,500
$1,300
9.2%
8.4%
10.0%
6.6%
$1,500
$100
2009
$1,100
2008
$1,141
$500
$300
$1,048
$1,000
$1,153
$1,635
$1,495
$1,408
$1,340
$1,375
$1,100
$1,827
$2,000
12.0%
10.6%
8.0%
5.7%
5.3%
$1,396
$1,700
-$100
6
4
Op Exp % Revenue
($ Millions)
$500
7
5
Finance Receivables
$700
11
10
9
Originations
$900
$9.9
$1,263
50
94
100
20.0%
$957
18.7%
$917
18.4%
$829
19.2%
$747
18.0%
$686
150
$789
25.0%
6.0%
$0
2008
2009
2010
2011
2012
6/30/2013
4.0%
2.0%
0.0%
2010
Amt Borrowed
2011
2012
LTM 6/30/13
Wt. Avg. COF
Operating Expenses exclude store closure costs (2008 & 2009), legal settlements (2009),
CFPB & SCUSA deal costs (2012), and non cash compensation expense (all years).
(1)
25
Type
Size/Amount
Total Cash & Availability:
Debt Balance
Maturity
$219M
Securitizations Original Debt:
2011-1
2011-2
2011-3
2012-1
2012-2
2013-1
Total
(a)
$214M
$247M
$247M
$235M
$247M
$237M
$1,427M
$33M
$49M
$80M
$113M
$148M
$202M
$625M
Oct-13
Apr-14
Oct-14
Jun-15
Oct-15
Jul-16
(b)
(b)
(b)
(b)
(b)
(b)
Wells Term Facility
$350M
$266M
Nov-16
(b)
Deutsche
Wells
RBS
Total
$150M
$150M
$125M
$425M
$56M
$50M
$42M
$148M
Dec-14
Dec-13
Mar-14
Santander
$100M
$100M
Dec-19
Wells (47.5%)/Santander
(40.4%)/Manheim (12.1%)
$130M
$101M
Nov-14
Public Registered Debt
$250M
$250M
Jun-17
Term Financing:
Warehouse Facilities:
Residual Facility:
Inventory Facility:
(c)
Senior Secured Notes:
(a) - consists of $23M unrestricted cash, $196M availability under our credit facilities
(b) - expected final maturity for securitization and term funding transactions
(c) - $10M seasonal increase (Nov. - Jan.) takes facility to $140M
26
27
We Bring People and Cars Together.
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


Issued 46 securitizations dating back to 1996
◦ $5.8B in bonds
◦ $7.8B in contract principal
Six currently active securitizations
◦ Current debt outstanding $625M ($1.4B at issuance)
◦ Securitizations are rated by S&P and DBRS
 Added Kroll Bond Rating Agency in 2013
Serviced by DT Acceptance Corporation (DT Credit Company)
◦ Loan servicing centers in Mesa, Arizona & Dallas, Texas
◦ Wells Fargo is back-up servicer
All contract receivables originated by DriveTime dealerships
◦ All company owned
◦ No receivables purchased from third parties
28
28
Total Debt Issued
Duration Weighted Coupon
Pool Cutoff Date
Close Date
Original Pool Count
Original Principal Balance
Original Pool Balance
Avg. Original Contract Balance
Avg. Contract Balance @ Close
Avg. Payment
Weighted Avg. APR
Weighted Avg. Original Term
Weighted Avg. Remaining Term
Weighted Avg. Seasoning
Weighted Avg. LTV
Weighted Avg. Non-Zero CB Score
Avg. Age of Vehicle
Avg. Mileage
Avg. Base Cost of Car
Avg. Total Cost of Car
Grade Mix at Close (% principal)
A/B
C & Below
Grade Mix 6/30/13 or Clean-Up Call
A/B
C & Below
2007A
$320M
5.56%
05/31/07
06/15/07
30,218
$435M
$418M
$14,396
$13,823
$418
20.3%
52
50
3
1.75
511.6
2003
58,530
$7,144
$8,343
2009-1
$193M
5.30%
11/01/09
12/17/09
27,259
$381M
$290M
$13,986
$10,645
$410
20.7%
53
41
12
1.81
521.4
2004
64,618
$6,823
$8,022
2010-1
$228M
3.60%
08/31/10
09/23/10
27,031
$381M
$300M
$14,077
$11,099
$413
21.1%
54
41
13
1.76
516.1
2004
66,064
$6,809
$8,180
2011-1
$214M
3.00%
01/31/11
02/10/11
26,117
$371M
$280M
$14,220
$10,721
$413
21.3%
55
42
12
1.73
518.8
2005
67,347
$7,067
$8,434
2011-2
$247M
2.88%
04/30/11
05/31/11
26,564
$373M
$300M
$14,045
$11,293
$409
21.2%
54
44
10
1.72
517.8
2005
69,813
$6,846
$8,328
2011-3
$247M
3.92%
10/31/11
11/10/11
25,821
$369M
$300M
$14,295
$11,618
$407
20.7%
56
45
11
1.66
524.0
2005
75,303
$7,065
$8,770
2012-1
$235M
3.50%
03/31/12
04/24/12
21,902
$326M
$300M
$14,875
$13,698
$413
20.6%
57
51
6
1.60
526.9
2005
80,279
$7,459
$9,391
2012-2
$247M
2.81%
06/30/12
07/26/12
20,895
$319M
$300M
$15,274
$14,358
$419
20.4%
58
53
5
1.59
529.5
2005
82,500
$7,619
$9,709
2013-1
$237M
2.66%
05/31/13
06/19/13
19,723
$315M
$300M
$15,953
$15,210
$415
19.9%
63
58
5
1.60
534.0
2006
82,772
$8,103
$10,160
53.8%
46.2%
66.5%
33.5%
64.4%
35.6%
63.5%
36.5%
56.8%
43.2%
63.0%
37.0%
63.4%
36.6%
63.3%
36.7%
65.0%
35.0%
68.9%
31.1%
80.3%
19.7%
63.4%
36.6%
63.1%
36.9%
55.1%
44.9%
62.7%
37.3%
63.8%
36.2%
63.8%
36.2%
64.9%
35.1%
29
Delinquency at Close
Avg Days Delinquent
% Delinquent - Current
% Delinquent - 1-30
% Delinquent - 31+
Delinquency 6/30/13 or Clean-Up Call
Avg Days Delinquent
% Delinquent - Current
% Delinquent - 0-10
% Delinquent - 11-20
% Delinquent - 21-30
% Delinquent - 1-30
% Delinquent - 31+
Initial Capital Structure
Class A's
Class B
Class C
Class D
Initial Overcollateralization
Reserve Account as a % of Original Pool
Current Capital Structure (6/30/13)
Class A 's
Class B
Class C
Class D
Current Overcollateralization
Target Overcollateralization
Reserve Account as a % of Remaining
Life to Date Net Charge-Offs
Remaining Pool Factor
2007A
2009-1
2010-1
2011-1
2011-2
2011-3
2012-1
2012-2
2013-1
-5.0
83.9%
14.6%
1.5%
-6.7
84.4%
15.5%
0.1%
-4.2
70.3%
29.7%
0.0%
-4.5
69.3%
30.7%
0.0%
-5.1
79.6%
20.4%
0.0%
-3.7
67.8%
32.2%
0.0%
-6.6
86.0%
14.0%
0.0%
-7.0
83.3%
16.7%
0.0%
-8.9
88.7%
11.3%
0.0%
6.0
54.5%
14.5%
12.5%
4.9%
31.9%
13.6%
11.1
45.0%
17.2%
7.8%
8.9%
34.0%
20.6%
8.7
46.1%
18.8%
6.9%
8.7%
34.3%
19.6%
7.4
48.4%
18.2%
6.7%
8.0%
32.9%
18.7%
7.5
48.4%
18.4%
6.5%
8.3%
33.2%
18.3%
5.8
51.0%
18.3%
6.7%
7.9%
32.9%
16.0%
6.1
50.9%
18.1%
7.1%
8.0%
33.2%
15.8%
5.5
51.9%
18.6%
6.5%
7.9%
33.0%
15.0%
-6.3
73.0%
17.2%
5.4%
3.6%
26.2%
0.7%
72.0%
NA
NA
NA
28.0%
2.5%
42.8%
5.7%
15.7%
Retained
35.8%
1.0%
42.5%
7.8%
12.3%
13.5%
24.0%
1.5%
42.5%
8.5%
15.2%
10.3%
23.5%
1.5%
49.6%
8.1%
6.5%
18.1%
17.7%
1.5%
49.6%
8.1%
6.5%
18.1%
17.7%
1.5%
40.4%
10.5%
6.7%
20.9%
21.7%
1.5%
47.8%
8.5%
6.7%
19.4%
17.6%
1.5%
37.2%
11.8%
12.0%
18.0%
21.0%
1.5%
NA
NA
NA
NA
NA
NA
NA
30.9%
NA
NA
NA
NA
NA
NA
NA
NA
16.9%
NA
NA
NA
NA
NA
NA
NA
NA
19.0%
NA
0.0%
0.0%
8.1%
59.1%
32.8%
32.8%
12.8%
18.3%
17.4%
0.0%
0.0%
0.0%
77.5%
22.5%
22.5%
9.1%
21.6%
21.2%
0.0%
5.7%
19.0%
52.9%
22.5%
22.5%
5.6%
19.1%
34.2%
0.0%
19.8%
13.1%
41.2%
26.0%
26.0%
4.0%
18.3%
50.6%
23.1%
13.4%
10.5%
30.6%
22.5%
22.5%
3.0%
14.6%
63.5%
28.6%
13.1%
13.3%
20.0%
25.0%
25.0%
2.2%
0.4%
90.0%
30
Cumulative Net Losses by Securitization
31
32
We Bring People and Cars Together.

On March 4, 2013, Credit Acceptance Corporation (“CACC”) filed a patent infringement complaint against DTAG,
DTAC and GO in federal court in California
– CACC also filed a similar infringement lawsuit against WestLake simultaneously
– CACC alleges infringement of its U.S. Patent No. 6,950,897, entitled “System and Method for Providing
Financing”
– The complaint seeks injunctive relief as well as awards of damages and attorneys' fees
– The complaint is not specific about what DriveTime is doing that infringes their patent
– At this time, DriveTime does not believe it is infringing upon CACC’s patent and will vigorously defend against
these claims
– DriveTime successfully moved the case to the Federal Court in Arizona

On April 12, 2012, the Consumer Financial Protection Bureau (the “CFPB”) delivered a Civil Investigative Demand
to DTAG requesting that DTAG produce certain documents and information and answer questions relating to
certain components of the business of DTAG and its affiliates
– The CFPB has not alleged a violation by DTAG of any law and DTAG is cooperating with the CFPB's requests for
information
– DriveTime has provided the documents and information initially requested by the CFPB
– DriveTime has also received limited requests to clarify and supplement certain information provided to the
CFPB, and make three employees available for interviews
- DriveTime has provided the additional information within the agreed upon timeline, and the interviews
have been conducted
We Bring People and Cars Together.
33
These materials were prepared solely for the person to whom it is
transmitted, is provided for informational and discussion purposes only,
and is not, and may not be relied on in any manner as legal, tax or
investment advice or as an offer to sell or a solicitation of an offer to buy
securities. The materials are the sole property of DriveTime. We do not
guarantee or represent the accuracy of the information provided. These
materials may include forecasts or other “forward looking statements.”
Statements that are not based on current or historical fact, including
statements about DriveTime’s beliefs or expectations are forward looking
statements. Any such forward looking statements speak only as of the
date they are made and reflect the current projections, expectations or
beliefs of DriveTime based on information currently available to the
Company. Forward looking statements involve inherent risk and
uncertainties and future forecasts, events and actual results may be
materially different because of risks, factors, changes and/or uncertainties,
some of which we cannot predict or quantify. We have no obligation to
update or revise these materials. In accepting these materials, you have
agreed that they contain trade secrets and/or highly confidential
information and that you will hold the information contained or referred to
in confidence. Except as may be required by law, you cannot distribute
these materials or the information in these materials to any other person
without our written consent other than within your organization on a need
to know basis and to your professional advisors.
We Bring People and Cars Together.
34

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